A 1031 Exchange allows property owners to defer payment of capital gains taxes by taking the proceeds from the sale of one investment property, placing them in a special escrow account and purchasing a new property.
We helped this property owner get a great price from one of our local builder partners and referred them to a 1031 exchange company that allowed them to roll their profits into another property while deferring their taxes.
Do you own investment property that you are hoping to sell to a builder? Do you need help putting everything in place for a 1031 Exchange to defer capital gains taxes.
We can help… My name is Robert Wilson, I’m the Director of Dirt with EXIT Bayshore Realty and I can help you sell your property to a builder for a fair price and answer your questions about how to handle a 1031 exchange. Here’s another video where one of our past property sellers took advantage of the program and got great results.
If you’re thinking of selling an investment property to a builder and would like to learn more about the 1031 Exchange program… give me a call at 813-784-4199.
How to Sell the House when Mom or Dad is on Medicaid
It’s a story I’ve heard all too often… a home remains abandoned year after year… because a family is under the impression that a property can not be sold without jeopardizing long-term care benefits under Medicaid.
While it can be a challenge to liquidate a property in this situation, there are a number of strategies that can help families sell… and legally, morally, and ethically avoid any accumulation of cash that could jeopardize benefits for a loved one.
Meet with a Local Elder Law Attorney
The first question Tampa Elder Law Attorney Elizabeth Allen asks many clients is, “What are you doing with the house?” This is a critical question that should be answered as soon as possible if you own a home in South Tampa where lot values often range into six-figure territory.
It is critical that you work through your particular family’s situation with an attorney in the county where your parents live and own property. If Mom & Dad are in Tampa… make sure you work with an attorney based in Hillsborough County.
While an attorney can work across county lines, I have personal experience that what an attorney can do is not necessarily what they should do as each county court system has different protocols that can delay your case from being resolved.
So, please keep that in mind even if you are helping out Mom or Dad from another part of the state… even if you live just across the bridge in Pinellas County… talk with a local elder law attorney.
Strategies and Tools to Discuss with your Elder Law Attorney
The two most important things you want in place if you are considering selling the family home in 10 months or 10 years are having a plan for the proceeds once the sale is complete and having a well-crafted power of attorney agreement in place to cover any number of issues that can occur as people age.
Different strategies may be available to families depending on the health of each spouse, the status of any Medicaid application, and the competence of the owners of any property that might be sold.
The time to make plans is BEFORE anyone is sick… but many of these strategies and tools may be employed at different stages… so at the risk of being redundant please talk with an elder law attorney about these options and others that may be available.
Transfer of Assets Between Spouses
This needs to be done in an appropriate way, one of the reasons I reached out to Ms. Allen after meeting her at a South Tampa Chamber event is that her firm has real estate attorneys on staff and a close affiliation with a title company. Their law firm can help ensure you avoid any taxable events or other stresses due to an improperly structured transfer.A do-it-yourself Quit Claim Deed can lead to a number of terrible outcomes for a family that wants to sell a property down the road, so make sure you do this right.
Place Money in a Pool Trust or Qualified Income Trust One thing I’ve seen a lot of wealthy families in South Tampa put in place are Trusts where a property can be held in such a manner that has a number of benefits for elderly owners. Pool Trusts and Qualified Income Trusts have different advantages that you should discuss with an Elder Law Attorney.
Purchase Income Producing Property via Third Party Service If there is no mortgage on the property, another tool that can be employed when selling an older home that needs a lot of repairs is the immediate purchase of another property in a better condition that can immediately become an income producing for the owners.For example, you could sell an older home in South Tampa for $100,000 to $300,000 and immediately purchase a rental property in another area via a service that will manage the property on behalf of the owner and distribute the income in such a manner that it would not affect any benefits. Your local elder law attorney should be able to give you options regarding companies that can offer this service.
Have a Spend Down Plan
If you have a mortgage on the current home, and expect that the proceeds will not be significant enough to purchase another property, there may be a window of time where the proceeds from the sale can be spent on things needed by the seller…. such as a vehicle, wheelchair, furniture, or television. Everyone’s situation and needs are different, but this can be an option.
Personal Services Contracts Another option that your elder law attorney could discuss with you if it were to apply to your situation is a personal services contract between the seller and a family member providing ongoing care services to the seller of the property. Again, this can be a legally complex arrangement, so make sure you are working with a competent local elder law attorney who is aware of your family’s situation and long-term goals.
The Importance of a Well Structured Power of Attorney
One of the first things you should have in place for an elderly family member who might be facing some long-term health challenges is a well-crafted power of attorney. Again, this is not something you can do yourself with a form you download online. A poorly crafted power of attorney may prevent you from selling a property or acting as agreed on behalf of a loved one.
So, again… make sure you share your long-term goals with an elder law attorney who can help your family have this important document in place. As noted in the link above… the more comprehensive the power of attorney document, the better.
When it’s Time to Sell… Timing is Essential
When you negotiate terms to sell your property it is essential that you close early in the month… preferably during the first 2 or 3 business days that are available if you have an owner current getting Medicaid Benefits. This will give you until the end of the calendar month to execute any plans to transfer funds before cash on hand must be reported to Medicaid.
The earlier you close… the more time you have to execute your plans with your elder law attorney.
When your family is ready to sell, we have flexible closing dates.
Flexible closing dates are one of the tools that we use at SouthTampaTeardowns.com to help homeowners hoping to sell to a builder. We can always close on your timetable, and often allow extra time to complete moving out.
My number is 813-784-4199… I’m happy to provide referrals to local elder law attorneys that can assist you with your planning or provide an easy way to get a fair offer for your property where you won’t have to pay for commissions, repairs, of closing costs.
Since 2014, when we started helping homeowners sell small houses, lots, and teardowns to builders in South Tampa we’ve helped a lot of families.
In fact, we’ve been going through our records and it looks like we will be celebrating our 100th closed lot in just a few weeks… and today we helped family #70 sell lot #99 to a builder.
Helping Families with Coordinate Closings when Selling Property to a Builder and Buying their Next Home.
Every family has different challenges that we can help with at SouthTampaTeardowns.com. This particular seller got burned… thankfully not in a fire… but by an ‘investor’ who had promised to buy his property in the past, and simply didn’t show up when it was time to close.
He held off on selling for a while… and reached out to me when he had the opportunity to purchase another property. We needed to move fast… we closed in 3 weeks and coordinated the closing for 10AM so he could have funds available for his new home that he would purchase the same day at 3PM.
We really appreciate that the seller was nice enough to share his story about selling his South Tampa Teardown to one of our trusted builders here:
It’s a real pleasure to help property owners work through whatever challenges they might have in selling a property and come through with a fair offer from one of our South Tampa builder partners.
While genuine issues do come up in the due diligence and property inspection process, we do our best to partner with builders who will close when they say they will close…
Is it Time to Sell?
Is it time to sell your small house, lot, or teardown in South Tampa? Would you like a fair offer from a builder who will pay cash for the value of the land? Would you like an agreement where you won’t have to pay for commissions, repairs, or closing costs?
I’ll get you a fair offer… FAST… and you won’t have to worry about the hassles of listing, and endlessly showing the property. Call me today… 813-784-4199… if I’m busy helping another family you can leave a message or request your offer online at SouthTampaTeardowns.com
Today Tampa City Council passed an amendment with some changes, that will now be reviewed by the City Planning Commission who will make amendments and recommendations.
This is the first step in a process that will probably go another 60-90 days… and hopefully, result in a reform of the ordinance in such a way that will benefit families hoping to sell to a builder in South Tampa and across our city. The Tampa Bay Times and other news outlets are covering the story.
This issue is so important to families that I have worked with in the past. When longtime owners sell a property to a builder it can be a huge benefit. I’ve worked with sellers who have used their proceeds to move across the country and reunite a family… and others who have used funds to pay for medical bills relating to cancer treatments.
Unfortunately, I have also been involved with at least 3 property owners who have been adversely affected by the tree ordinance. I would also argue that our city has also needlessly lost tax revenue at a time where I know there has been a great deal of hard work to balance our budget.
I want to share the stories of these families, affected by City of Tampa code concerning tree removal and replacement
First… in December of 2014. A family hoping to build a new home purchased a double lot North of Kennedy. He was not represented by an agent at the time and was not aware that he would not be allowed to build on the property due to a large tree on the site. After two years, and tens of thousands of dollars spent in a legal fight with the city has was able to get approval to remove the tree and with my help sell to a builder at a profit. Good for him… not so good for the city of Tampa… I’ll estimate the city’s lost tax revenue from this site over the two year period to be in excess of $7,000, all for a tree that was eventually removed.
Example Two… A couple owned a double lot in the Bel Mar Area with a tree on site that a builder client of mine had under contract for $514,000. City staff would not support the removal of the tree and the contract fell apart… the owners later sold for substantially less money. The new buyers went through the variance process… a year delay and eventually got approval to remove the tree. The seller’s lost at least $14,000 depending on the costs they assumed from the sale… and the city lost approximately $3,000 during the one year delay needed for tree removal. This was a scenario that clearly hurt the owners and the city… again for a tree that was eventually removed after a costly and time-intensive legal process.
Finally… the worst story…the seller inherited a property that was in her family prior to 1962. In March 2017, a buyer of mine had a contract on the parcel the vacant lot that never even had an address since her family made the purchase. The parcel is 100×91… the contract was for $170,000 despite the fact that the neighboring lot sized 150×91 had sold for $435,000. Two contributing factors… a pending tax deed sale due to unpaid property taxes and the need to work around or remove the tree. Once it was determined the tree could not be removed, and there was no workaround… that sale fell apart.
A new buyer stepped in to close at $110,000. A similar lot across the street, one block west, is now pending for $349,000. Keep in mind that the family involved had owned this piece of property since for over 50 years. A tree planted, possibly without their knowledge or consent, cost them between $60,000 and $240,000. The city lost property tax revenue of approximately $5,000 per year… and that is crumbs compared to what the family lost due to a tree that was simply allowed to grow over the decades.
For many of the families that I work with… the property that is a good candidate for sale to a developer is their nest egg… it is their retirement… it’s the money to pay for medical bills… it’s how they are going to live when they move across the country to be closer to their kids… or it’s the inheritance they plan to leave to their children.
The current Tampa Tree Ordinance hurts these families.
The current ordinance favors those willing and able to fight it out in court… or buy at a discount to go through the variance process… it hurts families that need the money the most and don’t have the time and the resources to fight city hall. The current tree ordinance that prohibits any development on many lots hurts families… and it also hurts our city… because in many cases the trees are still removed… after our community incurs the loss of thousands of dollars to our city in terms of lost property taxes. My name is Robert Wilson, I am a resident of the City of Tampa and I urge the council to pass the proposed changes to the City of Tampa code concerning tree removal and replacement, this action will both increase city revenues and protect the families that own the properties affected by the current rules.
Recent Sale Prices to Builders
North of Kennedy
(Between Dale Mabry & Lois)
We recently got a comment on one of our blog posts looking for updates on lot and teardown prices North of Kennedy between Lois Ave and Dale Mabry. Denise has a pretty good sized lot there and is hoping to learn more about how much lots are selling for in the area.
With that in mind… and after we just closed on a deal in the area this last week… I wanted to post an update on sales in this neighborhood which is in the Grady, Coleman, Plant School District.
While neighborhoods North of Kennedy Boulevard are part of West Tampa… affordable properties that feed into high-quality South Tampa Schools are making these neighborhoods and others very attractive to South Tampa Builders.
We want to pay you a fair price for your South Tampa Lot or Teardown (and that goes for West Tampa as well)… that’s why we love sharing information regarding Recent Sales to Builders in the area. Recent sales data based on information compiled from the Hillsborough County Property Appraiser and/or Multiple Listing Service. Some sale prices might include terms where the seller is paying commissions and closing costs. Information may or may not include all South Tampa Lot sales during the reporting period. Information is reliable yet not guaranteed.
Why is it important to work with a trusted builder and South Tampa Teardowns?
This family had to close on their new house Friday afternoon.
We worked with our title company to make sure the paperwork was completed a day early on Thursday… the sale of the old home was fully funded Friday by one of our trusted builder partners that morning and the money was available for the new purchase right on time.
Moving day was on Saturday, because we gave them time AFTER closing to vacate the property.
If you don’t have the time or the money to complete a professional style cleanout… it might make more sense to sell to a South Tampa builder, especially if you or your family owns an older, smaller home in the area.
What’s the best way to sell a hoarder’s house in South Tampa?
Our builder partners are sometimes the best way to sell hoarder’s property in South Tampa… We will offer a fair price, and can even allow extra time after closing to remove personal items that may have some value.
Are you hoping to sell a hoarder’s home in South Tampa?
Give me a call, my name is Robert Wilson, I’m the Director of Dirt at EXIT Bayshore Realty. I helped 30 families sell 42 lots to builders in 2017, and I can get you a fair offer… FAST for your property.
Hear more about how we helped a local hoarder sell her home…
Believe it or not, when you decide to sell your South Tampa property you might be approached by ‘buyers’ or ‘investors’ who actually have no intention of taking possession of your property…
How does that happen? A popular strategy that real estate gurus currently teach involves getting a property under contract first and then finding an actual buyer for the property… this allows an investor with no actual money to attempt to make a profit by reselling your home without actually buying it.
Here’s how we helped a property owner sell a double lot after a ‘buyer’ repeatedly extended their contract… because they never found a real buyer for the family’s property.
If someone is actually completing due diligence… there are telltale signs of city inspections, surveys etc. If someone is wasting your time trying to find a buyer, sometimes it is time to move on and work with a trusted website like SouthTampaTeardowns.com. We’re a member of the South Tampa Chamber of Commerce and helped 30 families sell 42 lots last year to South Tampa Builders.
My name is Robert Wilson, and I’m the Director of Dirt at South Tampa Teardowns and EXIT Bayshore Realty. I’m not going to tell you that every contract that I do leads to a closing… sometimes contracts do get canceled.
However, one of the differences in working with me is that if something goes wrong, I have real relationships with 12 different builders in South Tampa. If your property isn’t a fit for one… it might still be a perfect for another buyer who will also pay cash, where you won’t have to worry about commissions, repairs or closing costs.
As we recently completed due diligence with one seller, we discovered that her property was in a very low lying area, and had other issues affecting what could be built on the site. While our first builder had to step aside, we quickly put the deal back together with another developer who was better equipped to build on her lot.
So if you’re currently concerned about a canceled contract, or making a decision regarding signing or extending a contract to sell an older, smaller home in South Tampa give me a call… my number is 813-784-4199. I can get you a fair offer for your South Tampa Property and you will pay ZERO for commissions, repairs, or closing costs. The offer you get from me will be for cash and direct from a buyer who will complete the due diligence and actually has the cash to close on your house, lot, or teardown.
If something goes wrong, I’ll work with you to quickly find a plan B where you can still get the house sold. If I don’t have a solution… I’ll tell you that too.
To find out more about how I helped so many families last year, or to request an offer today, visit SouthTampaTeardowns.com
Some of the questions you need to answer will be personal… other questions will be strictly based on the age, size, & condition of the home.
First of all, if you live in the home, you will need a plan of action, once you sell.
If you currently live in the home you’re planning to sell to a builder, where are you moving to? Often times our home sellers will be cashing out to move into a newer home or saving money by moving in with family. For others, it’s an opportunity to travel, buy a boat, or a recreational vehicle.
Once you know where you’re heading, or if you’re already there… here are some quick questions that will help you determine if your home might be worth more as a South Tampa Teardown and if you should sell your house to a builder.
1. How old is the home?
The older a home is, the more likely it is to be a teardown, where a builder will be the high bidder for the property.
What we have found over the years, is that most of the homes we buy with our builder partners are over 40 years old. Owners of older homes can often get the most money by selling to a South Tampa Builder.
2. What is the square footage & location of the property?
The smaller a home is, you guessed it… the more likely it is for the property to be a teardown, where a builder will be the high bidder for the property.
Different parts of South Tampa will have different thresholds for what is likely to be a teardown. As a rough rule of thumb, teardowns that are South of Kennedy, and in the Plant High School District tend to be smaller than 1600 SF. Homes North of Kennedy, or in the Robinson High School District tend to be smaller, 1200 SF or less.
That said, as the North of Kennedy area, Ballast Point Elementary District, and South of Gandy Area as a whole continue to get more popular we are seeing homes above 1200 SF sell to builders for strong, fair, prices.
The smaller the house… the more likely it will be that you should sell your property to a builder. To help you determine if the property is in the Plant High District… I’ve included a map of the school boundaries.
Make a quick inventory… How old is the roof? How old is the HVAC (Air Conditioning) system? Has the kitchen been updated in the last 10-20 years? How is the structural system of the house? Are there termites? How updated is the electrical? The plumbing?
If these major systems haven’t been updated since the property was purchased you might be able to NET more money by selling to a builder.
So, should you sell your house to a builder?
You can’t know for certain until you have an offer for the property.
That said, before you spend thousands in repairs and updates in anticipation of selling your property… Before you agree to pay 5%, 6%, or even 9% to sell your property…. Why not get an offer… and find out what the lot is worth?
If you’re thinking you should sell your house to a builder… you might be able to put more money in your pocket with an offer from our team, and you won’t have to worry about paying for commissions, repairs, or any closing costs.
My name is Robert Wilson, and I am the Director of Dirt with EXIT Bayshore Realty in South Tampa. If you think you should sell your property to a builder in South Tampa… I can help get you a fair offer to sell your house fast in South Tampa. Call me today at 813-784-4199 or request your offer online at SouthTampaTeardowns.com