All Forum Posts by: Robert Littke

Thanks Chris, I had left out some details for discretion reasons but I can see now that those details are necessary in order to get sound feedback. That said, your advice seams solid and in line with what I had in mind. I see you're from HS, I have a home off Sunset Lake Rd. Mind if I run the complete scenario by you in a private message?

(I posted this in another section but I think it's better in commercial)
I have a situation where I am looking at a 5 acre parcel of property worth about $250,000 that I would like to develop. The issue is, it is connected to a larger 30 acre piece of property that is in remediation plan with the EPA. If I can get a specific designation for the entire property based on my proposed use, it would be a significant financial benefit (up to $500,000 a year in tax credits) to the current owner. But the designation could take a year to get, and the financial benefit would not come until a year later, but it would far exceed the value of the land. I would also need to rezone the property for my use. It would take significant work on my part to achieve this designation and rezoning.
My question is, this all hinges on my ability to obtain this designation and rezoning as part of my offering. What are my likely options on tying up this property without laying out cash that I can't get back.
Thanks for you help!

I have a situation where I am looking at a 5 acre parcel of property worth about $250,000 that I would like to develop. The issue is, it is connected to a larger 30 acre piece of property that is in remediation plan with the EPA. If I can get a specific designation for the entire property based on my proposed use, it would be a significant financial benefit (up to $500,000 a year in tax credits) to the current owner. But the designation could take a year to get, and the financial benefit would not come until a year later, but it would far exceed the value of the land. I would also need to rezone the property for my use. It would take significant work on my part to achieve this designation and rezoning.
My question is, this all hinges on my ability to obtain this designation and rezoning as part of my offering. What are my likely options on tying up this property without laying out cash that I can't get back.
Thanks for you help!

Can anyone direct me towards someone who can answer some specific questions about land leases, specifically, tax and legal considerations? I have a specific challenge that I want to try and find a solution involving land that has lost value and donation. Thanks

I see I wasn't clear. I say "regs" as a blanket statement because I'm not always clear if the scrutiny of down payment, (amount and source), allocation of rents or option fees, determination of value and length of ownership, etc. comes from the underwriters themselves policies or if it's a trickle down from HUD, FHA etc.

You might want to look into Syndication, Samuel K Freshmen has a great book. I've also looked into Gene Towbridges stuff, which looks comprehensive, but when I talked to him on the phone, I didn't get the impression that he was that interested in it anymore himself. (Maybe he's putting together something new?)

I'm curious what some of our BP experts experiences is with structuring Lease Option, Rent To Own, or other owner financing deals when it comes time for the buyer to get financing. (yes I realize that most of these deals never get that far) My biggest concern is, with all the new banking reg's. Has anyone bumped into issues with a lender when it comes time for the buyer to get financing? If so, what have they been? I realize not enough time has lapsed between some of the new reg's. and refi periods for some have not come due, in this case, do you foresee any issues with it?

I agree with Jon, you need to consult an attorney. That said, I'm not quite clear on something, you said the place was unlivable so either they live their or they don't. If they don't live their then they are trespassing and you should be able to have them arrested. if they do then you need to have to go through the legal process and get a summary enactment.
That's my take anyway, but I'm not a lawyer.

I don't like Zillow, they are an "after the fact provider of public info/documents", that's all I'm going to say.
I used homes.com because that's who Realtor.com says is there biggest competitor and Realtor.com is fed through regional MLS systems, and that information is gathered by agents who are in the homes, taking measurements and running comps to try and sell homes and provide the most accurate info. To be a member of MLS, you have to abide by certain time lines and standards so IMO their info is the most accurate and current.

I just ran a little experiment,
I went to Homes.com and pulled up a neighborhood. Using the figures on the map I totalled up the home values in excel of all the homes in that neighborhood. I threw out the lowest number and the highest number. and came up with an average of $223,821
I then went into MLS and pulled up the neighborhood in and ran a CMA on the entire neighborhood. The average home SOLD in the last year for $220,00 (1.71% less than the number I came up with using Homes.com) And the average current listing price was $216,500 (3.27% Lower than the number I came up with on Homes.com)
Not Bad, Take it for what its worth.