Career Real Estate Investments, and Transactions, Sales...Ed Newton

Banking representative in asset swap for debt owed; swapped Winston Salem Hyatt House in exchange for note receivable from Great American Mortgage Investors; Our share 1.5mm with Merc-Safe 3.5mm and Citicorp 5.0mm. 100% recovery. Takeaway: Rent rolls missed, permanent wouldn't fund, had to create this solution with other creditors on the project; use teamwork to resolve issues. Personal investment in duplex Huntington Road, Atlanta GA; sold off side lot to raise equity; renovated interior; did exterior work and landscaping; investment in inflationary market earning nearly 3.8x original investment not counting rental revenue. Takeaway: Bought low at start of strong market trend, generated revenue, added significant value. Personal investment in duplex Strathmore Circle, Memphis TN; earned positive cash flow from rental income over cost of personal residence; Takeaway: always call an experienced HVAC technician rather than try to install a thermocouple in an old furnace myself! Personal investment in 55a horse farm and residence where my wife & have lived since 1988...bought & cleared land; rebuilt and expanded pond; put in well and roads, pasture and fencing; built house and two barns. Ran equestrian boarding operation for many years, up to a dozen horses or more. Learned woodworking and built shop onto barn in 2008. Takeaway: It's hard to beat "Life in the Country." Bought and owned for business purposes metal buildings in Collierville, Little Rock, and Fort Smith, 0.5a, 5a, 2.5a, eventually selling for a gain. Takeaway: metal bldgs with office and shop space proved to be good rental and investment properties. As co trustee for family estate, sold 3500sf house in Knoxville quickly for FMV; it was in need of renovation, in desirable neighborhood. Takeaway: the prompt sale helped all beneficiaries of the estate, reduced potential squabbling. Inherited 30,000sf bldg in upper east TN on 2.5a; collected rent for over a year, then held the vacant bldg on the market until sold in 2016. Tenant was light mfg business that laid off 75 employees and moved to Mexico. Vacancy and marketing period was before economy began to recover resulting in few buyers, weakening price level. Takeaway: an auction company with broad marketing reach could have helped in the sale strategy; broad buyer reach with specialty marketing could have helped sustain pricing level. As investor, bought two condos in Nashville TN because of growing market and excellent school system. Bought before the market fully recovered at a apx $105/sf, renovated kitchen, rugs, paint, and rented for apx four years, sold at nearly $130/sf for ROI in teens. Takeaway: Bought low at start of strong market trend, generated revenue, added value. As broker for sisters who inherited 50a cropland in Fayette County, found buyer and closed sale. Takeaway: Sisters saw the importance of selling the land before ownership became fragmented in new generation, possibly resulting in costly struggle for direction of the land where no one really benefits. They will be able to pass on cash assets to the next generation rather than undivided illiquid ownership interests. As broker for family ownership group of five cousints/aunts, negotiated sale of 150a duck hunting land on a winding river in AR. Land was inherited, and the sale took shape as the family sought ways to create income and ultimately decided to sell. Takeaway: geographically dispersed family ownership group united to make favorable decision to sell, resulting in cash income from proceeds from previously non earning asset. Buyer competition resulted in step-up in realized value. Some of the owners used Sec 1031 exchange to defer gain on sale of the property. After the passing of my wife's father, the family group of four decided to sell the 3,000a cattle ranch known as Twin Hill Ranch in SW Fayette County TN. I managed the process by showing the land, handling offers, obtained a preliminary environmental inspection of the property, assembled plats, and kept communications open between the buyer, family, and closing attorney for over a year. We closed the sale shortly before the crash hit in 2007. Takeaway: diplomacy in knowing each party on both buyer and seller sides was essential to seeing this deal through because a mis-communication could have jettisoned the whole deal.

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