NEWHunter
Well-known member
Make sure if you sell, you 1031 it in to the new property. Do not pay the tax on it! Good luck.
Anyone ever bought a large piece of land and split it up?
- Thread starter npaden
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grizzly_
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1031 works great, but you need to do it when you sell the first property as the funds will go to the 1031 company, not to you.
If you do it wrong, you can't unring that bell, so talk to a good 1031 company BEFORE you start the process.
I've subdivided several pieces. One 130 lot subdivision took 4.5 years to get permitted and another two lot subdivision took seven years and a lawsuit to the State Court of Appeals.
Be prepared to fight, because it CAN come to that.
dan.kirkpatrick
Well-known member
dont let china buy it.
npaden
Well-known member
Actually just talked to the realtor that is wanting to buy my property today and they went up $500 per acre on their offer.
I tried to talk them into buying the south 80 acres and me keeping the north 80 acres that have the hills, pond, creek, etc since they only want the flatter part but they said they wanted it all and went up the $500 per acre.
I’ve got the 1031 stuff figured out. You can actually buy the replacement property before the sale but that puts a lot of pressure on getting the sale completed timely. The intermediary generally charges more for a reverse 1031 also.
There is another place that I’ve looked at that might be a possibility for splitting but I’m leaning toward just playing it safe and buying something more in my price range.
I tried to talk them into buying the south 80 acres and me keeping the north 80 acres that have the hills, pond, creek, etc since they only want the flatter part but they said they wanted it all and went up the $500 per acre.
I’ve got the 1031 stuff figured out. You can actually buy the replacement property before the sale but that puts a lot of pressure on getting the sale completed timely. The intermediary generally charges more for a reverse 1031 also.
There is another place that I’ve looked at that might be a possibility for splitting but I’m leaning toward just playing it safe and buying something more in my price range.
I just hate to see large parcels split up. That kind of thing has ruined a lot of the farms around here.
Have a place next door that was originally an 80 acre farm. Over the course of my lifetime it has been split up multiple times, selling parcels to family, divorces and changed circumstances forcing sales to non family, etc. What once had one farm house on it now has four houses on it, so a lot more people, dogs, driveways, wells, etc. and general disturbance on what was once a pretty peaceful single farm property.
If there is any way you could generate some income off the place and keep it intact, I would try to do so.
Could you lease hunting rights or cash rent for grazing or AG production on some of it?
Have a place next door that was originally an 80 acre farm. Over the course of my lifetime it has been split up multiple times, selling parcels to family, divorces and changed circumstances forcing sales to non family, etc. What once had one farm house on it now has four houses on it, so a lot more people, dogs, driveways, wells, etc. and general disturbance on what was once a pretty peaceful single farm property.
If there is any way you could generate some income off the place and keep it intact, I would try to do so.
Could you lease hunting rights or cash rent for grazing or AG production on some of it?
npaden
Well-known member
A few have some agriculture or grazing options but those generally aren’t enough to even make an interest payment.
I’m not looking at splitting something into 10 acre tracts or anything like that. I’m talking about splitting something into 300+ sized pieces. Still splitting it but not making ranchettes out of it.
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