All Forum Posts by: David Starr

@Dave Foster, sorry about the confusion between 1033 and 1031.  Looking back at my original post the first couple of sentences are missing for some reason.   I noted the buyout was due to eminent domain.  

""How passive an investment do you want? Since you have time if you go down the DST

route, diversify (ie instead of 1 * $1M buy, do 10 * $100K buys) and

then stagger them so they don't all renew at the same time."..from Steve Morris

Thanks Steve.  Yes, diversification, in my opinion, is normally a good plan.  I'm an old farm boy and the "all your eggs in one basket" and "money is like fertilizer...works best when you spread it around" are life lessons I've seen up close...lol

Thanks Dave and Paul @ Paul Moore for your weighing in on this.  

To be clear I am looking at a 1033 not a 1031 but I assume they are similar.  I understand a 1033 gives me from 2-3 years (eminent domain transaction) to comply and hopefully identify a few other options.

I did not live on the premises nor occupy any of the units.

So as personal property the mobile homes will not be part of the 1033 calculation? 

I'm interested in other/more strategies if you have them. The DST that both Paul and you mentioned definitely sound interesting.

David Starr 

Property was a (1) small mobile home park...land and trailers, (1) house and (1) mobile or RV ready rental  lot.  Of course I would like to keep some of the proceeds but...looks like I need to reinvest the full amount paid for the properties in to "like" property.  I think I understand that all of the funds do not have to go into a single investment...but I am not 100% sure of that.

Thoughts please as to what kind of legal structure would work best for estate planning purposes, cash flow, etc.? 

Thank you Rachel, 

My tax guy (CPA) has a pretty good paper trail of improvements I've made over the years so that will help.  Park is small enough to be under the radar of most buyers and Ive never had it "for sale", yet it is big enough to provide a good return (for me) on my investment of time and money.

Thank you Jay.  I would imagine you daughter learned a lot when interacting with business and land owners.

Thank you Will.  

I'm just trying to determine what is to be expected as I run the gauntlet of eminent domain.  A small property like mine is problematic for most appraisers, even those with MHP experience.  Comps usually are not ready available.

Had a very good friend, now deceased, who was an appraiser.  He always said "everyone is an appraiser...at the end of the day something is worth what someone is willing to give for it".  I've found that to be pretty truthful.

Of course buyers, sellers and bankers have to have numbers to crunch and the numbers usually won't lie.  

However,  the right situation and circumstances can turn good numbers bad or bad numbers good.

Good morning Tom,

Have not had an appraisal yet though it is on the list.

I'm located in Tulsa, OK.  so that might be a stretch to relocate  them to your area.

Thanks for your input.

David

Examining highway expansion plans it appears the highway dept will need most or all of my small MHP (15) lots, all with park owned homes.  Park and homes are  free and clear.

Reading online and talking with my CPA I understand when an offer is made the first one will be low ball.  Ok..I get that.   I also think they (highway dept) will only be interested in the land and not the mobiles. 

The park is an income producing asset which I did not plan to sell and would eventually turn over to my children.  For the most part my wife and I are living off of the income.  I'm also at the age that I prefer to not start another park...nor have 15 mobiles for sale.

What is best way to arrive at a fair value..and get it?  

There is a lot of experience on this site and I would appreciate ideas, thoughts, experiences, strategies...etc.

Thanking you in advance.

$110K for the land then how much are you allocating for mobiles?  Where are you located?  Can property support more units and how is it currently zoned?  What are average rents in your area for what you will be offering?  Have you considered lease purchase of the mobiles and retain lots, or lease purchase of mobiles with land included?  Tenant buyers are (IMHO) better than tenant renters, plus you step away from maintenance.

Lots to consider.  Good luck.