Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 08-26-2012, 08:21 AM   #21
Recycles dryer sheets
 
Join Date: Dec 2010
Location: Tequesta
Posts: 279
Someguy, that was an example. If I had $10 million worth of vacant, non cash producing property, I would as quickly as possible have $0 worth of vacant, non cash producing property and somewhere between $0 and $10 million worth of something else. It was using an extreme to make an example.

The vacant, unimproved commercial property is supposed to be worth about $200,000 and it's listed--no offers in the more than a year since it's been listed. I view it as a current liability because of the taxes, but don't include it in any FI/RE calcs. I do hope it will sell for somewhere between $150,000 and $200,000 sometime in the next 10 years, but I don't include it in any calculations.
__________________

__________________
67walkon is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 08-26-2012, 08:31 AM   #22
Recycles dryer sheets
 
Join Date: Jun 2012
Posts: 489
67walkon, I assumed the $10mm was an extreme example.

Your commercial property, though, probably isn't worth $200K if it's been on the market 12 months without any offer. Residential real estate is more my wheel house, but usually there is ultimately only one reason something isn't selling: it's priced too high. If you aren't even getting offers, that usually means it's priced way too high. I'm sure you've calculated the hold costs for up to 10 years versus how much of a price haircut it would take to sell it now and determined that it's better to wait... I only consider improved properties because they have cash flow opportunities but in your case at least this property doesn't have improvement and repair costs that would further increase your holding costs.
__________________

__________________
someguy is offline   Reply With Quote
Old 08-26-2012, 03:42 PM   #23
Recycles dryer sheets
 
Join Date: Dec 2010
Location: Tequesta
Posts: 279
Some, you're right. My wife inherited it and has an emotional attachment to it. We're working through it and I hope to get at least some kind of offer on it in the next year. It's a hard thing-been in the family for many years, etc.,
__________________
67walkon is offline   Reply With Quote
Old 08-27-2012, 08:20 AM   #24
Recycles dryer sheets
 
Join Date: Jun 2012
Posts: 489
That is a tough position to be. I've not been in it myself, but have advised friends who have. I always tell them that if the person cared enough to leave you something of value, then they obviously cared for you a lot and would ultimately want the receiver to be happy, including selling it if holding onto it is a stress.

Condolences and best luck in having it work out.

Quote:
Originally Posted by 67walkon View Post
Some, you're right. My wife inherited it and has an emotional attachment to it. We're working through it and I hope to get at least some kind of offer on it in the next year. It's a hard thing-been in the family for many years, etc.,
__________________
someguy is offline   Reply With Quote
Old 08-27-2012, 08:36 AM   #25
gone traveling
 
Join Date: Apr 2009
Location: Eastern PA
Posts: 3,851
Quote:
Originally Posted by 67walkon View Post
My wife inherited it and has an emotional attachment to it.
Another white elephant.

I knew of a fellow who had the same situation. He/DW spent many years and most of their $$$ trying to make a go of the business that was left to them by DW's relatives.

In the end, the business closed, the building/equipment was sold for pennies on the dollar, and their plans for a good retirement were slashed. Rather than add to their retirement "stash", it actually emptied it.

Emotional "gifts" can cost one dearly...
__________________
rescueme is offline   Reply With Quote
Old 08-27-2012, 10:32 AM   #26
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 16,490
Quote:
Originally Posted by stephenson View Post
Been working through the book ...her positions seem to reflect a counter-position to mainstream that would generate discussion and more clients ...not to mention more book sales.

Anything in it worth more focus or just good background reading?
I haven't bought or read her book but she was on WealthTrack recently hawking her approach to funding retirement. I wasn't very impressed. She obviously believes what she is selling but there was no beef behind the baloney. And as I recall she didn't mention the need for her "income streams" to increase with inflation at all.
__________________

__________________
pb4uski is online now   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


 

 
All times are GMT -6. The time now is 12:58 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.