Just wondering what the best method is.
It's a long term goal of mine to buy some undeveloped land out west, like in UT or CO, build a house on it, and move there from PA.
Occasionally I browse the internet looking at land sales and auctions just to see what's out there and today I see some for sale that I can afford. Not ready for that step yet but am curious about how to do it.
I mean, having it under my name is one way. But than, if I put it under my trucking company name would it be better? Being a business purchase to move my company out there could make the land a tax write off, right? But than would that interfere with my desire to build a house and live on the land?
Buying land, use my company as owner?
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Just fyi, land in Colorado has gone completely crazy on prices. Building a house on a piece of land will run you $600K+ not including the land.
Also do your research and make sure you do not end up in a Metro Tax District. Any piece of land you buy, hire a real estate attorney to research the property and it's history, restrictions, taxing districts, etc for you.
You don't want to be in an HOA.
You don't want to be in a Metro Tax District. These are ADDITIONAL taxes on top of your Property Taxes and they can be quite hefty ($1,000 a year to $10,000 a year and sometimes higher depending on the district).
You don't want any type of Covenants if possible.
You only want to have to deal with County Zoning regulations, State Zoning Regulations and any applicable Federal Zoning Regulations but these usually do not apply.
You need to know what the water rights are on the piece of property you buy.
You need to know what the deal is with any mineral rights. You don't want some oil or gas company coming on your land and drilling in the middle of your nice little property.
You'll need a feasibility study done. You can request the seller either do one or give you a window (30-60-90 days) to do one before you commit to buying the property).
The feasibility study will allow a builder and an engineer to do soils test, determine water run off and direction, how deep down they have to drill to do a well, where septic/leach field will go, is there power/natural gas available? do you have to put in solar/tesla walls, do you have to bring in propane? Can you do geo-thermal drilling for heating/cooling? where to install fire breaks (insurance for housing in the mountains is high and there's starting to become limits to how much the insurance companies will cover and in some high threat areas they won't even offer insurance).
Also if you run your own trucking company or are an owner operator, do not put the land or the home you build in your name. Put it into a land trust. It makes it harder for lawyers to find these type of assets.You want to protect your assets as much as possible. Hopefully your company is already in an LLC.
I'd also advise adding a $1,000,000 or $2,000,000 umbrella policy to your current homeowner's insurance policy and it will also apply to your vehicles. It gives you a little extra protection in the event you cause an accident or you are found at fault or someone gets hurt on your property. You should also see if there is one available for your commercial truck through your trucking insurance company. This will help protect your personal assets from greedy ####roach lawyers looking to take everything from you.
The last two questions would be better served for a Colorado Real Estate Attorney. I have a couple if you'd like their names and numbers.
If you put it under your company and then one of your trucks wrecks out, then all the assets of the company become targets. There's guys who won't even put their trucks in the same company as their MC number. They make a separate holding company and then lease the equipment from one to the other. It's a shell game that can save most of your assets when the #### hits the fan. There's a guy on YouTube whose company got wiped out by a business partner''s tax fraud, but he had put his own trucks under a separate holding company, and when the dust settled, the company was gone but he still had his trucks.
A bad wreck can have similar impact. Best bet might be to create a separate company just for the land.
Thanks for the replies guys. Another company is certainly an option, and 'lease' it to my trucking company.
As for the other stuff, I pretty much know nothing about property buying (main reason I'm not jumping into buying yet) so it's very helpful information.ColoradoLinehaul Thanks this.
4wayflashers Thanks this.
I do want remote, so no utilities isn't a complete turn off, solar/wind/generator for power and well or bring water there.
But would at least have to be able to get my truck to the property. NV is generally too hot for my liking anyway.CorsairFanboy Thanks this.
On top of the liability, as much as I like write offs, I don’t think I’d want to pay triple on it if I were to ever sell it for one reason or another.
Talk with a lawyer but I would think you would want the land in either your personal name, or its own LLC
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