All Forum Posts by: Justin Boyd

Thanks for the reply!

Yes, those numbers are accurate. Pre-covid it was around 1M visitors for a 3 day weekend festival. It’s a celebration for the fermenting of the grapes in the region.

Great notes about development. I’m hoping to not build until I acquire more revenue from profits of the plot via flea market, parking, boat parking, or something else that requires minimal investment. Once I build some profit I plan on putting a structure down. If that would take too long or I can’t find a solution that would be profitable I’m considering leasing the land. But I’m unfamiliar with commercial land leasing.

Thanks for the reply everyone! I didn't end up pursuing the opportunity. The birth of my daughter was more important :). I do have a new opportunity that I have under contract with a plot of raw land in the same area. If anyone familiar with commercial real estate experience would like to chime in I'd appreciate it!
https://www.biggerpockets.com/forums/32/topics/1221154-raw-l...

I'd like to get some ideas about the current landscape of commercial real estate. I'm coming from having some success with residential real estate. Has anyone tried to operate a business on a plot of land with minimal development until it builds revenue for a structure (flea-market, private park, outdoor event venue, etc)? If it would be more beneficial to have a structure, what are some cost-effective solutions?

I plan to buy the half-acre plot from a land bank in a small town in northeast Ohio. The city has a few popular vineyards and every year a festival is held where roughly a quarter million visitors attend. The land is at the edge of where the festival ends and could be used seasonally for parking/vendor renting for that festival.

Question: 

When buying an old building (constructed in 1900 with an effective build year of 1960), what should I look out for and ask about? The paint is chipped so I'm assuming there's lead paint and there will likely be asbestos and lead pipes for plumbing. What kind of funding can I acquire to develop this property?

Story:

While looking into buying some land I stumbled upon a commercial building that was the first bank in the city. I've never invested in commercial real estate but the price they want to sell for seems very attractive. The owners are retired and looking to sell the property. The building is small (1200 sq ft) but it has a charm with the vaults that I think could be rehabbed into a thriving business. The bottom floor is approved for commercial business and has the main vault, some marble flooring, and a back room office and restroom. The upstairs is approved for short-term and long-term rentals and has a kitchen, bathroom, and a Victorian room that could be a bedroom.

Notes:
-There are three vaults, one on each floor. None of them are functioning.

-The building is not certified as historic and can be rehabbed freely.

I discovered a blog that mentioned the difference between brokering and flipping. From my understanding brokering is the act of promoting and selling something I don't own and getting a portion of the profit. I believe this would be a brokered deal and would require a broker's license.

Land flipping would require that I purchase the land and then find a buyer.

My question is this. Am I able to promote/market land that I have under contract?

For reference, my confusion stems from a blog post about buying land from the county. In the example, the county held a 30-day contract to decide if I wanted to purchase the land. The flipping tactic involved finding a buyer in the 30 days, purchasing the land, and then selling it to the buyer. Assuming you find a buyer you would move forward with the purchase of the land and then sell it to the buyer. Otherwise, you get a full refund of your earnest money from the county. This situation was described as a brokered deal and would require a license.

@Annie Smith Congrats! Have you primarily focused on land in your area or have you looked out of state?

Would I be exempt from paying up to $250,000 in capital gains tax if I sold my duplex? When I purchased the property I lived in it for 2 years (within the past 5 years) while renting out the other half.

I’m seeing some articles saying I would be fully exempt for up to $250,000. Some other articles say that I would owe the full capital gains on the investment side (half the unit so it would be half the capital gains normal tax).

My biggest challenge with this is that I have a duplex that is fully occupied. It's not clear to me how clean the house needs to be before the inspection. I personally wouldn't trust my tenants to do the cleaning for an inspection I'm paying for. It would also feel like an invasion of their privacy if I'm cleaning every room in their home.