What Does That Mean?
You have several options for securing control of the property. You can purchase it outright to establish full ownership or enter into a legally binding Purchase and Sale agreement. Alternatively, you might negotiate an agreement with the owner to jointly market the property for development, though this requires caution. Leasing the property may also be a viable option depending on the circumstances, along with other creative strategies that align with your goals.
Do Your Research
Start by identifying who owns the property by checking assessor data and gathering as much information as possible about the owner. Determine if they are open to discussions and explore factors such as easements, tax issues, or environmental concerns, that might influence development opportunities or provide leverage in negotiations. This Ownership Checklist provides a questionnaire framework that can be used during this phase of the process.
Keep in mind that contact information in assessor records may be limited, so be prepared to explore alternative ways to connect with the owner.
Sales History
As you learn more about the Main Street properties in your community, it is important to document your findings. This Sales History Tool can help you track the property information and provides rough calculations for demand.
Tips for Control Your Real Estate
Many long-term property owners face significant capital gains taxes if they sell fully depreciated properties. Be mindful of these challenges and explore options like identifying reinvestment opportunities or leveraging a sale in lieu of condemnation, which can offer tax relief. While certain conditions apply, this approach is often straightforward and effective.