Self Storage- beyond. Silver Lake Subdivision

[Henry Clark]

We sold our largest self storage location. See separate post.  Wanting to reinvest back into the market so we do t lose out to inflation. Part of the funds we are closing on a five acre future Storage location.  Will wait a year for building costs to go down

We also just won at auction 75 acres we will do a housing subdivision on.  In another posting I showed our Journeys End subdivision we did.  Sold out in one year. 

Don’t expect this location to selL that quick with interest rates up. 

75 acres of farm ground.  50 acres tillable.  Rest is a big ditch with a running stream of water and very big cottonwood trees. 

Auction process.  We are currently on a 10 day tour in Italy. Rome, Venices. Assisi. Orvieto  Cinque terre. 

Looked the property with our realtor and decided on a top price of $9,000. Bid on $500 increments to $8,000 and then in $100 increments. He called us at dinner in Rome and let us know we got the property

Went down to the last $100 bid to $9,000 to win. 

Next steps. 
A.  Meet with county road group and determine road entrance accesses.  Key issues, we are required a minimum of 2 acre sites and 600 feet of road view each way. 
B.  Pull out our Journeys end subdivision covenants and update them.  Since this is near Silver city.  Might call it Silver lake since we will build 2 or 3 large ponds on it.  Maybe 15 acres in total. 
C.  Determine if we will sell it all under a subdivision whose process took us about 9 months last time.  Or just sell individual lots not in a subdivision.  Which we just need to survey off and record. 
D.  Farmed land. We don’t plan to sell anything for a year so we only pay capital gain and not ordinary income tax.  38%?? Versus 20% tax. 
E.  Farm rental. Hopefully keep the same farmer. Currently $250 per acres on 55 acres.  They have control until March 2023. Since I want access now to do some dirt work and also want them to farm a certain way might offer them the ground for 2023 for zero$.  Plant 100% soybeans next year so ground is smooth and easy to plant grass seed into.  Cornstalks would require me to disc them in. 
F.  Depending on driveway access break the ground up and establish lots. 

Will keep updates along the way.