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What You Need to Know about a Ground Lease

There are many factors that come into play when you want to get a piece of land for development. One of the biggest issues is sometimes, you may not have the kind of money that is needed to purchase the land. Rather than buying the land, you want to consider leasing the land because that is always better. You’ll realize that you’re going to get very good results because of that. Some people also have pieces of land that they are interested in selling in the future and therefore the moment, the ground lease give them some money.

When you’re a developer, the most important thing is to understand how the ground lease operates. With the ground lease, you’ll basically develop the land for the owner. Handling the land back over to the owner will be possible after you’re done with the project. Choosing the best duration for the ground lease will be important. The ground lease can be between 20 and also 44 years, it is important to know the differences. One thing that you always want to do is to make sure that you’re going to be careful especially about the different types of ground lease.

One thing that would be very important is to make sure that you have been able to understand clearly more about the ground lease. The subordinated ground lease is one of the main options and there is the unsubordinated. It is always a very good idea for you to choose the one that is going to be best for you because you want to always get the best results. There are a number of advantages you’ll be able to get in relation to that. For the purposes of development, you are able to secure the land immediately never you decide to get the ground lease. The down payment on many of these lands is usually very reasonable. There is also the aspect of getting some very specific tax advantages.

For the land owners, this is going to be an opportunity to get steady income. Apart from that, your also still going to have some level of control whenever you decide to give them a ground lease. Over this project, you are going to have much more control. Sticking to the guidelines will also be very important for you.

Citation: Smart Ideas: Revisited