land trading

[dieselbeef]

supposein you lived in fl and wanted to live in ga.

anyone ever heard of a way to swap land .
trade it without the usual real estate crap.

like website or somthing that connects people that have land for sale or trade.

 

[backhoeboogie]

Everything I sell henceforth with be through a real estate agent.

Let me explain. I have a full time job and several "hobbies". I listed land in the paper. Someone would call and want to meet me there to take a look at it. I would shut down the hoe, or the cat, or whatever else I was doing in my limited time, and go meet them. Mostly they were tire kickers. Lots of them! They all wanted to counter offer on the price. I "sold" it several times to kids who backed out because of financing.

I had a grandma who fell in love with the place, cut me a earnest check, and then called her son-in-law and daughter out. Seems she was to buy the land and they were going to build a house and a grandma cottage too. The kids thought it was too far out of the city, when reality set in. I was too big of a softy to keep the grandma's earnest money. She was a widow.

I don't know how many nickels I lost, from down time showing that property. I don't know how much fuel I spent running over there to show it. This property is in the same county I am in.

I tacked on nickels to compensate for the real estate fees and sold it that way. I should have done that from the get go. They can get the bad guys with earnest money etc, plus they offer a level of protection.

Oh yea. Everyone is going to want you to owner finance.

So if you are going to trade, out of state, you are going to have to go look at what is being offered, or else take someone's word for it looking at pictures and such.

I believe I would sell outright, through an agency, and then buy something elsewhere.

When you buy, you can do it straight from the individual, but you absolutely should get an Owner Title Policy from a Title Company. There is a long line of folks who have been burned buying land.

 

[dieselbeef]

yep, i hear ya. been thru the same things here and all my property adjoins. just thught there might be someplace to go to that would say...swap acreage for acreage in such/such place

 

[KenB]

You might try some real estate brokers that have offices nation wide. I think one of them United Farm realty. You could probably find them on the internet. There are some that just deal in land trades.

 

[Wewild]

Someone would call and want to meet me there to take a look at it. I would shut down the hoe, or the cat, or whatever else I was doing in my limited time, and go meet them. Mostly they were tire kickers. Lots of them!

I hear you.

I use to live at a place back in the late 80's where I had to leave my 55 Chevy outside. There was no for sale sign but folks would come up and want to see. it. They would usually talk in a negative way toward the common problems that came with the age on this vehicle. Last thing they alway said was "how much you want for it?"

Rental property is another pain in the butt. I have gone to one showing on Saturdays between a certain time frame. I tell them that is the only time they can see it.

 

[Herefordcross]

One thing you may take into consideration is:
At least in here you can't just trade land, you can do it but, both pieces have to have three appriasals by different firms that's six total, then if there is difference you pay the state an extra tax on the difference because, normally there would be tax stamps to pay for but, on swapping you pay the tax stamp plus an additional tax on the difference so, I would keep every angle covered.

 

[Jogeephus]

The problem I see is finding someone who has something of similar value that wants your place and you want theirs. Last time I did a "swap" I sold a piece of land, bank held money as a third party then they paid two people that I bought land from. Money left over was taxed. Tax attorney told me to do it this way - don't understand the exact reason.

PM me with details if you get serious I might be able to give you a few leads.

 

[somn]

The problem I see is finding someone who has something of similar value that wants your place and you want theirs. Last time I did a "swap" I sold a piece of land, bank held money as a third party then they paid two people that I bought land from. Money left over was taxed. Tax attorney told me to do it this way - don't understand the exact reason.

PM me with details if you get serious I might be able to give you a few leads.

When doing a 1031 you don't actually need to find someone that wants your property and you want theirs. All you need to do is find someone that wants your property while at the same time finding a property you want. After you come to an agreement on the selling price of your property and you come to an agreement with the seller of the property you want to buy you have the people wanting your property buy the piece you want and then you swap between the two of you. It works that way I've done it. The only taxes paid will be capital gains taxes if your selling price is higher than the purchase price on the new property.

 

[fit2btied]

When doing a 1031 you don't actually need to find someone that wants your property and you want theirs. All you need to do is find someone that wants your property while at the same time finding a property you want. After you come to an agreement on the selling price of your property and you come to an agreement with the seller of the property you want to buy you have the people wanting your property buy the piece you want and then you swap between the two of you. It works that way I've done it. The only taxes paid will be capital gains taxes if your selling price is higher than the purchase price on the new property.

That sounds to me like it has trouble written all over it. It might be possible but there are just too many things that could go wrong or fall apart for me.

 

[dieselbeef]

The problem I see is finding someone who has something of similar value that wants your place and you want theirs. Last time I did a "swap" I sold a piece of land, bank held money as a third party then they paid two people that I bought land from. Money left over was taxed. Tax attorney told me to do it this way - don't understand the exact reason.

PM me with details if you get serious I might be able to give you a few leads.

When doing a 1031 you don't actually need to find someone that wants your property and you want theirs. All you need to do is find someone that wants your property while at the same time finding a property you want. After you come to an agreement on the selling price of your property and you come to an agreement with the seller of the property you want to buy you have the people wanting your property buy the piece you want and then you swap between the two of you. It works that way I've done it. The only taxes paid will be capital gains taxes if your selling price is higher than the purchase price on the new property.

id be a little wary of that if i was approached to do it by someone i didnt know. just sounds fishy.... also how did you deal with the time frames involved since the banks and title company tend to do things at thier pace not mine.
as far as the bank holding it that sounds like me. i guess doin it that way it almost feels like trading. everything is so darn complicated anymore. lets go title for title.......

 

[somn]

id be a little wary of that if i was approached to do it by someone i didnt know. just sounds fishy.... also how did you deal with the time frames involved since the banks and title company tend to do things at thier pace not mine.
as far as the bank holding it that sounds like me. i guess doin it that way it almost feels like trading. everything is so darn complicated anymore. lets go title for title.......

Well if you feel that way your only option is to sell your property give the proceeds of the sale to a qualified intermediary and hope you can identify a property you want to purchase within 45 days and close within 180 days. The government requires a sale price for your property and a purchase price for the new property so they can base your capital gains on the difference. Deed for Deed won't work any longer in this country.

 

[saddlebum]

The problem I see is finding someone who has something of similar value that wants your place and you want theirs. Last time I did a "swap" I sold a piece of land, bank held money as a third party then they paid two people that I bought land from. Money left over was taxed. Tax attorney told me to do it this way - don't understand the exact reason.

PM me with details if you get serious I might be able to give you a few leads.

When doing a 1031 you don't actually need to find someone that wants your property and you want theirs. All you need to do is find someone that wants your property while at the same time finding a property you want. After you come to an agreement on the selling price of your property and you come to an agreement with the seller of the property you want to buy you have the people wanting your property buy the piece you want and then you swap between the two of you. It works that way I've done it. The only taxes paid will be capital gains taxes if your selling price is higher than the purchase price on the new property.

If you can get past all the legal jargon that scares most people away from the 1031 exchange, it really is the way to go. There are tons of books out there on how to use it to your advantage. I'd google it or look at used books at amazon.com. I'm not 100% on all the particulars, but when you list your place, you reserve the right to do a 1031, then you can look for a place you want and it will save you big time in taxes. And it's not just a matter of picking one place in a short time. After the alloted time, you list several places you are considering, and then you have even more time to make a decision. I really think that if you know you will be replacing the sold land, a 1031 is the only way to go, keep the government's hands out of your pockets.

 

[dieselbeef]

im gonna be diggin into that deal fer sure. got my eye on some ga prop right now

 

[somn]

If you can get past all the legal jargon that scares most people away from the 1031 exchange, it really is the way to go. There are tons of books out there on how to use it to your advantage. I'd google it or look at used books at amazon.com. I'm not 100% on all the particulars, but when you list your place, you reserve the right to do a 1031, then you can look for a place you want and it will save you big time in taxes. And it's not just a matter of picking one place in a short time. After the alloted time, you list several places you are considering, and then you have even more time to make a decision. I really think that if you know you will be replacing the sold land, a 1031 is the only way to go, keep the government's hands out of your pockets.

You have 45 days to identify and 180 days to close. I've never seen it any different anywhere.

 

[somn]

Also your not eliminating the tax you are only differing it. Eventually you or your family will pay the capital gains tax.

 

[DRB]

I just did a 1031 exchange..15 acres for 95 acres...value was the same...it worked out smooth for me, but someone someday will have a lot of taxes to pay if it is ever sold...