Family Property Trust Strategies for Large Land Holdings

Hello. How are

you, Janata?

Denata: Amazing. How are you?

Amazing as well. So, your question. You're

in Cal. Where are you in San Diego, right? Yes,

Denata: I'm in San Diego.

If a property held in a family trust with

multiple beneficiaries being sold through a 1031 exchange.

What type of replacement properties and ownership

structures are typically used to keep the exchange compliant

while maintaining shared control by multiple owners? Oh, this is

going to be a fun one. So I, I mean, I don't know where you're

going to 1031, but I would get the heck out of California with

what's going on there. Oh well,

Denata: the the property. I'm sorry, the

property is located in Louisiana. So I live I live in

San Diego, but the property is located in Louisiana.

Yeah. So like kind is the what everybody you

know repeats and refers to, but like kind can become a whole

variety of different things. So you're at a point that if all of

you kids don't get along, how many little humans are in this

agreement?

Denata: Well, how we have it set up, it's like so

it's like five of us. It's only five of us, but I pretty much do

everything and just bring things to them and say this is what I

think we should do because none of them are doing any of the

things that I do,

you can be you can be sole decision maker.

Denata: Yes.

So we would start helping you get that in

writing, so

Denata: there's

no fighting about it. And if they agree,

which a lot of times in the beginning, when people meet us,

they don't agree, and then as you get to know more and more

people that are in your situation, like I have a woman

who had to move back from Europe, huge, huge job, back to

Indiana, and come to find out they're worth millions. Nobody

knew; all the other kids didn't care, and so to really give her

authority to move when she joined the big table, so she

could buy, buy, sell, and just like really fix the estate, then

there is some documents that you'd probably want to have more

authority just to move and sign for, because they could also, if

you make a mistake, sue you and take from you. So you want to

solidify your positioning so we get you a little bit safer than

you are. And then, is your plan to stay together? Is your plan

to separate? Because I mean, here's here's your moment to

separate. If your moment to separate is everybody gets a

piece, then you could 1031 into five properties. If you want to

keep it whole and growing at a bigger compounding rate, then

you do one, right? You'd move to one say bigger a you know place.

And again, Louisiana is a great place. Great place. So you would

have options there. We would put some 1031 specialists right

around you very quickly to make sure you stay on course and on

time, because a lot of times you'll say, "Well, my title

company or my agent or broker is taking care of me. A lot of

times that times out, and then you're stuck, and then you you

don't get the 1031. So we would put people like some guardrails.

I call them right next to you to make sure you stay on point.

Also, remember you're joining a community of 1000s of people. So

I already know five or 10 from different states and different

locations that would be sourcing deals for you, so you can look

at a lot more faster, and then do a faster analysis.

Denata: Okay,

it makes sense. Yeah, and then it needs

to land in corporate structure. So if you don't have LLCs around

the property, I mean that's typically what you do with real

estate. And then S corps are typically the property

management company or the construction company, and then

they usually have a management relationship with another

company. So

Denata: one thing, Laura. We just what we just did

because there was like five families, five siblings

involved, five families, and we're like the we're like the

we're the second generation because the first generation

they're they're passing away, like they're they're like 7580

and we've had this land in our in our possession, and it's a

lot of land. It's like 300 acres or something, and we've had it

for a long time, and it's worth a lot of money. And they, this

whole generation, didn't do anything with it. So now they

come to us and they're like, "Hey, y'all need to doing do

something with this, and I just basically said I'm not

participating unless I have some type of control because I'm not

going to be arguing or going back and forth with people who

don't have the experience that I have to take care of this or to

manage this properly. So that's where we are. We have put it in

a LLC, so and that's and all families are joined in the LLC.

But I wanted to

document that I would we would have that

operating agreement on that LLC five and and it's probably

through that operating agreement that we can give you the

authority that you need.

Okay,

but then we're going to have to redo it. Is no big deal. Like

that way, you have what you need, and then are do all five,

like you included, you guys all have your own trusts?

No, we don't.

So that's we're just going to again give

you the pros and cons because if something happens to say one of

the families, one of the five, and their piece goes to probate,

it locks up this property, so it's oh wow. So we may depending

because if it's 300 I mean, okay. So now that you said that,

I'm thinking like a property. Property. If this is land,

there's no structures on the land.

Denata: Not, not right now.

Oh, girl. So then that's another team that

just would come in a development team. Do you want to develop it?

I mean, do like how many like millions is in developing that

much land?

Denata: So this this land is near the meta factories

that are being built in Louisiana. That's where it's at,

and so there there's been a lot of communication about

development, but really nobody wants to develop it. Nobody

wants to do the things that it takes to develop the land,

except for me, and I'm not opposed to it. But I'm also

saying, hey, if I am the primary, if I if I start

developing this land, I can

get my way.

Denata: Yes, exactly. Move out of my way because I'm

not gonna keep. I don't want to have to keep coming to you to

ask you questions that I know the answer to.

Right. Okay. Yeah. I thought you meant to me.

I'm like, oh yeah, you

Denata: do. No, no, no, not you.

Joining our big table. I mean, as Laura was

like, you want to come back to me and this development team we

put around you, and I mean, very quickly, you know, you're going

to know whether you want to do it or not. Finding capital in

those kind of situations is not that difficult because if a lot

of those meta factories are coming around, they need the

housing, and there are a lot of just ways that you can do a deal

with them to do some stipulated housing and

actually

pre-buy those contracts because they're going to need executive

housing, they're going to need labor housing, they're going to

need all levels of housing. And 300 acres, young lady, is a lot

of land, and you could do a lot of levels of properties, right?

You can do more of the estate levels for the executives, but

again, you can contract that, especially if you've got all

that going on down there. So there's, I mean, granted,

Louisiana is French law, so it's like a land of its own. I was

Californian is a land of its own. I lived in Louisiana. I

love Louisiana, but it's it'd be fun to work with you. You got to

have a team, girl. You can't do this alone. I mean, oh, I know

that alone. But you, I think you're crazy trying to figure

this out alone. And no,

Denata: no, no, I'm not trying to figure out alone.

That's why I found too. All right.

You and Laura talking

Denata: Thursday.

All right. Well, if you can talk tonight or

tomorrow, be better.

Denata: Okay.

Let's get you. I'll

Denata: message her. Okay.

Message her, and let's talk faster.

Denata: Okay.

All right. Love to help you talk. Thank

you. Okay. Thank you. Thank you.

Denata: Bye bye.

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