All Forum Posts by: Andrew Graham

@Pranshu Tewari My sincere apologies. I just saw your question. May no longer be relevant but hope this is helpful. The coastal Bermuda was started by the previous owner. He used a neighbor to cut and sell square bales. I found another neighbor with the cutting equipment (23 acres is not much in that world) to cut round bales. Basically, we have an annually auto renewing agreement. Find someone with the equipment or those advertising hay for sale.

@Sean Ratterree Thanks for outlining the development option. Before Tesla I hired a land architect to examine the highest and best use question. since Fedex is across the road and utilities were not in place he laid out a plan for mixed use commercial buildings with either an RV storage facility on the end of the property where there is a power line easement. More recently, the broker believes and is fielding interest for multifamily since there is a 1.5 acre tank on the property and the topology/access is conducive. Other than remodeling houses I have no development experience so my question there would be the timeframe or optimum maturity for liquidation of an equity position.

@Account Closed Being a father is such a blessing. Enjoy the early years. They go so fast... To your questions, we would have the liquidity to support her needs at a point in future when I exit my current company in 5-6 years. However, she is living with us now and we are looking for her to be set up on a next stable situation sooner than later. So the optimization is really around stability for her more than waiting for the value to apex for the land.

@Dave Foster Your thinking about timing was where I ended up and looking to confirm here. In terms of my confidence and involvement, I've been a farmer, a mechanic, a salesman, a start up entrepreneur and a multi company CEO. I like to fix things that are broken and grow them - but I am not a finance guy or an accountant. I do know that I don't want to keep running at the pace I am currently and would like to be more involved with helping others with our daughter's situation. There are simply no good answers for those functional enough to contribute but not enough to provide for themselves.

Thanks so much everyone. Communities like this continue to amaze me speaking as one who has benefitted and contributed in other domains.

Andy

Hi Rick, thanks for your helpful response. Yes, we are working with an SNT attorney currently. The property has a lease for cutting coastal Bermuda hay for the exemption but otherwise is not generating any substantial cash flow. The property is not in the flood plain. On a clear day, you can see all the way to Elgin from the highest point.

Thanks for following. We are setting up a special needs trust and governance of same apart from how the real estate is managed.

My wife and I own 25 Ag exempt, debt free acres on a hard corner of SH130 a few miles up the road from where Tesla bought a new manufacturing site. The site is in the City of Austin ETJ with utilities not adjacent, but accessible. The site borders but is not in the flight path of a jet capable airport.

My wife and I are just turning 60 and have not been real estate investors having once lived on this land. However, we've literally had brokers come knocking on our door unsolicited to buy this land. It is currently listed with a broker.

We also have an adult special needs daughter in her early 30's for whom we need to provide for a permanent living situation.

My questions are:

1. Better to sell now on the anticipation of future development in the area given our age or later?

2. Sell and do a 1031 exchange for an apartment building or similar multifamily property both to provide for our daughter and generate an ongoing return? The tax basis is zero.

3. 1031 for another real estate asset class that becomes the basis for a retirement portfolio on a more accelerated basis.

I realize that there are a number of personal considerations nested in these questions, but in broad terms, we want to yield the highest value of the property to both provide for our daughter and to defray dependence on our equity investments as my retirement won't be playing golf but shifting from being a full time CEO of a mid sized growth company to becoming a more active investor in real properties and other pursuits (rebuilding motorcycles and remodeling houses).

I would appreciate the wisdom of the forum as by my lurking here it's clear that I am a rookie in this arena. With this being my first post, my apologies if my request breaches any forum etiquette or protocol.

Thanks in advance,

Andy