How Bill Winke Would DOUBLE his HUNTING ACRES
ฝัง
- เผยแพร่เมื่อ 9 ก.พ. 2025
- In this week's episode, Bill is joined by High Point Land Specialist Nick Hopp. In this conversation, the two talk about one of the most important tools when it comes to buying land. The 1031 exchange is a great wealth-building opportunity that lets you trade your real estate for like kind!
#hunting #realestate #bowhunting
I really appreciate the information that has been shared on this channel with Bill on these land pourchase options and whatnot. Its giving me enough info to feel comfortable to possibly dabble in this option for myself. Before all of this content, I would have never even considered it. Ive bought and sold my homes and bought some land and then bought a home on an adjacent property, but always wondered about the sale of this land if it ever came to a want or need. Thank you very much for this info being presented in a way that we can get an understanding of it.
Assume I buy 100ac for $100k and sell for $200k because land has appreciated to $2k/ac. A 1031 allows you to defer taxes that would’ve been 20%. That deferral saved you $20k, which is only worth 10 acres in this example. The trick to doubling your acreage is and always has been buying undervalued land, not the 1031. But no one can make TH-cam videos about that.
No, that requires some experience and a lot of looking. But another way to look at this is the value of buying on credit. You are appreciating on the portion that the bank owns too, and you get to keep that part on sale. That is how I did it, but it is a bit riskier than paying a higher percentage in cash. I remember telling the banker I was planning to make money on his money and he kind of got a little squeamish. It was funny to watch - but that's what they are there for. Good luck.
Between your new channel and the series your doing here, I've learned a ton. My goal is to eventually own a solid 100+ acre hunting piece, but I think the biggest hurdle for most of the viewers, including myself, is the cost of entry. I'll use my case as an example. Assume I can get a decent 100 acre piece for $400k. That's a $140k (35%) down and ~$1,700/month for a 30 year fixed at 7%. If I save extremely aggressively I could get there, but by that time the buying power would be diluted. It seems nearly impossible to "outrun" inflation by savings alone. Do you have any advice for people starting with no land?
Buy smaller property, fix it up, it appreciates and sell. Then buy a larger property. You could also purchase some land with some sort of income to offset a portion of the month payment on a 100 acre farm. Also, you could put your money elsewhere than a depreciating savings account.
😂 buying land is a big money sport these days.
Do you have any experience or can you talk about putting land in trust fund
Not me personally. Not sure on Nick, but I would definitely find a good professional with lots of experience doing this. Good luck.
Very good video
Another point, you must deposite the money from the sale of your farm into a separate account, if you place it in your general farm account you can't do a 1031 !!
It would be interesting to see how this carries forward into estate taxation. If I left the land to a family member in my will, and then it transferred to them upon my death, what is their basis? Do they get step up basis? Are they carrying the 500k gain with them?
My understanding is that they are not carrying the gain forward. They get the stepped up basis, but again, be sure to consult with an actual professional on this, but that is my understanding and my plan. Good luck.
@@bill-winke Thanks, that would make it a great tool if you plan on passing the land on. You really could avoid the tax, not just defer it, in that situation.
The family member gets a step up in basis at the time of death.
Wait you have to pay taxes on land profit? Fuuuuuuuuu
You have to pay taxes on all profit. Except when transfered through death and even that has limits.
Unless you lived there 2 years
@@TNsher776 even then, if the profit is over a certain limit you'll be taxed
There are some exemptions for primary residence, but I am not an accountant and can't remember how that works, but anything that makes you money, the government wants part of that money you made.
@@bill-winke unfortunately never used to be that way! It's basically extortion what they're doing to the American people! During world war 2 they started to collect income tax , it was supposed to end after the war ended, but our federal government continues to take taxes out of our paychecks. Now they're even bold enough to take our tax money from us and just give billions of dollars to foreign countries like Ukraine!