A Mega Millions lottery winner is selling his California mountain estate for $26 million

[Frank Cannon]

https://www.businessinsider.com/mega-millions-lottery-winner-california-ranch-estate-photos-2019-1

A lottery winner is selling a massive California mountain estate for $26 million.

The sprawling estate sits on 845 acres near the town of Oak Glen and includes a 16,000-square-foot house with a sauna, a 17-seat movie theater, a three-story elevator, and a 4,000-square-foot garage.

Rick Knudsen won the $180 million California Mega Millions jackpot in 2014, quit his job, and bought the house— which was still under construction — for $5.5 million, according to The Wall Street Journal. He went on to buy an adjacent buffalo ranch and another swath of land, piecing together 845 acres in total. The estate also includes commercial property in the nearby town of Oak Glen, where he established a steakhouse and saloon.

[Frank Cannon]

So is this dude a shrewd businessman or did he blow through his money and just realized he owns a massive house and business in high tax Cali?

[edpc]

Initially, it sounds great, because he bought the one property for $5.5M, but they don’t tell you how much the additional properties and business investment costs were. He could be breaking even or taking a beating.

[Frank Cannon]

Initially, it sounds great, because he bought the one property for $5.5M, but they don’t tell you how much the additional properties and business investment costs were. He could be breaking even or taking a beating.

The carrying costs on that house and farm in that state must be brutal. Cali uses market price and not assessments for calculating that tax.

[skeeter]

The carrying costs on that house and farm in that state must be brutal. Cali uses market price and not assessments for calculating that tax.

If the house is still 5.5 mil he's paying around 350k per year in property taxes. My guess is its gone up.

[LMAO]

just realized he owns a massive house and business in high tax Cali?

If he just realized that now he’s a slow learner.  Middle class  people and small businesses have been fleeing California for several years. My hunch is that’s going to get worse

[Frank Cannon]

If he just realized that now he’s a slow learner. 

People who play the lottery, otherwise known as the Stupid Tax, usually are very slow learners. They is why all of them bankrupt in under 5 years, which is where this guy seems to be heading. 

[LMAO]

They is why all of them bankrupt in under 5 years, which is where this guy seems to be heading.

 It seems that’s were the whole state is determined to head, also

[truth_seeker]

The carrying costs on that house and farm in that state must be brutal. Cali uses market price and not assessments for calculating that tax.

That is correct.

"Market price" is what you paid..

"Assesment value" is whatever the Assessor thinks the value should be.

There is plenty wrong in CA but property taxes isn't one of them

[skeeter]

That is correct.

"Market price" is what you paid..

"Assesment value" is whatever the Assessor thinks the value should be.

There is plenty wrong in CA but property taxes isn't one of them

Maybe I'm reading my county property tax invoice wrong but my taxes are based upon the assessor's value determination, which has always been lower than the market price.

Its still way too high but thank heavens they aren't basing my tax on market value.

[Frank Cannon]

That is correct.

"Market price" is what you paid..

"Assesment value" is whatever the Assessor thinks the value should be.

There is plenty wrong in CA but property taxes isn't one of them

Assessments are easy to beat. I do it all the time. Sale prices not so much.

[truth_seeker]

Maybe I'm reading my county property tax invoice wrong but my taxes are based upon the assessor's value determination, which has always been lower than the market price.

Its still way too high but thank heavens they aren't basing my tax on market value.

Prop 13 limits taxes, to One percent (plus local bonds) of assessed value, which starts at the sale price, and can be increased by up to two percent per year.


After prices dropped in 2009, owners could get adjustments down. And if improvements are made to properties, those increase valuations (assessment)

Look further into Prop 13, your statements, and my remarks above.


The dem majority one party rule in CA wants desperately to repeal this measure. Voters are now stupid enough to pave the way.



 

[Restored]

My guess is that he looked at his tax bill, looked at the wild fires and decided to toss in his cards. Smart play.

If you win the lottery, don't buy anything major for a year. If I win, I'll spend a month each in Ocracoke, Key West, Blowing Rock, New Hampshire,  Tybee Island, Cape Cod, Taos, Juneau,  etc. Rent a place & move on.

[thackney]

If he can sell it for that, he is doubling his money in about 4 years.  Not a bad deal.

https://www.wsj.com/articles/a-180-million-lotto-winners-massive-mountain-estate-1540478134

...Mr. Knudsen paid $5.5 million for the not-yet-completed home on about 50 acres, which already boasted a 17-seat movie theater and garage fit for a car collector. He spent millions more on an adjacent buffalo ranch on 155 acres, then still more on another neighboring 640-acre swath of land and a steakhouse and saloon in the area. He said he spent about $11.5 million in all....

...The fully-operational ranch comes with 45 buffalo, which are grass- and apple-fed and served at the steakhouse. Mr. Knudsen said he has spotted black bear, deer and mountain lions on the property. He estimated that he spends roughly $1,000 a month feeding the wildlife, including 150 pounds of apples and carrots a month.

The offering is unique in that it includes the house, the saloon, which is managed by Mr. Knudsen’s son, and the buffalo ranch, Mr. Strong said. Essentially, Mr. Knudsen is looking for someone to take over his house as well as the small collection of enterprises he purchased following his lottery win....

...While many lottery winners have suffered financial problems in the wake of their wins, Mr. Knudsen said he is in no financial difficulty: “I’m worth more now than I was when I won it,” he said. “My old boss hooked me up with his financial adviser, and I’ve done nothing but make millions.” Mr. Knudsen added that he’s happier as a result of the win. “I really am,” he said. “I do run into some haters, some old clients of mine and stuff, but I’m cool.”...

...Mr. Knudsen said he has been antsy since he completed the main home six months ago, and is ready to move on to another challenge—building another mountain home at a lower elevation nearby. One of his five children also has some health issues that are exacerbated by the altitude. “I’m actually a little bit bored because I’m done here,” he said....

[truth_seeker]

My guess is that he looked at his tax bill, looked at the wild fires and decided to toss in his cards. Smart play.

Californians are used to fires, earthquakes, drought, and various other problems. Risk takers, for decades.

He says he is making more money from selling.

[skeeter]

Oh I know about prop 13... the state has been skirting it for years by adding 'supplementary' taxes to the 1% mandated limit. Now with their supermajority they're talking about tossing it out altogether.

[Frank Cannon]

My guess is that he looked at his tax bill, looked at the wild fires and decided to toss in his cards. Smart play.

If you win the lottery, don't buy anything major for a year. If I win, I'll spend a month each in Ocracoke, Key West, Blowing Rock, New Hampshire,  Tybee Island, Cape Cod, Taos, Juneau,  etc. Rent a place & move on.

Blowing rocks is too kinking for me and it sounds like it could damage your teeth.

[Frank Cannon]

Some backstory on this dude....

https://www.pe.com/2014/09/03/lottery-calimesa-man-collects-on-180-million-jackpot/



The day after that, on Aug. 23, Knudsen retired from his job as manager of RWC Building Products, a roofing distributor in San Bernardino. He and his wife, Lorie Knudsen, 54, were introduced at a press conference Wednesday at the California Lottery district office in San Bernardino.

The $180 million total is the seventh largest in California history.

The Knudsens took the cash option, $107 million, netting them about $80.25 million after deductions for federal taxes. They plan to use the money to build a home somewhere in the mountains in Southern California, some cars, possibly a condominium in Hawaii and to take care of Lorie’s 83-year-old father, who lives with them.

[Smokin Joe]

Maybe I'm reading my county property tax invoice wrong but my taxes are based upon the assessor's value determination, which has always been lower than the market price.

Its still way too high but thank heavens they aren't basing my tax on market value.

Not from cali, but my assessed value is well over 3X what I paid for my house. Market value isn't what you paid, but what the assessor's office estimates the house to be worth in the current market, so real estate values are what they say they are, not what you paid. That shock is felt even more by people who bought in the 40s and 50s and kept their places up. (10K purchase price for a house now 'valued' (and taxed) as being worth well over 200K--in ND).

[GtHawk]

If the house is still 5.5 mil he's paying around 350k per year in property taxes. My guess is its gone up.

For him 2% a year on the house unless he made improvements(if it's the same as for us little people), for anyone that buys the house? One big world of butt hurt! Someone has to be either Richie Rich or extremely stupid to buy that and pay the taxes on 26 million in our golden state of confiscation.