Received commercial real estate in inheritance, co-owned with my sister (we get along)...
Own a modest home
Property taxes are going up 42% this year, tenants are struggling as is
Sister and I are debating selling
Wife is already getting antsy with how the money can be spent on a nicer house
How do I
A) Get the best price for this commercial property
B) Protect myself from a potentially volatile wife, if money is what this is all about
Repost from last night as I got very little advice
has a wife
kek what a cuck
Yeah maybe was a bad call, no kids though
Is your sister and your wife the same person?
Why even get married if you're not having kids? People are fucking retarded as fuck.
What is it and where (approx) would be helpful. Dumping it with an uncertain tenant is unlikely to achieve best results.
B)
Divorce. May as well get it over with.
Did you get the free vasectomy at the vaush convention already?
Divorce your wife before you sell the property.
If the property wasn't in your name before you got married, congrats, you and your parents are retards. You want every piece of real estate you're set to inherent deeded to you before you sign the dotted line.
Ask for more than you think it's worth.
It's important to remember that when you buy your wife a larger house, she won't want an even larger house immediately after you move in. She'll be content for life and never bring it up again.
have a wife
She’s gonna divorce you down the road and take whatever form of 50% of assets you have at the time of your divorce so it honestly doesn’t matter.
I will never get married. I hate women
Don't sell retard. You don't need a nicer home.
muh wife
Lmao, she'll have her way and will leave you when you are sick and broke.
no kids
antsy about money
You forgot to add she's Asian, right?
Downtown commercial property in a pretty major college town in NC, historic area
Building few doors down sold for about 3 mil with a little less square footage, but this was a year or two ago.
So maybe give or take 2.5-3m
It's in a trust, my dad wasn't that retarded.
Also I should get a lawyer right?
Keep renting it out bro. Do so for as long as it can break even. Whatever money you get from the sale is half hers I believe. Are you renting to students? If so, your rent should be sky high unless it's a dump.
Of course you should have a lawyer
It's office space, 3 floors, pulls about 12-15k a month. Tenants before COVID got closer to that 15k figure
Mate, you live in a country where so called ironclad prenups can be reversed at a judges will, which happens every time unless your wife has proven herself to be a junkie, criminal etc. This is not the time to sell. Tell her that you're not selling in the foreseeable future. Make up some reason, bitches don't know shit about important things like that. Watch her reaction.
Be careful, it seems she believes it's automatically HER money to spend, not yours. Maybe you're too passive and that's why she thinks that. But if so, she married you only for the potential and highly likely gains.
Let me rephrase, 3 separate tenants
Depends on where it is. If it looks like op picrel you better hang on to that shit for dear life. It's a the exact type of storefront municipalities will be incentivized to support, because it aligns with both progressive walkable bullshit AND conservative we have to go back bullshit.
If it's in the middle of a crumbling exurb/suburb with no plan for redevelopment, dump it.
How many more times do you plan on posting this?
What's your overhead? ~13k a month is fantastic. Why sell with that kind of monthly revenue?
If you're getting ~4.5k a month per tenant, that's awesome man. What's the problem?
inherit something that is worth money and possibly makes money
wife wants to sell it and waste it all on a nicer "house"
Taxes are going up a wad. Split between me and by sister we take out operating expenses and the rest goes to our financial advisor. Between money markets and stocks, we are doing very well even with the downturn. This year prop taxes are at around 35k. We just don't know how sustainable it is as since COVID, the town has somewhat left the street to rot. It's still worth something now, but will it be in 5 years?
I bought and renovated a late 60s brick ranch, it's paid for
I'd rather not buy some modern shit built with popsicle sticks and wood glue
Twice, last night I got some crappy advice that didn't go beyond "get a lawyer"
Call it venting I guess, the state of the economy has be concerned
A) Get the best price for this commercial property
I wouldn't even sell it, commercial real estate is struggling at the moment but there are big changes for the economy on the horizon, and they ain't making any more land if you know what I mean. Unless your sister is dead set on selling, I'd advise just holding it and looking for anyone interested in taking over from your tenants, or giving your tenants a small break to keep cashflow.
B) Protect myself from a potentially volatile wife, if money is what this is all about
Tell your wife you swung a deal to pull out equity and give her a budget of $40k to do renovations on your current house, if she's into HGTV shit. Otherwise, just go house shopping but drag it out as long as possible keep finding flaws with the houses and keep holding out for better deals until you find something you're willing to move into.
Also make sure you talk to your wife and find out exactly how she's feeling about all this and what her point of view is. This is good for your marriage, but also lets you manipulate her easier.
Is that pic from murica? I am amazed that it does not look like shit. If your house looks like this, do not sell it. This is forgotten tech for you guys. I have owned a 100 year old apartment with two terraces and partial sea view in Europe. If I had kept it I would be richer today than I am now.
Leave your wife, fuck your sister, all the inheritance is now yours, profit
Sound advice, neither of us are set on anything. It was purchased in the 1940s and divided amongst the 5 children of my dad's side, my dad clawed his way to purchase everyone's portion when everyone else fell on bad times.
I don't want to get rid of it but my dad made it very clear, sell when the time is right, as the town made it very clear, they don't give a shit about long time local property owners.
My sister and I get along, that's not the problem, it will be amicable as fuck, just the wife kinda scares me when she hears potential money.
just the wife kinda scares me when she hears potential money
how did you end up in this situation bro
Well the good thing is it's all in a trust, the investments included
It sounds like I need to communicate and get a feel for her intentions. If she tries to pull manipulative shit I'll know I just need to cut my losses
I think you are wrong. But I am going to give you my reasoning in my response.
A. Best price for this commercial property is going to come from giving it to a CRE agent or a business broker and telling them what price you are willing to accept. Now would be an ideal time to sell as all trends are suggesting that in the future as you stated
Downtown commercial property in a pretty major college town in NC, historic area
suggest that college enrollment is about to start a major decline in the United States. It will likely crush most colleges and the value of the income stream is dependent on college enrollment either growing or at the very least not declining. It may not decline much but I doubt it will grow much in value if expenses (historic building, college town, tax pig, city neglecting street) keep going up. At some point you will need to do remodels and renovations and the income stream will stop while you have the building empty. I wouldn't want to be holding the property unless you think that you have a plan for it 50 years down the road.
B. If you sell your current house, have income coming in and are looking to purchase a bigger nicer house with some of the proceeds from the commercial property this is really a no-brainer. Get something above 3000 Square feet as for whatever reason prices per square foot seem to go down over that size of house, preselect the houses you want to look at before talking to the real estate agent or your wife and then whatever amount your comfortable spending target that aggressively. Don't let your wife get sucked into too many remodels or renovations on the property, try and get a turnkey property if you can or something that doesn't need immediate work. It isn't fun to piss money away on home renovations.
Repost from last night as I got very little advice
And you didn't think to add any extra details and answer the questions people poses to properly answer your question?
Very low IQ, Anon. I suggest letting your sister handle this.
Ask her bull
why would you even have a wife is it's not to have kids
also why is your wife talking about your inheritance?
fucking cuck
How the fuck did you manage to go through the entire years long process of courtship - engagement - marriage without suspecting that your wife was manipulative or financially irresponsible?
Not sure which of the two above it is but given your comments it is one of those, either that or the windfall has gotten to your head and made you paranoid which is also a possibility
How has a college town left the street to rot? This all sounds a bit odd. You're making ~260k a year at this place, but you're worried about overhead jumping to what? 100k? That's still fantastic. Most of my college rentals don't touch that. Not even close. Are you locked out of the profits by your financial manager or something?
Sounds like you already have a good house and your wife has no taste. More square footage isn't a substitute for quality construction in an established neighborhood. Please tell me you didn't paint the brick.
*160k* but still
Put the property in a trust in your kids name like yesterday if you are keeping it.
Get a commercial real estate agent and use a 1031 exchange form next year in taxes if you sell and buy a new house.
I have seen it before. Someone may have secret plans for the area and you aren't privy to it. So the city puts you at the bottom of the priority list and lets the values get depressed.
This. Brick is king. It's the only thing the Irish ever did right in this country.
men produce
women consume
The FIRST thing you need to do is keep you wife in line. I'm not saying she's a bad person, she is just hard wired to expend resources, whereas you are hardwired to accumulate resources.
Why sell? better to buy out your sisters half and put it in a LLC, then your wife can't pretend it is money that she can spend, and she can't get access to it even in case of divorce. On paper, it can looses money every year and you can deduct that from the income you earn from your job.
If you inhereted it, it should be free and clear, yes? Maybe it earns $10k a year, maybe $100k? Why the fuck would you sell???
Anon, this is the shitcoin shilling board. Unless you have a pump and dump to shill or an off topic political rant please refrain from posting
It sounds like OP's wife is just doing typical woman things. She knows it's worth a few mil and she's got dollar signs in her eyes. Unless she's already had a few of his kids and they need more space, I'd tell her it's off the table.
Checked
This is the classic, good money chasing bad money mentality.
Never sell an income producing property to buy a personal residence. They both capital appreciate but one can literally fund the buying of the other in income alone.
Ok, this sort of money is going to be reinvested anyway, so:
You could sell for 3M, and you're getting around 6% annual interest, plus value going up.
It's taxed, but you couldn't you deal with that somehow?
Because I don't think you're going to get a better deal than that, not without taking on significant risk.
no kids though
What's the point then? Kids these day have no clue what life is
Anon go easy on him. Most women can appear normal in day to day life, and it comes out of the blue that suddenly they see a potential windfall and lose their minds as decades of programming and brainwashing from advertisements hit all at once and now she has a chance to live out the fantasies she previously ignored as unattainable. It's entirely based on emotions and feelings and it's incredibly hard to argue finances with someone driven in that way. That's why I think it's best to give her some of the windfall, a capped budget, and the freedom to try to achieve her dreams and fuck it up and realize she's dumb and needs help, so that she trusts her husband to care for her rather than try to control him into meeting her perceived needs (brainwashed desires).
You have to out sociopath a woman. It's hard, but it can be done with prior planning.
I think we just disagree on real estate. I see it as the kind of thing you NEVER sell unless you absolutely have to. It's literally generational wealth (and should never be divided like OP's grandparents did, splitting single plots like that is fucking dumb and breeds resentment and competition). I also wouldn't recommend selling the house they're in now: I think they should hire a property management company and rent it out, because the extra income from that will help them get a bigger mortgage more than having a big downpayment will, and you can keep profiting from that house for a long long time.
Moving up to a bigger house isn't wrong, but the reason price per sqft goes down over 3000 is because NOBODY needs 3000 sqft to live in. That's an insane amount of square footage for interior space even if you have a bunch of kids. Location matters way more than size. Check justice map to find the location with the best demographics and you'll see that those houses have the best valuations and the most solid price histories, too. More resistant to downturns.
I think we just disagree on real estate. I see it as the kind of thing you NEVER sell unless you absolutely have to. It's literally generational wealth (and should never be divided like OP's grandparents did, splitting single plots like that is fucking dumb and breeds resentment and competition). I also wouldn't recommend selling the house they're in now: I think they should hire a property management company and rent it out, because the extra income from that will help them get a bigger mortgage more than having a big downpayment will, and you can keep profiting from that house for a long long time.
I just see commercial real estate as being a big risk for owners like this. They only have one building and certain facts about the building (Historic area, college town, trending bad relationship with city) are usually signs that it is time to give it up and take your money somewhere else. Considering his side of the country doesn't lack in housing compared to the west coast selling the home they live in just simplifies the amount of property management they have to do. Unless OP wants to remodel and rent the house its just extra work with less squeeze.
Moving up to a bigger house isn't wrong, but the reason price per sqft goes down over 3000 is because NOBODY needs 3000 sqft to live in. That's an insane amount of square footage for interior space even if you have a bunch of kids. Location matters way more than size. Check justice map to find the location with the best demographics and you'll see that those houses have the best valuations and the most solid price histories, too. More resistant to downturns.
I disagree on the "nobody needs" argument. Nobody NEEDS to live in 800 square foot clap trap apartments, they just get stuck there. Big houses are in better shape, more modern in some cases and have less nonsense with neighbors. It can also quiet a wife who wants a new house for a while as the size of the space disarms any questions about bigger.
Perhaps. I think we value things differently and that's okay. I'm hyper-bullish on real estate if you couldn't tell.
Its fine. Either way the OP is likely to do okay. Unless he plows his entire sale price into a house he cant afford.