Sell to the POA for 3000k per Let them put their money where their mouth is sts..

Be willing to bet some would almost pay that to be rid of me.. heh.

Hell, I'd make the offer, they may not pony up, but they will spread the word as free advertising, never know either, they may pool their pennies together to expand.

I have to agree. We haven't been to our properties in Real county in years. Too far a drive. Our place in Erath is 2 hours from Dallas. Much more manageable. Things change. We'll help anyway we can. I know you didn't make this decision without a lot of thought. I'm sure Gonna miss the old place but, if you only get to enjoy it a few times a year, well, you know what you need to do. Now, having said that we need to get down there for some killin'

A sad day to see you selling. But a new adventure awaits. You are at the stage in life where you have to place value on your life minutes. Life minutes consumed with travel and arguing with neighbors is bad for your mental health and once they are spent they never return. Our memories will cherish those times we've had there and usher us forward to new ones.

Erath has a new mission now, he will be excited to help with your new search. Any help I can provide don't hesitate to ask my friend.

To me, the POA issue is the kicker. Once those relationships go bad, it's very tough to get back to feeling good about things.

If the drive bothers you, this is an opportunity to fix that, too. We've got a place 4 hours away, and I go all the time. I don't mind the drive. But I can work on the road, and I can work some from the ranch house. My schedule is reasonably flexible as long as I've got phone and internet hookup.

Yup.. not going to sell it just yet, have to go clean it up and get the stuff off there I do not want to sell.. bare minimum, grab pitures etc.. take my drone and do aerial videos heh.

Then, we will list it, I suspect, sometime next month and see what happens. Already had a few emails asking. Not sure how interested they were after we told them the price, but since they do not have electricity etc, they do not realize the cost it took to get there. I am sure we will get a lot of hits once it is on Landsoftexas

Until then, I would like to get a 2nd Axis....have not shot one since the year we got it and there are a ton of big ones left. Also would love to see that red stag :P

R

So, if you don't find/close on a place in 180 (or just decide you don't want a second place), does the intermediary just wire you the money and, I assume, issue a tax form (1099?) and you're responsible for paying the capital gains?

Good luck on your 2nd axis Mr. Russell. I'll be camping in the brush like Rambo right before we close on selling our place, getting as many axis as I can. But I doubt I can do better than my best a few years ago. Killed him wearing tshirt, shorts and deck shoes. (Them deck shoes are QUIET!)

Wow, Creek, that's a dandy.

That is a nice deer!

My mom dealt with the same POA situation at Sportsmans world at Possum Kingdom lake. When we bought the property, no one was out there. We'd go out there to camp and watch fireworks, or just spend the day on the lake. Over the years people moved in, built huge houses and then started to have a problem with us camping or hanging out on the covered deck we built. When the wild fire came through and leveled everything the community came together for a hot second, until two months later my mom and brother went to pile unburnt remnence of trees and such only to be greeted with a fine by the POA when they got home for not having the property cleaned "properly".

It made me sick the egos in that place. The final straw was when my mom, myself and a few of my friends went camping out there for the cliff diving event. Some "neighbor" trespassed on our property to tell my mom he was going to call the police on us for camping, and then had the nerve to tell us we better muzzle our dog so he doesn't get bit...while trespassing. The next morning while we were packing up camp he slow drove by taking photos of us out his car window.

We had that place for 25 years. I grew up out there. I told my mom to get the hell out of that place as fast as possible. It was hard and easy at the same time.

Yes. You take your money and pay the gain. The new tax law has some wrinkles, mostly when personal property is involved. Always run it by you tax professional to make sure.

+1

Wow, never even heard of a POA on a ranch. IMO that's part of the reason to get a ranch. So you don't have neighbors in your business. Sounds like that's a lesson you learned.

Good luck and keep us posted on what you get. I try to stay current on land prices even though I'm done buying.

These folks made it easy and painless for me a few years ago: https://texas1031exchange.com/

I too have never before heard of a POA on a ranch property. This would not be something I could stomach.

I think the ranch neighbors choked when they asked what I was selling the place for.

We are going to list it for like $2,650 an acre. I told them, I have an appraisal from June of 2014 that had us appraised at 2050 an acre. That was 6 months before prices out there started skyrocketting. The problem is.. there are so many people trying to dump their land... the prices are all over the board. The real issue that gives us an edge is, the low-baller deals are land without electricity or water.. and no ability to get either unless you spend a lot of money.

One guy just got an initial quote of $110,000 for electricity to run 9000 ft... that is initial. The final cost would be closer to like 175k....just to get electricity from our place to his.

Add in we have a solid WLM plan and a nice cabin....real sales last year showed land selling for between 1800-2700 an acre with laughable cabins...no offense to them..I meant laughable in i.e. it would be perfect for us hunters.. but not a family thing for most people that want a hilton vs a "cabin".

So, anyway, if it sells.. we will roll it over.. if not.. we will enjoy it till it does.. not a huge issue. Each year we hold it, we make money. Great place to be, not in need, not in want, just in making a financially better decision.

Thanks guys.

Mike and Mark, agreed, we need to get an axis and that dang red stag.

Russ

If you wouldn’t buy it for what you can sell it for, you should sell it.

I had to read this three times before I understood it...I'm old, ....but that is exactly what I have done twice before and hope to do one more time before I finally have the "last place," I'm ever going to buy.

A financially savvy friend taught me one that pertains to this.

"If your offer does not make you a little uncomfortable, then you need to increase the amount."

So are you going to sell just the 76.72 acres you own?
Or are you planning on selling the land your family member has also as one larger property?
If his property connects to your 76 acres, it may work, but if the properties are separated
then you may have a hard time selling at a premium price as one larger property.

Uh, I get that. It is all one contiguous property heh. This ain't my first rodeo.. lol. I get the entire aspect of how to sell it, I am mostly whining about having to sell it

I know it is the right move, and maybe we will not get the price we want, maybe we will get more... who knows, all I know is that there are comps for land sold in the past 6 months out there for about 1800-ish an acre with no exemption, no cabin, no water or electricity, some for a lot higher with cabins that are 'shanties' or however that is spelled. None of them have setups like we have and seclusion, so I think we can get the price we want if we hold out and then move into something a lot closer.

We will have to give up acreage, most definitely, the closer we get, the more we give up. The "PROS" to this is, the closer we get, the more stable the land valuations, i.e. out there, crazy spread of prices, closer, steady, but slower rise in prices.

BUT.. I think it is viable to get 100 good solid acres, maybe more if we push it to 2-2.5 hours drive, but I am okay with staying at 100-150 acres if it lands me somewhere nice, beautiful, peaceful, and with the rest we want. I would rather go small and love the place enough to retire there, than get a place I like, that is larger.

Thanks for ALL the input guys.. I really appreciate it. I listen to it all and it helps. Selling a ranch is not easy for us guys :P

R

If you do consider a 1031 exchange make sure you are comfortable with any potential IRS tax implications.

For example, generally you have to use all of the proceeds of the sale for the next purchase or you may have a taxable gain on the "boot." That is, you might have to pay long term capital gain taxes on any part you don't roll back in or if you get cash out at closing on your next purchase, etc. I am just mentioning this because you mentioned not wanting to use 100% of your sale proceeds for your next purchase.

Also make sure you are comfortable with any "personal use" restrictions on the old and new properties the IRS could look at when assessing taxability of gains from the sale. Also be comfortable with any potential future schedule E reporting requirements. The 1031 trust companies are just there to effectuate the transfer but it's not their job to guaranty the properties qualify now or in the future. Just be sure to consult your accountant so you don't get burned later by the IRS.

Not sure where I said I was not going to use all of it.. heh. We plan to roll every single penny back in. If the land is less than we made, we will roll that into improvements for the land as part of the purchase. We will not be taking anything out of the sale.

Now, if we flat out cannot locate anything and run out of time, we will just take the hit on the gains, pay off everythng we owe and be sitting pretty.

Bottom line is, win win situation for us no matter how it turns out.

Our decision, and it blows, is what is financially better for us, paying $1500 a month for land we do not get to go to except maybe 3-5 times a year, for 2-3 days each time, and then only really ME most of those times, or selling it, saving that cost per month, getting it closer, smaller, fishing pond for the kids, and seeing it a lot more.. OR.. selling it.. paying (call it 20%) taxes on the cash, paying everything we owe off except the house (the uncle would make a lot, but we would make at least 60-80k).. and having a lot of extra cash and equity each month and maybe finding something later?

It is the right financial decision. Love the ranch, but it is a good financial decision.

Russ

I was in your exact shoes 3 years ago John. Had a GREAT place south of Rocksprings only my main home was 6 hours on the Gulf Coast. It hurt, and tears filled my eyes, but I listed it and sold in quick time. Bought a small cattle ranch and built a great ranch cabin on it here on the Coast with all the fishing and hunting right out my back door.