Horry County HOA gun policy

[JABIII]

You think I am not aware of that? Or that I am too much of a hypocrite to say that I don't have a contract on a farm in Laurens that will eventually be developed right now today? The aforementioned area I am talking about will change the Lowcountry forever. Not just geographically but politically. It is that large. You are right, there is no stopping it now, but how many yachts can you water ski behind? You don't get to be a billionaire and have an off switch unless you are a rare bird like Ted Turner I reckon...

[tprice]

You think I am not aware of that? Or that I am too much of a hypocrite to say that I don't have a contract on a farm in Laurens that will eventually be developed right now today? The aforementioned area I am talking about will change the Lowcountry forever. Not just geographically but politically. It is that large. You are right, there is no stopping it now, but how many yachts can you water ski behind? You don't get to be a billionaire and have an off switch unless you are a rare bird like Ted Turner I reckon...

Spot on, you run for Gov of SC so you can finish your sea wall on IOP. LOL

[Duck Nitz]

Harrumph

[FLS]

Click bait.

[2thDoc]

please explain how you financially benefit from a conservation easement.

[JABIII]

1. Your tax value is decreased significantly
2. They pay you in US Dollars

The negative is in 20 years you realize how much value you have lost from a sales perspective. Did you really want to preserve that tract from future development? If yes, then it was worth it

[2thDoc]

i still dont get it. I devalue my land but this fella is telling me I benefit financially. I dont see how. If you sell, you sell for far less.

IMO, the ONLY reason for an easement is to put your money where your mouth is (if you speak out against "growth").

[JABIII]

i still dont get it. I devalue my land but this fella is telling me I benefit financially. I dont see how. If you sell, you sell for far less.

IMO, the ONLY reason for an easement is to put your money where your mouth is (if you speak out against "growth").

Millions in your pocket today vs less potential millions down the road. If you have someone who can grow those dollars instead of running out and pissing them away, it evens out. And there aren't 300 trailers on it. Take the win...

[tprice]

i still dont get it. I devalue my land but this fella is telling me I benefit financially. I dont see how. If you sell, you sell for far less.

IMO, the ONLY reason for an easement is to put your money where your mouth is (if you speak out against "growth").

Got couple ag clients looking at these now, to me it royally screws over generations down the road .

PERPETUITY is a LONG f'in time


However folks still do it and there are advantages to it as long as you understand the pitfalls

[AnythingFeathers]

It all depends on your intended future of the property. If you have a a property that your intent is to to pass on thru generations they can make good sense. Cash now to entrust with property to maintain and pay taxes for years to come as well as putting money in your pocket.

But there are many different ways easements are paid. Not all pay cash, in fact most I have seen lately are partial cash and partial “ non cash donations”. You agree to put land in easement and you get to deduct the “donation” from your taxes. On federal taxes you can deduct up to 50% of your AGI annually. It is an offsetting to your adjusted gross income and you have 15 years to use it up. So you save the tax burden on your income not a dollar for dollar return. So if you use 100k deduction from your 30% tax bracket, your realize gain is only 30k. In SC you can get up to 25% of easement value at a dollar for dollar tax credit against your actual tax burden. It is capped at $250 per and 52500.00 per year. They never expire, they are transferable. You can even sell them to a tax credit brokerage for all the cash now.And they will in turn sell them to someone else.

This is a just a brief explanation. There is fair amount of legal hoops to jump thru, but there are people out there to do that for you.

I have real estate brokerage friend who is telling me that people are paying close to fair market value, not the easement property value, for nice recreational tracts.

We are currently exploring an easement. That if it pays enough cash and I can get a contract on neighboring property, we will do. I will not have to come out of pocket to buy more land. But our intent is for this property to remain in family. Hopefully, forever. It’s is a good time to do it there because values are climbing fast so easement value is climbing also.

Also, it is a common misconception that you are restricted so heavily as to what you can and can’t do on the property that you no longer control your own property. Not true. If it’s a recreational property, farm, timberland, you can keep doing all stuff you already do. Cut timber, farm, hunt ride your 4wheelers or side by sides. An easement can be fully negotiated as to restrictions that fit your goals. You can even have written in that you can build a home or 2, or 3. You can negotiate in a future pond. Biggest thing is you cannot develop into commercial or housing development.

[AnythingFeathers]

I know of one property that was bought around 15 years ago for just under $2000 per acre. Put an easement on it when value got close to $3000 per acre. Got 1/2 to 2/3 of initial investment back. Now 5-6 years later it is currently on market for $5000 per acre. That is a little over fair market prices. They won’t get that, but they are entertaining in offer that is only a few hundred acre below fair market.

[Jozie & Me]

The strength of a contract is inversely proportional to the power of the Lawyer, trying to break it.

[Calibogue]

Down here, a good recreational property that is encumbered by a CE still holds the same or greater value were it not encumbered.

[2thDoc]

I am not arguing that. I am just trying to find out why that fella says landowners get rich on easements. i dont see an easement as being a financial windfall for the landowner.

[Highstrung]

definitely not an old 16g with some loose 8s in your baggie..

[Hogg]

CE are not a "get rich" scheme. They are part of the "stay rich" strategy.

[JABIII]

I am not arguing that. I am just trying to find out why that fella says landowners get rich on easements. i dont see an easement as being a financial windfall for the landowner.

It is a conundrum. My financial people want me to sell a farm and put the cash in a REIT paying 5%. The land is appreciating greater than 5%. There isn't anything on this planet I want to run out and buy. Maybe some new underwear or Ralph's private island.

I hate spending money. When I was poor living off the land basically I would run out and buy a new truck or some stupid shit all the time. You actually made me realize how damn ridiculous that was with that stinky old Dodge...

[Southernduck]

Hogg nailed it.

I used to be a huge proponent of the CE but I have waned in the past few years. A protected 500ac tract surrounded by urban sprawl is worthless and the next generation probably got a set of handcuffs. I would be a huge supporter of a 50yr easement with proposed extensions.

[Highstrung]

We've got a tract a little larger then that SD, put into a CE several years back.. I for one was extremely happy. It's an oasis now.

J, I wish I had my private island.. I can't see too many people now at my new house, but my old one was going to be surrounded with not enough control for me. I simplified my life over the last couple of years for little to no stress and sustainability.

[AnythingFeathers]

Term easements are a thing of the past. My landowner on a leased property has a 30 yr term expiring soon. He’s already been told no extensions.

A 500 acre tract in a moderately developed area would not be a smart move financially, if you would consider selling. Idealistically, if you were dead set on keeping the land forever, you could possibly get a large amount of cash and be moderately wealthy. But if unless you are very high income, the tax credits would not make sense you could never use them all, and the cap on the state stuff wouldn’t make good sense.
And all this is dependent on the property. They have a system that weighs the importance of the conservation. Location relative to developed areas that are running out of green space, proximity to focused waterway or river system. Water is a huge factor when it comes to getting cash. You don’t have to put the whole property in CE. You can do part of the property. Low lying, technically flood plain areas, wet areas, and surrounding watershed are great areas to conserve and get big money and still retain unencumbered, higher valued land.
Mitigation bank conservation is a money printing machine. Highly restrictive, and significant up front cost, but very lucrative in the end. The best part of mitigation banks is that your potential earnings are not preset. Those credits are a commodity. Your credits may increase exponentially over time depending on demand. Very likely that if it makes sense to do at current credit values it will be a lot more if you can hold on to them a little while. But that goes to what Hogg said. You have have money already to make that money.