Terra Firma Under all is the Land
Winter 2016 Vol. 70 No. 1
DISCUSSING EASEMENTS WITH YOUR
CLIENTS PG. 31
TIPS AND THOUGHTS ON HOW TO
SELL A RANCH A LOOK BACK:
THE TRANSITION OF TRANSITIONAL LAND OVER TIME PG. 62
OFFICIAL PUBLICATION OF THE REALTORS速 LAND INSTITUTE
NATIONAL LAND CONFERENCE PG. 39
R E T S I G ! E R NOW www.NationalLandConference.com
Winter 2016 Vol. 70 No. 1
INSTITUTE NEWS 4 7 11 12 16 19 26
President’s Message Institute Update News Brief from National Institute Chapter News Government Affairs Update Institute Member News LANDU Education Update
2016 National Land Conference:
THE BEST 39 STOP HERE!
FEATURED 31 Discussing Easements With Your Clients 34 Tips and Thoughts on How to Sell a Ranch 36 The Activist Client
BUSINESS DEVELOPMENT 49 Optimizing Your Website 52 Public Relations: The Land Professional’s Ultimate Weapon
INSTITUTE BLOG CORNER 62 A Look Back: The Transition of Transitional Land Over Time 65 The REALTORS® Land Institute to the Rescue! Winter 2016 Edition Vol. 70 No. 1 Published by the REALTORS® Land Institute 430 North Michigan Avenue Chicago, Illinois 60611 Telephone: 1.800.441.5263 Fax: 1.312.329.8633 E-mail: firstname.lastname@example.org Website: www.rliland.com Listing Site: www.thelandconnections.com
Chief Editor/Publisher Jessa Friedrich, Communications & Marketing Specialist Contributing Editor Amanda Jenkins, Professional Development & Project Manager Cover Photo Copyright 2016. All rights reserved.
Reproduction in whole or in part without permission is prohibited. Views expressed within the publication are not necessarily endorsed by the REALTORS® Land Institute and information should not be construed as recommendations for any course of action regarding financial, legal, or accounting matters.
Hi, I am Bob Turner, your 2016 RLI President! I hope you all are doing well. I would like to give you an update on the future of your REALTORS® Land Institute because we are “Crossing all Boundaries” in 2016. This year’s Oﬃcers of the Institute include Brandon Rogillio, ALC Advanced, President Elect; and Jimmy Settle, ALC, National Vice President. Terri Jensen, ALC Advanced, will serve on the Executive Committee as the Immediate Past President. We are heading in a new direction for the REALTORS® Land Institute with our main focus on YOU, the Member. We will have a more friendly approach to our members’ questions and needs. You are our customer and we want to provide you with the best customer service— because you deserve it! We will be a much more transparent organization and we will take an in-depth look at all of the member services being offered to make sure they are relevant to you, the Member. We will also look at our rules and policies to see if they are the right things, too! All of the above is an ongoing process that your 2016 Committees and Board of Directors will be working on this year. Our Operation Team in Chicago consists of Amanda Jenkins, Jessa Friedrich, and Karen Calarco. They are very talented and are working hard to meet your
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expectations from RLI. They are also diligent and dedicated to providing you the highest quality services and support. Please let them know how they can assist you, and thank them for their support of the members. We want you, the Member, to oﬀer new ideas for us to discuss. I believe that we have to base our decisions on our core beliefs. I want RLI to have an open outlook to the future and to make sure we are the organization that provides you the tools and the knowledge to be the best land REALTOR® in your market. Hopefully, with these tools and knowledge resources in place you will have the ability to make more money and help your clients reach their goals. We will be researching the current education platform. We want to provide the best education and most updated training available, enabling you to be the expert in your ﬁeld. Plus, we will be updating courses to meet today’s challenges in the land markets. The Education Committee will also be taking a detailed look at how our course oﬀerings are organized to better serve the members. RLI will continue to oﬀer our Core Courses, which will allow you to earn your Accredited Land Consultant designation, with updates allowing all of them to be relevant to today’s challenges. RLI will oﬀer you the education for training in all areas of land sales. We will cover every need from site selection and land development in the urban areas, to suburban markets. We will research training for timberland, citrus, nuts, and specialty crop operations, ranch and cattle operations, horse farms with residential, mixed use, and new trends in the markets to keep our members updated. We are also committed to rebuilding our Chapter Model to help our Chapters become more viable and more self-sustaining. We do not want to demand how our Chapters operate, however, we do want to help them build a better Chapter that works for both themselves and RLI National. We have some ideas that we will be vetting with our State Chapter Leadership teams and Administrators to come up with the best model for our Chapters. The Land Conference in Dallas will be exciting and fun! We are currently making upgrades and adjustments to the Land Conference. These will allow you more opportunities to learn, network, and make deals! We will have several new announcements at the Conference that you will not want to miss. The Land Conference will give you an upper-hand over the competitors in your market with knowledge, networking, and foreseeing future trends. The Greatest Cowboy Auction on Earth will have a new and exciting format, so be sure to BE THERE. The Auction will beneﬁt the Land Education Foundation and all donations will be tax deductible for all purchases. Be sure to donate an item for the Auction and come purchase some gifts for yourself!
I am happy to report that the Institute is ﬁnancially sound, and we have reserves in place for the future security of RLI. We are conscious of your cost of doing business and are trying to provide the best beneﬁts to you at a reasonable membership cost. We are also in process of seeking the new EVP for RLI. We have a search process in place to ﬁnd the most qualiﬁed person to move RLI to the next level for the future. On the personal side, I am a REALTOR® and have been a Land Broker for over 37 years—and I love the land business! I am married to Wendy, who is also a REALTOR® of 27 years, and we have two daughters Megan and Madison. My favorite activities are spending time with my family and duck hunting at our farm in Arkansas. I have been a member of RLI since 1996 and I am involved in several areas of the land business. We live on an operating farm outside Memphis, Tennessee. We personally operate farms, mobile home parks, Residential and Commercial developments, and broker land in Tennessee, Mississippi, and Arkansas. We are involved in transitional land, residential and commercial properties, timberland, hunting and recreation land, productive crop land, and Cattle operations.
I am always available to you, the Member. Please call me at 901-335-1384 whenever you feel I can help you, or email me at email@example.com. I would love to hear from you, and I look forward to meeting each one of you at some point this year. If you have an event, and you would like a RLI oﬃcer to attend or make a presentation, please let me know and we will be happy to try and schedule the meeting. See you at the Dallas Land Conference in March!
Bob Turner, ALC 2016 Institute National President
The Institute will host focus groups in Dallas at the Land Conference with members. Again, leadership wants to listen to the needs and desires of you, the Member. We will also be happy to listen to any criticisms of what you don’t care for.
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The Institute provides the education, tools, advice and networking opportunities that are the foundation for all land professionals to become the best in the business—to become an Accredited Land Consultant (ALC). The Institute continually strives to maintain its status as the association for a global network of land professionals through providing members with the tools and beneﬁts they need to build their business and exceed.
Meet the Institute’s 2016 National Board of Directors Get to Know the Institute’s 2016 Executive Committee Bob Turner, ALC NATIONAL PRESIDENT Southern Properties Cordova, TN firstname.lastname@example.org Bob Turner, ALC, is a proud REALTOR® and has been a Land Broker for over 37 years. Turner has been an active member of RLI since 1996 and earned his ALC designation in 2006. Among his many contributions to the Institute, he has served on the RLI Board of Directors, as the RLI Representative to the NAR Executive Committee, Tennessee Chapter President, and as the Chair of the 2012 National Land Conference. He personally operates farms, mobile home parks, Residential and Commercial developments, and brokers land in Tennessee, Mississippi, and Arkansas. Turner is dedicated to making the Institute the best it can be in 2016 and beyond. Brandon Rogillio, ALC Advanced PRESIDENT-ELECT Rogillio Real Estate Baton Rouge, LA email@example.com Brandon Rogillio, ALC Advanced, is the owner/broker of Rogillio Real Estate in Baton Rouge, LA, and began practicing real estate as a profession while studying economics at Southeastern Louisiana University. In the spring of 2009, he earned the Accredited Land Consultant (ALC) designation making him the only REALTOR® in Louisiana to hold both the CCIM and ALC Advanced designations. He held several Institute leadership roles serving as the Representative to the National Association of REALTORS® Commercial Committee, an active member of the Government Affairs Committee, and the Co-Chair of the 2011 National Land Conference.
Jimmy Settle, ALC VICE PRESIDENT Crye-Leike Real Estate Services Clarksville, TN firstname.lastname@example.org
About the REALTORS® Land Institute
Jimmy Settle, ALC, has been a licensed REALTOR® in Tennessee and Kentucky as well as a member of the Clarksville Association of REALTORS® (CAR) since 1993. Settle joined RLI in 2000 before receiving his ALC designation from the Institute in 2004. He has been an active within the Institute serving as President of the Tennessee RLI Chapter, Chairman of the Education Committee, and Chairman of the ALC Designation Committee. He has also served on various CAR Committees before becoming President of the Association in 2007. During this time he also served as the Tennessee Association of REALTORS® Director. Jimmy is excited to help drive GROWTH for the Institute as a 2016 Executive Ofﬁcer. Terri Jensen, ALC Advanced IMMEDIATE PAST PRESIDENT Omaha, NE TerriLJensenALC@Cox.net Terri Jensen, ALC Advanced, is an experienced land professional – broker, appraiser, and auctioneer. Jensen is active within the Institute, earning her ALC in 2005 and leading the Institute initiative to block reform of the 1031 Like-Kind Exchange tax code during her 2015 presidency. Her real-life experiences have provided expertise in many areas, including: administration as senior operations real estate/appraisal executive; competitive analysis; customer service; decision making; leadership; legislative involvement; and policy formulation. Terri is looking forward to further serving members as a part of the Executive Committee.
Flo Sayre, ALC Advanced ALC DESIGNATION COMMITTEE CHAIR Farmers National Company Pasco, WA email@example.com
Aaron Graham, ALC Advanced FUTURE LEADERS COMMITTEE VICE CHAIR National Land Realty Gretna, NE firstname.lastname@example.org
Danny Smith, ALC Advanced ALC DESIGNATION COMMITTEE VICE CHAIR Smith & Smith Realty Wildwood, FL email@example.com
George Clift, ALC Advanced INSTITUTE TREASURER Clift Land Brokers Amarillo, TX firstname.lastname@example.org
Norma Carleton EDUCATION COMMITTEE CHAIR Keller Williams Realty Jarrell, TX email@example.com
2016 Institute Representatives to NAR Committees NAR Executive Committee Dan Hatﬁeld, ALC
Jeramy Stephens, ALC Advanced EDUCATION COMMITTEE VICE CHAIR Mossy Oak Properties of Stuttgart Stuttgart, AR Jstephenslandsales@gmail.com
Cathy Cole, ALC Advanced GOVERNMENT AFFAIRS COMMITTEE CHAIR Heritage Texas Country Properties Brenham, TX firstname.lastname@example.org
Minor Taylor, ALC Advanced GOVERNMENT AFFAIRS COMMITTEE VICE CHAIR Property Connections Real Estate Houston, TX Minor.email@example.com
Kyle Hansen, ALC Advanced FUTURE LEADERS COMMITTEE CHAIR Hertz Real Estate Services Nevada, IA firstname.lastname@example.org
Professional Standards Committee Christina Asbury, ALC Land Use, Property Rights, and Environmental Committee Paul Bottari Ray Brownﬁeld, ALC Advanced Global Business & Alliances Committee George Harvey Commercial Legislation & Regulatory Advisory Committee Randy Hertz, ALC Advanced Business Issues Policy Committee Kirk Weih, ALC Advanced Commercial Committee Danny Smith, ALC Advanced Jared Martin Public Policy Coordinating Committee Randy Hertz, ALC Advanced Resort and Second Home Real Estate Committee George Harvey Federal Financing & Housing Policy Committee Cathy Cole, ALC Advanced Commercial Real Estate Research Advisory Board Bill Burruss III, ALC John Grifﬁng Insurance Committee Tim Kellogg
Karen Calarco Manager of Operations & Member Records P: 312-329-8287 E: email@example.com In addition to being the Manager of Operations and Member Records, Karen manages and monitors expenditures within the set budget and member records, and processes LANDU courses. Members may contact her for assistance changing their information, paying dues, and answering ďŹ nancial inquiries regarding their account. Jessa Friedrich Communications & Marketing Specialist P: 312-329-8353 E: firstname.lastname@example.org In addition to being the Institute Communications and Marketing Specialist, Jessa serves as the staff liaison for the Future Leaders and Government Affairs Committee as well as the Marketing Task Force. Members may contact her with any member or Chapter news regarding awards or accomplishments, for logo requests, ordering Institute marketing materials, and writing blog pieces.
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Meet the 2016 Institute Staff
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Amanda Jenkins Professional Development & Projects Manager P: 312-329-8441 E: email@example.com In addition to being the Institute Professional Development and Projects Manager, Amanda serves as the membersâ&#x20AC;&#x2122; staff liaison for the ALC Designation and Education Committees. Members may contact her with any questions regarding the ALC Application Process and LANDU Education Programs, including the courses, webinars, and teleconferences.
Ray L. Brownfield, ALC Advanced AFM 2683 US 34 | Oswego IL 60543 331.999.3490 | firstname.lastname@example.org
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The Induction Ceremony for the 2016 Institute Ofﬁcers took place in San Diego, CA, on November 13, 2015, at the Manchester Grand Hyatt. The following ofﬁcers were sworn in by Chris Polychron, 2015 President of the National Association of REALTORS®: Bob Turner, ALC, 2016 National President; Brandon Rogillio, ALC Advanced, 2016 President-Elect; Jimmy Settle, ALC, 2016 Vice President; and Terri Jensen, ALC Advanced, 2016 Immediate Past President.
REALTOR® Legislative Meetings & Expo The National Association of 2016 REALTORS® Legislative Meetings & Trade Expo will take place May 8-14 in Washington, D.C. The Institute will have a presence at the committee meetings on May 12 to represent the best interests of land professionals across the country. In addition, the Institute Government Affairs Committee will have a meeting at a venue to be announced on May 12 at the event.
Institute Military Transition Program (MTP)
The Institute continues its commitment to support veterans’ employment opportunities through our Military Transition Program (MTP). This program exists to help those who have served our country to build a career in the real estate land business. All members of United States Armed Forces that have served on active duty since 2000 are eligible to join the MTP. Help a veteran, spread the word!
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2016 Institute Officer Inductions & Reception
Through this program, the Institute will waive fees for one year of membership, the LAND 101: Fundamentals of Land Brokerage course, and one additional LANDU course of their choice, valued at over $1,500. Course hours accumulated will contribute to the requirements of the ALC designation. “The entire group of members has been well above average in terms of making a new guy feel welcome in a brand new community. I’ve had frequent instances of people saying “thank you for your service,” followed by an engaging conversation about the land business and an offer to help however they could. These encounters solidiﬁed my desire to be heavily involved in the Institute, and I have already seen lots of success networking and collaborating on deals with other members.” – Caleb McDow, 2014 MTP Member / Current Institute Member
INSTITUTE CHAPTER NEWS
Florida Chapter The Florida RLI Chapter swore in the following ofﬁcers for 2016: David Hitchcock, ALC Advanced, Chapter President; Caleb McDow, Chapter Vice President; Lisa Jodray, ALC, Chapter Secretary; and Clay Taylor, ALC, Chapter Treasurer. David Hitchcock, ALC Advanced, REALTORS® Land Institute Florida Chapter President, recently presented William H. Rollins, Jr., ALC, Senior Broker, Land Solutions, Inc., the 2015 Florida Land REALTOR® of the Year Award. Rollins was chosen because of his professionalism in conducting land sales in Southwest Florida and for his strong support of the Institute. He attended the 2015 National Land Conference and his ﬁrm sponsored a LANDU course in Southwest Florida in 2015.
Colorado Chapter The Colorado RLI Chapter swore in the following ofﬁcers for 2016: Justin Osborn, Colorado Chapter President; Jim Nerlin, Colorado Chapter Treasurer; and Sue Myers, Colorado Chapter Secretary. The Colorado Chapter offered the Agricultural Land Brokerage and Marketing course in December 2015. This course was taught by LANDU Instructor and Colorado Chapter Member Kirk Goble, ALC, The Bell 5 Land Company. The Colorado Chapter would like to thank Bart Miller, ALC, for his service as Chapter President. The Chapter is also excited to announce that Joseph (Joey) Burns, Lone Eagle Land Brokerage, was named the 2015 Land REALTOR® of the Year at the Chapter’s September meeting in Grand Junction. To learn more about the Colorado Chapter please visit: www.coloradorli.com
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The Kansas RLI Chapter swore in the following ofﬁcers for 2016: Tim Gates, ALC, Chapter President; Mike Regan, President-Elect and Secretary/Treasurer; and John Rupp, ALC, Past President. The Kansas Chapter successfully provided the Land Investment Analysis course in January 2016 in Wichita, KS. This course was taught by Ben Crosby, ALC, Crosby & Associates, Inc. This course is a required course for earning the Accredited Land Consultant (ALC) designation. To learn more about the Kansas Chapter please visit: www.ksrli.com
Oklahoma Chapter The Oklahoma RLI Chapter swore in the following ofﬁcers for 2016: Dan Ward, ALC, Chapter President; Rick Ward, ALC, Chapter Vice President; and Brent Wellings, Chapter Secretary/ Treasurer. The Chapter is offering Tax Deferred 1031 Exchanges in Edmond, OK, on February 11-12, 2016. It will be taught by LANDU approved instructor Jim Miller, Esq. To learn more about the Oklahoma Chapter please visit: www.okrli.com
INSTITUTE CHAPTER NEWS
Wyoming Chapter The Wyoming RLI Chapter swore in the following ofﬁcers for 2016: Chia Valdez Schwartz, Chapter President; Tim Rogers, Chapter President-Elect; and J.R. Larsen, Chapter Secretary/Treasurer. Thank you to the Wyoming Chapter for being an ofﬁcial Partner of the 2015 National Land Conference held in Tucson, AZ! The image provided features 2015 Chapter President Chia Valdez Schwartz and 2016 Institute National Immediate Past President Terri Jensen, ALC Advanced. To learn more about the Wyoming Chapter please visit: http://www.wyoming4land.com/
Mississippi Chapter The Mississippi RLI Chapter swore in the following ofﬁcers for 2016: Joseph Presley, President; Beth McLellan, ALC, Vice-President; Bo Burkes, Secretary/ Treasurer; Wesley Webb, North Director; Paul Gonwa, Central Director; and Larry Stewart, Southern Director. To learn more about the Mississippi Chapter please visit: http://mississippirli.com/
INSTITUTE CHAPTER NEWS
Mississippi & Alabama Chapter Approximately thirty land brokers participated in a joint meeting of the Alabama and Mississippi Chapters of the REALTORS® Land Institute in November. It included presenters from TerraStride and Mississippi State University. After the presentations, the Chapters toured the Andrews Forestry and Wildlife Laboratory with Wildlife biologist and Associate Extension Professor Dr. Bronson Strickland. Strickland explained their research into ﬁnding the optimal balance between timber management as a ﬁnancial investment and for developing wildlife habitat for recreational use. The information presented allows land professionals to better help their customers and clients when the time comes for them to sell or purchase a piece of property that they want to use as a timber investment or a recreational and hunting property to enjoy.
Carolinas Chapter The Carolinas Chapter includes both North and South Carolina and has ﬁftyseven members who are located from the mountains in the West to the ocean in the East. The Chapter is working tirelessly to make its meetings as convenient as possible for members across their states to enhance networking. Kenneth Richardson, ALC, was award the prestigious Carolinas Land REALTOR® of the Year Award at the Carolina’s last Chapter Meeting. Richardson was presented his award by Dick Havens, ALC, Carolinas RLI Chapter President. To learn more about the Carolina’s Chapter small groups please visit: www. http://carolinasrli.com/
Texas Chapter The Texas RLI Chapter swore in the following ofﬁcers for 2016: Cathy Cole, ALC, Chapter President; Minor Taylor, ALC, Chapter President-Elect; and Marc Bradberry, Chapter Secretary. The Texas Chapter will host two courses in February 2016: Land Investment Analysis Refresher on February 15, and Transitional Land on February 16-17. Both courses will take place in College Station, TX, at the Texas A&M University, and will be taught by LANDU approved instructor Fletcher Majors, ALC Advanced.
Education That’s Ready. Take the Reins. 2016 LANDU Courses
REALTORS® Land Institute 430 North Michigan Ave. | Chicago, IL 60611 P: 1.800.441.5263 | E: email@example.com Register at: www.rliland.com
GOVERNMENT AFFAIRS UPDATE
In Depth: New Clean Water Rule Could Have Broad Impacts Russell W. Riggs Institute Government Affairs Liaison National Association of REALTORS® The Environmental Protection Agency (EPA) and the Corps of Engineers (Corps) recently ﬁnalized a controversial regulation known as the Waters of the U.S., aka the Clean Water Rule. This Clean Water Rule fundamentally changes what waters of the U.S. are regulated by the federal government under the Clean Water Act. It could bring under federal jurisdiction many kinds of waters that have never before been regulated by the federal government, including tributaries of streams and wetlands that affect larger downstream waters. The rule also has the possibility of sweeping in other waters on a “case-by-case” basis, depending on the determination of federal regulators. More importantly, property owners still have a lack of clarity about what is needed or required to not be regulated by these expansive changes to the Clean Water Act. Special Alert: On October 9, the Sixth Circuit Court of Appeals placed a temporary, nationwide stay on the Clean Water rule. This ban prohibits the EPA or the Corps from implementing the rule until the Court collects additional information and determines the legality of the regulation.
Ephemeral streams, which may ﬂow only for a few hours or days following a rain event, may now be regulated as tributaries. •
New expansive jurisdiction over adjacent waters – The rule allows for jurisdiction over all waters (not just wetlands) based on adjacency, including ponds, lakes and other similar water features. The rule’s expansive deﬁnition of “neighboring” also includes FEMA designated ﬂoodplains, which allows the agencies to regulate many isolated waters that were not previously regulated.
Many ditches subject to federal regulation - The broad tributary deﬁnition allows for jurisdiction over many ditches as “waters of the U.S.” The ditch exclusions are still narrow and it will be the responsibility of the property owner to prove that a speciﬁc ditch meets the exclusion criteria and should not be regulated.
Legislative Activity While EPA and the Corps have gone about ﬁnalizing the Clean Water Rule, Congress has moved legislation that would require the EPA to withdraw this rule. •
S. 1140, the Federal Water Quality Protection Act - sponsored by Sen. Barasso (R-WY), requires withdrawal of the rule and sets new criteria for what waters should and shouldn’t qualify for Clean Water Act protection. The Senate held a vote on the bill on November 2, but the legislation did not pass.
H.R. 1732, the Regulatory Integrity Protection Act - sponsored by Rep. Shuster (R-PA), passed out of the House in May. The bill requires the withdrawal of the rule and tells the EPA and the Corps to start from scratch.
Because this ban is temporary, NAR continues to pursue legislative opportunities that would require the EPA to withdraw the rule and start from scratch. The three main areas of the rule include: •
Increase in jurisdiction over ephemeral streams – The tributary deﬁnition relies on presence of bed, banks, and ordinary high water mark, which can be seen even in features without ordinary ﬂow.
Congressional Review Act – Resolution of Disapproval passed out the Senate on November 4. This Resolution prohibits implementation of this rule. It now goes to the House, but there is no timeframe for a vote on the ﬂoor of the House at this time.
Congressional Appropriations Committees – have passed bills that prohibit the EPA from using any funds in FY 2016 to implement the rule. There is no timeframe yet for moving the
Provision in the “Omnibus” Legislation – a provision to prohibit the EPA from expending funds to implement the rule in 2016 was NOT included in the Omnibus spending legislation. RLI will continue to advocate for this provision in the 2017 appropriations bill.
Advocacy The Clean Water Rule was one of the August Recess Talking Points for NAR’s Federal Political Coordinators. All FPCs scheduled in-district meetings with their Representative or Senator to discuss issues of importance to NAR going into the fall legislative session. This was a great and timely opportunity to make sure Congress knows how important this issue is to NAR members.
General. All the lawsuits seek to have the ﬁnal rule withdrawn. NAR is exploring options for engagement related to all of these lawsuits. NAR, in coalition with other regulated stakeholders, will continue to engage the EPA when the judicial ban is lifted as they implement and enforce this rule to ensure that federal ofﬁcials follow the letter of the law and that property rights are protected. About the author: In his position with the National Association of REALTORS®, Russell Riggs serves as the Institute’s Government Affairs Liaison in Washington, D.C., conducting advocacy on a variety of federal issues related to land. Riggs will be a presenter during the ALC Luncheon at the 2016 National Land Conference: THE BEST STOP HERE! taking place on March 11-13 in Dallas, TX.
Litigation In addition to the temporary, nationwide ban, several lawsuits have been ﬁled against the EPA and the Clean Water Rule, including one by over thirty state Attorneys
GOVERNMENT AFFAIRS UPDATE
Senate bill to the ﬂoor. The House bill made it to the ﬂoor for a vote, but was withdrawn due to an unrelated controversy. No word yet of when it may get to the House ﬂoor again for a vote.
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The Institute is pleased to recognize the below members for their outstanding accomplishments and contributions. Christina Asbury, ALC, Broker, Coldwell Banker Sea Coast Advantage, named REALTOR® of the year for 2015 by the Topsail Island Association of REALTORS®.
Kent Morris, ALC, Associate Broker & Registered Forester, Waddell Land Company, named a 2015 Leading Agent by Waddell Land Company.
Norma Carleton, RLI Member, Broker, Keller Williams Realty, was awarded the 2015 Five Star Real Estate Agents Award. She is a threeyear winner of this esteemed award.
Suzanne Fields, ALC, Broker, United Luxury Properties, Virginia, was interviewed on the Todd LaBorwit Real Estate Radio Show, to discuss her experiences as a land broker in the niche luxury land industry.
Danny Smith, ALC Advanced, Owner / Broker, Smith & Smith Realty, received the 2015 Commercial REALTOR® Achievement Award from the Florida REALTORS® Association.
Ray Brownfield, ALC Advanced, Land Pro, LLC., was interviewed during a broadcast for This Week in Agribusiness. Brownﬁeld regularly joins the show to discuss land prices and trends, who’s selling, the use of 1031 exchanges, and more.
Caleb McDow, RLI Member, Land Specialist, Crosby & Associates Inc., received a Section 333 Exemption, giving him approval from the Federal Aviation Administration (FAA) to ﬂy drones for commercial use.
George Harvey, Institute Member, Owner/Broker, The Harvey Team, received the 2015 REALTOR® of the Year Award by the Colorado Association of REALTORS®.
David Klein, ALC Advanced, Managing Real Estate Broker, Auctioneer, Soy Capital Bank & Trust Company, was a lead player in the compilation of the 2015 Illinois MidYear Survey for Illinois farm managers and appraisers.
Brent McMillan, ALC, Crye-Leike Stedman REALTORS® Inc., received the 2015 Mississippi Land REALTOR® of the Year Award. This is McMillan’s second time to be recognized for this award.
INSTITUTE MEMBER NEWS
Karen McCartin Foster, RLI Member, Berkshire Hathaway HomeService Parks and Weisberg, received the 2015 REALTOR® of the Year Award from the Southern Indiana REALTORS® Association.
INSTITUTE MEMBER NEWS
Fourteen Ways to Take Advantage Institute members can take advantage of the Institute’s many member beneﬁts to help them reach their potential as a land professional. For more information on any of these beneﬁts, please contact Institute Staff at 800.441.5263 or firstname.lastname@example.org.
1. Take advantage of member rates with savings of up to $150 on all LANDU courses.
8. Join a Committee to help write the Institute’s history and build its future.
2. Join the nearest RLI Chapter 9. Showcase your properties during a Let’s Make Deal$ to start networking and remote marketing session. learning locally. 3. Post and search property listings on TheLandConnections.com at no cost. 4. Network and learn at the 2016 National Land Conference: THE BEST STOP HERE!
10.Email your properties to other members with the Institute’s e-Properties platform. 11.GO BIG! at the 2016 LANDU Education Week plus in Little Rock, AR, at a discounted rate.
12.Enhance your marketing tactics with the Member 5. Take advantage of discounts Marketing Kit. on industry services with the Member Advantage 13.Network with ALC Allies for Program (MAP). guidance on achieving the designation and making the 6. Read Institute most of Institute beneﬁts. communications to stay current with industry news, 14.Connect with the Institute on trends and more. its social media channels, including: Facebook, 7. Use the Find A Land LinkedIn and Twitter. Consultant tool to ﬁnd other members and ALCs near you.
Crea Real Estate LLC Boulder, CO email@example.com
Hancock Farmland Services Savoy, IL firstname.lastname@example.org
Mossy Oak Properties Rolla, MO email@example.com
Jeffrey Bernson, ALC
Sudderth Real Estate, Inc. Leonard, TX firstname.lastname@example.org
JHB Realty Advisors, Inc. Midvale, UT email@example.com
Buy A Farm Land & Auction Co LLC Hecker, IL firstname.lastname@example.org
Whitney Palmer Bernson
Southwest Partners & Global Partners International Realty Brenham, TX email@example.com
JHB Realty Advisors Midvale, UT firstname.lastname@example.org
Buy A Farm Land & Auction Co LLC Hecker, IL email@example.com
Re/Max Edge Realty North Canton, OH firstname.lastname@example.org
Whitetail Properties Pittsﬁeld, MO Tony.Chrisco@whitetailproperties.com
Box Land Company Crystal City, TX email@example.com
Land Broker Websites.com Garland, TX firstname.lastname@example.org
Whitetail Properties Cross Plains, IN email@example.com
Wendy Cline Properties Houston, TX firstname.lastname@example.org
Roche Realty Group, Inc. Meredith, NH email@example.com
Cobb Properties Cranﬁlls Gap, TX firstname.lastname@example.org
Re/Max Real Estate (Central) Calgary, AB email@example.com
Century 21 Legacy Wills Point, TX firstname.lastname@example.org
Bubela & Associates, Inc. Schulenburg, TX email@example.com
Garden & Gun Land Charleston, SC firstname.lastname@example.org
Keller Williams Realty Plano Plano, TX email@example.com
T3 Property Management, Inc. Solvang, CA firstname.lastname@example.org
Izzay R. Denney, Jr.
Rockford, IL email@example.com
Whitetail Properties Kennesaw, GA firstname.lastname@example.org
Denney Properties, Inc. Winterville, NC email@example.com
Keller Williams Tulsa, OK firstname.lastname@example.org
New Story Media Brenham, TX email@example.com
Bradley Company Merrillville, IN firstname.lastname@example.org
Whitetail Properties St. Francis, MN email@example.com
Albert Allen, ALC Texas First Real Estate New Ulm, TX firstname.lastname@example.org
Matthew Amos Paciﬁc Sotheby’s International Realty San Diego, CA email@example.com
Nancy Applebe Heritage Texas Country Properties Brenham, TX firstname.lastname@example.org
Alexandra Armitage Home On The Range Real Estate, Inc. Nederland, CO email@example.com
Garret Armstrong Whitetail Properties Panora, IA firstname.lastname@example.org
Millie Arnold Dutcher/Arnold LLC Boswell, OK email@example.com
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NEW 2015 MEMBERS
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AlaLand Co. Inc Auburn, AL firstname.lastname@example.org
Siterra Properties Cypress, TX email@example.com
Clark & Associates Land Brokers, LLC Billings, MT firstname.lastname@example.org
Ek Real Estate Emporia, KS email@example.com
Burch Realty Group Olive Branch, MS firstname.lastname@example.org
Goehrs Properties Coldspring, TX email@example.com
Jirasek Realty Temple, TX firstname.lastname@example.org
Berkshire Hathaway Home Services Park City, UT Nancy@SkiResortProperty.com
Mega InMuebles San Pedro Garza Garcia, email@example.com
Dreyer & Associates Indian Harbor Beach, FL firstname.lastname@example.org
Whitetail Properties Real Estate, LLC. Griggsville, IL email@example.com
Friedman Real Estate, Inc. Austin, TX firstname.lastname@example.org
Re/Max Associates Corpus Christi, TX email@example.com
Three Rivers Land & Commercial at Silvercreek Realty Group Meridian, ID firstname.lastname@example.org
Coldwell Banker Commercial Lake Country Eatonton, GA email@example.com
Fraise Auction & Real Estate New London, IA firstname.lastname@example.org
Lile Real Estate, Inc. Little Rock, AR email@example.com
United Country - Great Plains Auction & Real Estate Emporia, KS firstname.lastname@example.org
Keller Williams Bullard, TX email@example.com
•Exclusive Territories •Cutting Edge Marketing •Responsive Website •Mobile Friendly •National Catalog •Broadcast TV Ads •TV Show Spring 2016 •Social Media •Complete Marketing •We Help You Sell More Land!
AgriData Inc. Grand Forks, ND firstname.lastname@example.org
Wayne Dunwoody Century 21 Mckeown & Associates Inc. Moberly, MO email@example.com
UC Deer Capital RE & Auction Antlers, OK firstname.lastname@example.org
Janotte Garcia Woodside Worldwide Resources Corp Pogo, email@example.com
Mike Garrett Keller Williams Northwest Cartersville, GA firstname.lastname@example.org
Ruth Garrett Farm & Ranch Finders, LLC Waco, TX farmandranchﬁnders@gmail.com
Matt Gerding Re/Max Elite Mason, OH email@example.com
(844) 281-4301 LandLeader.com 22
Kirk Gilbert Whitetail Properties Real Estate, LLC. Quincy, IL firstname.lastname@example.org
Alison Hale Keller Williams Montgomery, TX email@example.com
Michael Halfacre Tom Smith Land And Homes Louisville, MS firstname.lastname@example.org
Alex Henderson Land Solutions, Inc. Fort Myers, FL email@example.com
Kenny Herring Peoples Company Indianola, IA firstname.lastname@example.org
Russell Hickey Bachman And Associates La Veta, CO email@example.com
Hancock Farmland Services Turlock, CA firstname.lastname@example.org
Hertz Real Estate Services Geneseo, IL email@example.com
Tom Smith Land Madison, MS firstname.lastname@example.org
Tai Cobb Klam
Century 21 M & M and Associates Merced, CA email@example.com
Cobb Properties CranďŹ lls Gap, TX firstname.lastname@example.org
Keller Williams Fresno, CA email@example.com
Janet Martin, ALC
United Country Bulldog Realty Starkville, MS firstname.lastname@example.org
Davis Dubose Knight Forestry & Real Estate, Pllc Little Rock, AR email@example.com
Janet Martin Realty Sulphur Springs, TX firstname.lastname@example.org
The Shopping Center Group Memphis, TN email@example.com
Heleen Jacobsen Real Estate Centre Taber, AB firstname.lastname@example.org
Jana Jacobsen Berkshire Hathaway Home Services Park City, UT email@example.com
Kate Jewell Land Pro Real Estate, Inc. Pilot Mountain, NC firstname.lastname@example.org
Jon Jewell Land Pro Real Estate, Inc Pilot Mountain, NC email@example.com
Timothy Johnson Circle J Real Estate, Inc. Lakewood, CO firstname.lastname@example.org
Mandy Johnson Land Pro Real Estate, Inc Pilot Mountain, NC email@example.com
Dennis Johnson Halo Group Realty, LLC Allen, TX firstname.lastname@example.org
Amy Johnston Lashley Land & Rec. Brokers North Platte, NE email@example.com
William Jordan Re/Max Homeland Realty Kaufman, TX firstname.lastname@example.org
Craig Kerfoot Rocking X Land Co Ltd Burlington, CO email@example.com
Son Town Real Estate DeKalb, TX firstname.lastname@example.org
Linda Koehl Raynice Shudde Real Estate Uvalde, TX email@example.com
Juvy Kopitzke Juvy Kopitzke Realty Paranaque City firstname.lastname@example.org
Priscilla Koser Greene Farm Management Service Inc Dunlap, IL GFMPriscilla@mchsi.com
Rosa LaCerva California Outdoor Properties Vacaville, CA email@example.com
Jean-Paul LaCount Lands Of America San Francisco, CA firstname.lastname@example.org
Stacy Lee Heritage Texas Country Properties Houston, TX email@example.com
Clay Lockard Whitetail Properties Eolia, MO firstname.lastname@example.org
Adam Lytle Century 21 Elite Bossier City, LA email@example.com
Nick Marinelli Mossy Oak Properties Land And Luxury Mooresville, NC firstname.lastname@example.org
Michael Matre, ALC Matre Forestry Consulting, Inc. Albany, GA email@example.com
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Joy McClinthen Joy Mcclinthen Realty Pachuta, MS firstname.lastname@example.org
Harry McIntosh Leconte Realty, LLC Maryville, TN email@example.com
Mark McNamee Clark & Associates Land Brokers, LLC Hulett, WY firstname.lastname@example.org
Shawn Melton Whitetail Properties Huntertown, IN email@example.com
Chris Miller, ALC AFM Land Sales, LLC Charlotte, NC firstname.lastname@example.org
Kasey Mock Keller Williams Austin, TX email@example.com
Lisa Moden Ebby Halliday Realtors Whitesboro, TX firstname.lastname@example.org
Barry Moore College Station, TX email@example.com
INSTITUTE MEMBER NEWS
James Wm. Moore Real Estate Co. Lexington, VA firstname.lastname@example.org
Coldwell Banker Burnet Hastings, MN email@example.com
National Land Realty Greenville, SC firstname.lastname@example.org
AlaLand Co. Hoover, AL JohnMorris@alalandco.com
PďŹ ster Land Company LLC Big Horn, WY charlie@pďŹ sterlandco.com
Pilkerton Realtors Nashville, TN email@example.com
Emerald Realty & Signing Agency Chicago, IL firstname.lastname@example.org
Presley Realty N. Augusta, SC email@example.com
Parliment of Ghana Accra, Ghana firstname.lastname@example.org
Energy Plex Real Estate Lovington, NM email@example.com
Coldwell Banker Mason Morse Real Estate Carbondale, CO firstname.lastname@example.org
Exit Huls Realty Marengo, ID TR@exithulsrealty.com
Farmland Partners, Inc. Heyworth, IL email@example.com
Kenneth Osborne Century 21 Triad Mocksville, NC firstname.lastname@example.org
Michael Oswalt Tom Smith Land And Homes Madison, MS email@example.com
Benito Owusu-Bio Parliament of Ghana Accra, Ghana, firstname.lastname@example.org
Clay Patrick JP Real Estate Incorporated Bascom, FL email@example.com
Christopher Peacock, ALC Halderman Real Estate Services, Inc. Winchester, IN firstname.lastname@example.org
Tanner Peacock Churchill Oaks Realty, LLC Santa Rosa Beach, FL email@example.com
Ruben M. Pena T.C. Austin Residential Group, LLC San Antonio, TX firstname.lastname@example.org
Yu-en Peng Lipar Property Investment Taipei City 101, Taiwan, email@example.com
Brian Philpot AgAmerica Lending Lakeland, FL firstname.lastname@example.org
RE/MAX All Pro Naperville, IL email@example.com
Richard Randals New Mexico Property Group LLC Tucumcari, NM firstname.lastname@example.org
Thomas Rayburn Mossy Oak Properties AgriRec Land & Auction Elk Grove Village, IL email@example.com
R. Omar Richardson United Country RealQuest Realty, LLC Grand Junction, CO firstname.lastname@example.org
Ben Richardson Whitetail Properties Real Estate Collinsville, AL email@example.com
Polly Anderson-Robertson Crye-Leike Stedman Realtors, Inc. Liberty, MS firstname.lastname@example.org
Travis Robeson Fridrich & Clark Realty Brentwood, TN email@example.com
Clara M Rojas University Of Houston-downtown Houston, TX firstname.lastname@example.org
Cameron Roth Results Realty, LLC Burlington, KS email@example.com
Lee Schramer National Bank & Trust Co. of Sycamore Sycamore, IL firstname.lastname@example.org
Melissa Schroder Realty Concepts Hanford, CA email@example.com
Nikolaus Schroth Nai Southcoast Stuart, FL firstname.lastname@example.org
Jeff Scott Century 21 Goodyear Green Edmond, OK email@example.com
Judy Shaffer Real Pro Agency Carthage, MO firstname.lastname@example.org
Chad Smith LandMAX Properties, LLC Brookhaven, MS email@example.com
Ariel Steele Keller Williams 1st Realty Assoc Longmont, CO firstname.lastname@example.org
Cheryl L. Stewart Property Connections Bay City, TX email@example.com
Richard L. Wood, ALC
Total Care Realty, LLC Greensboro, NC firstname.lastname@example.org
Tupco Realty Jennings, LA email@example.com
R.L. Wood & Company, LLC Mesa, AZ firstname.lastname@example.org
Tommy Stroud Jr., ALC
National Land Realty St. Simons Island, GA email@example.com
Clift Land Brokers Littleﬁeld, TX firstname.lastname@example.org
Fairfax Realty, Inc. Falls Church, VA email@example.com
Joe Van Aelstyn
Whitetail Properties Salem, IL brandon.swartzlander@ whitetailproperties.com
Cindy Gerke & Assoc Inc La Crescent, WI firstname.lastname@example.org
NY Living Realty Willsboro, NY email@example.com
Martin, Goodrich & Waddell, Inc. Sycamore, IL firstname.lastname@example.org
Peoples Company Clive, IA email@example.com
National Land Realty Charleston, SC firstname.lastname@example.org
Rockwall, TX email@example.com
Woodside Worldwide Resources Corp. Pogo Rstabios8@gmail.com
Jay Taylor Leverage Digital Tampa, FL firstname.lastname@example.org
Christine Taylor Ruhl & Ruhl Realtors Moline, IL email@example.com
John Teel Re/Max Lakeside Dreams Corsicana, TX Johnteelremax@gmail.com
Julia Thompson Brassﬁeld Commercial Franklinton, NC julia@brassﬁeld.com
Garet Thompson CJ Auctions Tulsa, OK firstname.lastname@example.org
Cynthia Tibbs Cynthia Tibbs Properties Houston, TX email@example.com
Betsey Timmons Lyons Realty Lubbock, TX firstname.lastname@example.org
Jeff Titus Century 21 M&M and Associates Oakdale, CA email@example.com
Kevin Tubbesing The Land Source Mission, KS firstname.lastname@example.org
Robert Washburn Re/Max Real Estate Group Glenwood, IA email@example.com
Noah Wendt Agland Realty Cambridge, IA firstname.lastname@example.org
Susie Westbrook Arellano Realty & Investments, LLC Clermont, FL email@example.com
Andrew Westlake Peoples Company Clive, IA firstname.lastname@example.org
Daniel Whitney Landmarketing, Inc. Olathe, KS email@example.com
Harley Wilcox West Group Real Estate Victor, ID firstname.lastname@example.org
Bonnie Herring Wise Terrain Marketing Brokers Dunn, NC email@example.com
Leena Wong Realty Links LLC Houston, TX firstname.lastname@example.org
INSTITUTE MEMBER NEWS
Membership Ambassadors Amber Johnson Ben Crosby, ALC Ben Van Dyk Bob Turner, ALC Brad Van Weelden, ALC Brian Rose Cathy Cole, ALC Advanced Dan Perez Dan Ward, ALC Dave Milton, ALC Dean Saunders, ALC Advanced Dietra Robison Eric Schlutz, ALC George Clift, ALC Advanced Jeff Bernson, ALC Jeffery Waddell, ALC Jeramy Stephens, ALC Advanced John Dean, Jr. ALC John Moss, ALC Kurt Hollenberg Lance Langenhoven, ALC Lar Voss Maggie Thomas Lou Jewell, ALC Michael Lauher Molly Suarez Sandy Bahe Scott Pumroy Sherman Shanklin, ALC Tom Smith, ALC Advanced
INSTITUTE MEMBER NEWS
UPDATES FOR ALCs 2016 NEW POLICY CHANGES
LANDU Loan Assistance Program
New ALCs: In 2016, all new ALCs will be required to take the Institute Code of Ethical Excellence (ICEE) session before applying for the ALC designation. This four-hour session will be offered via independent study with a stand-alone remote exam to be successfully completed, which includes the submission of the signed ALC Code of Conduct form. After fulﬁlling this requirement, ALCs are required to take the ICEE session during the next ICEE window (2021-2025). This will be a continued requirement for all ALCs to fulﬁll during every ﬁve-year ICEE period.
Invest in yourself! Real estate professionals seeking to invest in attaining the esteemed ALC designation can receive ﬁnancing through the REALTORS® Federal Credit Union. Make a good investment. Invest in a designation that has helped increase agents’ annual earnings by $100,000 or more. The REALTORS® Federal Credit Union has the resources you need to complete your ALC courses to join the ranks and become a member of this elite group.
Professional Development Requirement
Enroll in the Accredited Land Consultant (ALC) loan program and you may qualify for the ALC Designation Loan. The ALC loan will help you pay for:
As of January, 2016, ALCs are required to fulﬁll professional development through the Institute every 5 years. The requirement to be completed within each ﬁve-year period may include one of the following (please choose one):
Membership to the REALTORS® Land Institute
104 LANDU contact hours required for the designation
2016 National Land Conference expenses
Successful completion of one 16-hour LANDU Course OR
ALC Final Exam Fee
Successful completion of two 8-hour LANDU courses OR
ALC Application Fee
Attendance at two National Land Conferences OR
Successful completion of one 8-hour LANDU course and attendance at one National Land Conference
You may apply for a loan up to $5,700 to cover the expenses of earning the ALC designation.
Market Pricing Platform for Land Brokers Proud Partner of the 2016 National Land Conference Visit Our Booth and Watch Demo
ALC Designation Requirements EDUCATION REQUIREMENTS
Required Courses (56 hours total): • Land 101: Fundamentals of Land Brokerage (16 hours) • Land Investment Analysis (24 hours) • Tax Deferred 1031 Exchanges (16 hours) or Advanced Tax Deferred 1031 Exchanges (8 hours)
Sales, Brokerage, Development, Consulting, Investor/Developer The portfolio must substantiate the applicant’s participation and material involvement as a broker, agent, consultant, forester, auctioneer or employee in at least five closed land transactions totaling $10 million or a minimum of twenty-five separate land transactions of which no more than eighty percent involve residential lot sales, or a comparable level of volume dependent upon the land specialty and type(s) of real estate services provided. The value of the land must account for at least fifty-one percent of the total sale of the transaction in order for the transaction to be eligible. Cited transactions and services will need to be completed no more than six years prior to the submission of the ALC Application.
Applicants must complete a total of 104 LANDU contact hours, of which 56 are required courses*. Courses may be completed in-person or through online delivery systems.
Note: If taking the Advanced course in place of Tax Deferred 1031 Exchanges, students will need to complete 8 additional elective course hours in order to meet the 104 contact hours.
Elective Options (to fill remaining 48 hours): • 2016 National Land Conference—White Paper (16 contact hours) • Advanced Tax Deferred 1031 Exchanges (8 contact hours) • Agricultural Land Brokerage and Marketing (16 contact hours) • The Auction Tool (8 contact hours) • The Basics of Eminent Domain Law (8 contact hours) • Essentials of Negotiation (16 contact hours) • Google Earth for the Land Professional (16 contact hours) • International Aspects of Real Estate (16 contact hours) • NEW Introduction to Land Valuation (16 contact hours) • Land Development (16 contact hours) • Legal Aspects of Real Estate (16 contact hours) • Marketing Strategies (16 contact hours) • Mineral, Oil and Property Rights (16 contact hours) • Site Selection (16 contact hours) • NEW Strategic Planning for Your Business (16 contact hours) • Tax Implications of Real Estate (16 contact hours) • Timberland (16 contact hours) • Transitional Land (16 contact hours) • NEW Mapping and Land Navigation (16 contact hours) • other electives as developed by the REALTORS® Land Institute • other course equivalencies as approved on an individual basis
Applicants must hold a current Real Estate License and submit a resume that demonstrates a minimum of two years of experience in land sales or brokerage, or a minimum of three years of comparable real estate experience in auction, appraisal**, leasing, development, farm management, consulting, brokerage management***, or related services in land. *Applicants may test out of required courses. Contact staff at 880.441.5263 for more information. **Appraiser candidates must be licensed state certified general appraisers. ***Broker managers must have a minimum of five years of management experience and manage a minimum of ten agents.
Applicants must submit a portfolio that substantiates specific levels of volume achieved in land sales or in providing real estate services related to land.
Volume Calculations: • the buyer side is equal to the full sales volume • the seller side is equal to the full sales volume • if both sides of the transaction are handled by one agent double the volume of the transaction for the purpose of fulfilling the volume requirements Substantiation documents include, but are not limited to: • signed closing or commission statements, contracts, and leases • approval documents or permits, site/development plans • recorded and signed deeds • statements of value or copies of appraisals • copies of consultant reports or commentaries on consulting assignments • letters from employers indicating a principal involvement in land transactions, development, appraisal, or related services Appraisal Appraiser applicants must be licensed state certified general appraisers and submit an appraisal experience log listing of all land appraisals performed during the previous three years, containing the appraisal date, client identification, and total appraised value of the property. The portfolio must substantiate the applicant’s completion of no less than thirty agricultural and/or commercial land appraisals, for the three years prior to submitting the application, that fully meet all USPAP requirements, with cumulative appraised values exceeding ten million dollars. In addition, the portfolio must include two examples of a complex land appraisal (with signed permission of the client) containing all three approaches to value. (over)
Broker Management Brokerage manager applicants must submit a portfolio that substantiates management responsibility in a firm with a minimum of ten agents who have completed at least $30 million in sales volume over a 2-year timetable. Auctioneers The auctioneer must substantiate participation and portion of commission in at least five closed land auctions totaling ten million dollars, or a minimum of 25 separate auction events of which no more than eighty percent involve residential lot sales, or a comparable level of volume dependent upon the land specialty and type(s) of real estate services provided. Non-Transactional Land Professionals Tier Consists of those high-level, full time commercial professionals whose primary function is a substantial contribution to commercial real estate that does not include brokering actual transactions. Five or more consecutive years in the same role is required. This category includes: bankers, attorneys, corporate and executives, asset managers. Non-transactional applications must include the following: a professional resume that demonstrates real estate experience (employment history); an affidavit which includes verification of at least five years in the same role; a detailed explanation of the role and responsibilities in his/her position; 2 letters of recommendations; and proof of participation and material involvement in at least five closed land transactions totaling a minimum of $25 million. Certified Professional Landman (AAPL) Must be a Certified Professional Landman (AAPL) with three years of experience. The portfolio must substantiate the applicant’s participation in no less than twenty-five closed land consulting cases of which no more than eighty percent involve residential lot sales, or a comparable level of volume dependent upon the land specialty and type(s) of real estate services provided. Farm/Forestry Managers Farm managers must submit a portfolio that substantiates proof of a minimum of thirty active leases during a five-year period.
Applicants must submit at least two letters of recommendation, one from an Accredited Land Consultant and one from a local or state board confirming that the applicant is a member in good standing. If the applicant is an Institute Affiliate member, in lieu of a letter from a state or local board, he/she may submit a letter from an appropriate accrediting body or commission confirming that the applicant is a member in good standing of the accrediting organization.
All ALC designation applicants must successfully complete a comprehensive online exam that covers the core components of the LANDU curriculum. All candidates will be able to take the exam twice within a year from the date of purchase.
ALC EXPERIENCE RESUME
Applicants for the ALC Designation are required to complete a detailed “ALC Experience Essay.” This is a 400-word essay describing how LANDU education and knowledge was used in the listed transactions, how ALC skills and tools applied to complete the transactions, and which ALC skills and knowledge would have benefited in the transactions.
INSTITUTE CODE OF ETHICAL EXCELLENCE (ICEE) REQ.
Applicants are required to take the Institute Code of Ethical Excellence (ICEE) session before applying for the ALC designation. This four-hour session will be offered via independent study with a stand-alone remote exam to be successfully completed which includes the submission of the signed ALC Code of Conduct form.
FORMAL APPLICATION & REVIEW
Applicants for the ALC Designation must hold a current membership in the REALTORS® Land Institute. After completing all requirements, including passing the comprehensive exam, ALC applicants must make a formal portfolio and submit a $350 application fee. The formal portfolio is peer reviewed by the ALC Designation Committee. The Committee will consider each portfolio to determine if all requirements have been satisfied. Members of the ALC Designation Committee reserve the right to request additional information or an interview (via phone or in person) with any ALC designation applicant should there be questions regarding the candidate’s completion of the requirements for the designation. The Chair of ALC Designation Committee serves as the liaison to all applicants. Applicants who are determined not to have satisfied the requirements will be advised of the reasons for that determination so that they may correct any deficiencies.
POST-ALC DESIGNATION: PROFESSIONAL DEVELOPMENT REQ.
Once designated, ALCs are required to fulfill a professional development requirement through the Institute every five years. ALCs may choose from one of the following requirements: completion of one sixteen-hour LANDU Course; completion of two eight-hour LANDU Courses; attendance at two National Land Conferences; or completion of one eight-hour LANDU course and
Fast Track Program to the ALC Designation Individuals who hold the following designations may apply for the “Fast Track Program” to the ALC designation: CCIM, SIOR, CRE, AFM, ARA, RPRA, AAC, MAI, CAI, SR/WA or hold a B.S. or M.S. and/ or PHD with a major in real estate or a program specifically related to land. “Fast Track” applicants need to complete the 56 hours of the required LANDU courses. Applicants must provide proof of graduation or active membership with an approved designation, meet all other ALC requirements and submit a formal application. Call 1.800.441.5263 to learn more or visit http://www.rliland.com/fast-track-program. (over)
The REALTORS® Land Institute is proud to announce the newest recipients of the Accredited Land Consultant (ALC) designation. These ALCs have worked hard to complete the rigorous LANDU education requirements, build a proven track record of success in the business, and pass an evaluation and approval process by the Institute’s Designation Committee and Board of Directors. ALCs are the most trusted land professionals as a result of their commitment to professional development and a strong code of ethical conduct. In 2015, the Institute proudly awarded thirty-two members with the ALC designation—more than in any of the past ten years. Congratulations on your accomplishment! John Debitetto, ALC Land Solutions, Inc. Fort Myers, FL 239-322-9062 email@example.com Debitetto has 22 years of experience in production home building, having served in various capacities including land development, acquisition, sales, and construction. He is a graduate of the University of Florida with a BS Degree in Construction Management and holds a Broker and Contractor license in the state of Florida. Gar Lile, ALC Lile Real Estate, Inc. Little Rock, AR 501.920.7015 firstname.lastname@example.org Lile is the founder and current President of Lile Real Estate, founded in February 1993. Lile is a licensed real estate broker in Arkansas, Louisiana, Mississippi, Tennessee and Texas, and an Arkansas State Certiﬁed General Appraiser. He is actively involved in the ownership and development of farms and recreational properties in Arkansas, and has a hand in many major farm and recreational development projects. Janet Martin, ALC Janet Martin Realty Sulphur Springs, TX 903-243-0184 email@example.com Martin attended college at Stephen F. Austin and received her BBA from East Texas State University. Prior to earning her Broker’s license, Martin was a partner with her husband in the family farm. Her background in farm and ranch, as well as a business background, has added to Martin’s extensive experience as a full-time REALTOR® with ongoing education in her ﬁeld.
Doug Meschko, ALC Land Solutions Fort Myers, FL 239-777-1717 firstname.lastname@example.org Meshcko is a Director of Market Research and a Broker focusing on the market analytics of residential and commercial properties throughout Southwest Florida. He has ﬁfteen years of real estate experience with a wide range of focus from consulting to sales and leasing. As a Market Analyst for Metrostudy of South Florida, he commissioned market reports, feasibility studies and acquisition / disposition consulting reports for local and national builders, venture groups, and lending institutions.
INSTITUTE MEMBER NEWS
WELCOME NEW ALCs
Chris Miller, ALC AFM Land Sales, LLC Charlotte, NC 704-577-7082 Chris.email@example.com Miller holds a BS in Forest Management and Forest Resources from North Carolina State University. He has been a Consulting Forester / Land Broker for over ten years who specializes in timber and land sales in North Carolina and South Carolina. Michael Price, ALC Land Solutions, Inc. Fort Myers, FL 239-223-2412 firstname.lastname@example.org Price’s main focus is the sale of commercial real estate, the presenting of listings to developers and investors, and the procurement of new listings and clients for the company. He is a native of Fort Myers and has been active in the local business community for years. Price has a business background and extensive knowledge of the Southwest Florida area. He is a graduate of the Lutgert School of Business at Florida Gulf Coast University with a BS Degree in Management.
INSTITUTE MEMBER NEWS
Tommy Stroud Jr., ALC National Land Realty St. Simons Island, GA 912-223-3932 email@example.com Stroud was born and raised in St. Simons Island, GA. As an Eagle Scout, he grew up appreciating the outdoors. He graduated from Auburn University with a major in Marketing and a Masters in Real Estate Development. He then spent the next seven years in commercial real estate and commercial and land appraisals with McColgan & Company in Atlanta and Driggers Commercial Group in St. Simons.
Jeff Wolpert, ALC Newmark-Grubb/Pearson Commercial Fresno, CA 559-779-4912 Jwolpert@pearsonrealty.com Wolpert is Vice President in the Land Division of Newmark Grubb Pearson Commercial, specializing in the acquisition and disposition of land and commercial properties. He has extensive experience with land use designations, city and county planning departments and zoning issues. His expertise focuses on transitional agricultural land with commercial development potential, single-family subdivisions, multi-family housing, and industrial and professional ofďŹ ce properties.
March 12, 2016 The Greatest Cowboy Auction on Earth III 2016 National Land Conference Register your donation now! nationallandconference.com/cowboy-auction Williams-Auction-RLI-Half-Page-121415.indd 1
12/14/15 4:04 PM
Albert Allen, ALC Founder & President Allen, Williford and Seale Almost all articles about easements deal with their appraisal. Valuation of easements is important and the real estate professional can beneﬁt by understanding these valuation techniques. However, this particular article is designed to assist the non-appraiser real estate professional in their discussions with buyers and sellers regarding the impact of easements on land.
WHY ARE EASEMENTS IMPORTANT Most properties have easements and in some instances these easements can impact the utilization and even value. Knowing if there are easements present, where they are situated and what they are used for, is an important part of listing, buying, selling, ﬁnancing and appraising land. Any analysis or presentation of a property should include a discussion of easements. A few thoughts on the nature of easements and how they may inﬂuence value can help ascertain their signiﬁcance to the transaction. When the subject property already has easements, if there is going to be an easement placed on the property or if the comparable sales and/ or listings used to value the property have easements, then, their possible impact should be considered.
WHAT IS AN EASEMENT According to the Land 101: Fundamentals of Land Brokerage LANDU course, An easement is defined as a right in law held by one person or entity to make use of land or property of another for a limited purpose. Under the terms of an easement, the owner grants a portion of, or interest in, his property rights to an individual or organization. An easement grants a portion or interest in the property rights of a property to another individual or organization. When it is recorded, an easement becomes part of the property’s chain of title. Easements result in a diminution of uses to the landowner and sometimes, but not always, a reduction in the value of the property. The landowner can no longer build within the easement area. Depending on the easement document, he may be restricted from traversing or crossing the easement area. There could also be restrictions on the use of the subservice or aerial portions of the land within the easement area.
NATURE OF EASEMENTS Each easement is unique. Easements are created by a document including the speciﬁc agreements between the landowner and the holder. These agreements may have a time limit or extend into perpetuity. Very few easement agreements are exactly the same. There are almost an inﬁnite number of uses for an easement, the most typical of which are roads, pipelines, and electrical transmission lines. Each easement reﬂects the highest and best use, and other characteristics of the land it crosses, further adding to its uniqueness. An easement is not a highest and best use but the existence of one could change the highest and best use of the subject property. Often, easements are described as surface, sub-surface or aerial but these classiﬁcations are primarily physical and the easement agreement may include additional rights. For purposes of discussion, easements can also be divided into right of way (land) and infrastructure (improvements). Either the right of way or the infrastructure within it can impact the value of the land. Again, the easement agreement spells out the speciﬁcs of both the right of way area and the improvements which are allowed in that area.
DISCUSSING EASEMENTS WITH YOUR CLIENTS
Another factor of uniqueness is that an easement physically divides the property which it encumbers. A property with an easement can be said to have three physical parts: the subject whole, the portion burdened (also called right of way or acquisition) and the remainder (that part of the subject whole not encumbered). These distinctions are important when analyzing the impact an easement has on value as discussed below.
RESEARCHING EASEMENTS Easements are quite speciﬁc and, as mentioned above, are spelled out in a legal document. A title search may uncover an easement document and this agreement should be read. Many easements are visible at inspection but some are not. The landowner should always be interviewed regarding the presence of easements. Assumptions regarding easements should be avoided.
WHEN DO EASEMENTS IMPACT VALUE In most cases there is no impact on value due to easements, particularly if they are of the standard utility or access variety. In some cases, the easement area itself will include signiﬁcant infrastructure such as highways, electrical transmission lines or pipelines. Value impact issues may include proximity to improvements; visual impairment; crossing restrictions; location issues such as traversing the land through the middle rather than
along the boundaries; and destruction issues such as loss of trees or improvements. Loss of value should be based on market data rather than subjective or anecdotal reasons. Individual markets react in different ways to a particular type of easement. For example, a natural gas pipeline causes little comment at all on the Gulf Coast of Texas while a similar easement could create a great deal of consternation in rural Vermont.
HOW EASEMENTS ARE APPRAISED Easements are not valued per se. There is no market for easements in and of themselves. The value (impact) of an easement is always the amount of loss in value of the burdened property, not the value of the easement to the taker (user). Another way of saying this is that the value of easements is based on the underlying value of the land. There are two components of possible value loss to the land: reduction in the value of the easement area and loss of value to the remainder of the tract. As discussed above, the loss to the remainder can be caused by either/or the right of way itself or the infrastructure within the easement area itself. The total loss in value caused by an easement cannot exceed the value of the entire subject property. The generally accepted methodology used by appraisers, and the one almost always accepted (required) by the courts, is the “Before and After” method. In practice, this requires the appraiser to perform two separate appraisals: the value of the property before the imposition of the subject easement and the value of the property after the easement and infrastructure is in place. The difference in value between the two is the impact of the easement. Since any appraisal is market based, comparable land sales will be used. In the before scenario, comparables without easements will be used, and in the after analysis, comparables that are encumbered with easements similar to the one to be placed on the subject will be used. Generally, these two appraisals and the data are presented in one report.
RULES OF THUMB There are a number of alternative methodologies (rules of thumb) which are often used to estimate the impact (value) of easements. None of these rules of thumb reﬂect market value and should not be relied upon. In any event, they are not recognized by appraisers or courts of law because they are not supported in the marketplace. In the ﬁnal analysis, alternative methodologies are not based on the underlying land value. Three examples of these rules of thumb would be: (1) linear expressions of value such as per rod or per running foot, (2) prices paid for other easements and (3) expressing damages (diminution in value) in terms of percentages.
Basing the value on linear expressions, such as dollars per rod or foot, is a commonly used rule of thumb particularly in pipeline easements. Many companies used this metric as a budgeting tool. It is not a reliable indication of value, however, for several reasons. There is no market for sales of individual easements in the market place. Many easement acquisitions involve eminent domain and, as such, are not arm’s length transactions. The price paid for the acquisition of individual easements is usually based on many factors in addition to the underlying value. Examples of these would be negotiations based on timing of the project and holdout situations. Additionally, because of the uniqueness of each easement, the easements being purchased probably are not similar to the subject easement. The use of percentages not based on comparable sales data does not reﬂect the market. An example would be to say that a powerline easement reduces property value by twenty-ﬁve percent. This is a generalization which does not take into consideration such factors as differences in size of the property being affected; different sizes of the transmission line size and voltage; different neighborhoods; different highest and best use of the property; etc.
ADVISING YOUR CLIENT REGARDING A PROPOSED EASEMENT In the event of the possibility of an easement being imposed on the subject property your client may seek your advice. The real estate professional should exercise a great deal of caution at this point and should not ever offer legal or appraisal advice. The party seeking to obtain the easement may have the right of eminent domain, and this introduces a legal environment which will require, in most instances, the assistance of an attorney. Recommending an attorney is ﬁne as long as they are qualiﬁed to handle a condemnation matter. In the event that an appraiser is needed, the attorney usually selects one they have worked with in the past. Acting as a negotiator or expert witness for either party in an eminent domain matter should be given a great deal of thought before accepting the assignment. Most states require an appraiser license or certiﬁcation before an individual may act as a valuation witness. Any comments about easements and values, particularly in public meetings, should be based on comparable data and not alternative methods or rules of thumbs.
SUMMARY Easements are important and can impact both use and value of the property. Generalizations about easements are of little use primarily because each easement
is unique and does not ďŹ t a preconceived pattern. Generally speaking, both appraisers and the courts apply an underlying land value based approach (before and after) to the valuation of easements. The reason for this is that this method reďŹ&#x201A;ects how the market reacts. Rules of thumb to estimate value (impact) of easements themselves should be avoided. About the author: Albert is the Founder and President of Allen, Williford and Seale an appraisal firm with a nationwide practice. He earned his ALC from the Institute in 2015 and continues to be an active member. His background includes growing up in a South Texas ranching family, graduating with a degree in Agriculture Economics from Texas A&M University and serving as a real estate officer in the US Army Corps of Engineers.
TIPS AND THOUGHTS ON HOW TO SELL A RANCH Deitra Robertson, ALC Advanced President & Owner, Deitra Robertson Real Estate, Inc. If this title had you thinking, “Oh good, I’ll just read this, gather a few pointers and be on my way to selling that ranch!”—think again! This topic would be a great Napoleon Hill “brainstorming” session, wouldn’t it! My fellow Accredited Land Consultants (ALCs) could all write this article, and certainly could elaborate on it based on their knowledge and procedures. I hope this piece will help those new to selling larger land parcels. Ranches—ﬁrst of all—what are they? They come in all sizes and uses including hunting, hay, cattle, ﬁshing and recreation, high fenced exotics, vineyards, and true working ranches. This will not include a discussion on agricultural production, other than hay as that is an entire subject regarding farmland and not part of this article. You have secured a wonderful ranch listing, discussed the aspects of the ranch with your sellers, and counseled with them regarding the listing and selling process, expectations and potential results. Have your sellers tell you what they have loved about the ranch, and different parts of the property. How is the lighting different in the summer versus the winter? What have they changed, built, or modiﬁed since they purchased? What would they still change if they were to continue as owners? You need to really get the ‘feel’ of this property, and your sellers are your best resource— now you can share that through your marketing to potential buyers and agents. Gather your data—no shortcuts! Surveys; legal descriptions; tax information; how property is assessed (agricultural, timber, wildlife, etc.); mineral ownership; production; water rights; wind rights; BLM leases or other agricultural leases; conservation easement documents if applicable; well logs; zoning information; local utilities; inventory list of exclusions and inclusions (talk to your sellers about this, get this early in process-it will still probably change!); income/expense/proforma statements (as many years as possible); off record items.; distance to airports and FBOs; know the length of runways for private jets, all jets are not equal and require different distances. Have there been any environmental assessments done on the ranch? Many buyers will want, at minimum, a Phase One—we all know most ranches have their own “landﬁll” somewhere! Also, inquire about government programs, CRP, Grassland Reserve, etc.
As you move forward, gather information on competitive properties and projects as well as sold and closed properties within a determined area where buyers would look for similar properties. This could include several states! Collect regional and local information and articles—if in a resort area, sell that! If your ranch has development or conservation potential, put together development costs and estimates. You will want to gather all building descriptions and specs, ﬂoor plans, building diagrams, blueprints, etc. Study your subject—maps, maps, maps! Know your boundaries. How much is wooded, how much in crop production, hay production, native grasses? How many water features? What’s the size and depth of ponds and lakes? Check with your local NRCS ofﬁce as they have great maps. With your mapping programs, create boundary, aerial, topo, FEMA and ﬂood maps. Locate improvements and points of interest on your maps. Now, create your soils maps—NRCS has a great site for this as do most mapping software. This is important to buyers! Figure the carrying capacity of your pastures; knowing how many AUMs in certain climate conditions will be beneﬁcial information for some buyers. Know the current pasture plans in place; when and how often it is fertilized; how about weed control, planting, sprigging, and so on. Can this be improved? How? Regarding fences, know which are boundary and which are cross fences. If a ranch is high fenced, ﬁnd out who built it and when it was built. When it comes to hunting and ﬁshing amenities, get photos—elk, deer, turkey, cat, ducks, geese, ﬁsh sell! If a ranch is primarily used for hunting and recreation, there is a host of other categories on which to gather information. It is also important to know the areas in certain parts of the country, how many tags a land owner gets, licensing, season dates, etc. If outside hunting is allowed and if a business is part of ranch, then, all ﬁnancials are important. Same goes for dude ranches, vineyards and all income production which contributes to value of the ranch and is part of what you are selling. Yes, assembling all of the critical information that makes you as knowledgeable as the seller about your ranch listing is paramount. Now you can decide your marketing strategies. Foremost is determining if your ranch listing is a local, regional or global property in its appeal. Most ranch brokers utilize the excellent esoteric publications of our business. These magazines were our “bibles” and served as our main Multiple Listing Service (MLS) for years! Now, they can be strategically placed on coffee tables for high-end buyer prospects.
If you have a potential conservation property, consider highlighting that aspect and explain state tax credits and federal tax deductions associated with easements in your marketing materials.
About the author: Deitra Robertson, ALC Advanced, is President and Owner of Deitra Robertson Real Estate, Inc. She is a founding member broker of American Farm & Ranch and founding President of the Texas Land Broker’s Network. A member of the REALTORS® Land Institute since 1996, Deitra has served as President of both the Colorado and Texas RLI Chapters and on the ALC Review Committee.
Publications and websites catering to hunting, ﬁshing, and equestrian properties should be considered depending on scope of property. Print publications such as the WSJ, for high end properties, have regional market advertising options. Of course, if a property is more local in scope, then, use your best local marketing publications.
Offer a resource of qualiﬁed agricultural lenders. Invite them to be part of your “Open Ranch” tour. It puts you miles ahead if you can offer a knowledgeable ag lender to a prospective buyer and agent. Inexperienced large land buyers may think their local lender or private wealth management lender will secure their ﬁnancing. We have all been down that path! Yes, have an Open Ranch and invite your network of farm and ranch brokers. These brokers have buyers! This was certainly a successful part of marketing and had great support among the members of the Colorado RLI Chapter while I was there. Texas is vast and properties can be combined with other local ranch listings to showcase your unique properties to your broker network. Certainly we all know that the “basics” are important in selling a ranch and they are far more reaching when selling a home. A well-staged home and barn is important. The property must have all deferred maintenance completed, be the cleanest it’s ever been. Barns and out buildings must be clean and organized. Fences should be ﬁxed with no sagging wire or broken boards; fence lines sprayed for weeds; etc. This list could go on and on! Good photography, both still and aerial from a drone, is essential on large properties. Also, having the proper vehicle available to show your property is a must! A low proﬁle car just isn’t going to work! These are just a few of the aspects to consider when preparing to market and sell a ranch. Last, but as important as ﬁrst, when you are counseling your sellers, ask them about their plans for “after”. Many sellers are not aware of tax deferred 1031 exchanges and how this IRS code can possibly beneﬁt them. Have your trusted Qualiﬁed Intermediary in your resource list to provide to your sellers-this can possibly save them a lot of tax dollars. Pull on your boots now and good luck!
THE ACTIVIST CLIENT Terri Jensen, ALC Advanced 2016 Institute Immediate Past President This article was originally to be geared towards “organic farming”. However, in researching this topic, and being involved as a land professional, the client became the focus versus a discussion of “organic farming”. Who do we, as land professionals, deal with – for real estate, appraisal, farm and ranch management, mineral management, timber management, etc.? The client.
With that said, there is a major shift in demographics and land ownership in the United States with approximately seventy percent of the nation’s private farm and ranch land anticipated to change hands in the next twenty years, with women, absentee and non-farming landlords increasing in numbers. These landownership changes will have a profound impact on farm viability and land stewardship. These changes bring new challenges, which offer opportunities for land professionals – from who we deal with as a client, to the manner in which we deal with clients, to the professions and services we will offer to the landowner. Part of this shift over the past three decades reﬂects that the number of women in farming has tripled – as landowners and operators. Women are now entering farm and ranching at a higher rate than men, typically choosing to operate small-scale, diversiﬁed farms.
As land professionals, then, who or what is the “activist client”? No deﬁnition was located; neither in the Merriam-Webster, nor Dictionary.com, nor Cambridge, nor Wikipedia. A Google search, however, for “activist client” produced 4,390,000 results! At one Midwest Land Services Company, this topic was discussed by four groups: 1) who is the activist client; 2) what are their goals; and 3) how will we, as land professionals, best assist them? Information from that session, together with other research is presented below.
Answers to the “who” included: •
the “activist client” is more concerned about the environment than the economics
the client who will take a more active role based on something other than economics
one who is willing to act on their beliefs, and
a person who typically resides in a large urban area who, without ﬁrsthand knowledge of agriculture, has beliefs shaped by mass media.
What are the activist clients’ goals? Research indicates that the focus for many women as farmers or ranchers (owners or operators) that are a part of the “activist client” group includes: regenerative farm and ranching; resilient agriculture; and sustainability from an economic
fewer chemicals used and reduction of GMO products
regenerating and rebuilding the soil
corners left for habitat and wildlife preservation
diversity with both crops and livestock for an income each month
alternatives to what is seen as an unhealthy trajectory for farming
more nutrition from our food/healthy food
creation of safe conditions for farmers and rural communities
How, then, will we as land professionals assist the “activist client” with the above focuses? The list above includes not only organic, but “local”, agroecology, alternative agriculture, community-supported agriculture, integrated food and farming systems, natural farming, precision agriculture, resilient and regenerative agriculture… As land professionals, we will need to: •
become better at asking what the clients’ goals/ objectives/expectations are. For example, do they really want “organic” or are they really are trying to focus on one or two of the above focuses, such as reducing the use of synthetic fertilizer or using fewer GMO products?
become better educated as to conservation practices and programs that affect your client’s farm and locale
become aware of organic, local, non-GMO, etc. market opportunities, sources, and resources
offer education or provide information to the nonoperating landowner on current issues affecting the goals for their land
become involved in legislation, including any new Farm Bill to promote food security, diversity in the landscape, and protection of farm and ranch lands
become familiar with ﬁnancing available for land purchases and/or programs that deal with ﬁnancing programs for organic, non-GMO products, etc.
assist in the purchase of appropriate land for the use intended
assist in farm management that meets sustainable, organic or natural farm and ranch practices/
assist in mineral, timber or water management that meets sustainable, organic or natural farm and ranch practices/regulations
market appropriately to the activist client—for example, women and men respond differently to different colors, images, etc. (this is a whole different article)
and social standpoint. Within these focuses are a farm’s diversity, resiliency and soil health through:
In moving forward in dealing with this shifting demographic trend as a land professional, you will have the opportunity to create a niche and work with the activist client (or not). If you take advantage of this opportunity to create a niche in the area of “organic,” “local,” etc., you will need to consider the steps you need to take to become an expert in these areas: education, cost, time, geographic area you will cover and so on. The REALTORS® Land Institute continues to offer education to land professionals on relevant topics like “organic” and “local” alternative agriculture as well as marketing advice. About the author: Terri Jensen, ALC Advanced, 2016 Institute Immediate Past President, earned the prestigious Accredited Land Consultant (ALC) designation in 2005. Jensen actively led the Institute’s Government Affairs initiative to protect the 1031 Like-Kind Exchange tax code.
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COMPANIONS Companions of attendees are invited to join a tour of the George W. Bush Library, and a lunch on Saturday, March 12. The tour will depart the Adolphus hotel at 9:00 a.m. and return at 3:00 p.m. Space is limited and subject to availability—register to attend. Those who would prefer, are invited to register for the ALC Recognition Luncheon in lieu of the Library Tour.
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BIG SPEAKERS Key Note Welcome Speaker
Featured Economics Speakers
Sid Miller, Texas Commissioner of Agriculture
K.C. Conway, CRE, Senior Credit Risk Officer, SunTrust Bank
The State of Agriculture
Never a Dull Vision
Commissioner Sid Miller is serving as the 12th Texas Commissioner of Agriculture. He brings a wealth of knowledge to the Texas Department of Agriculture. He is recognized as one of the state’s most dynamic and effective conservative leaders, as well as one of the state’s staunchest defenders of constitutional freedoms.
Key Note Finale Speaker Krisandra Parsons, Vice President, Life Scene Investigations
Exceptional Success is in Your DNA: Discovering Your Psychological Signature Krisandra Parsons has over 20 years of experience in the corporate world and mental health ﬁeld. She is the VP and Chief Proﬁling Ofﬁcer of Corp-DNA, the company that coined and developed the much-acclaimed Positive Forensics program. Parsons will help you harness your DNA’s potential!
K.C. Conway, an economic visionary, never ceases to surprise and excite. Conway is the Senior Vice President of the Credit Risk Management Division at SunTrust Bank. He has been the Executive Managing Director of Real Estate Analytics for Colliers International and an economist with the Federal Reserve Bank of Atlanta. Mark Dotzour, PhD, Expert Economist
Look Out for the Economic Outlook Dr. Mark Dotzour is a long-time friend of the Institute. Dotzour is a renowned real estate economist who served as Chief Economist of the Real Estate Center at Texas A&M University. His research ﬁndings have appeared in the Wall Street Journal, USA Today, Money Magazine and Business Week.
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BIG EVENTS ALC Tier Presented by The Wall Street Journal This year, the ALC Tier will be BIGGER than ever! Three consecutive keynote sessions will be presented by experts on the morning of March 11 covering these hot industry topics—Building Business Plans, Technology Use for Your Business, and Building Identity. ALCs may register to attend this event online.
Let’s Make DEAL$ LIVE! Presented by LandBrokerWebsites.com Facilitated by: Bill Eshenbaugh, ALC, & Ben Crosby, ALC Claim your place in the spotlight to share in a LIVE haves and wants property marketing session. This action-packed event will have attendees jumping out of their chairs! Attendees will be able to share their HAVES and ask for their WANTS in front of a LIVE audience. Submit your properties online at www.nationallandconference.com/letsmake-deals-live
THE GREATEST COWBOY AUCTION ON EARTH: PONY UP! Presented by Williams & Williams Worldwide Real Estate Auction The Auction will take place on March 12 at 6:30 p.m. This year’s auction will be at its BIGGEST AND BEST in 2016. The 2016 Institute Auction Team will bring the experience to a whole new level—including live streaming video coverage, special effects lighting, streamed interviews, items beyond the usual—with new surprises and old favorites! Visit nationallandconference.com to donate.
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Schedule of Events* THURSDAY, MARCH 10 PRE-CONFERENCE
9:00-9:45 a.m. 10:00-10:45 a.m.
11:00-11:45 a.m. 2:00-4:30 p.m.
Past Presidents’ Meeting Concurrent Committee Meetings I Future Leaders Committee Education Committee Concurrent Committee Meetings II Government Affairs Committee ALC Designation Committee (Closed) Board of Directors Meeting (Partially Closed)
FRIDAY, MARCH 11
FULL CONFERENCE BEGINS
8:00 a.m. 8:00 a.m.-3:15 p.m.
Registration Opens Partner Exhibits Open
ALC TIER (Ticketed)
Building Business Plans Marilyn Wilson, Founding Partner, Wav Group 9:45-10:45 a.m. Technology Use for Your Business Nobu Hata, Director of Member Engagement, NAR 11:00 a.m.-12:30 p.m. Building Identity Marshall Brown, Founder and CEO, Marshall Brown & Associates, Inc. 12:30 p.m. Boxed-Lunch Served
12:45 p.m.-2:15 p.m. Networking Break 2:15-3:45 p.m. Let’s Make Deal$ LIVE Session Presented by LandBrokerWebsites.com
Bill Eshenbaugh, ALC & Ben Crosby, ALC
Welcome & Awards Ceremony Introduction and Pledge Cathy Cole, ALC Advanced, President, Texas Institute Chapter Featured Presenter: Sid Miller, Texas Commissioner of Agriculture The State of Agriculture Passing of the Gavel Ceremony Terri Jensen, ALC Advanced, 2015 Institute Immediate Past President, REALTORS® Land Institute Awards Ceremony Bob Turner, ALC, 2016 Institute President, REALTORS® Land Institute Best Pitch Networking Contest
Presented by AgAmerica Lending
Presented by ESRI
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SATURDAY, MARCH 12 7:00-8:00 a.m. 7:00 a.m.-5:00 p.m. 8:00 a.m. 8:00-9:30 a.m. 8:05-8:45 a.m.
Partner Appreciation Breakfast for All Partner Exhibits Open Institute Welcome Bob Turner, ALC, 2016 National President, REALTORS® Land Institute
3:10-3:50 p.m. Take Your Pick Break-Out Sessions V • What You Should Know About U.S. Tax and Compliance Issues In Dealing With Foreign Investors: Jenny Lin, Principal, Lin Tax Law • Drone Use Strategies in the Land Business: Clover Carroll, Owner, New Story Media • PR to Build ROI: Karla Jo Helms, CEO, JoTO Public Relations • Recruiting & Developing Our Most Valuable Assets: Dan Perez, Broker/Owner, Whitetail Properties 4:00-4:40 p.m. Take Your Pick Break-Out Sessions VI • Making Deals through Collaboration: Ben Crosby, ALC, Broker/Owner, Crosby & Associates, Inc.; Murray Wise, ALC , Broker/Owner, Murray Wise Associates, Inc. • How to Successfully Sell Recreational Ranches: Tyler Jacobs, Real Estate Partner, Hall & Hall • How to Build a Winning Team: Dan Perez, Broker/ Owner, Whitetail Properties • Real Estate Auctions: The Increasing Role of Liquidity: Dean Williams, Chairman & Co-Owner, Williams & Williams 4:50-5:30 p.m. Take Your Pick Break-Out Sessions VII • Building a Business Website for Success: Jay Taylor, MBA, Managing Director, Leverage Digital • The Dirt on Transitional Land: Jesse Armistead, ALC • Eminent Domain Law: Scott Doggett, Esq., Partner, Baker Moran Doggett MA & Dobbs LLP • Wildlife and Fishery Management Practices: Value Added: Tyler Jacobs, Real Estate Partner, Hall & Hall 6:30-7:45 p.m. The Greatest Cowboy Auction on Earth III
Economics Macro Look Out for the 2016 Economic Outlook Mark Dotzour, PhD, Economist 8:45-9:30 a.m. Never a Dull Vision K.C. Conway, CRE, Senior Credit Risk Officer, SunTrust Bank 9:40-10:20 a.m. Take Your Pick Break-Out Sessions I • Chat with Economists Conway and Dotzour: K.C. Conway, CRE, Senior Credit Risk Officer, SunTrust Bank; Mark Dotzour, PhD, Economist • Structured Financing Options: John B. Levy, President, John B. Levy & Company Inc. • Implication to Proposed Tax Reform to Commercial Real Estate: Ryan McCormick, Esq., Vice President & Counsel, The Real Estate Round Table • Legal Aspects of Agriculture: Bernard Irvine, Esq., Partner, Morrison, Frost, Olsen, Irvine, & Schwartz, LLP 10:20-10:40 a.m. Partner Visits 10:40-11:20 a.m. Take Your Pick Break-Out Sessions II • Structured Financing Options: John B. Levy, President, John B. Levy & Company Inc. • Legal Aspects of Agriculture: Bernard Irvine, Esq., Presented by Williams & Williams DENIM IN DALLAS BASH (Ticketed) Partner, Morrison, Frost, Olsen, Irvine, & Schwartz, LLP 8:00-10:00 p.m. Featuring The Redwine Band • An Overview of Wood Energy in North America: Presented by Discipline Advisors Richard Vlosky, PhD, Director, Louisiana Forest Products Development Center • Negotiating Oil and Gas Leases and Surface 8:00-10:00 a.m. Round Table Topics Breakfast* Use Agreements: Ezra Johnson Esq., Partner, Uhl, Presented by Farmers National Fitzsimons, Jewett & Burton, PLLC • The Activist Client: Terri Jensen, ALC Advanced 11:30 a.m.-12:10 p.m. Take Your Pick Break-Out Sessions III • Breaking Up Is Not That Hard to Do: Jim Miller, Esq. • Wood Pellets: A Game Changer in the Global Forest • Land Valuation: Boyd Harris, ALC Products Market: Richard Vlosky, PhD, Director, • Drone Techniques for the Best Coverage: Clover Carroll Louisiana Forest Products Development Center • Predictions for the Future of the Land Brokerage • 1031 Exchanges: Jim Miller, Esq. Business: Aaron Graham, ALC • Implication to Proposed Tax Reform to Commercial • Eminent Domain: Scott Doggett, Esq. Real Estate: Ryan McCormick, Esq., Vice President & • Riparian Rights: Dan Dalton, Esq. • Don’t Be Held Hostage By Your Website Company: Counsel, The Real Estate Round Table Mike Ciesiensky • Negotiating Oil and Gas Leases and Surface • PR for Success: Karla Jo Helms Use Agreements: Ezra Johnson Esq., Partner, Uhl, • The Pros and Cons of a Foreign Investor Making an Fitzsimons, Jewett & Burton, PLLC Inbound Direct Investment: Jenny Lin, J.D. LLM 12:15-1:50 p.m. ALC Recognition Luncheon • Tax Implications of Commercial Real Estate: Ryan Presented by Garden & Gun Land McCormick, Esq. News on the Hill: Russell Riggs, Institute Legislative • On the Hill: Russell Riggs Staff Liaison, NAR • Effective Business Websites: Jay Taylor 2:00-2:40 p.m. Take Your Pick Break-Out Sessions IV • Transitional Land: Jesse Armistead, ALC • Land Development: Dan Dalton, Esq., Partner, • Tips for the Professional Land Woman: Nancy Dalton & Tomich, PLC Surak, ALC Advanced • PR to Build ROI: Karla Jo Helms, CEO, JoTO Public • Doing Business in the US with Asian Investors: Rick Doak & Minor Taylor, ALC Advanced Relations • Bridging Generations in the Land Industry: Luke Worrell, ALC • What You Should Know About U.S. Tax and • Balancing Online Advertising and Print Marketing: Andrew Compliance Issues In Dealing With Foreign Campbell Investors: Jenny Lin, Principal, Lin Tax Law • Putting the Benefits of the Institute to Work: Jessa Bertinetti • Agritourism: What It Is and How It’s Working: *More sessions to be announced Martha Glass, Executive Director, National 10:00 a.m. -11:00 a.m. Featured Finale Presenter: Agritourism Professionals Association Krisandra Parsons, VP, Life Scene Investigation
Sunday, March 13
Exceptional Success is in Your DNA: Discovering Your Psychological Signature
*Cancellation Policy: The Institute reserves the right to cancel or reschedule the conference or individual sessions due to unforeseen circumstances. Registration fees, less a $175 cancellation fee, are refundable if written notice is received prior to February 15. After February 15, no refunds will be issued. The Institute is not responsible for nonrefundable airline tickets or related expenses.
MEET THE PRESENTERS Clover Carroll, is the CEO of New Story Media. Carroll is an expert at using cinematic techniques to create videos that help brokers and agents grow their businesses. He is a licensed drone operator.
Nobu Hata is the Director of Digital Engagement for the National Association of REALTORS®. Hata is a digital media marketing and technology specialist.
KC Conway is the Senior Vice President of the credit risk management at SunTrust Bank. Conway is an original thinker and seasoned expert economist.
Karla Jo Helms is the CEO and visionary behind JoTo PR. Helms is experienced in creating timely PR campaigns comprising of traditional and the latest proven media methods.
Ben Crosby, ALC, is the Broker/Owner of Cosby & Associates, Inc. Crosby holds licenses throughout the country and has over thirty years’ experience in real estate, agricultural investments, and commercial and land management.
Bernard Irvine is Professor of Agricultural Law and Economics at Kansas State University. Irvine regularly provides legal representation for farmers and ranchers in real estate matters.
Daniel P. Dalton, Esq., is a founding member of Dalton & Tomich, PLC. Dalton focuses his practice on commercial litigation, including banking, business and land use, and zoning law.
Tyler Jacobs is President of the Texas Land Brokers Network. Jacobs is experienced in hunting operations, timber valuation, cow/calf and yearling operations, grass-fed beef production, and land-use planning.
Scott Doggett, Esq., is a legal expert at Baker Moran. Doggett specializes in condemnation, inverse condemnation, mineral disputes, and other land use conﬂicts.
Ezra Johnson, Esq., is a partner at Uhl, Fitzsimons, Jewett & Burton, PLLC. Johnson negotiates oil and gas leases, land sales and commercial lease contracts, and surface use agreements.
Dr. Mark G. Dotzour is a leading real estate economist. Dotzour provides information to businesses so they can make sounds decisions for their clients and companies.
Jenny Lin, Esq., is the Prinicipal of Lin Tax Law. Lin is an expert at advising U.S. real estate funds targeting foreign investors and foreign individual investors seeking to invest in U.S. real estate.
“I’m proud of the Institute’s ability to grow this event and make it relevant year after year.” -Bill Eshenbaugh, ALC, Eshenbaugh Land Company Terra Firma
Ryan McCormick is Vice President and Counsel at The Real Estate Roundtable. McCormick coordinates the activities of their Tax Policy Advisory Committee.
Jay Taylor is Managing Director at Leverage Digital Media. Taylor helps organizations ranging from startups to seasoned companies grow their businesses.
Sid Miller is the Texas Commissioner of Agriculture for the Texas Department of Agriculture. Commissioner Miller is recognized as one of the state’s most dynamic and effective conservative leaders.
Richard P. Vlosky, PhD, is Director of the Louisiana Forest Products Development Center and Crosby Land and a Resources Endowed Professor in Forest Sector Business Development at the Louisiana State University Agricultural Center.
Krisandra Parsons is the Vice President of Life Scene Investigation. Parsons specializes in corporate trainings and seminars that focus on talent acquisition through forensic analysis of corporate culture.
Marilyn Wilson is a founding partner of WAV Group. Wilson’s specialty is developing strategic insights and providing consumer research to the real estate industry.
Dan Perez is the CEO / Chief Broker and one of the Founding Owners of Whitetail Properties Real Estate. Perez works to develop real estate agents into multimillion-dollar land specialists.
Murray Wise, ALC, is a national authority on farmland investment, valuation and management. Wise has years of experience running successful agricultural asset management companies.
Russell Riggs, is the Senior Regulatory Representative in the Government Affairs Division of NAR. Riggs is the liaison of the Government Affairs Committee for the REALTORS® Land Institute.
“I always come away excited and recharged. Even after 30 plus years in the business, I pick up many new ideas and make new connections that will help build a successful real estate career.” -Sam Kain, ALC, AVP of Real Estate/National Sales Manager Farmers National Company “It was one of the best values for my hard earned dollars. This is a signature event for my business. The conference provides a terrific opportunity to learn from top industry leaders about breaking trends in the land business.” - Glenn Thomas, ALC Advanced, Mossy Oak Properties Hart Realty 46
THANK YOU TO OUR 2016 PARTNERS WELCOME RECEPTION PARTNER
EXCLUSIVE PRESENTER OF REDWINE BAND AT DENIM IN DALLAS BASH PARTNER
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Mike Ciesiensky, Institute Affiliate Member President & Founder, LandBrokerWebsites.com When people hear the term “optimization” they often think of search engine optimization (SEO), but it is so much more than that. Optimizing your website is all about making your website as effective as possible to help reach your business objectives. When land and ranch brokers ask me to help them optimize their website, there are two fundamentals I hit hard before even talking about search engine strategies. First, ensure you build value into the experience your audience has while they are browsing your site. Second, ensure you build value into the properties your audience is coming to your site to explore. Brokers work very hard to build value into their business through the expertise they deliver, the trustworthy relationships they build, and the solutions they provide. However, they don’t always understand how to extend that value through their website. Your website is the single most important tool to represent you online. Ensuring you have the basics in place will go a long way towards extending the same value online as you do, so naturally, in person. So, to build value into the actual audience experience, start by asking yourself these key questions. 1. When you click on your home page, does it look like you? Your website should be consistent with all of your branding. Your logo, your color scheme and your content should all represent your company. You want people to recognize your name, your signs, your email signature, and your business card. It doesn’t cost any more to make them all match, and it helps people get to know and trust your brand. 2. Is all of your property information up to date? There is nothing worse than having a potential client request information and having to tell them the website details are outdated. Your website technology and approaches should make the update process quick and easy so you never have a problem in this area. You can even eliminate the need to update your land and ranch properties on your own site by choosing a website provider who partners with a listing site to completely automate that process. The key here is that providing consistent and accurate information builds trust with your prospects and clients, while providing outdated information breaks trust. 3. Is your website easy to use? You want your audience to ﬁnd what they are looking for quickly and easily. They do not want to be forced to view advertisements, ﬁll out a form, click through multiple pages, or create complicated searches to ﬁnd what they need. Take them where they want to go immediately, and ensure your phone number is
visible from every single page of your website. You want to make it easy for them to call you when they are ready. 4. Is your website mobile-friendly? As of 2014, there are more mobile users than desktop users, but many companies still have not updated their technology to make the experience a good one for smart phone users. The “pinch and zoom” method results in text that is too small to read, links that are too close together, and pictures that don’t ﬁt the screen. This frustrates prospects and clients coming to your website to view property details and request information. Make sure your site is truly mobile-friendly. Once you’ve built value into the audience’s website experience, the next fundamental area of focus should be building value into the properties your audience is coming to your site to explore. There are a number of things you can do to set yourself apart from the competition and draw more clients, especially sellers.
Optimizing Your Website
1. Use only high quality photography. Do not settle for small, grainy, or even blurry photography on your website. It is a disservice to your company, your clients and often detracts from the property value. If you choose not to hire a professional photographer (which is preferred), at the very least make sure you use the highest possible quality setting on your camera. Many people take short cuts with high quality photography because it costs more and many website providers can’t accommodate it. Choose a website provider who can. 2. Create property and agency profile films. When I say ﬁlm, I don’t mean just posting a virtual tour or raw aerial footage taken from your new drone. I mean using video to tell an engaging story about your agency and properties that capture and maintain your audience’s attention. 3. Use a high quality mapping service. I recommend moving beyond Google mapping of pins and boundary markers to a monthly service. One that drives value into your properties by letting you mark and label property assets such as wells, structures, roads, and other unique features that set your property apart. One that has no limits to the number of boundary markers you can map and, then, easily share all of the mapping details via email. Some even have apps you can use while standing on the property, whether to create the asset details or show a prospect through a mobile device on the spot. Once you have invested in the online fundamentals above, it is appropriate to start investing in driving more people to your website. You are well positioned
to convert those leads to sales, positioning for a better return on your investment. 1. Include your website address on all advertising and social media. You may chuckle at this one, but you’d be surprised how many people over look this critical opportunity. Whether it’s on your listings, in a trade journal, on social media, or in the home town paper, prominently (and proudly!) display your website address. One caution, if you do not intend to manage and maintain your social media sites, do not create them. Neglecting updates to your social media can create negative results. Social media sites are an extension of your business and you must have someone manning the desk to build trust. 2. Provide regular email communication with your clients. Everyone knows the best leads come from client referrals. Staying in front of your clients with valuable information is very important. Ensure you have a database of clients willing to receive emails from you and reach out to them regularly with new properties, updated property information, highlights of sold properties, or something engaging, like a link to your agency proﬁle ﬁlm on your website. (Use your website as a convenient place to opt in or out of such mailings.) Ask for referrals and always include your website address in your email signature. 3. Invest appropriately in SEO and internet marketing. I say “appropriately” because it can cost quite a bit to get your company to rank within the top three spots of an internet search page. Your company, broker, and agent names should be built into your website pages to generate free, top search engine placement, but beyond that, you should anticipate spending a minimum of $3,000—$6,000 per year for a good internet marketing campaign. When choosing an internet marketing company,
avoid those who guarantee success without demonstrating a signiﬁcant plan involving trial, error, adjustment, and continued investment to see what works. Ask for research that demonstrates the best key words for high ranking in your business and in your region, and analyzes how your competition is placing. Choose a provider who commits to regular trafﬁc reports to analyze what is and is not working and understand that success is based on many factors out of your control, which change all the time. For instance, if you spend $500 in a month to ensure a key word important to your region places you on the top three results of a search page, but your competitor spends $1,000 in a month for the same word, your competitor will out rank you. This is how it works, so you need to approach internet marketing as an evolving strategy requiring long term investment, both in time and money. Your goal is to build a foundation that tells the search engines you are a reputable player so they send the trafﬁc your way. You are competing with others trying to do the same. As you can see, optimizing your website is all about making it as effective as possible to help reach your business objectives. I always remind people there is a lot you can do to reach your business objectives before investing in search engines, and even social media, despite the current hype. About the author: Mike Ciesiensky is the President & Founder of LandBrokerWebsites.com, a Crystalcore. net division. Ciesiensky is experienced in helping land and ranch brokers create websites to meet their business objectives. Ciesiensky will be at the 2016 National Land Conference in March as the Let’s Make Deal$ LIVE Partner and will host a round table discussion.
Farm, Ranch & Land Auctions
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The Williams & Williams team approach to selling your farm or ranch is built on generations of proven, practical experience and unparalleled competencies in auction. Our Farm, Ranch & Land Division plans each auction it conducts with thoughtful consideration to the needs of the seller, the unique attributes of the property and our insights into valuating the real estate marketplace. Williams & Williams is squarely focused on delivering the largest pool of bidders to our sellersâ&#x20AC;&#x2122; properties and generating maximum value. If you are considering selling your farm, ranch or land, contact me today. I look forward to being your partner through this remarkably fast and effective process.
Drew Ary Drew Ary, director of farm, ranch & land Direct 918.362.7312 / Mobile 918.576.4797 Email firstname.lastname@example.org
Public Relations: The Land Professional’s Ultimate Weapon Karla Jo Helms CEO, JoTo PR Public Relations has become the most fundamental tool for shaping public opinion, investment markets, company reputations and business outcomes. As a land professional, your career is tied to a commodity with many stakeholders and many opinions on how land is to be managed and regulated. Far from being a “nice to have,” PR deﬁnes success—and failure—in today’s world. Land professionals and Accredited Land Consultants (ALCs) have a right-down-to-the-soil impact on the physical and economic well-being of America. In a high-risk world, land—particularly commodityproducing acreage—offers roots of stability and a solid base for expansion. Land professionals, including brokers, agents, appraisers and auctioneers, together comprise the infrastructure upon which land is proﬁtably conserved, exchanged and utilized.
PR Gets You Known But who really knows these things about land professionals? By survey, one of the biggest hurdles a land professional faces is trying to explain what they do, what their knowledge and skills are, and how to care for the land and livestock on that land—free range, antibiotics vs. organic, and so forth. Ninety-eight percent of the general public has no knowledge of agriculture. This is a strong indication that effective public relations is not in play. The objective of PR is to make your business well-known and highly regarded so that you don’t have to repeatedly explain yourself. If what you do, your purpose and the beneﬁts you provide as a land professional are not clear to your public, some other perception will take its place—one that usually favors a competing interest.
PR is About Reaching Minds: It Manages Emotions and Directs Attention Public opinion regarding land management, its resources and the concept of stakeholder (the general public) over shareholder (the owners) is being shaped today by social media. And that social media, uncontrolled, has the liability of amplifying emotions over logic, presenting inaccurate data as fact, and omitting balanced points of view. It is a runaway horse, and only the art and science of public relations can manage.
Strong new community realities, such as sustainability; natural resources stake holding; environmental impact management; the control of interrelated natural systems such as navigable waters (Waters of the U.S.) and wildlife habitats—along with many other concerns— have created tension with private ownership. All of these factors inﬂuence legislation and can negatively affect land prices. Look carefully at any new legislation that affects land proﬁts or limits sales—or any successful repeal of legislation—and you will usually ﬁnd a publicity campaign that preceded it. PR is often confused with activities that are more properly parts of branding, promotion and marketing, or it is thought to be only a plan to put out press releases now and then. While it has high synergy with these activities—even making them more effective—PR has its own precise scope. It takes only a quick look at the news today to see that we live in highly opinionated times. People with strongly held beliefs and agendas often seek out only the news and information that support their viewpoints, and will disregard conﬂicting reports. Imagine, for example, trying to sell a fervent Republican on a Democratic candidate—the facts would be ﬂying back and forth, but neither side would be listening to the other. Impasse! PR would need to step in, ﬁnd the real issues people care about, and either makes a bipartisan solution well known, push a workable compromise, or show one side (or the other) to be the best solution. PR—not money—is how the world turns today. It’s PR, ﬁrst, that determines how the money will be spent. As simple as it should be, the buying and selling of land will face increasingly complex challenges in the immediate future as more organized groups and government agencies seek to exert inﬂuence on how land is managed, transferred and used. Each will be passionate about their position.
PR Creates Agreement PR is the art and science of creating agreement and cooperation. It achieves this by framing the real issues involved in such a way that both sides might better work together. Take, for example, the Clean Water Rule. Its stated purpose is to ensure that waters protected under the Clean Water Act are more precisely deﬁned, more predictably determined, and easier for businesses and industry to understand. A visit to the EPA website shows the scope of the rule. But the comments on the
PR exposes the real issues in a strategic fashion in order to gain agreement, and in so doing, a solution often appears that everyone can get behind. Sometimes it’s simply a matter of reframing an issue to eliminate unproductive bias or false data. We want a clean ﬂow of water. We also want viable farms and sustainable lands. Workable resolutions bring about mutual understanding and progress.
PR is Proactive A recent seminar by Hertz Farm Management, Inc., revealed that most farmers are over sixty-ﬁve years of age, and that forty-two percent of them plan to retire within the next ﬁve years. Many of them have yet to identify a successor. The number of farmers under the age of thirty-ﬁve is dwindling. These factors could change the characteristic of the farm market within this decade—more farms for sale by auction. A land professional who proactively prepares to take on a leadership position will be able to take advantage of shifts in the marketplace—but to do so, requires a PR strategy. Many prospective buyers are investors. They may run their own numbers and valuations, but they look for brokers with strong local savvy—someone who can connect the dots for them and has easily referenced credibility. Keeping yourself in the news, leading thought with insightful articles, and making public your good works are invaluable.
It’s not about you. Bad releases often come off as too self-serving and are rarely newsworthy. How great you are is not news, how you can serve your public is.
Not written for humans. Releases and web content cranked out to attract the eyes of keyword searchers with sentences built for search engine optimization don’t engage anyone, and make the reader think the writer doesn’t know what he or she is talking about.
PR is Causative—It Gets Results As a land professional, public relations technology really is your ultimate weapon. You are dealing with the most basic commodity on Earth—Earth—and you are living in a time of unprecedented attention on how we manage our natural resources. Your efﬁcient use of PR can help you get out ahead of non-optimum legislation before it happens; inﬂuence those who might otherwise oppose you; secure your business leadership; and create a stable future. These beneﬁt everyone.
regulations.gov website range from fear that individual farms will be decimated to fears that a government conspiracy aims to take over control of farming.
About the author: Karla Jo Helms, is the CEO and visionary behind JoTo PR. She has patterned her agency on a combination of her hard-won Public Relations experience, uncompromising high standards and exacting nationwide market research. Karla will be hosting two breakout sessions and a round table discussion at the 2016 National Land Conference in March.
PR releases are written speciﬁcally to change perceptions, create strong afﬁnities, forward strategies and form proﬁtable perceptions. They are not ﬂuff pieces full of bragging. Some common errors that show up too often, wasting valuable time and money, include: •
Written by a committee. You’ve heard that a camel is actually a horse designed by a committee. Don’t let anything you publish sound like it came from a group. No one will read it, and no media will pick it up. Writing has to connect on a one-to-one basis. PR releases with strong points of view and a persuasive story/ argument directed at the right public are pure gold.
Deliver a relevant message. It is the whole point, really. However, incredibly, it is often missing or overshadowed by less important details. Every PR campaign has, as its purpose, to deliver a speciﬁc message and make it stick in the minds of the public. A message is really what the reader comes away thinking, once he or she has read the release.
Keep it lean. Factually, you have about 1/125th of a second to grab attention, and from there, every word has to count. Short and sweet communications get read. They stand out from the ocean of verbosity online.
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RE/MAX Commercial Practitioners are part of an industry-leading network of over 100,000 associates worldwide. The opportunity to exchange referrals with top-producing residential agents is available to you the day you join. That’s huge.
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LANDU: All About You! Whether you are working toward earning your ALC, are an ALC, working toward the ALC Advanced, or simply want to gain knowledge in certain areas, LANDU has learning for success for everyone. Knowledge is power and adds credibility and service ability to clients. New courses developed and instructed by experts in their ﬁelds have been added to the seasoned LANDU curriculum!
LANDU Course Choices:
NEW Introduction to Land Valuation (16 contact hours)
2016 National Land Conference Option (16 contact hours)
NEW Introduction to Tax Deferred 1031 Exchanges (8 contact hours)
Advanced Tax Deferred 1031 Exchanges for Land Professionals (8 contact hours)
NEW Mapping and Navigation (16 contact hours)
Agricultural Land Brokerage and Marketing (16 contact hours)
Marketing Strategies (16 contact hours)
Mineral, Oil, and Property Rights (16 contact hours)
Site Selection (16 contact hours)
NEW Strategic Planning for your Business
Tax Deferred 1031 Exchanges* (16 contact hours)
Tax Implications of Real Estate (16 contact hours)
Timberland (16 contact hours)
Transitional Land (16 contact hours)
The Auction Tool (8 contact hours)
The Basics of Eminent Domain Law (8 contact hours)
Essentials of Negotiations (16 contact hours)
Google Earth for the Land Professional (16 contact hours)
LAND 101: Fundamentals of Land Brokerage* (16 contact hours)
Land Development (16 contact hours)
Land Investment Analysis* (24 contact hours)
Legal Aspects of Real Estate (16 contact hours)
International Aspects of Real Estate (16 contact hours)
*These courses count as a requirement toward earning the prestigious ALC designation. 104 total course hours are required toward earning the designation. They also count toward earning the ALC Advanced.
2016 Additions to the LANDU Curriculum
spreadsheets to calculate agricultural land values. Covers implementation of the agricultural and valuation process. (16 contact hours)
Four new courses are being added to the LANDU Curriculum in 2016: Introduction to Land Valuation, Introduction to Tax Deferred 1031 Exchanges, Strategic Planning for Your Business, and Mapping and Practical Navigation.
Introduction to Tax Deferred 1031 Exchanges
Introduction to Land Valuation Explores the fundamentals of land valuation and provides the skillset to understand valuations. Learn how to effectively use soil surveys, GIS, and
INSTITUTE EDUCATION UPDATE
“Education is not the preparation for life; education is life itself.” - John Dewey
Teaches real estate practitioners to recognize situations in which a 1031 tax-deferred exchange would be advantageous for a client. It helps them assist their clients by being able to spot issues that clients should discuss with their tax and legal advisors and be able to work with a team of experts involved in the exchange. (8 contact hours)
INSTITUTE EDUCATION UPDATE
Mapping and Practical Navigation Covers the basics of land navigation and how to use technology including compasses, GPS, and the latest mapping software to help grow businesses and meet client needs. Provides relevant navigational insights and skills to effectively locate, traverse, list, and market land parcels. (16 contact hours) Strategic Planning for Your Business Effective strategizing skills are highly valued in leaders— and they are essential to success. The ability to develop operational business strategies, and then take those business strategies from plan to action, sets true leaders apart. Acquire the skills to build a professional or business strategic plan, for the next year, ﬁve years, or twenty years, and be more successful. (16 contact hours)
LANDU: Choose Your Preferred Delivery The courses of the REALTORS® Land Institute are for real estate professionals who specialize in or have an interest to learn more about land and skills to improve sales potential in the real estate arena. These courses may be taken by anyone who wants to add to their knowledge. Successful completion of LANDU courses count toward the prestigious Accredited Land Consultant (ALC) designation or ALC Advanced. LANDU offers courses through traditional classroom courses, online classes, and independent study opportunities. Online courses can be taken with or without web seminar meetings led by the instructor.
HERE TO HELP YOU GROW.
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Courses with web seminars combine independent study with optional instructor-led phone lectures and discussions. Courses without web seminars are held in an online classroom platform in which interaction takes place with the professor and the students on demand—24/7. Traditional classroom courses are held across the country by Chapters and offer participants the chance to attain knowledge while networking with like-minded professionals. LANDU Education Week plus is a unique opportunity to complete between one and six courses while learning, interacting, and building relationships with other land professionals. Each course is taught by an approved Institute instructor who will share current information and trends. In 2016, LANDU Education Week Plus takes place in Little Rock Arkansas, on June 5-13. Blended course offerings are exclusively offered during LANDU Education Week plus and combine independent study with face-to-face interaction during that week. National Land Conference is an elective course credit option. This option includes the submission of a substantive white paper developing information on a topic covered at the conference. Independent study is self-paced, with no instructor or classmate interaction. Students have 90 days during which to complete the program. Currently Land 101: Introduction to Land Brokerage is the only course offered as an independent study course.
America never stops. Thanks to the financial support of Farm Credit, neither do the farmers and ranchers who call her home. For a century, we’ve helped rural Americans show the world what hard work can achieve. But the job is far from over. And as rural America grows further, we’ll be there. Farm Credit100.com
2016 Education & Event Calendar
Hybrid Course Land Investment Analysis
Agricultural Land Brokerage & Marketing Google Earth for the Land Professional
Mineral, Oil and Property Rights
Events & Classroom Courses Events & Classroom Courses 1: New Year’s Day 2-10: ALC Advanced Applications Due 4: Awards Nominations Submitted 20-22: Land Investment Analysis Witchita, KS
11-12: Tax Deferred 1031 Exchanges Edmond, OK 15: Presidents’ Day Holiday
2: Hot Topic Web Seminar: Drones Navigating the Rules and Regulations of Legal Use 11-13: 2016 National Land Conference: THE BEST STOP HERE! Adolphus Hotel, Dallas, TX White Paper Course Option
Tax Deferred 1031 Exchanges NEW Strategic Planning for Your Business
NEW Mapping & Practical Navigation
International Aspects of Real Estate
5-13: LANDU Education Week plus Little Rock, AR
5-6: Land 101: Fundamentals of Land 9-14: REALTORS® Legislative Meetings & Brokerage Trade Expo Pendleton, OR 30: Memorial Day Holiday 21: Let’s Make Deal$ Marketing Session
July Hybrid Course
Land 101: Fundamentals of Land Brokerage
Online Course Marketing Strategies Events
NEW Intro to Land Valuation
Land Investment Analysis Google Earth for the Land Professional
Essentials of Negotiation
4: Independence Day Holiday
November Hybrid Course
Tax Deferred 1031 Exchanges Mapping & Practical Navigation
NEW Strategic Planning for your Business Transitional Land
20: Let’s Make Deal$ Marketing Session
Institute Community GIVE BACK 5: Labor Day Holiday
25: Christmas Holiday
13-16: REALTORS® Conference & Expo 24: Thanksgiving Holiday
Schedule is subject to change and other events will be posted on the website throughout the year. All Hybrid and Online courses are no-travel and can be completed in full remotely. See rliland.com for Hybrid course call schedules.
GO BIG IN LITTLE ROCK June 5-13, 2016 | Little Rock, Arkansas
LANDU Education Week plus
9 Days. 6 Courses. 1 Designation. We understand the importance of an education that more than stacks up against the rest. At the REALTORS速 Land Institute, you can trust you are receiving the best professional education available.
Take All 6 Courses and SAVE $100! REALTORS速 Land Institute 430 North Michigan Ave. | Chicago, IL 60611 P: 1.800.441.5263 | E: email@example.com For more information visit: www.rliland.com *Completion of all courses during LANDU Education Week plus does not complete all requirements for the ALC Designation. To view a full list of requirements, visit www.rliland.com/alc-requirements. View the full LANDU Week course schedule at www.rliland.com/landu-education-week.
The dates are set. LANDU Education Week Plus will be taking place in Little Rock, AR this summer from June 5-13. During these nine days of best-in-class education, students will have the opportunity to complete one to six LANDU courses. All courses count toward earning the prestigious ALC designation and the ALC Advanced. LANDU Week’s 2016 schedule consists of the three required course for earning the designation and three elective courses. These six courses total 104 hours, the total required hours needed to complete the education requirements of the ALC designation. This is also a unique opportunity for designated members to earn hours toward the ALC Advanced while increasing their power through knowledge. June is a terriﬁc time of year in Little Rock, Arkansas. Limited space is available—make your plans now to GO BIG! in Little Rock by registering online at www.rliland. com/landu-education-week
INSTITUTE EDUCATION UPDATE
Going BIG in Little Rock at LANDU Education Week Plus
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Your complete propertY advertising solution for land, luxurY retreats, and rural real estate.
Lands of America is a proud partner and Platinum Sponsor of the 2016 National Land Conference. www.landsofamerica.com Join the Leading Network in Land:
INSTITUTE EDUCATION UPDATE
LANDU Education Opportunities Individuals who apply for Fast Track consideration must provide proof of holding one of the approved designations or degrees AND successfully complete the three LANDU required courses—Land 101, Land Investment Analysis, and Tax Deferred 1031 Exchanges.
Hot Topic Web Seminar Series Drones – Navigating the Rules and Regulations of Legal Use On Wednesday, March 2, from 12-1pm CT, Caleb McDow will present on how drones are an amazing resource and incredible tool for land real estate brokers. He will explain how using them legally is vital in a professional real estate practice. Learn about the history of drone regulations, the Section 333 Exemption and how to obtain one, the FAA’s current and developing regulations, and more. Get legal and start using drones in your business. This presentation will also be available for purchase in the Institute’s General store on the website at www.rliland.com after the live seminar.
ALC-to-ALC Teleconference The REALTORS® Land Institute’s Education Committee is pleased to sponsor the ALC-to-ALC Teleconference Series, exclusively for ALC designees. These conferences are opportunities to bring together ALC designees to share experiences, stories, and best practices— while connecting with colleagues. The ALC-to-ALC Teleconference Series is free to all ALC designees. To view the 2016 ALC-to-ALC Teleconference schedule, visit: http://www.rliland.com/alc-to-alc-teleconference.
For additional information about earning the ALC designation through the Fast Track program, call 1.800.441.5263 or write to firstname.lastname@example.org. Visit www. rliland.com/education or call 1.800.441.5263 for more information.
LANDU Resources: The Institute General Store The Institute General Store offers the following marketing tools and educational materials for land professionals at http://www.rliland.com/the-general-store: Marketing Collateral Package for the ALC, ALC Review Manual, Hot Topic Web Seminar CDs, White Papers and more! Members may access the white papers as a member beneﬁt in the Members Only Section of the website at www.rliland.com. Additional resources are also available in the Members’ Only section of the website in the Resources area.
ALC Fast Track has Traction A Fast Track to the ALC designation is available to those real estate professionals who hold the following designations: •
CCIM (Certiﬁed Commercial Investment Member)
SIOR (Industrial & Ofﬁce Realtor)
CRE (Counselor of Real Estate)
AFM (Accredited Farm Manager of ASFMRA)
ARA (Accredited Rural Appraiser of ASFMRA)
RPRA (Real Property Review Appraiser of ASFMRA)
AAC (Accredited ASFMRA)
A Proud Sponsor of the RLI Since 2006
Sell More Real Estate.. of
Never need a 1031 again to defer taxes. Defer taxes when the seller would like to sell and retire but still defer taxes. Sell and defer capital gains tax instead of using the stepped up basis. Save a failed 1031 even after the 45 days have ended.
MAI (Member, Appraisal Institute)
A great charitable trust alternative.
CAI (Certiﬁed Auctioneer Institute)
Call us for success stories and how we can work together.
SR/WA (Senior Right of Way Professional of IWRA)
Those who hold either a B.S. or M.S. with a major in real estate or a program related speciﬁcally to land will also be able to Fast Track to the ALC Designation.
David Fisher | 713-702-6401 email@example.com www.cresknowsrealestate.com
A Look Back: The Transition of Transitional Land Over Time Jesse “Butch” Armistead, ALC Associate Broker, Murray Company REALTORS®
mission. This was an almost unheard of concept for most until they were in uniform during War II.
If my mother told me once, she told me a thousand times, “Living in the rural South has not changed to any degree since Jesus Christ walked on the face of this Earth through the end of World War II”. In Jimmy Carter’s book, An Hour Before Daylight: Memories of a Rural Boyhood, he takes it a step further implying it has been the same since even farther back than that.
With enhanced organizational skills, a higher education available to GIs, plus the incredible work ethic that our men and women had coming of age while living through the Great Depression, our country made incredible strides through the ﬁfties and sixties which set the US apart from the rest of the world.
The above statement truly deﬁnes the South and how we have moved forward in my lifetime from an agricultural and manufacturing based society to receiving information from throughout the world at lightning speed with the touch of a button on a laptop or an iPad. After World War II with hundreds of thousands of veterans returning from the War to marry and start families, this movement started a need for housing, prepackaged food, and transportation the likes of which America had never experienced before in the history. The GI Bill became available for GIs returning from the War, this movement also created an incredible demand for further education in the “new” middle class; which the US had never experienced before either. One of the many assets and pieces of education that our men learned while in the military was of organizing thousands of men and women to work together as a team to accomplish a common
In the South during the ﬁfties and sixties, especially in the state of Georgia, we had great leaders who had futuristic visions of air transportation, highways, infrastructure and jobs. This allowed a family to enjoy a great lifestyle that previous generations would have considered living like royalty. One reason this is an interesting footnote to this time period is that because of the South’s dependency on cotton production and the implosion of its pricing and overproduction, the federal government stepped in and made a deal with our cotton farmers. If the cotton farmers would stop producing cotton, the government would pay the farmer to grow trees. The South started growing pine trees, a movement starting in the early 1950’s that gave pension funds and insurance companies a great opportunity to purchase very large tracts of farmland to grow timber on. This timber was then used in housing, paper production, pharmaceuticals and hundreds of other products that are produced from trees. These types of investment companies could easily quantify their investments in our forests to show shareholders what an excellent investment growing trees could be for them. After these insurance/pension fund companies paying thousands of farmers for their farms, these transactions created a mass exodus to the cities to get a job in the manufacturing side of our economy. Another side note of this movement is that America started to realize how important it is to have healthy forest, clean water and how trees convert carbon dioxide in the air to oxygen that we all need to breath, and, then, the tree sequesters carbon back into the ground and it is used for further growth and enrichment of our soils.
Welcome to Texas! The Texas Association of REALTORS ® and the Texas RLI Chapter appreciate the REALTORS ® Land Institute and its members. We are a proud partner of the 2016 National Land Conference
As the rural South moved into the early sixties, it started experiencing a major change. One to ﬁve-hundred acre farms in the rural areas were being converted to timber tracts. Farms from twenty to ﬁfty miles out from manufacturing facilities and population centers were being transitioned into subdivisions and commercial shopping malls. As the major cities in the South started attracting larger companies, companies that now had the management skills to motivate large amount of personnel to achieve
As we moved into the 1980’s, family farms within twenty to forty miles of major employment areas were now highly valued as future subdivision, commercial and industrial properties. As the transportation infrastructure in the country—with new, well-paved interstate highways— continued to expand and provide quick access to jobs, the family farm, now closer to the transportation system, presented grand opportunities for residential housing as well as commercial and industrial development. As we fast forward into the nineties, a major change happened in the South that affected all Americans: Atlanta was named the host city for the Summer Olympics in 1996. This event truly put Atlanta top-tier as an international city. As a result, from 1996-2000 the city experienced unheard of growth—a twenty-ﬁve percent spike in its population. What was not expected was that from the year 2000-2004, the population grew another twenty-ﬁve percent! At that time, new banks in the state were being formed to handle the explosive growth, new opportunities were driving the market, and an incredible force of growth was being experienced especially in residential housing and commercial development that we’d never experienced in the South. In addition to the excitement of the incredible growth of residential housing and commercial development, over three-hundred thousand acres of timberland owned by a timber company was sold in the State of Georgia to investors for timber production as well a speculative buying and selling of timber tracts. The term “recreational property” became a normal term in describing a timber tract from this sale. In July 2007, the music stopped. With a vast overbuilding of subdivisions, commercial/industrial developments and a go-go development mentality of “if we build it, they will come,” banks started to fail, thousands of subdivision lots were sitting empty, and developers were falling by the wayside daily. As a result, the Banking system put the brakes on to the extent that it shut down all economic growth and the federal government sent over a trillion dollars to the banking system to stabilize it. Most of us felt that we were going into another depression much like our country experienced the 1930’s. Land and housing prices during the 1930’s had only dropped ﬁve to ten percent in value. However, from late 2007-2010, land and housing values dropped from thirty-ﬁve to seventy-ﬁve percent in value over night. By early 2008, we’d blown by the 1930’s price correction scenario.
Long story short, in the once rural South our land has been in a constant transition from the time the land was ceded from the Indians in the 1830’s through present times. In the old model of Transitional Land, we could quantify and study the cap rate, the return on investment, the risk involved with converting farmland into a timber tract / subdivision / commercial / industrial development. Now we are sitting on land that could have been sold from $10,000- $25,000 per acre eight years ago and now it might bring only $1,200-$3,000 per acre by converting it back into a timber tract, recreational tract, and/or a row crop farming operation. Pension funds, retirement funds, families with wealth, and a higher income amongst middle class families have once again become major players in the land business of the South. Once again, we are rising from our ashes to give incredible opportunities to a new generation of men and women that have a vision for the future.
a common goal (much like our World War II veterans experienced in their war time experiences), the family farm that had existed since we started growing cotton in the late 1830’s in Georgia now started to see a dramatic decline in ownership. Once young men saw the lights of the big city with job opportunities and only a 40 hour work week, it was hard to keep him on the farm.
From the 1830’s until today, a true Southerner takes great pride in owning land that he can farm, hunt, ﬁsh, and, most importantly, raise his family on land that he loves. He deﬁnes himself and his family by his land. Without a doubt, owning land is in our genetic makeup and it is our hope and dream to own our land and to continue the dream. We have a very bright future in the once rural South with our land, and it will bring incredible opportunities to the land owner from converting our hundreds of thousands of timber acres into cattle operations, food sources, timber sources for housing our families, residential development, and, yes, growing timber for investment. Tough Times Never Last, Tough People Do! About the author: Jesse “Butch” Armistead, ALC, is Associate Broker at Murray Company REALTORS®. Armistead is an active member of the Institute; he earned his ALC in 2012. Armistead will host a breakout session and round table discussion at the 2016 National Land Conference in March.
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David Fisher Partner, Creative Real Estate Strategies It was a brutally cold, windy and overcast morning in the Dakotas Territory. The year was 1871. The air exhaled by every living creature immediately turned into vapor from the freezing temperature. We were soldiers in the 7th United States Calvary Regiment and on this particular morning, we were not singing “Gary Owens”. Thousands of settlers were ﬂocking to the territory and our job was to protect them. This very morning, many of the settlers were being threatened by the “bad guys” and we were preparing to ride in to their rescue. Commanding F Company was the American icon Capt. John Wayne. His second in command was WWII Hero Lt James Stewart. Work with me here. We were divided into two wings. On the left, 1st Squad was manned by the legendary Virginian Sgt. Randolph Scott and 2nd Squad was led by the incomparable Sgt. Errol Flynn (before he became Custer). The right wing was led by the 3rd Squad’s fearless Sgt. Glenn Ford who later helped defeat the Japanese Navy at the Battle of Midway Island and 4th Squad was led by Yours Truly straight out of “The Point”. Again, work with me. The battle lines were drawn and we were ready for action. Capt. Wayne gave the order and the bugler belted out the Calvary Charge. The horses leaped into action, our swords at the ready and at that very moment...my alarm went off and it was a Wednesday morning in 2015. Another missed opportunity to ride to the rescue. Or was it…? Like those settlers, landowners are under attack and now the bad guys are some members of Congress. Landowners who have worked their ranch or farm with
their own hands, taking huge risks every day, paying for everything retail but having to charge wholesale for their products and having made huge sacriﬁces decade after decade and are now ready to retire ﬁnd their ability to sell and defer their huge tax liability in question. Section 1031 is now under more scrutiny than ever by Congress as a tax loophole and that’s probably not a good thing. All of the appropriate organizations including the RLI are lobbying Congress to leave 1031 exchanges alone and for the right reasons. But this is Congress and that means that this issue will probably become a huge political football. I have no inside information, however, based on being in practice since the late seventies, my gut feeling is that 1031 exchanges will be modiﬁed to some extent. Perhaps, the ﬁrst ﬁve-hundred thousand dollars in capital gains can be passed on to a new replacement property and the rest is taxable, or something along those lines, may be the ﬁnal result.
The REALTORS® Land Institute to the Rescue!
So assuming that Section 1031 is changed in some fashion, how can RLI members ride to the rescue to still help their clients defer capital gains taxes, state taxes where applicable, depreciation recapture, the Obama care tax and possibly the alternative minimum tax when selling a clients’ property. Actually, there are options now for which you don’t even need a 1031 to defer taxes. Let’s turn a negative into a positive. I recognize that mentioning the following is like talking to Noah about the ﬂood but as all of you know, one of the biggest concerns that a prospective selling client has is the ability to ﬁnd a great replacement property within the time constraints in completing an exchange. Imagine being able to tell a prospective client that even if Congress makes changes to Section 1031, you will still be able to defer their various taxes on their hard earned sales proceeds and can do so without concern for the forty-ﬁve day ID period or any other 1031 limitations. That’s right. For example, you bring a great offer to your seller but he doesn’t accept the offer because he doesn’t feel conﬁdent that he will be able to identify a replacement property in the time frame from his closing date plus the forty-ﬁve days. Well, there’s good news. You can have your seller accept the offer, close the deal, get paid, still defer taxes and at some point in the future, even if it’s over forty-ﬁve days, still be able to help your client purchase another property. Now, imagine this scenario. You have a seller whose family has owned their property for several decades and now the landowners want to sell their property and retire. You’re in competition with another broker. The other broker makes his listing presentation and tells the prospective client why he will do a great job of selling his property. Now, it’s your turn and you make an equally compelling presentation,
but at the end, you ask the prospective seller one ﬁnal question: “Mr. Seller, you mentioned that your family wants to sell and retire. Have you given any thought to your tax liability on your sales proceeds?” The prospective seller says he has but there are no options other than to pay the twenty-ﬁve to thirty percent or more tax liability You respond by telling the prospective seller that in fact you can defer that tax liability to the next generation and turn his sale into a ﬁve to six percent retirement income AND he can pass that income to his heirs if he chooses to do so. Who do you think will get the listing? That’s right—YOU— because the other broker can’t do the same; all without a 1031 exchange. Now consider this opportunity: Many older land owners refuse to sell their property because of the large tax liability that a sale will create because a 1031 isn’t appropriate and will instead use the stepped up basis to pass the property on to his heirs. This is not necessarily a bad strategy unless you sell real estate. Here is an idea. Since you can defer taxes without a 1031, this prospect is now in play. You can explain to the older land owner that in fact, he can sell his property, defer his capital gains tax, state tax where applicable and depreciation recapture on his hard earned sales proceeds and at the same time, generate about ﬁve percent appreciation on his proceeds and instead of that appreciation being on paper, it’s actually in his savings account. The bottom line is that you, the RLI member, may have the ability to
show the land owner why he is better off by letting you sell his property now instead of using the stepped-up basis at some point in the future. Everyone wins. The great thing about the REALTORS® Land Institute is the sharing of ideas and strategies. That’s why RLI members and ALCs tend to be more successful and have higher incomes than most non-members in the profession. I certainly hope that Congress doesn’t make any changes to Section 1031 but if they do, we can still ride to the rescue of our clients without having to be John Wayne. Let’s turn a potential negative into a positive now by recognizing that there are other innovative ways to defer taxes that also provide opportunities to sell more real estate. By doing so, you will help your sellers keep more of their hard earned sales proceeds in their pockets while sending less to Washington DC and fortythree state capitals. Plus, your clients will thank you with more referrals for caring about them even after you have received your commission. Happy selling and deferring taxes, until we visit again! About the author: David Fisher is a Partner at Creative Real Estate Strategies. Fisher has over thirty years of expertise which allow him to best serve his clients’ needs when they are buying or selling land. Creative Real Estate Strategies is a proud Bronze Partner of the 2016 National Land Conference.
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