Seeking Advice on Lazy 1031 Exchange and Real Estate Development Strategies

[Kevin Stearns]

Dear BiggerPockets Friends,

Howdy! Hope y'all are doin' well. I'm a country boy at heart, but I also appreciate straightforward advice. I'm reachin out for some insights on a few real estate ventures I'm workin on. Here's a bit about me and what I'm up to:

Background:

• Industrial Property: I've got an industrial property with about $1.5 million in equity.
• Real Estate Experience: I've been involved in multifamily properties, developed some industrial spots, and managed short-term rentals.

Current Projects:

1. 1031 Exchange Plans:
   • Objective: Considerin a 1031 exchange from my industrial property into assets like self-storage, multifamily units, Section 8 housing, or mobile home parks.
   • Request: Given the current market and lookin' for steady returns, which asset class would y'all recommend?
2. Land Subdivision:
   • Property: Got 135 acres under contract that I'm plannin to subdivide.
   • Objective: Seekin ways to structure this deal to minimize capital gains taxes.
   • Request: Any effective strategies y'all have used in similar situations?
3. Short-Term Rental Development:
   • Property: Purchased a riverside house with $125,000 in equity.
   • Plan: Plannin to expand the septic system and convert it into an 8-unit short-term rental.
   • Request: What financing options would y'all suggest to fund these improvements?
4. Cabin Park Development:
   • Property: Own 24 acres on a river with two cabins, all paid off and valued at about $1.5 million.
   • Objective: Aimin to develop this into a cabin park.
   • Request: Can y'all recommend any designers or firms that offer quality services at reasonable rates?
5. Business Sale and Reinvestment:
   • Scenario: Plannin to sell a business and expectin to net around $3 million.
   • Objective: Want to reinvest the entire amount into real estate to defer capital gains taxes.
   • Request: What strategies or investment vehicles would y'all recommend for this?

Additional Considerations:

• Professional Development: My wife's workin on obtainin real estate professional status.
• Education: I'm considerin pursuing the Certified Commercial Investment Member (CCIM) designation to enhance my knowledge and network in commercial real estate.
  • Request: Any thoughts on the CCIM designation or other groups that could support my growth?

Looking for Experts:

• Deferred Sales Trust: I'm seekin a real estate strategist and attorney familiar with Deferred Sales Trusts to help reinvest the proceeds from my business sale into real estate.
• Cost Segregation: Also, need recommendations for professionals in cost segregation studies, especially for cabins and industrial properties.

I truly appreciate any wisdom, experiences, or resources y'all can share. Your insights will be a big help as I navigate these ventures.

Thanks a bunch in advance!