The WP: February 2021 | Buying Into Kansas, Kansas Land Values, 1031 Exchanges, Kansas Properties

LAND | LUXURY PROPERTIES | COUNTRY HOMES | LAKE REAL ESTATE | HISTORIC PROPERTIES

WHY BUY INTO KANSAS? BUYING & SELLING: GETTING STARTED WITH A PRO 1031 EXCHANGE BASICS LAND VALUES ACROSS KANSAS

LAND | LUXURY PROPERTIES | COUNTRY HOMES | LAKE REAL ESTATE | HISTORIC PROPERTIES

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Let our professional staff of experienced local agents help you get the most exposure for your real estate property. Our listings get broad regional and national marketing reach to ensure your property has the best chance to get exposed to the right buyer.

Each property and client is unique which means each property marketing plan is customized. Our brokerage employs some of the most effective marketing activities for client properties.

MYWILDLIFEPROPERTY.COM

785-620-7122

|

NICK@MYWILDLIFEPROPERTY.COM

NICK RHODES, BROKER 7 8 5 -6 9 5 -2 9 9 9 | Ni c k@M y Wi l d l i f e Prop e rty . c om

KANSAS | NEBRASKA

& UNIQUE BARN

UPSCALE FARMHOUSE

SO

PRO PER T Y 3 5 2 9 E Rd | B e l o i t , KS 6 7 4 2 0 4 Be d r o o ms | 2 B a t hs | 2 ,1 8 5 s q f t AC REA GE 1 1 .5 3 A c r e s OFFE R ED A T : $ 2 88 ,5 0 0

CONTACT

CHRIS WAGNER, SALES AGENT (785) 534-7184 CHRIS@MYWILDLIFEPROPERTY.COM

LD An u p s c a l e c l a s s i c c o u n t r y h o m e a n d sma ll f a rm p r o p e r t y w i t h a u n i q u e b a r n a n d i n credible views, l o c a t e d j u s t m i n u t e s f r o m Be l o i t , K S T h e u n i q u e a n t i q u e b a r n i s a r e a l s how-st opper!

T h i s m a s s i v e r e l i c i s f u n c t i o n a l w i t h livest ock st a lls, e a s t a n d w e s t o v e r h e a d d o o r s , t a c k room a nd lof t .

T h e l o f t a r e a i s i n c r e d i b l y l a r g e a n d includes (2) full court old basketball courts.

HELL CREEK CABINS WILSON LAKE, KANSAS 4 CABINS | RV HOOK-UPS | 15+/- ACRES

$825,000

TO THE COUNTRY WE GO Cashing Out Of Colorado And Buying Into Kansas

by Nick Rhodes

Sometime around 2015 I started getting various calls from Colorado residents inquiring about rural property in Kansas. It didn’t occur to me at first that this was the start of a new migration from population centers to rural areas.

Real estate values in and around Colorado and especially Front Range cities like Denver and Colorado Springs are at an all-time high. An influx of

transplants from the West Coast seeking high-demand technology and oil jobs has more than irritated longtime residents. With new jobs and new transplants come new ideas, politics, change and skyrocketing real estate values. The first wave of real estate buyers seemed like an anomaly to me but it was just the tip of the iceberg.

So the question is: WHY KANSAS? >

WHY BUY INTO KANSAS? VALUE Get a Kansas mansion for the price of a 1 Bed, 1 Bath, 670 sq ft home in Denver, Colorado. Last fall a buyer came to look at a really nice rural property I had listed. The young family had just sold an old 10 acre farmhouse with dilapidated buildings about 20 miles east of Denver to a developer who was going to quickly raze the place and start building tack homes.

INTERNET ACCESS AND TELECOMMUTING During the Obama Administration there was a large push to get fiber internet to some very rural areas of the

country and a number of rural Kansas communities seized the opportunity to beef up their connectivity. Many places in rural Kansas have fiber internet or alternative high-speed services allowing many rural residents to work remotely.

SMALL TOWN LIFE The small town I live in has recently been inundated with new and vibrant residents. The area children once fled rural areas in search of bigger and better things in the city. Now, this generation has graduated college and started their own family only to realize they desire the safety and community that is experienced in rural Kansas.

AERIAL IMAGERY Visualization is the key to selling real estate. Wildlife Properties utilizes the most innovative techniques and equipment to make your property stand out in a crowded real estate market. Our aerial and static imagery allows buyers to experience your property from anywhere in the world.

INTERACTIVE Marketing Wildlife Properties utilizes TerraStride & HuntStand Pro, an advanced, next-generation online mapping platform that helps promote listings by improving how they map and market properties. This platform allows our agents to make a complete map of all the property’s features. Prospective buyers can take interactive tours of these maps, browsing through uploaded media and grouped features, such as hunting assets and timber stands. Compared to other mapping platforms, TerraStride Pro is easy for buyers to use and provides a robust toolset for creating and editing maps.

The platform is completely online, and prospective buyers can share maps simply by sharing a link. These engaging maps give buyers a unique way to experience properties before they ever have to coordinate travel to a site.

BUYING KANSAS LAND is a process, with many variables to consider. It is highly recommended that you engage a real estate professional with a specific expertise in Kansas land to assist you.

chris wagner, agent

wildlife properties

chris@mywildlifeproperty.com | @cwagner

resort style ranch BELOIT , KANSAS 4 BEDROOM | 6 BATH | 4531 SQ FT | 8.8 ACRES

$449,000

WHERE TO START

BUYING & SELLING: Get Started With a Pro Always consult a broker who specializes in buying and selling farmland before making an investment purchase. Hire a buyer’s agent when purchasing and hire a seller’s agent when selling. They can save you time, money and resources . Despite what many people think, listing agents do not represent a buyer’s interest because they have a fiduciary obligation to the seller. Buyers agents can often save you thousands of dollars and are usually paid by the listing side of the transaction.

Nick Rhodes, left, is broker of Wildlife Properties. @NickLandbrokerRhodes @MyWildlifeProperty

BUYING THE FARM

Know Your Purpose The most important factoring in buying land is purpose; why are you buying? Whether you’re an investor looking for a specific rate on return or a hunter looking to grow and maintain wildlife, the property should “fit” your purpose and needs.

Having clear ownership goals will help you quickly identify the right property for your needs/wants.

The Basics Regarding A 1031 Exchange

by Nick Rhodes In dealing with farm and conservation land transactions, commercial real estate transactions and investment real estate transactions the 1031 tax code is mentioned often by our clients. Most real estate owners and investors have heard of the 1031

Exchange code but few really understand what it is, its benefits or how to property utilize the 1031 exchange without getting themselves into trouble with the IRS. Under Section 1031 of the United States Internal Revenue Code (26 U.S.C. § 1031), the exchange of certain types of property may defer the recognition of capital gains or losses due upon sale, and hence defer any capital gains taxes otherwise due.

The spirit of the 1031 tax code was to give an incentive to real estate investors to re-deploy their investments from one

real estate holding to the next, otherwise upgrading their overall investment, without being penalized on their capital gains.

The beneficiary of a 1031 exchange does not avoid paying capital gains altogether.

They are simply deferring that taxation of that gain as long as they redeploy to the proceeds into another like-kind investment.

When the 1031 exchange beneficiary eventually goes to “cash-out” which in some cases can be several transactions down the road, then the capital gain is assessed on the gain dating back to the original investment. >

TALKING

WHERE TO START

POINTS

< 1031 EXCHANGE BASICS TIMING IS IMPORTANT

PROPERTY MUST BE A “LIKE-KIND EXCHANGE” This is a fairly broad term but it does have some obvious conditions. You can exchange farm land for a business. For example, the 1031 Exchange allows for an investor who is selling farmland to re-deploy those funds into the construction or purchase of a residential apartment complex say in a college town. It is a very common misconception that if you sell farmland you can only reinvest the proceeds into another piece of farmland or if you sell a commercial property you can only reinvest into another commercial property. The new investment must simply be a like-kind exchange which is broad enough to cover most any investment or income producing real estate.

YOU CANNOT REINVEST SALE PROCEEDS INTO YOUR PERSONAL RESIDENCE This is one of the biggest no-no’s and attempting the reinvest sale proceeds into your personal residence will usually lead to significant trouble with the IRS. The 1031 Exchange does not allow you to sell your primary residence and reinvest the proceeds into your new primary residence.

Within 45 days of selling the original property, you must identify a suitable replacement property or multiple properties. The property you are reinvesting the proceeds into must be fully purchased/closed within 180 days of the original sale date or before the date your tax return is due, whichever is first, during the same tax year in which you are to recognize this tax advantage.

USE A “QUALIFIED” INTERMEDIARY TO FACILITATE YOUR TRANSACTION To properly qualify under that 1031 Exchange rules, an investor may not have access to utilize the funds for the transfer. The use of a Qualified Intermediary, who will facilitate the 1031 Exchange and hold the proceeds, is the only way to keep the transaction legal and ensure that the rule of the transaction are properly executed.

This qualified intermediary will hold the funds while the replacement property is found and closed, and they will prepare the legal documents necessary for the investor to file with the IRS. An intermediary cannot be a related party to the investor.

For more information about utilizing a 1031 Exchange with your next business, investment or land transaction contact a trusted tax professional or a qualified 1031 Exchange Intermediary before you go to sell your real estate holdings.

LAND VALUES ACROSS KANSAS

WHAT YOU GET FOR THE MONEY NORTH CENTRAL KANSAS

$2,475/ACRE NORTH WEST KANSAS

$1,725/ACRE

SOUTH WEST KANSAS

$1,175/ACRE

Key factors that influence these factors include annual rainfall, urban sprawl, wildlife and recreation, soil composition and overall demand relative to available buyers.

NORTH EAST KANSAS

$4,100/ACRE

SOUTH EAST KANSAS

$2,400/ACRE SOUTH CENTRAL KANSAS

$2,200/ACRE

price per acre

Price per acre is the most common method for evaluating properties relative to specific areas, such as at the county or regional level. Price per acre gives the buyer an idea of what a property could be valued at relative to a specific area. Too often, prospective buyers focus too much on the price per acre. It is a single variable in the buying process and should NOT be the sole determining factor in your buying decision.

Remember, no two land tracts are the same.

location

Land values in Kansas range from $4100 per acre in the north east region to $1175 per acre in the south west region of the state. In more productive cropland and grazing land areas the value per acre is typicaly higher than lower producing areas with less annual rainfall.

scarcity

Supply and demand rule the economics of land just like most other things of value in the world. The fact that they are not making anymore land is one reason land continues to appreciate in value. On a more localized level, population centers influence the value of land in Kansas. Land closer to population centers such as Wichita, Topeka or Kansas City typically command a higher price than similar land in other areas. Land near population centers is more desirable for urban development and even recreational properties are valued higher because of their proximity to these centers of influence.

485 ACRES

MORTON COUNTY , KANSAS

INVESTMENT & CONSERVATION LAND

$315,250

9 BEDROOMS | 7 BATHROOMS | 7284 SQ FT

304 WEST 7TH STREET |CONCORDIA | KANSAS

PRIEST

STONEHAVEN MANSION

SCHEDULE A PRIVATE VIEWING

NICK RHODES, BROKER 785-695-2999 Nick@MyWildlifeProperty.com MYWILDLIFEPROPERTY.COM