Hi everyone,I’m exploring a unique development opportunity involving my property and neighboring parcels, and I’d love some advice on how to move forward.My neighbor is currently in the process of building 54 townhomes on the property directly in front of mine.

It can just be held in a savings account, no special account needed, but I always keep mine in an account separate from anything else.

@Hansen TongI recommend finding an accountant that specializes in real estate taxation.

These structures are significantly more complicated than a typical 1031 Exchange structure and there are inherent risks involved in the transaction, some of which are discussed below.

You’re going to deduct your tax prep, your internet, your cellphone, your computer, your tablet, your mileage if you’re involved in the properties, your home office, etc etc.

@Vidit MainiYou should have a consultation with a tax accountant to learn about tax strategies. 

It’s a balancing act of controlling costs while also controlling risk of personal injury to your tenants and property visitors as well as maintaining goodwill with all involved at the properties. 

I wonder why he cancelled his account?

Mostly people with minimal RE experience are adding a single ADU and they often make that choice based on cash flow without taking into account the negative equity position.  

Perhaps the most consequential transaction involving creative financing solutions was a recent closing for a 20+ unit apartment complex in downtown Eugene.