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Would You Partner or Take $300k Real Estate?

Home Real Estate Investing Would You Partner or Take $300k Real Estate?

  • Avatar Tim 
    Participant
    Status: Accountant
    Posts: 2123
    Joined: 09/18/2018

    No zoning. Simply (haha) permits.
    From a developer viewpoint the only advantage is financing the land. That’s about all he/she would be willing to give away. Apartments, townhouse or even commercial (size constraints). The advantage/problem is the area is heavily bi-lingual and gentrifying. Different targets.
    My take is becoming a developer is pretty steep learning curve. Doable but a lot of developers fail.
    Thanks to all for noodling this. Sticking a sign out sounds a lot easier. We get postcards every week.
    Sale is option one.

    #214057 Reply
    Liked by Tim
    jfoxcpacfp jfoxcpacfp 
    Moderator
    Status: Financial Advisor, Accountant, Small Business Owner
    Posts: 7326
    Joined: 01/09/2016

    You lost me here.
    “And any profits would be subject to FICA taxes. “
    Thanks.

    Click to expand…

    Profits from being actively involved in the business of property development as a real estate dealer are considered earned income.

    Johanna Fox Turner, CPA, CFP, Fox Wealth Mgmt & Fox CPAs ~ 270-247-0555
    https://fox-cpas.com/for-doctors-only/

    #214065 Reply
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    Avatar adventure 
    Participant
    Status: Spouse
    Posts: 1117
    Joined: 10/24/2016
    Would you attempt to partner with a developer/builder and what terms?

    Click to expand…

    Nope, too much risk because (I’m assuming) you know little to nothing about development. No possible scenario. You likely have better things to learn than how to be a devleoper, and given you’ll done develop once, seems like a lousy return on that investment of time to try/hope and get a good deal.

     

    Would you simply sell it and be done?

    Click to expand…

    Yes.

    #214072 Reply
    Liked by Tim

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