How the 721 Exchange Gets You Land Without Lowballing with Jeff Niemeier

What if you could buy land without lowballing the seller, and the seller paid no tax on it?

 

Jeff Niemeier builds build to rent townhomes in Cedar Rapids, Iowa. His fund is building about 226 units across four parcels.

 

Jeff explains the 721 exchange. A landowner trades title to the land for partnership shares in the fund. Jeff pays part up front, the rest once the property is stable, and the owner keeps about a 5% share. It is not a sale, so the gain is tax deferred.

 

He also shares the $20 million deal he lost in 2014 because he could not raise his part in time, and why he now raises capital 365 days a year.

 

Key topics:

• Why renters want townhomes, not apartments
• Building new to hit the 1% rule
• How a 721 exchange works for landowners
• Losing a $20M deal and what changed
• Raising money where the money is

 

About the guest:

Jeff Niemeier is the founder of JB Capital, a real estate private equity and construction company in Cedar Rapids, Iowa. He has been in and around real estate for about 25 years, starting in student housing. Today he focuses on build to rent townhomes and land development.

 

Connect with Jeff:  https://www.jbcapitalfund.com

Prefer to watch on YouTube? https://www.youtube.com/@propertyprofitsrealestate

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