Give Land Back [Bought land from friend, he wants to buy it back]

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
User avatar
Topic Author
tvubpwcisla
Posts: 526
Joined: Sat Nov 09, 2019 10:09 am

Give Land Back [Bought land from friend, he wants to buy it back]

Post by tvubpwcisla »

A friend of mine had the opportunity to purchase two land parcels adjacent to each other. At the time, he did not want to buy both so I stepped in and bought the other one. He decided to build on his parcel and now wants the lot next door as well. He asked me to sign the lot back over to him for a little more than I paid; basically a break even for me. I was thinking to hold the parcel for several years and sell later down the road. What should I do?
fabdog
Posts: 1466
Joined: Wed Jan 16, 2013 1:59 pm
Location: Williamsburg VA

Re: Give Land Back

Post by fabdog »

Not sure why the title of the post is "give land back"

Did you make some arrangement with the friend to hold the land till he wanted it and then sell for a pre set price? Why did you end up buying it when the friend did not want it?

So now you own this land your friend wants to buy... you can offer it to him at the market, at his offer to you of a break even, or hold it and sell it later. You could always give him a right of first refusal to match any offer you get later... but for what purpose other than to stay friends?

I'm confused with the "sign back over" language... Did he actually buy both lots and then sell one to you since he didn't want both?

At the end of the day, absent some formal resale agreement between the 2 of you, it's your lot and you can do as you choose

Mike
User avatar
Topic Author
tvubpwcisla
Posts: 526
Joined: Sat Nov 09, 2019 10:09 am

Re: Give Land Back

Post by tvubpwcisla »

fabdog wrote: Mon Dec 16, 2019 8:57 am
I'm confused with the "sign back over" language... Did he actually buy both lots and then sell one to you since he didn't want both?
That is correct.
User avatar
Cheez-It Guy
Posts: 1250
Joined: Sun Mar 03, 2019 4:20 pm

Re: Give Land Back

Post by Cheez-It Guy »

What do you value more? The land or the friendship?

Him buying the land, and at a premium to what you paid doesn't really sound like you giving the land back. It sounds like you selling it to a friend.

Is he giving you a fair interest rate since you've had your cash tied up? If not, perhaps there's room for a little friendly negotiation there.

I'd sell it since you already said you planned to sell it in the future rather than use it yourself. You have a buyer in hand, and someone you know rather than someone that is more likely to flake out on you. Cash sale and reduced transaction costs. You also unload property taxes. For him, it's a good deal, because it's rare that adjacent plots come up for sale.

Seems pretty clear cut to me.
fabdog
Posts: 1466
Joined: Wed Jan 16, 2013 1:59 pm
Location: Williamsburg VA

Re: Give Land Back

Post by fabdog »

Well, then your friend sold you something he didn't want, and assuming for a price you were both OK with.

Unless there was a specific agreement to sell back to him on demand at a set price, you are free to do as you wish, assuming the sale process put the deed in your name.

Up to you what to do... but you're not required to do anything

Mike
retired recently
Posts: 489
Joined: Sun Oct 04, 2009 6:09 pm

Re: Give Land Back

Post by retired recently »

If he is a good friend and the price he is offering is not that different from current estimated market value I would do it. If different, how much different? That is the value of the friendship.

You are not really giving enough info for anyone to make a meaningful suggestion in my opinion.
User avatar
Topic Author
tvubpwcisla
Posts: 526
Joined: Sat Nov 09, 2019 10:09 am

Re: Give Land Back

Post by tvubpwcisla »

retired recently wrote: Mon Dec 16, 2019 9:09 am If he is a good friend and the price he is offering is not that different from current estimated market value I would do it. If different, how much different? That is the value of the friendship.

You are not really giving enough info for anyone to make a meaningful suggestion in my opinion.
20% below market value.

5% more than I paid, which covers my carrying costs (basically a break even).
bradinsky
Posts: 278
Joined: Sat Jul 21, 2018 6:32 am

Re: Give Land Back

Post by bradinsky »

If he's friend, I would sell it back to him at a little more than break even. Friendships are more valuable that cash. If he’s an acquaintance, it’s just business & I would get the most I possibly could for it, now or in the future. If he wanted both of them, he should have ponied up the money from the start, instead of asking someone he knew to buy it. Business is business!
Dottie57
Posts: 9543
Joined: Thu May 19, 2016 5:43 pm
Location: Earth Northern Hemisphere

Re: Give Land Back

Post by Dottie57 »

You get to do what you want as you have ownership. I am assuming you bought the land for cash, right? You didn’t pay interest on a mortgage, correct?


Your friend made a mistake in selling to you. You are not his keeper. You do bot owe him anything. Do as you want.
Nowizard
Posts: 3130
Joined: Tue Oct 23, 2007 5:33 pm

Re: Give Land Back

Post by Nowizard »

Comments here are almost certainly going to focus on financial issues such as the current and future value of the land since we do not know you personally or your relationship with the other party. However, there is an issue that interacts but goes beyond the financial, that being the longer term, psychological aspects of the proposed sale. I would encourage you to post more details on both issues.
These might include things such as how you arrived at the decision to purchase the adjacent lot. Was it primarily out of friendship or primarily a financial issue regarding holding for a period of time and selling? What was stated regarding your purchase and why you agreed? Basically, which was more important at the time, your friendship or finances? Your present decision would logically also involve a formal or informal appraisal of the value of the land currently, its projected value in the future, and, perhaps importantly, how would it affect your decision if you felt the value of the land would remain static or even decrease versus a significant appreciation. What you can do is clear. It is your land, and your friend wants to purchase it. That desire could be present regardless of who owned it, and it would simply be a financial transaction if you did not own it. You might also consider if your friend would have made this suggestion if he knew that a sale would depend on paying full value versus obtaining a bargain based on friendship and his interpretation of circumstances underlying the original purchases.

Tim
User avatar
JoMoney
Posts: 10521
Joined: Tue Jul 23, 2013 5:31 am

Re: Give Land Back

Post by JoMoney »

If you don't want the land, then sell it to him, if you want the land don't.
Regardless of whether or not you make money on the deal, it should trade at whatever the current fair value/market price for the land. If you sold it to him at a discount to the value, depending how deep the discount, it could subject you to gift taxes for the value you transferred.
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham
HomeStretch
Posts: 5387
Joined: Thu Dec 27, 2018 3:06 pm

Re: Give Land Back

Post by HomeStretch »

Did you pay market when you bought it from him?

If so, offer to sell it at market back to him, assuming you want to sell (even of it’s a couple years before you planned to sell).

If not, offer to sell at the same discount off market he gave you when you purchased it.
User avatar
Watty
Posts: 21353
Joined: Wed Oct 10, 2007 3:55 pm

Re: Give Land Back

Post by Watty »

tvubpwcisla wrote: Mon Dec 16, 2019 8:53 am He asked me to sign the lot back over to him for a little more than I paid; basically a break even for me.
Buying the land like that was likely a mistake unless you had planned to live so it would be best to just unwind the situation gracefully. As a general rule it is best to not do business with friends or relatives since it can end badly.

If you don't want to build on it to live there yourself then have an appraisal done and sell it to him at the appraised price.

In addition to the risk of losing the friendship if you don't sell the land you would also be setting up a potential bad neighbor situation and he could do things that would make the land hard to sell.

People are funny about money and land and there are stories about people in land disputes where someone does things like starts raising pigs just to make things difficult or unpleasant for a neighbor.

If you really wanted to keep the land for some reason and if there are other similar lots that are not adjacent to his land you could also work out a deal where buys a comparable lot down the road from someone else, then you could then swap lots so that he could have the land that is adjacent to his lot.
retired recently
Posts: 489
Joined: Sun Oct 04, 2009 6:09 pm

Re: Give Land Back

Post by retired recently »

Another way to look at it is that he has valued your relationship at 20 percent of the MV....any idea what he intends to do with it? If he just wants a bigger piece of land and is going to keep it I might be inclined to sell it to him but if he just wants to make money then I would be less inclined.

Did you do it as an investment with the intention to sell it in the future? What would you have realistically done with the money had you not bought the land and how has that done?
FrugalConservative
Posts: 227
Joined: Thu Aug 17, 2017 9:44 am

Re: Give Land Back

Post by FrugalConservative »

Really depends on the friendsip level. If its my best friend, I sell it back to you him but I would make it known that YOU took the risk and now your friend wants the risk free reward of owning the land and maybe not paying fair value.

Hold it if you want, but your friend piggy backing off your risk taking isnt fair.
User avatar
Topic Author
tvubpwcisla
Posts: 526
Joined: Sat Nov 09, 2019 10:09 am

Re: Give Land Back

Post by tvubpwcisla »

retired recently wrote: Mon Dec 16, 2019 9:45 am Did you do it as an investment with the intention to sell it in the future? What would you have realistically done with the money had you not bought the land and how has that done?
Yes, was going to hold for several years.

Nothing, would have left the cash in a high yield savings account.
Jack FFR1846
Posts: 13060
Joined: Tue Dec 31, 2013 7:05 am
Location: 26 miles, 385 yards west of Copley Square

Re: Give Land Back

Post by Jack FFR1846 »

Do you have some other offer in hand? If not, I'd question what the value really is. Putting a 20% expected gain as an asking price, it would certainly not be out of line to think the best you get is an offer for 10% gain. Then you pay the real estate agent. Land sales (my dad used to do this) brings 10% and all of a sudden, you're below your friend's no hassle offer of a 5% gain.

I'd sell it and be done with tying your money up.
Bogle: Smart Beta is stupid
barnaclebob
Posts: 4329
Joined: Thu Aug 09, 2012 10:54 am

Re: Give Land Back

Post by barnaclebob »

What agreements were made when he sold it to you?
User avatar
Topic Author
tvubpwcisla
Posts: 526
Joined: Sat Nov 09, 2019 10:09 am

Re: Give Land Back

Post by tvubpwcisla »

barnaclebob wrote: Mon Dec 16, 2019 10:08 am What agreements were made when he sold it to you?
None
User avatar
dm200
Posts: 23148
Joined: Mon Feb 26, 2007 2:21 pm
Location: Washington DC area

Re: Give Land Back

Post by dm200 »

tvubpwcisla wrote: Mon Dec 16, 2019 8:53 am A friend of mine had the opportunity to purchase two land parcels adjacent to each other. At the time, he did not want to buy both so I stepped in and bought the other one. He decided to build on his parcel and now wants the lot next door as well. He asked me to sign the lot back over to him for a little more than I paid; basically a break even for me. I was thinking to hold the parcel for several years and sell later down the road. What should I do?
It seems to me that the correct term for what your friend wants is for you to sell the lot to him at a bargain price - rather than "giving land back" or "sign the lot back over to him".

Could or would your friend have been able to just purchase the one lot, himself, without your having "stepped in" and purchased the other lot?

How long ago was the lot purchased?
hudson
Posts: 3533
Joined: Fri Apr 06, 2007 9:15 am

Re: Give Land Back

Post by hudson »

tvubpwcisla,
If it was a friend of mine, I would sell it back immediately. I wouldn't worry if I lost a few dollars on the deal.

I would never buy any property that didn't produce decent income right away. I'm not brave enough to speculate.
User avatar
Watty
Posts: 21353
Joined: Wed Oct 10, 2007 3:55 pm

Re: Give Land Back

Post by Watty »

tvubpwcisla wrote: Mon Dec 16, 2019 9:11 am
retired recently wrote: Mon Dec 16, 2019 9:09 am If he is a good friend and the price he is offering is not that different from current estimated market value I would do it. If different, how much different? That is the value of the friendship.

You are not really giving enough info for anyone to make a meaningful suggestion in my opinion.
20% below market value.

5% more than I paid, which covers my carrying costs (basically a break even).
Ouch!

I would think he would be pretty insulted if you offered to buy his house and land for 20% less than market value even if he still made 5%.
Flyer24
Moderator
Posts: 2395
Joined: Sun Apr 08, 2018 4:21 pm

Re: Give Land Back

Post by Flyer24 »

I would go ahead and sell the land to your friend. You really don’t want to sell later down the road and have someone build next to your friend. Some profits just aren’t worth affecting a friendship. You might could counter with a little above the 5% but I wouldn’t seek the market value. Make your money on your next investment with the proceeds from this sale.
User avatar
Brianmcg321
Posts: 1171
Joined: Mon Jul 15, 2019 8:23 am

Re: Give Land Back

Post by Brianmcg321 »

Make an offer to sell it back to him at market value.

A friend that's trying to rip you off isn't a friend.
Rules to investing: | 1. Don't lose money. | 2. Don't forget rule number 1.
User avatar
Schlabba
Posts: 693
Joined: Sat May 11, 2019 9:14 am

Re: Give Land Back

Post by Schlabba »

Imagine you selling him the land. A year later he changes his mind again and sells it at market value, making at least the 20%. Would you feel betrayed?
Gill
Posts: 6959
Joined: Sun Mar 04, 2007 8:38 pm
Location: Florida

Re: Give Land Back

Post by Gill »

JoMoney wrote: Mon Dec 16, 2019 9:22 am If you don't want the land, then sell it to him, if you want the land don't.
Regardless of whether or not you make money on the deal, it should trade at whatever the current fair value/market price for the land. If you sold it to him at a discount to the value, depending how deep the discount, it could subject you to gift taxes for the value you transferred.
Nonsense. There is no gift involved nor an intention to make a gift. Even if your statement is correct there likely would be no gift taxes unless the discount exceeded $11.4 million.
Gill
Cost basis is redundant. One has a basis in an investment | One advises and gives advice | One should follow the principle of investing one's principal
User avatar
dm200
Posts: 23148
Joined: Mon Feb 26, 2007 2:21 pm
Location: Washington DC area

Re: Give Land Back

Post by dm200 »

Schlabba wrote: Mon Dec 16, 2019 10:43 am Imagine you selling him the land. A year later he changes his mind again and sells it at market value, making at least the 20%. Would you feel betrayed?
Good point! A lot of complexities. On the other hand (related to the friend), the friend may not have any idea that this land is worth considerably more than he is suggesting/offering.

This seems to be a "textbook case" of why not to mix friendship (or family) with business dealings.
jcavana1
Posts: 56
Joined: Mon Aug 22, 2016 5:21 pm

Re: Give Land Back

Post by jcavana1 »

Unless there was an explicit agreement to sell at a certain price the only "fair" price is market value.

If one of you is paying well above or well below market value, then one person is taking advantage of the other financially...And that's not how friends treat each other. It's that simple.
User avatar
goodenyou
Posts: 2544
Joined: Sun Jan 31, 2010 11:57 pm
Location: Skating to Where the Puck is Going to Be..or on the golf course

Re: Give Land Back

Post by goodenyou »

Sell it back to him. Move on from the land and your friend. Your relationship will never be the same no matter what you do. This transaction will always bother you.
"Ignorance more frequently begets confidence than does knowledge" | “Do you know how to make a rain dance work? Dance until it rains”
dalbright
Posts: 271
Joined: Sun Oct 21, 2018 6:23 am

Re: Give Land Back

Post by dalbright »

Although the %'s given may be helpful, actual $ would be more relevant here. Could be a significant % change on a small lot resulting in a few hundred dollars, vs millions if a farm etc. Not worth a hassle and possible loss of friend for a few hundred...but the situation needs to be re-evaluated if you start entering bigger dollars.
User avatar
dm200
Posts: 23148
Joined: Mon Feb 26, 2007 2:21 pm
Location: Washington DC area

Re: Give Land Back

Post by dm200 »

goodenyou wrote: Mon Dec 16, 2019 11:15 am Sell it back to him. Move on from the land and your friend. Your relationship will never be the same no matter what you do. This transaction will always bother you.
I don't think the situation must be this "dire" at all. Just have a chat/discussion about the actual market value of the land now and discuss what might be fair to you both.
Silk McCue
Posts: 4873
Joined: Thu Feb 25, 2016 7:11 pm

Re: Give Land Back

Post by Silk McCue »

How long have you held the property? How much have you paid in property taxes? What is the inflation adjusted amount for what you have paid. He is asking to buy back with cheaper dollars than you spent. Friendship goes both ways. He took your cash at market value and has had the benefit of that. You paid cash at market value and have not had the benefit of those dollars that could have been invested elsewhere along with whatever taxes you paid.

You aren't his bank. You deserve a fair price and he can get the same discount from you that he gave you when you bought the property. Exactly what discount did he give you when he sold you, his friend, this property?

Cheers
NotWhoYouThink
Posts: 3265
Joined: Fri Dec 26, 2014 4:19 pm

Re: Give Land Back

Post by NotWhoYouThink »

How are you determining market value? Is there another buyer willing to pay more today?
Ping Pong
Posts: 609
Joined: Fri Feb 20, 2009 12:51 pm

Re: Give Land Back

Post by Ping Pong »

Why are people saying he should offer the land at a discount to maintain the friendship? Why isn’t the friend being advised to offer to buy above market price to maintain friendship?

How do you determine who has to take the loss to maintain friendship? I wonder if I can get some friends to buy stocks. If they go up, they can sell them back to me at cost.
User avatar
unclescrooge
Posts: 5505
Joined: Thu Jun 07, 2012 7:00 pm

Re: Give Land Back

Post by unclescrooge »

Split the difference between your breakeven and market value.
Wricha
Posts: 698
Joined: Sun Mar 25, 2012 10:33 am

Re: Give Land Back

Post by Wricha »

How did you determine your cost in the land? How did your friend arrive at his price? Did you include everything in your carrying cost? If you did, and you made a few bucks I believe your good to sell (with lessons learned). Any counter offer or attempt to get market value your friendship is over.
User avatar
Sandtrap
Posts: 12378
Joined: Sat Nov 26, 2016 6:32 pm
Location: Hawaii No Ka Oi , N. Arizona
Contact:

Re: Give Land Back

Post by Sandtrap »

Watty wrote: Mon Dec 16, 2019 9:26 am
tvubpwcisla wrote: Mon Dec 16, 2019 8:53 am He asked me to sign the lot back over to him for a little more than I paid; basically a break even for me.
Buying the land like that was likely a mistake unless you had planned to live so it would be best to just unwind the situation gracefully. As a general rule it is best to not do business with friends or relatives since it can end badly.

If you don't want to build on it to live there yourself then have an appraisal done and sell it to him at the appraised price.

In addition to the risk of losing the friendship if you don't sell the land you would also be setting up a potential bad neighbor situation and he could do things that would make the land hard to sell.

People are funny about money and land and there are stories about people in land disputes where someone does things like starts raising pigs just to make things difficult or unpleasant for a neighbor.

If you really wanted to keep the land for some reason and if there are other similar lots that are not adjacent to his land you could also work out a deal where buys a comparable lot down the road from someone else, then you could then swap lots so that he could have the land that is adjacent to his lot.
+1
Very astute statement.

OP: Sell back to your friend for a fair price that covers your costs. Don't make issues or conflict. Keep things amiable. Back out of this situation with your friendship and sanity and finances intact. As if it never happened.

j
Wiki Bogleheads Wiki: Everything You Need to Know
bubbadog
Posts: 941
Joined: Wed Mar 26, 2014 9:17 pm
Location: Cincinnati,Ohio

Re: Give Land Back

Post by bubbadog »

Not trying to be cute but the term "Fair Market Value" has the word fair in it for a reason.

Any other price and someone is being taken advantage of.

That said, I understand two reasonable people can disagree on what constitutes FMV.
barnaclebob
Posts: 4329
Joined: Thu Aug 09, 2012 10:54 am

Re: Give Land Back

Post by barnaclebob »

tvubpwcisla wrote: Mon Dec 16, 2019 10:09 am
barnaclebob wrote: Mon Dec 16, 2019 10:08 am What agreements were made when he sold it to you?
None
Then I'd offer him FMV. You did him a favor by allowing him to free up cash and not have to worry about it being built on.
adamthesmythe
Posts: 3935
Joined: Mon Sep 22, 2014 4:47 pm

Re: Give Land Back

Post by adamthesmythe »

tvubpwcisla wrote: Mon Dec 16, 2019 8:53 am A friend of mine had the opportunity to purchase two land parcels adjacent to each other. At the time, he did not want to buy both so I stepped in and bought the other one. He decided to build on his parcel and now wants the lot next door as well. He asked me to sign the lot back over to him for a little more than I paid; basically a break even for me. I was thinking to hold the parcel for several years and sell later down the road. What should I do?
Look deep into your heart and figure out if you want to sell.

Am I missing something? Is there a reason that you bought the land in the first place?
FrugalConservative
Posts: 227
Joined: Thu Aug 17, 2017 9:44 am

Re: Give Land Back

Post by FrugalConservative »

goodenyou wrote: Mon Dec 16, 2019 11:15 am Sell it back to him. Move on from the land and your friend. Your relationship will never be the same no matter what you do. This transaction will always bother you.
Sadly you are probably correct.
illumination
Posts: 1134
Joined: Tue Apr 02, 2019 6:13 pm

Re: Give Land Back

Post by illumination »

It really is a slime ball move.

Basically he wanted you to own and take the risk, until he thought it was profitable, then he's willing to not let you have any upside. You were holding it for him on your dime.

If it was a terrible investment, would he have made sure you broke even?

You might as well end the friendship now, at least you'll have some land that you can make some money on. Can you really be friends even after you give him exactly what he wants?
User avatar
Wiggums
Posts: 3121
Joined: Thu Jan 31, 2019 8:02 am

Re: Give Land Back

Post by Wiggums »

100%, this is how my dad would have handled it

“Sell back to your friend for a fair price that covers your costs. Don't make issues or conflict. Keep things amiable. Back out of this situation with your friendship and sanity and finances intact. As if it never happened.”
User avatar
8foot7
Posts: 2431
Joined: Mon Jan 05, 2015 7:29 pm

Re: Give Land Back

Post by 8foot7 »

I'd get two appraisals of the land, take the average, and then tell him he can have it at 15% under (~10% realtor fees avoided + another ~5% for good measure), splitting the closing costs equally between you, because he's a friend. That's a good deal that gives him a rather significant discount to FMV as assigned by two third parties. Chalk the appraisal cost up to one of the hazards of having done this deal in the first place.

I don't understand why your friend would balk at this offer. And as others have said, you may find your estimation of the land's market value off. But your friend is wrong to expect you to base your sale price off of what you paid years ago vs. what the land is worth now. I suspect if the land had declined in value, he wouldn't be looking to pay you what you paid...

Good friends would not put you in this position.

(By the way, I say two appraisals because of a recent experience. Our neighbors were relocating after being in the neighborhood around 12 months and the relo company was purchasing their house. As part of that, an appraisal was done and they were shocked to find the result $100,000 below what they paid for the house. It was so off as to be laughably incorrect. After some discussions a new appraisal was ordered which reflected a $2,000 difference in what they paid. All of that is to say an appraisal is one person's opinion, and you need another opinion when one person's opinion can be significantly off. Averaging the two together helps assuage the argument that one appraisal is more correct or less correct than the other.)
Last edited by 8foot7 on Mon Dec 16, 2019 1:57 pm, edited 2 times in total.
ddurrett896
Posts: 1436
Joined: Wed Nov 05, 2014 3:23 pm

Re: Give Land Back

Post by ddurrett896 »

Do what any friend would do, build on yours and live next to eachother :sharebeer
User avatar
David Jay
Posts: 9982
Joined: Mon Mar 30, 2015 5:54 am
Location: Michigan

Re: Give Land Back

Post by David Jay »

A key part of the equation is: how long have you owned it?

If it is months, then 5% to cover costs is reasonable.

If you have held it for years then you need property value inflation - why should you give him your risk premium?
Prediction is very difficult, especially about the future - Niels Bohr | To get the "risk premium", you really do have to take the risk - nisiprius
User avatar
White Coat Investor
Posts: 15043
Joined: Fri Mar 02, 2007 9:11 pm
Location: Greatest Snow On Earth

Re: Give Land Back

Post by White Coat Investor »

If he was offering double what you paid for it, you'd think it was a good deal. But it doesn't sound like you think it is a good deal at the current price he is offering. It also doesn't sound like you really want the property all that much. So it doesn't sound like there is any issue with you selling it to him except the price. Time to negotiate. Bear in mind it could lose you the friendship, but also consider that it is unfair of him to use your friendship to get a price lower than a property is really worth.
1) Invest you must 2) Time is your friend 3) Impulse is your enemy | 4) Basic arithmetic works 5) Stick to simplicity 6) Stay the course
BillyK
Posts: 75
Joined: Sat Sep 24, 2016 1:30 am

Re: Give Land Back

Post by BillyK »

I can understand your friend changing his mind and deciding he would like to have the lot next to it too. My parents always regretted not buying a vacant lot next to their house that later sold and was developed. They complained about it for years afterwards! If he is a good friend, you are doing him a big favor by selling it to him, but conversely as a friend he owes it to you to pay you a fair price for it since friendship is a two way street.
User avatar
Doom&Gloom
Posts: 3679
Joined: Thu May 08, 2014 3:36 pm

Re: Give Land Back

Post by Doom&Gloom »

illumination wrote: Mon Dec 16, 2019 1:23 pm It really is a slime ball move.

Basically he wanted you to own and take the risk, until he thought it was profitable, then he's willing to not let you have any upside. You were holding it for him on your dime.

If it was a terrible investment, would he have made sure you broke even?

You might as well end the friendship now, at least you'll have some land that you can make some money on. Can you really be friends even after you give him exactly what he wants?
Probably a bit harsher than I would have worded it, but yeah.

If I had reason to hold the land for personal use rather than as an investment, I wouldn't sell.

If I saw it as an investment, I would sell it to him at market price (maybe a 5% discount but no more) and see what happens to the friendship. If he didn't want to buy at market price, I would go on about my business and let his future actions determine how our relationship continues. Then I would sell when and to whom I wished--perhaps even to someone who wanted to build a beer joint on the lot :beer
NotWhoYouThink
Posts: 3265
Joined: Fri Dec 26, 2014 4:19 pm

Re: Give Land Back

Post by NotWhoYouThink »

illumination wrote: Mon Dec 16, 2019 1:23 pm It really is a slime ball move.

Basically he wanted you to own and take the risk, until he thought it was profitable, then he's willing to not let you have any upside. You were holding it for him on your dime.

If it was a terrible investment, would he have made sure you broke even?

You might as well end the friendship now, at least you'll have some land that you can make some money on. Can you really be friends even after you give him exactly what he wants?
Well, let's wait until we hear how OP came up with a "market value" number before we go quite that far. Would an arms-length buyer purchase it from OP tomorrow at this "market price"?
Post Reply