Need Some Opinions on Selling Everything

**El Dave** · 07-18-2008, 09:37 PM

I am at a crossroads and am trying to decide what to do.

I am a real estate developer. I own about 70 acres of raw land worth about $1 million which has no debt. I also own about 20 residential lots worth about $600K. I have a bank debt of about $290K and personal debt (about half credit cards) of about $60K. I just sold my house and live in a rental. Our cars are paid off.

The real estate market has gone down the tubes and I am worried that the whole economy is about to collapse. Lots are not selling, therefore I have no income. I could make a career change and do something else.

I have an offer on my raw land for about $1 million and kind of want to sell it to get out of debt. My wife wants to keep the land because she really wants to build a house there some day. I'm worried that if we don't get out of debt soon it could get bad and we could get jammed up. Give me some opinions on this please.

**Momof3girls** · 07-18-2008, 09:59 PM

An offer in hand is worth something in my opinion and so is being able to sleep at night without debt hanging over your head.
Unless the land is the "be all, end all" and exactly where you both want to live AND there is nothing else like it available, then I would sell it, pay off all your debt, continue to live in your rental and reevaluate where and what you want to do.

**Greebo** · 07-18-2008, 10:19 PM

Sell the land, keep the lots, pay off the debt, and live on the remaining $650k for 11 years on $50k a year or until the economy turns around. Not cause the economy's collapsing, but because debt is hanging over your head.

And then stop listening to the FRIGGING MEDIA and start listening to Dave Ramsey.

FED upgraded GDP outlook on Wednesday to increased growth - from 0.3 to 1.2, to 1.2 to 1.8. That's an upswing.

So stop panicking and be debt free and a half millionaire with lots of real estate you can develop again in a year or two.

**Frugal Nurse** · 07-18-2008, 10:49 PM

Greebo! You're so frggn funny!!

But I agree.
If you have an offer and indeed it is solid - SELL!!!!!!!!!!!!
There will be other lots. It's not the end of the earth.

Maybe you can find a smaller acreage and build the wife a house there. But where will you live?

All kidding aside. Sheesh.. I'm jealous about the amount of property owned. but I do not envy your debt.
Actually, I am not sure I could sleep at night. I'd be selling my million dollar property for 3/4 that amount just to pay the debt.

(but that's me - prolly a good thing I'm not in real estate INVESTMENTS huh..? )

**Persimmon Lace** · 07-18-2008, 11:19 PM

Sell it and let tomorrow take care of itself! You need to get debtfree now and in the present.

**xtena** · 07-18-2008, 11:33 PM

I agree with the above posters. Sell it and get rid of that debt.

**prftstrngr** · 07-19-2008, 03:53 PM

I'd sell in a heartbeat! Get rid of the debt and stash your cash!! There will be other land......

**PrairieRose** · 07-19-2008, 04:44 PM

I'd sell the land and keep at least one of the lots for your own future home. I'd pay off the debt, live debt free and conservatively and sleep like a baby at night.

**cottageliving** · 07-20-2008, 12:44 PM

Sell, Sell, Sell -- with the RE market being what it is you have received an excellent offer!

Do NOT spend the money you make on the deal other than to pay off debt.

Meet with your CPA to minimize any capital gains tax.

The peace of mind you and your dw have will MORE than make up for the fact that you do not have that exact tract of land to build your dream/retirement home.

All the best