Day 140. Line 1 died at the lender. Line 2 got re-traded. Here is what your client can still close on: a property whose address, price and closing date were fixed before anyone called.
You cannot recommend a property. You can hand someone a sheet. This is that sheet. Everything on it is a description of real property with a price and a date, which is all an identification needs.
Every replacement property has a seller who can change their mind, a lender who can re-underwrite, and a diligence period that can find something. Ours has none of those. We are the seller, and we already decided. We structured the position ourselves, the land carries no debt, and the diligence was done before it went on the shelf. The only variable left is whether your client wants it.
Every position we create is the land under a commercial building, held on a 99-year ground lease. That makes two complete real estate interests, and each one is a different answer to a different client.
A 99-year unsubordinated ground lease sits on it. Rent escalates every year and is paid without offset. The tenant pays taxes, insurance and every operating cost. Nothing to manage, no one to re-lease.
The building’s lender sits behind the land, not ahead of it. If the tenant fails, the building comes with the land.
The yield is low because the buyer is not buying yield. They are buying the tax they do not pay.
The improvements and their income, on the same land, under the same long lease. Roughly double the yield of the safe half, paid monthly. Depreciable, because the buyer owns the building.
The term is long but finite. The buyer knows their own horizon and is pricing that, not year forty.
Identification has to be in writing by day 45, so write us down then. If lines 1 and 2 close instead, tear this up. It costs nothing and commits the client to nothing.
Positions in formation from $2M to $18M across four states, both halves available. Inventory changes as it is used. Ask for what is identifiable today and we reply with the address, the price and the closing window.
The income half is depreciable; the client owns the improvements. The safe half is land and is not. A leasehold with thirty or more years to run is like-kind to a fee under the regulations, so either half qualifies. Basis steps up at death on either. Recapture on the relinquished property is unaffected by which half they buy.
A reservation agreement fixes the price and holds the closing window through day 180, for a fee credited at closing. If the client’s preferred property closes instead, the fee is forfeited. That is what certainty costs, and it is a fraction of the tax it protects.
Ask for today’s address. One email. We reply with what is identifiable now, the price and the closing window. Your office can confirm the identification the same day.
Ask for line 3