All Forum Posts by: Ron Czecholinski

Thanks for the input. The seller does know my intention and the joint venture idea might work well. I don't think a double simultaneous close will work. The joint venture agreement might be perfect - I was thinking of some kind of alternative agreement with the buyer or seller. Any idea of where to find a template for something like that?

I have a property under contract, and an assignment agreement with a end buyer. The buyer is financing and the bank wants the offer to be in his name. Do you all know of a way to handle the agreement where I could get the offer put in his name and still secure my assignment fee?

Do you all know how to handle the assignment when the bank wants the contract changed to be in the name of the end buyer?

I'm building small houses (not tiny), 800 - 1500 sq. ft. I definitely understand the vision and would be interested in a project that included tiny. Asheville is very progressive and is considering ways to make tiny houses more doable. They already allow the size as long as it is built to code and on a foundation. 

What would you like to know Sarah? We have a great core group of people and things are moving forward steadily. I don't post much but you can find more info on my website.

That is what I am thinking Brian. Based on my research, it seems reasonable that if my intention is investment with the lots and lease / purchase houses, those would be taxed as capital gains. If I am building a house under contract, it would be ordinary income. The line looks fuzzy to me and I am hoping for input from someone that has a good handle on it.

Does anyone here have a good handle on tax strategy related to development. If I purchase the land, put in the infrastructure, and hold for more than a year before selling lots, can profit from lot sales be claimed as capital gains? Also, realizing that building homes under contract is taxed as ordinary income, is a lease / purchase option that is held more than a year before selling taxed as capital gains?

I got my project off the ground but it is more of a small house pocket neighborhood with 11 houses planned between 800 and 1500 sq. ft. The second house is under construction, the third went to permitting today and the fourth is in the planning stage. The project is rated high in green building certifications and I am also focused on the relational aspects of an "intentional neighborhood".

There are many issues to consider for smaller houses. As mentioned, building and zoning codes are difficult to get around, high density is required to make financial sense and, practically, I think interest is more around peoples desire to simplify their life than to live in a very small space.

That said, I would like to try a project with houses in the 400 to 700 range, and maybe a few tiny's included. I am in Asheville, NC with a fairly progressive and reasonable planning department. They put together a "cottage development" ordinance 5 or 6 years ago to encourage more sustainable development.

Thanks Hattie. I heard that land trusts aren't necessarily exempt from the due on sale clause but will look into it more. My current attorney isn't up on creative real estate solutions.

Does anyone know if it is possible to claim equity without changing the deed?

I am partnering with someone to convert a property into a rental. I have a personal mortgage on the property and have had input to keep the deed in my name to avoid potentially activating the due on sale clause. I would appreciate any input on how to best clarify shared equity. Does anyone have experience with structuring an LLC with property equity claims without transferring the deed into the LLC? Are there other options?