There are thousands of unused structures, land, and buildings in the United States taking up space but serving no real function. If your property falls under this category and you still have to pay for interest and maintenance, it may be time to consider what you can do with it. Thankfully, there are a lot of different options for you to consider.
Take part in a 1031 exchange
There are several ways you can accomplish this, but a good idea is setting your property up for multiple TIC investors for 1031 exchanges. Standing for Tenant-In-Common, this method means different individuals take ownership of a single property and have their own undivided shares.
It is beneficial for both those looking to take on the asset and those who will be relinquishing it to take up a new property that they can make more use of or continue to exchange for more assets. Because the TIC gives each co-owner an individual share that they can manage on their own, the exchange can still be applicable to be tax-deferred.
Although this takes more negotiation because there are multiple tenants to form one agreement with, it also allows for a more secure investment that eventually yields steady returns and requires little to no hands-on management for commercial operations.
Turn it into housing
This option may require more paperwork in terms of licenses and permits, but you can make use of your property and retain ownership while starting a steady stream of income through leasing. Depending on the nature of your structure and the location of your land, you can set it up as an apartment or something similar for it to work as a residential space. It will still fall under profit use on your part and be open for future endeavors in case you eventually want to sell the property or end up wanting to release it by way of a 1031 exchange.
Give it to the educational field
Instead of leaving the property to rot and yet still having to pay dues locally, you can even put your space to good use for the community. A lot of non-profit organizations make it a part of their advocacy to provide more buildings and spaces for schools in various levels of education.
After reviewing the state of your property, the organization will do most of the legwork to get your property and papers ready for setting up and being functional. Transferring ownership in this manner can be fulfilling and a smooth way of bringing new life into a property you didn’t know what to do with.
If you’re thinking on a practical monetary scale, this can also help you with tax benefits, depending on the market value of your asset.
Just because your space seems to have hit a rut in its use, it doesn’t mark the end for what it can contribute to society. With these methods, you can make your excess real estate useful again and even reap some benefits from it.