All Forum Posts by: Ryan Mordahl

Hey Todd,

Will this be an asphalt road?

What will be the road width from curb face to curb face?

Will you be required to provide curb, gutter, sidewalk?

Do you also need to pull sewer and water for that entire mile distance to connect to your project?

One way you can determine what the city will require is to find boilerplate conditions of approval that the city imposes on everyone that builds a similar road. They are usually on-line with the city planning commission meeting minutes.  The conditions of approval from the engineering department will most likely include some detail on what you will be required to provide.

I can give you a ballpark price, assuming the grade is relatively flat, but need to know this info first.

Thanks guys.

Like I said, we are not concerned with capital gains tax and so we aren't seeking the shelter that the 1031 provides.

I just want to ensure that the person that has proposed this arrangement is not wasting our time. We may delay the certificate of occupancy so that this trade can happen.

Steve, you are correct, the buyer of the home plans to rent it out for years to come and use the 1031 for tax shelter.

Thanks again!

Hello BiggerPockets!

Here is general background to my question:

My company is building 5 new single-family homes in California with the intention to sell them. An owner of a large parcel of vacant land contacted me and said that we could exchange 1 of our houses for her vacant land and 100k. She said that the exchange would be considered 'like-kind' as long as we can do the trade before our home receives the certificate of occupancy from the city. After the exchange takes place, she wants to rent the new house out and we intend to take title to her land and build and sell 3 new sf homes on it. We are not generally concerned with capital gains taxes. To us, the deal yields a higher return as an exchange than it does if we were to buy her vacant land outright and then build 3 homes on it.

Here is my question:

Does this exchange sound possible in terms of the 1031 rules?

Are there normally additional closing costs involved with 1031s? If so,what is a ball-park assumption?

What major issues am I missing?

Any input is appreciated. Thanks to BiggerPockets!

-Ryan