Other Services

1031 Exchanges and Sale-Leasebacks

Many business owners own not only the business but also the real estate used by their business. Over time, the real estate may enjoy a significant appreciation in value while the debt on the property decreases from years of paying down the mortgage. This often represents a large chunk of the business owner (taxpayer’s) net worth. Oftentimes astute business people come to the realization they have concentrated too much of their net worth and face significant exposure if that one property falls in value.

As a business owner grows older and is considering retirement, they may want to diversify their assets (and mitigate their risk exposure) by selling the real estate, but still have their business stay on as a tenant with a long-term lease. The advantage to this business owner/taxpayer is that they can 1031 exchange their hard-earned equity into a more safe and diversified portfolio of like-kind properties in local or different geographic areas and in different business segments such as Retail, Multi-family, Industrial or Office.

Consider doing a 1031 with the real estate, then selling the business. If the taxpayer is considering selling their business, the buyer would not have to purchase the real estate, and could acquire the business with a lower down payment as they would not have to qualify for a real estate loan. This buyer of the business would also have the certainty of assuming a long-term fixed lease and continue to run the business where it has been located.

As a general rule, when you are selling real estate, you want to receive all of your cash upfront so you can invest all of this equity through a 1031 into your new replacement properties. Business owners often find that selling to a strong non-related cash buyer is often more desirable then attempting to sell both the business and its real estate to a single buyer. In today’s market we see many potential buyers are already stretching their finances in purchasing the business.

We often see seller-back financing in order to get the top-dollar amount for the business. It is very common to see the seller get their proceeds over an extended period of time, which is fine for the business sale, but not for a 1031 transaction. If you are looking to defer all of of your gains from the real estate sale, it is often better to split the sale of the business from its real estate, thus maximizing the seller’s financial returns while deferring taxation through a 1031 Exchange.

Contact: Heath Johnson | Email | 605-290-4694


Wind and Solar Project Financing

We offer financing options for any size project, from home rooftops to municipal projects, to large utility –scale projects. Our financing options include:

  • Solar Power Purchase Agreements
  • Solar Leasing
  • Solar Home Equity Loans
  • PACE Municipal Financing
  • REAP Grants or Loan Guarantees
  • Tax Equity Investors

Contact: Rob Johnson | Email | 605-290-3371


Project Consulting

When it comes to developing a small or large scale project, we can help.  We cross market with teams that are highly sought out across the country.  Dakota Plains Companies combines experience, hands on learning, development and financial options.

Environmental

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  • Project Siting
  • Startup Financing
  • Midstream Financing
  • Construction Financing
  • Takeout financing

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  • Investors
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Operations

  • Start up
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Contact: Nicole Johnson | Email