Minimize Your Risk

[AroundTheWorld]

wow you guys.... great responses. anyone else before I reveal the conclusion to the story?

 

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[8 SNAKE]

wow you guys.... great responses. anyone else before I reveal the conclusion to the story?

I'm ready to hear the proverbial "rest of the story" on this deal.

 

[AroundTheWorld]

I'm ready to hear the proverbial "rest of the story" on this deal.

Oh, thanks for the reminder.

I've been doing data entry all day and a break to finish the story is refreshing!

The investor - at that time felt that the letter from the forest service was enough and took the property on a trade. The property was therefore owned free and clear (no burden of carrying costs)

The forest service subsequently went back on their word and said they would not give an easement. Attorneys were consulted but it was determined that it would not be worth it to go to court. (There is actually a law stating that forest service can not landlock private property owners) It is never really a win going that route - even if you do win.

Fortunately for our investor a plan B emerged.

The property can be appraised for approximately 800,000 to 1,000,000. The property is being donated to a non-profit concervation group. The charitable deduction can be taken over the same period of time that a large profit will be realized from a different project. The savings will be upward of $250,000.

The "actual" loss on this project is only the lost property on the trade (which was a product of a subdivision and that subdivision was profitable dispite the trade) - and the gain will be the tax savings due to the charitable contribution.

Two lessons here:

An *almost* solution is not a solution until it is *actually* in place.
Always have a plan B and a plan C

cheers.

 

[SteveO]

bump for Yves

 

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[Runum]

Wow it's weird seeing the things I wrote that many months ago. It's also different reading these because I can put a face and person behind most of the quotes. After the B&P meetup I learned that a LOT of this fastlane stuff is about knowledge. That knowledge reduces your risk to levels that make investing an investment rather than a gamble. Also, it was amazing to see and hear all the things I didn't know. I also learned what was risky for one person is not risky to the next, all due to knowledge and experience. All this means I just have more to learn!

Thanks for bringing this back SteveO.:cheers:

 

[yveskleinsky]

Thanks for the bump. Interesting read- I can't believe I didn't see this before!

 

[AroundTheWorld]

bump. I know there aren't many REI people around here anymore, but for those that are, this is a good one... Thanks @SteveO

 

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