Winter 2021 Terra Firma Magazine

I N S I D E

T H I S

I S S U E

Open Lands: A century-old doctrine and your property rights

Land Value Beyond the Surface Inside the Beltway

WINTER 2021 | VOL 75 NO. 1 RLILAND.COM

Contents

Open Lands

National Land Conference

Terra Firma Winter 2021 Edition REALTORSÂŽ Land Institute 430 North Michigan Avenue Chicago, Illinois 60611 1.800.441.5263 rli@nar.realtor rliland.com

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A Note from the President

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Open Lands

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Chapter News

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2021 National Land Conference

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News & Views from Inside the Beltway

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Food, Bourbon and Horses: A Look Inside Hermitage Farm

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Value Beyond the Surface

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Publisher Aubrie Kobernus, MBA, RCE Chief Executive Officer

Contributing Authors Amanda Morrone, MSHC, Education Manager

Editorial Director Dave Adams, Marketing Manager

Gerry Berish, CAE, Chapter & Membership Relations Manager Copyright 2021.

All rights reserved.

Hermitage Farm

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Reproduction in whole or in part without permission is prohibited. Views expressed within the publication are not necessarily endorsed by the REALTORSÂŽ Land Institute and information should not be construed as recommendations for any course of action regarding financial, legal, or accounting matters.

B O A R D S

A Note from the President

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Dear members,

S T A F F

It is my great honor to serve as RLI National President for 2021.

I extend my sincere gratitude to Immediate Past President Kyle Hanson, who adeptly led RLI through the final year of our most recent strategic plan and through a year which has required resilience and agility of all of us.

At RLI, our utmost commitment is to our members to provide them with the expertise and camaraderie that are the foundation for becoming the best in the land industry. I am immensely proud that in the face of new challenges—canceled events, transitions to virtual conference, learning and work environments, and rapidly evolving market conditions—RLI has delivered on our promise to members more than ever. Our membership has broken 1,500, a number we have not seen in more than a decade. Our LANDU Education program reached more than 650 learners through our national and chapter-led courses. Through our outreach and your outstanding work inside the industry, the reputations of RLI and the esteemed Accredited Land Consultant Designation have made significant gains throughout the year.

I’m thankful to begin my term as President on such a strong foundation, and it is on that foundation which we will continue to build. With the guidance of our executive leadership team and board of directors, along with feedback from our membership, we will chart out a new three-year strategic plan as we seek to enhance our industry position as the voice of land, further expand our reach, and better serve our members.

Inside this issue of Terra Firma is a wealth of information: profiles on our leadership and staff, updates from our vibrant chapters, news on our hybrid 2021 National Land Conference, thought-provoking articles from professionals in and around our industry, and more. I hope you find value in the insights both into RLI and into the land real estate industry at large.

Thank you for the opportunity to serve you at RLI. I look forward to working together in 2021.

Sincerely,

Renee Harvey RLI National President

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RLI National President

RLI National President-Elect

Century 21 Harvey Properties, Inc. Paris, TX rharvey@c21php.com

SVN Saunders Ralston Dantzler Lakeland, FL dean@saundersrealestate.com

Renee Harvey, ALC, has been a longtime member of RLI, receiving her ALC Designation in 2011. Renee has served as Chair of the RLI National Education Committee in 2013, 2014, and 2017. She has also served as Vice Chair of the RLI National Governmental Affairs Committee in both 2015 and 2018 as well as serving as a member of the National Land Conference Planning Committee in 2010. She’s been a licensed broker in Texas for over 30 years with offices currently in Paris, Clarksville, and Bonham.

As the Broker/Owner of Century 21 Harvey Properties, her brokerage has attained the prestigious Centurion Award for sales production from Century 21 Real Estate Corporation for the past 13 years. Serving as RLI’s 2021 President, Renee is looking forward to ensuring our education program remains valuable to land professionals in all markets as well as expanding member benefits for land professionals across the country to help further establish RLI as The Voice of Land.

Dean Saunders, ALC, CCIM, has been a member of RLI since 1998 and he earned the elite ALC Designation shortly after in 2001. He has an extensive record of service to RLI, serving as Chair of RLI’s Governmental Affairs Committee, as a member of the ALC Designation Committee, and on the Board of Directors. He has also served as the President of the RLI Florida Chapter and continues to be an active chapter member. Additionally, as part of the RLI APEX Awards Program, he was an APEX Top Twenty Producer in 2017, 2018, and 2019 and was the Top National Producer in 2018. He has also been recognized as the Florida REALTOR® of the Year by the RLI Florida Chapter and earned the #1 Sales Professional annual recognition in the Coldwell Banker Commercial affiliate network five times, most recently i n 2018. As President-Elect, Dean seeks to continue focus on enhancing RLI’s core strengths, offering exceptional education, and providing top-notch networking opportunities to land professionals.

Luke Worrell, ALC

Kyle Hansen, ALC

RLI National Vice President

RLI National Immediate Past President

Worrell Land Services, LLC Jacksonville, IL lukew@worrell-landservices.com Luke has been a member of RLI since 2009 and has an extensive record of service to the organization, having served as Chair of both the Education and Budget and Finance committees, and most recently serving on the 2020 Board of Directors as Treasurer.

Additionally, Luke has served as the President of the RLI Illinois Chapter. Luke earned the elite Accredited Land Consultant (ALC) Designation in 2012. Luke brings a wealth of industry and community leadership experience to his new position with RLI. Among his many accomplishments, he has twice served as President of the Jacksonville Area Association of Realtors; is the 2021 Chair of the Illinois Farmland Values and Lease Trends Conference; and served a six-year term on the board of directors for the Morgan County Fair Board. Luke was the winner of RLI’s 2018 Rising Star Award, an annual honor conferred on an aspiring leader.

B O A R D S

Dean Saunders, ALC

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Renee Harvey, ALC

S T A F F

Meet the 2021 Executive Committee

Hertz Real Estate Services Nevada, IA KyleH@hertz.ag Kyle Hansen, ALC, has been a member of RLI since 2008, receiving his ALC Designation in 2011 and serving as the RLI National President in 2020. In 2015 and 2016, he served as Chair of RLI National’s Future Leaders Committee.

He is an active member of the RLI Iowa Chapter, serving as their president from 2012-2013. The chapter also awarded him the RLI Iowa Chapter Land Broker of the Year Award in 2013. Then in 2014, he received the RLI National Rising Star Leadership Award which recognizes a member approaching a mid-level in their career who is on their way to making significant contributions to the land profession and to RLI. Kyle later went on to be an APEX 2017 Top Twenty Producer and was among those recognized in the APEX 2018 and 2019 Producers Club as part of the RLI APEX Awards Program. Kyle received his Broker’s license in 2016 for Iowa and Missouri.

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S T A F F

&

B O A R D S

2021 Board of Directors Randy Hertz, alc

Drew Ary, alc

NAR Executive Committee Representative

At-Large Director (2021-22)

Hertz Real Estate Services Nevada, IA Randy.Hertz@Hertz.Ag

Deitra Robertson, alc

George Clift, alc

ALC Designation Committee Chair

At-Large Director (2021-22)

Deitra Robertson Real Estate, Inc. Hempstead, TX deitra@iknowranches.com

Clift Land Brokers Amarillo, TX george@cliftlandbrokers.com

Jim Miller

Geoff Hurdle, alc

Education Committee Chair

At-Large Director (2021-22)

IPX 1031 Chandler, AZ james.miller@ipx1031.com

Hurdle Land Realty Lebanon, TN thelandman@geoffhurdle.com

Clayton Pilgrim, alc

Russell Riggs (Ex-Officio)

Future Leaders Committee Chair

NAR Legislative Liaison

Century 21 Harvey Properties Inc. Paris, TX clayton@c21php.com

National Association of REALTORS® Washington, D.C. rriggs@nar.realtor

Tim Kellogg

Aubrie Kobernus, mba , rce (Ex-Officio)

Governmental Affairs Committee Chair WDH Real Estate, LLC Wheaton, IL tkellogg@templeton-pc.com

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Ary Land Co/ KW Advantage Land Coweta, OK drew@arylandco.com

Chief Executive Officer REALTORS® Land Institute Chicago, IL akobernus@nar.realtor

S T A F F

Meet the Staff Karen Calarco

Chief Executive Officer

Manager of Operations

312.329.8837 • akobernus@nar.realtor

312.329.8287 • kcalarco@nar.realtor

Dave Adams Marketing Manager 312.329.8353 • dadams@nar.realtor Dave manages all matters pertaining to marketing and communications for the organization. He is responsible for managing the website, creating digital and print marketing materials, and managing the organization’s brand as well as press and social media campaigns. He also serves as the staff liaison for the Future Leaders Committee. Members may contact him with any member or Chapter news regarding awards or accomplishments, for publishing a blog post, for contributing to or advertising in the Terra Firma magazine, or with questions about RLI logo use policy. Dave has been with RLI since August 2020.

B O A R D S

Aubrie is responsible for the overall management of the Institute. This includes working together with the Board of Directors to develop the vision, goals, objectives, and related policies for RLI. Within that framework, Kobernus organizes and directs the staff, programs, financial performance, and activities. She is designated by the National Association of REALTORS® as a REALTOR® Certified Executive (RCE). Members may contact her if they have any questions or concerns. Aubrie has been with RLI since March 2016.

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Aubrie Kobernus, mba, rce

Karen handles, manages, and controls expenditures within the set budget as well as member records. Members may contact her for assistance changing their information, paying dues, and answering financial inquiries about their account. Karen has been with RLI since September 2007.

Amanda Morrone, mshc Education Manager 312.329.8441 • amorrone@nar.realtor As the Education Manager, Amanda manages all matters pertaining to RLI’s LANDU Education Program. She is responsible for scheduling courses and managing instructor relationships. She also serves as the staff liaison for the Education Committee.

Members may contact her with any questions about the LANDU Education Program. Amanda has been with RLI since February 2019.

Gerry Berish Chapter & Membership Relations Manager 312.329.8519 • gberish@nar.realtor Gerry manages the relationships between RLI National and its chapter organizations as well as serves as the main point of contact for RLI members. Members may contact him with general inquiries about RLI and our member benefits or about starting or joining an RLI chapter. RLI chapter leaders and administrators are encouraged to use Gerry as their main point of contact at RLI National with any inquiries related to managing or developing their chapter and its programs. He is also the main point of contact for members working toward earning the elite ALC Designation. Gerry has been with RLI since September 2019.

Winter 2021

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Open A Century-old Doctrine and Your Property Rights

by Robert Frommer

Lands

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People just want to get away from it all. Interest in owning land out in the country comes from the desire to hunt, fish, or farm in peace and solitude.

Big lots combined with few neighbors give people the privacy and security that they crave...

Or so they might think.

hough landowners can keep private people off their land using trespassing laws, in many states the government may search the vast majority of private lands whenever they wish, and for any reason. It doesn’t matter how many locked fences and “No Trespassing” signs the owner might put out.

The reason? A century-old legal rule called the “open fields” doctrine.

This constitutional error weakens every American’s property rights, but disproportionately hurts rural landowners.

Reform—whether through the courts or the legislature—is desperately needed to restore our basic right to be left alone.

“Modern technology has made it cheap and easy for officials to run their own digital dragnet.”

So how did it get to be this way?

Many people know that the Fourth Amendment to the U.S. Constitution protects against “unreasonable searches and seizures,” as do all the constitutions of our 50 states. When the Framers drafted the Fourth Amendment, they wanted to guarantee our right to be secure in, and on, our own property.

And for a while that was how it worked. Early Fourth Amendment decisions from the U.S. Supreme Court interpreted the amendment broadly so that it could achieve its important purpose. Moreover, government officials rarely had to traipse across private property to enforce the laws, making constitutional conflicts few and far between.

But that all changed in 1920 with Prohibition. As the manufacture and sale of alcohol became illegal, government agents started prowling around for illicit hooch and stills, including on private lands. In one such case called Hester v.

United States, revenue agents hid on someone’s land to see if they were selling alcohol and gave chase when they saw his son hand someone a bottle.

The son argued that the agents’ actions violated the Constitution. But in a cursory opinion, the U.S. Supreme Court rejected that argument, holding that “the special protection accorded by the Fourth Amendment to the people in their ‘persons, houses, papers and effects,’ is not extended to the open fields.” In one stroke, the Court categorically eliminated all constitutional protections for most of the private land owned in the United States.

READ ON >>

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“[The doctrine’s] narrow reading of the Fourth Amendment undercuts the amendment’s purpose—to make us secure in our own property.”

Hester’s narrow view of what the Fourth Amendment protects eviscerated Americans’ constitutional rights. Worse, it was based on a false premise: that the “distinction between [open fields] and the house is as old as the common law,” a distinction that (if you read it) was actually about when private individuals could be charged with burglary, not about when government officers could intrude on private property. Still, the damage was done.

Hope sprang anew sixty years later, when the Supreme Court heard a case called Oliver v. United States, which asked whether Hester was still good law. There was good reason to be optimistic: In the years since Hester, the Court had developed a new Fourth Amendment test that broke from Hester’s narrow approach.

But bad facts make for bad law, and the 1980s had their own Prohibition—the War on Drugs. So it was little surprise that, in 1984, the Court reaffirmed Hester, holding—in service of the War on Drugs and with disregard for the Constitution—that private property owners have no “reasonable expectation of privacy” on any private lands the Court deems to be an “open field.”

So, what’s the problem?

The “open fields” doctrine has been widely criticized, and for good reason. Its narrow reading of the Fourth Amendment undercuts the amendment’s broad purpose, which is to make us secure in our own property. Its statement that the common law justifies that narrow reading lacks historical support. And ultimately, the doctrine makes it hard for anyone to feel secure, since it means agents could be snooping around unannounced at any point.

These concerns have only grown more pointed in modern times.

In the old days, if the government wanted to search your land, it had to hire and send out officers to do the deed. But modern

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technology has made it cheap and easy for officials to instead run their own digital dragnet.

One way is through automated surveillance cameras. Hunters often secure these cameras to tree trunks to learn more about nearby fauna. But the government can just as easily use these cameras to learn more about you. With this new technology, officials don’t have to hide in the bushes 24/7. Instead, they can enter someone’s land, attach a surveillance camera to a strategically placed tree trunk, and then sit back as it automatically takes and stores pictures of any activity, any time of day.

Sound creepy? That’s what Terry Rainwaters thought. Terry is a lifelong resident of Camden, Tennessee who owns 136 acres of land along the Big Sandy River. He lives there with his son, with whom he spends time hunting. Terry also farms the land and rents out a separate house on the property to a long-time tenant. Terry values his privacy, so he keeps his gates locked and posted with a “No Trespassing” sign.

In December 2017, Terry’s son was driving around the property when he saw an unmarked camera hanging from a string in one of Terry’s trees. From its vantage point, the camera was able to capture images of people and cars moving past, of Terry and his son’s private activities, and even of the back of Terry’s tenant’s home. They found a second camera set up nearby, with a tree branch cut to provide the camera with a clear view of the property. A few days later, both cameras suddenly disappeared.

It turned out that officers from the Tennessee Wildlife Resources Agency (TWRA) had surreptitiously snuck onto Terry’s land. As part of their mandate to “[e]nforce all laws relating to wildlife,” Tennessee law gives TWRA’s Executive Director (and, through him, TWRA officers) the power to “go upon any property, outside of buildings, posted or otherwise” to search for hunting violations.

Terry has had a Tennessee hunting license for decades and has seen TWRA officers wandering around his property without permission several times in the past but had never encountered cameras before. Rattled, Terry spoke to other hunters in Camden, who told him that TWRA officers had trespassed on their land and installed cameras as well.

What can be done?

Terry and another Camden resident, Hunter Hollingsworth, grew sick and tired of TWRA’s warrantless snooping. So, they joined forces with the Institute for Justice to sue TWRA in state court to bring it to an end. Their lawsuit contends that, even if the federal “open fields” doctrine means TWRA agents could enter their property without violating the Fourth Amendment, they cannot do so under the Tennessee Constitution.

This position has a lot of support behind it. The Tennessee Supreme Court has rejected the “open fields” doctrine on several occasions as inconsistent with a free society that respects private property and privacy. And so have other states. The Mississippi Supreme Court, for instance, saw the decision in Hester and immediately rejected its reasoning on state constitutional grounds. In more recent years several other states, including Montana, New York, Oregon, Vermont, and Washington, reached the same conclusion.

That’s good for the citizens of those states, whose land would otherwise largely be without any constitutional protection. Sure, it means that officials have to get a warrant, but that’s what they are supposed to do. And the lack of any horror stories coming out of New York, Montana, or elsewhere shows that respecting people’s property and constitutional rights need not come at the public’s expense.

Trespassing” signs apply to the government too. And it is part of a larger campaign by the Institute for Justice to persuade courts around the nation, including the U.S. Supreme Court, to repudiate the “open fields” doctrine and restore the Fourth Amendment’s broad protections for all Americans.

But the courts aren’t the only way we can restore our constitutional rights. Legislatures can also help rein in outof-control officials. That is the objective behind the Institute’s model legislation, which requires that, absent a real emergency, officials either get owners’ permission or a search warrant before searching private property. And to give that requirement real teeth, the legislation allows owners to sue government officials for any offense or damage that results from their illegal entry.

Of course, no single case or single bill can fix the damage caused by Hester and the “open fields” doctrine, which has plagued us for almost an entire century. But the fact that a mistake is long-lived does not make that mistake right. Whether through litigation or legislation, it is long past time to restore our right to be secure on our own land. Finally closing the door on the “open fields” doctrine will give us all the freedom to once again get away from it all.

Robert Frommer is a Senior Attorney at the Institute for Justice, a nonprofit, public-interest law firm dedicated to strengthening Americans’ right to be secure in their persons and property.

Robert has a Juris Doctorate from the University of Michigan and a Master’s degree in Economics from George Mason University.

Terry’s case is a wake-up call, both to Tennessee courts and the nation more generally. It asks the Tennessee Supreme Court to remind TWRA officials that, in the Volunteer State, “No

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U P D A T E S

Top Blog Posts of 2020

R L I

The RLI blog saw more than 100,000 views in 2020, serving as a treasure trove of guidance and industry trends for land agents and buyers alike. These were our most read posts for the year.

Scan to read these articles!

Or visit rliland.com/top-2020.

Buying Land for Building a Home Versus Buying a House The differences between buying an existing home and buying land to build one are more than meet the eye. From loan structures to interest rates, hidden costs to privacy concerns, there’s plenty to consider before deciding which path you should take.

Secrets to A Successful Subdivision Land Development Process Bobby Mink, instructor for RLI’s popular Subdivision Land Development course, addresses the key phases, from research to development, that make for a successful subdivision development project.

Will Americans Trade in their Urban Lifestyles for Rural Ones in the Wake Of COVID-19?

The COVID-19 pandemic has already caused seismic shifts in our economy and in our lifestyles, creating noticeable patterns of urban flight and purchase of rural homes and land. This article from the spring summarizes insights from Accredited Land Consultants on RLI’s Future Leaders Committee.

Why Farmland Is A Good Investment With the right knowledge and experience, farmland can be a lucrative investment. This article details the longterm potential in farmland and what to look out for as you seek to purchase.

Land Ownership Basics: Private Property Rights

Why the 1031 Exchange Should Not Be Eliminated

Land ownership comes with certain rights, and understanding those rights is key to exercising them. This article covers what you do—and some of what you don’t--have a right to as a landowner.

Long in the federal tax code yet continually on the chopping block, the 1031 like-kind exchange is an important tool for land buyers and sellers. This article, girded with data from new studies, provides a strong defense for the 1031.

Follow RLI on Social Stay on top of the latest updates: new blog posts, industry updates, partner offers and more.

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C O N N E C T I O N S

The Land Connections Five Most Expensive Listings

L A N D

The Land Connections is the official listing site of the REALTORS® Land Institute with over 14,000 prime property listings from best-in-the-business land professionals. RLI members are able to post listings to The Land Connections at no cost as a member benefit.

Bull Springs Skyline Forest Deschutes County • 33,000 Acres $127,000,000 • Bend, OR Bull Springs Skyline Forest, located just minutes west of Bend, Oregon, is an active tree farm and recreational property that covers 32,995+/- contiguous, deeded acres and borders the Deschutes National Forest. The property has significant long-term appreciation potential with opportunity for sustainable timber management, abundant recreation in combination with residential and mixed-use development.

LISTING BROKERAGE: Mason Morse Ranch Company 970.237.3300 • sales@ranchland.com

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L A N D C O N N E C T I O N S

N3 Cattle Company Santa Clara County • 50,500 Acres $68,000,000 • Livermore, CA This beautiful and expansive California property spans 50,500 acres through four counties, making it the largest land offering in the state of California.

Located just south of Livermore, and east of Oakland and San Jose, it is easily accessed from San Francisco, the Peninsula and the East Bay. The ranch is completely private and uniquely preserved, healthy and wild as it has been for hundreds of years. It is a vital and rare haven of original California landscape and wildlife. The property encompasses 80 square miles of diverse terrains, flora, fauna, and important watersheds and creeks.

LISTING BROKERAGE: California Outdoor Properties 707.455.4444 • info@caoutdoorproperties.com

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C O N N E C T I O N S L A N D

La Panza Ranch San Luis Obispo County • 14,753 Acres| $38,000,000 • Santa Margarita, CA La Panza represents a unique opportunity to acquire a turnkey, multifaceted holding, that includes an active cattle and agricultural operation, an expansive family compound of the highest quality, 280-acres of high-density olive plantings, pastures, plantings of alfalfa and hay with abundant grazing.

The acquisition includes all farm improvements, a state-of-the art olive oil mill, farm implements, inventory, all furnishings and personal property as well as the highly regarded La Panza Olive Oil brand. In an uncertain world, La Panza represents a private retreat and a step back into its rich history as part of Old California. The property and operation are private.

LISTING BROKERAGE: California Outdoor Properties 707.455.4444 • info@caoutdoorproperties.com

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L A N D

Montgomery County Transition

C O N N E C T I O N S

Montgomery County • 5,487 Acres $43,868,565 • Conroe, TX The property is a large tract in the heart of the Houston metropolitan expansion, halfway between Interstate 45 and Interstate 69 (US 59). This transition forestry property has a large frontage and multiple points of access. It is managed timberland in excellent condition with ongoing management practices. The location is in the Conroe Independent School District and Splendora Independent School District, within a few minutes of schools. Residual out-tracts are scattered throughout. For investors and developers, this property falls within an Opportunity Zone.

LISTING AGENT: Andy Flack, HomeLand Properties 936.295.2500 • andy@homelandprop.com

Historic Hunting Property Harris County • 7,456 Acres $42,500,000 • Hamilton, GA The 7,456-acre Cason Callaway Woodland Estate is offered for purchase for the first time ever by the Callaway Family. Located in Harris County, GA, this unique property was assembled by Cason Callaway, creator of nearby Callaway Gardens. Like the Gardens, this property reflects many of Cason’s innovative and conservationminded philosophies. Professionally managed for deer and turkey hunting in a park-like setting, the property is surrounded by over 30,000 acres of large conservation-focused ownerships. Be part of an influential neighborhood and historic legacy by owning this one-of-a-kind property.

LISTING AGENT: Tom Brickman, Cyprus Partners 205.936.2160 • tbrick@bellsouth.net

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Renew your Membership

Keep enjoying your RLI membership benefits—including Terra Firma magazine—by renewing your annual dues.

Dues can be paid by logging in at rliland.com/members and paying the open invoice on your account.

Thank you for continuing to be a valued member of the REALTORS® Land Institute.

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2020

N E W S

RLI Chapter News Colorado

C H A P T E R

Congratulations to Dan and Michael Murphy for being awarded the RLI Colorado Chapter’s 2020 Land REALTOR® of the Year at the chapter’s in-person meeting held in September in Grand Junction.

R L I

Congratulations to Dan Murphy, ALC, 2020/2021 President, and the members of the Board of Directors who were re-elected to serve for 2020/2021. The chapter looks forward to an exciting year.

The Georgia Chapter hosted their 2020 Annual Meeting on December 3 at the Georgia Forestry Association in Forsyth, GA. The chapter also plans to offer the Land 101: Fundamentals of Land Brokerage course spring 2021, to be held at the Coweta Board of Realtors in Newnan, GA.

The RLI Colorado Chapter will start 2021 off with the chapter marketing meeting on Thursday, January 14, and an education meeting on Friday, January 15.

rligeorgiachapter.com

Dates and locations for the other 2021 chapter meetings are May 6-7 in Colorado Springs and September 9-10 in Grand Junction.

The RLI Illinois Chapter enjoyed an evening of networking and idea sharing during the annual meeting this past September in Peoria. Highlights included a round table discussion led by chapter president John Leezer, ALC, on land auctions during COVID-19 and the presentation of the Illinois Land Broker of the Year award. The chapter congratulates award recipient Dave Klein, ALC, and thanks him for his continued service to the RLI Illinois Chapter.

coloradorli.com

Florida The Florida Chapter will have its midwinter board meeting in January, time and date to be determined.

The new 2021 officers and board members are: President Trevor Williams; Vice President Michael Strahan; Treasurer Clay Taylor; Secretary Jib Davidson; Directors Sage Andress and Danny Smith; and Immediate Past President William Rollins.

The chapter is planning on hosting the Subdivision Land Development class in the spring of 2021. rlifl.com

Georgia The RLI Georgia and Tennessee Chapters worked together to bring an ALC Retreat and Mentoring Event together in Nashville, TN, Oct 6- 9, 2020. The collaboration resulted in a successful four-day Educational and Networking Meeting which hosted attendees from across the United States. Raborn Taylor III, ALC, Georgia Chapter President 2020, and Geoff Hurdle, ALC, TN Chapter President 2020, put together an outstanding lineup of speakers with Eddie Rider of The Land

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Report as a keynote speaker. ALCs and those aspiring to obtain the coveted designation met for four days of sharing experiences, absorbing knowledge, and making connections that will last a lifetime.

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Illinois

The chapter is offering the Illinois Managing Broker course December 1-2, 2020 at the Doubletree Hotel & Conference Center in Bloomington. rliillinoischapter.com

Iowa

Kansas Congratulations to Eric Neilson, who was elected as 2021/2022 President and took the oath at the Kansas Chapter’s virtual meeting held on October 28, 2020. Thanks to Brian Rose, who will now serve as Immediate Past President, for his services as president for the past two years. Tim Gates, ALC, was elected as secretary and treasurer. Other members of the board are John Brocker, Brandy Criss, Kelvin Heck, Brian Pine and Dave Rose.

The Kansas Chapter is looking forward to holding the Industrial Hemp – Impacts to Real Estate class that was cancelled last year. They are also looking into other educational opportunities for members. rlikansaschapter.com

Minnesota The RLI Minnesota Chapter held a virtual meeting entitled “Rising Strong” on July 21, 2020. The meeting began with a humorist, then panelists to challenge, encourage solutions, and motivate in this volatile 2020 environment. The chapter is working to provide the recording of the meeting on the chapter website. The chapter hosted another virtual meeting on October 20, 2020 with updates from RLI partner Joe Michaletz of Discipline Advisors on how members can best work with advisors and scripts to use with clients. There was also time for networking as well as open discussion on the topic and market conditions in various parts of the state.

In September, the Iowa Chapter held its annual leadership installation virtually. The new leadership team consists of President Ryan Kay, President-Elect Andrew Zellmer and Vice President David Whitaker, ALC. The 2020-2021 leadership team was sworn into office by Iowa Chapter member and National RLI President Kyle Hansen, ALC.

Elections were held in September, and new officers and board members will take office mid-November. Many thanks to the outgoing leadership and board: President Terri Jensen, ALC; Vice President David Pope; Secretary Wendy Forthun, ALC; Terry Dean, ALC; Jim Zeller; and Rod Osterloh, ALC.

The RLI Iowa Chapter will host a variety of education classes in 2021. An annual joint spring meeting with ASFMRA will be held on March 10, 2021. In addition to this class, the chapter will plan to host Subdivision Land Development in August, a law update in September and Land 101 in December.

Welcome to the new officers and board members: President David Pope; Vice President Geoff Meade; Secretary Wendy Forthun, ALC; Treasurer Terry Dean, ALC; Jesse Hughes; and Terri Jensen, ALC (Immediate Past President). A transition team meeting will be held to prepare for 2021.

rliiowachapter.com

rliminnesotachapter.com

R L I

Georgia Chapter

Dan and Michael Murphy of the Colorado Chapter accept the 2020 LAND REALTOR® of the Year award.

Members of the Georgia and Tennessee chapters gathered in Nashville for an ALC mentoring event in October.

Pacific Northwest

Wyoming

The Mississippi Chapter 2019 Annual Meeting was held at The Beau Rivage in Biloxi, MS in October. This year’s annual meeting was held virtually in October.

While the Pacific Northwest Chapter board and members have not been able to get together as in years past, that hasn’t stopped the progress and networking.

Congratulations to the chapter’s 2019 Land REALTOR® of the Year, 2020 Selectee for Leadership MAR Michael Mitchell and 2020 Land REALTOR® of the Year Steve Purvis.

The members of the 2021 chapter board of directors are President Brian Meece, ALC; Vice President Lisa Johnson, ALC; Secretary and Treasurer Flo Sayre, ALC; Immediate Past President Garrett Zoller, ALC; Director Patti Davis, ALC; Director Tom Damon, ALC; Director Daryl Johnson, ALC; Director Greg Reich; and Director Skye Root, ALC.

The Wyoming Chapter held a virtual annual membership meeting on October 29, featuring discussion and planning and elections for 2021. Ted Harvey, ALC will continue as President; Todd Kittel was elected as the 2021 President-elect; and new to the board are Secretary and Treasurer Mandy Koltiska and Membership Director Jeff Garrett. Chia Valdez-Schwartz was elected for another term as Education Director and Ivan Judd remains as Government Affairs Director. Welcome and congratulations to all the members of the 2021 Board of Directors.

A date for a planned hosting of an RLI LANDU course will be announced soon. mississippirli.com

Oklahoma Congratulations and welcome to the Oklahoma Chapter’s 2020/2021 Board of Directors. Rod Canterbury was sworn in as President of the chapter at the annual membership meeting held in person and virtually in September. Other members of the board are Eric Zellers, Brent Wellings, Clay Baxter, Sherman Shanklin, ALC, Eric Fine, ALC, Brent Lyday, ALC, Dan Ward, ALC, Tammie Hiatt and Drew Ary, ALC. The chapter meeting was held at a lake property for sale and following the meeting, the attendees had the opportunity to tour the property.

The chapter is pleased to announce that President Brian Meece, ALC, was selected as a member of 2021 Chapter Leadership Council with the REALTORS® Land Institute. A huge thank you to Brian for investing your time, ideas and energy to see that RLI chapters are successful now and into the future.

The chapter held a virtual annual membership meeting in October. There was great conversation and updates on the chapter’s efforts in 2020. The chapter announced their plans to bring the Land Investment Analysis class to the area in April 2021.

N E W S

Mississippi

The newly Elected Officers for 2021 are as follows: President Stephen Butler; Vice-President Alan Bridevaux; Secretary and Treasurer Adam Hester; Northern Director Michael Oswalt; Central Director Steve Purvis; and Southern Director Edna J. Murray.

C H A P T E R

Colorado Chapter

The Recreational Land Real Estate class held this past November in Casper was a huge success. With more than 30 students in attendance, there was representation from Colorado, Kansas, Minnesota, and South Carolina. The instructor, Justin Osborn, ALC, had the students excited for the topic and engaged in discussion throughout the class. In an October 2019 report, Outdoor recreation in Wyoming contributed $1.6 billion to Wyoming’s economy or 4.4% of the state’s overall economy. rliwyomingchapter.com

rlipacificnorthwestchapter.com

Illinois Chapter

Rod’s goals during his term are to continue the growth the chapter had during Drew’s term; and to continue to expand on the ranch tours for chapter members. He also wants to emphasize to chapter members and non-members the great value of RLI and the chapter that can be realized through active participation. rlioklahomachapter.com

Illinois Chapter members at their September 2020 meeting.

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Private Capital Corporation

Leader in Securitized 1031 Exchange Transactions* $8.0 Billion Assets Under Management Offered Over $5.7 Billion in 1031 programs 733 Properties in 43 States

For more information, please visit inlandprivatecapital.com or call 888-671-1031.

*Source: Mountain Dell Consulting 1031 DST/TIC Market Equity Update. Statement based on total equity raised. Data as of June 30, 2020.

For Institutional Use Only. Distribution to prospective investors is prohibited. This is neither an offer to sell nor a solicitation of an offer to buy any security, which can be made only by a private placement memorandum and sold only by broker dealers and registered investment advisors authorized to do so.

The photograph shown is a property that is from a closed IPC-sponsored program.

The Inland name and logo are registered trademarks being used under license. Inland refers to some or all of the entities that are part of The Inland Real Estate Group of Companies, Inc., one of the nation’s largest commercial real estate and finance groups, which is comprised of independent legal entities, some of which may be affiliates, share some common ownership or have been sponsored and managed by such entities or subsidiaries thereof.

The Inland name and logo are registered trademarks being used under license. This material has been distributed by Inland Securities Corporation, member FINRA/SIPC, placement agent for IPC.

SELL

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United Country Real Estate is selling more land than ever. The two leading divisions of the company, UC Ranch Properties® & Realtree United Country Hunting Properties®, have achieved significant year-to-date growth.

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OV ER

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UNITED COUNTRY AUCTION SERVICES, THE LARGEST AUCTION REAL ESTATE TEAM IN THE NATION, EXPERIENCED STRONG GROWTH IN LAND SALES

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F I R M A

N E W S

Congratulations to Our New Accredited Land Consultants!

T E R R A

ccredited Land Consultants (ALCs) are the most experienced, most accomplished and highest-performing land real estate experts in the nation.

Conferred exclusively by the REALTORSÂŽ Land Institute, and the only land-specific backed by the National Association of REALTORSÂŽ, the ALC is the gold standard of achievement in the land sales profession.

The individuals highlighted below completed their ALC designations from June-November 2020.

Nicholas Cain Bray Real Estate

Tarrant & Harman Real Estate & Auction Co.

Grand Junction, CO

Jerseyville, IL

Bobby Boe

Wytheville, VA

Kimberly Hill

NAI Pensacola

United Country Real Estate | Hill Country Pros

Pensacola, FL

Iowa City, IA

Gatesville, TX

Ryan Kay

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BHHS Mountain Sky Properties

Whitetail Properties Real Estate

John Griffing

22

Ben Harshyne

Christopher Fox

Spencer (Marty) Lanier

Hertz Real Estate Services, Inc.

Mossy Oak Properties / NC Land and Farms

Mt. Vernon, IA

Winnabow, NC

Bill Lewis All Cities USA Burleson, TX

4 Steps to Become a Prestigious Accredited Land Consultant

1 Meet the Requirements

Applicants must complete 104 LANDU Education hours and meet volume & experience requirements.

2 Pass the Exam

Once the education requirement is met, applicants must pass the comprehensive exam.

3 Compile a Portfolio

Applicants must compile a portfolio documenting the completion of the education, experience and volume requirements.

Beth Myers Rafter Cross Realty, LLC

4 Submit the Application

Applicants must submit their portfolio to the REALTORSÂŽ Land Institute ALC Designation Committee and Board of Directors for final review and approval.

Ready to start your path to becoming an Accredited Land Consultant?

ALC

Visit rliland.com/ALC for more information.

Grant Olson

Keith Olson

Whitetail Properties

Locate Commercial Real Estate

Lovington, NM

Central City, IA

Johnston, IA

James Peterson

Robert Sandoz

Brent Scharnberg

RE/MAX Roundup

Windermere/ Whatcom, Inc.

Floresville, TX

Bellingham, WA

Jeffery Smith

Brian Watts

Earnest Walker Realty, Inc.

Southeastern Land Group

Corsicana, TX

Dadeville, AL

Stadia Realty Inc. Costa Mesa, CA

Daryl Weems Twin Bends, LLC Crawford, TX

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C O N F E R E N C E

2021 National Land Conference MARCH 14-17, 2021 Louisville, KY & Virtual

L A N D

The annual National Land Conference is a can’tmiss event for land professionals who are serious about growing their business, more confidently assisting clients, and closing more deals.

Going Hybrid for 2021 The 2021 National Land Conference will take place in person in Louisville, KY and virtually via the conference app.

Whether you attend in Louisville or via the app, NLC is focused more than ever on providing land professionals the connections and knowledge needed to build their businesses and take their careers to the next level. Feel the full power of the industry’s passion and energy, engage in unprecedented camaraderie and networking, and soak in the expertise that can only be found at the National Land Conference.

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L A N D

Conference Events

C O N F E R E N C E

WELCOME RECEPTION at The Kentucky Derby Museum Enjoy appetizers, cocktails, and networking with fellow attendees. The welcome reception is a great opportunity to reconnect with old friends and meet new connections. Guests will also have the unique opportunity to tour the Derby Museum and Churchill Downs.

The Cowboy Auction Get ready to pony up! and lasso in some great items at this year’s Cowboy Auction sponsored by United Country Real Estate! This will be your opportunity to take home a piece of the 2021 National Land Conference. This fun filled event is brimming with energy, drinks, and laughter. Place your bid on exclusive items like hunting trips, autographed memorabilia, vacation packages, and unique items. Auctioneers are sure to drive excitement and bids throughout the evening.

Donate to the Auction Item donations contribute to the success of the Cowboy Auction. All auction proceeds benefit the Land Education Foundation (LEF), which provides financial scholarship grants for assistance in land-based education opportunities, including the pursuit of the elite ALC Designation through RLI’s LANDU Education Program.

Learn more at rliland.com/national-land-conference

Howdy Partner Happy Hour Join us in the Expo Hall for appetizers and drinks at the Howdy Partner Happy Hour where we will thank our 2021 RLI Partners for making the National Land Conference possible. Get ready to mix and mingle with fellow attendees and — most importantly at this event — our valuable partners! Take full advantage of this opportunity to network while discovering the latest and greatest land technology and service providers in the industry to help you grow your business and close more deals.

Let’s Make Deal$ Have a tough property to sell? Have a buyer looking for a unique piece of land? Let’s Make Deal$ is the perfect place to make deals happen!

Join fellow land professionals interested in presenting and finding properties for their clients – and close more deals for your clients. As a presenter, you can let your client know their property will be showcased to other land agents from across the country with interested buyers.

Presentation spots are limited and available on a first come, first served basis. Submissions will open in February 2021.

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C O N F E R E N C E L A N D

Recognizing Industry Excellence The prestigious RLI APEX Awards Program, sponsored by The Land Report, is an annual production awards program designed to recognize the excellence and performance of our RLI Members – the best in the business.

Winners of our annual APEX Awards are recognized at this special awards ceremony. In 2020, the program celebrated its third year with a record 105 applicants totaling a combined $2.65 billion+ in qualifying transaction volume.

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APPLY FOR THE APEX AWARDS Applications open January 2021.

All applicants who attend the conference receive a free ticket to the dinner included in their application fee.

Visit rliland.com/ apex for more info.

L A N D

This Year’s Speakers

Amber Hurdle, Keynote Amber Hurdle Consulting

Billy Van Pelt American Farmland Trust

Greg Glosson Perk Seminars

C O N F E R E N C E

Gain exclusive knowledge and insights from an elite line-up of National Land Conference speakers who will share their secrets to success on a wide range of hot industry topics.

More speakers will be announced soon!

Joe Michaletz & Mike O’Toole Discipline Advisors

Thank you to our 2021 Partners Platinum

Silver

Gold

Bronze

Virtual Supporting

Winter 2021

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News & Views from Inside the Beltway White House, Congress Grapple with Big Changes in 2021 and Beyond

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by Russell Riggs Senior Policy Representative, National Association of Realtors

s of this writing in mid-November, it appears that Joe Biden will be the President-Elect of the United States, the Senate will remain Republican (depending on the results of a run-off in Georgia) and the House of Representatives will remain Democratic, albeit with a smaller majority. This will be a dramatic change for Washington, DC and how this transition is managed will be critical for the country’s economy and public health.

Transition The Biden-Harris transition team is up and running under the leadership of co-chairs Sen. Ted Kaufman (D-DE), Jeffrey Zients, New Mexico Gov. Michelle Lujan Grisham, Rep. Cedric Richmond (D-LA), and Anita Dunn.

The transition team’s list of action items is extensive.

They will tackle: » Vetting and facilitating the president-elect’s cabinet nominees; » Working with Congress to craft coronavirus relief legislation; and » Identifying and placing candidates for approximately 4,000 politically appointed executive branch positions (1,200 of whom are Senate-confirmed)

READ ON >>

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Lame Duck Agenda There is plenty of work left to be done in the final weeks of 2020. The expiration of government funding on December 11 provides a natural backstop for this session and the laundry list of “must pass” legislation is long: » A set of tax extenders at the end of December; » A coronavirus relief package to help bridge the gap between the end of the year and the new Congress; and » Funding for the government expires on December 11.

First 100 Days President-elect Biden and his staff are clear his 100day agenda will squarely focus on coronavirus relief and response and economic recovery. Balancing competing priorities while focusing on the public health and economic relief needs of the country will be the most pressing challenge facing a potentially newly divided government in January. These items will include: » A coronavirus relief package; » An economic recovery package, likely focused on infrastructure and clean energy; and » new executive orders on COVID response, the environment, ethics, and immigration.

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House Leadership Priorities

Senate Leadership Priorities

In addition to passing COVID and stimulus measures, House Democrats passed ambitious legislation in the 116th Congress.

However, with a slimmer majority in January, House leadership can only afford to lose a handful of Members from party-line votes.

Majority Leader McConnell will need to walk a very narrow tightrope in working with President-elect Biden and Speaker Pelosi. There are more moderates in the Senate now, and with a very slim majority, here are some items that could impact their work:

Top priorities will likely include: » Infrastructure » Immigration Reform » Policing Reform

» Senate will need to legislate on a bipartisan basis. » Earmarks in the appropriations process may return to deliver wins for their members. » A more evenly divided Senate will make the votes of moderate Senators more important and the same may be true in the House with the Democrats’ new narrower majority. » The 2022 election is underway – a short 730 days to go.

There are 20 Senate Republicans facing reelection and 1 Senate Republican retirement, compared to just 12 Senate Democrats, on a map that today looks more favorable to Democrats. McConnell will position the Republican Senate majority as a firewall against the left’s agenda, while looking to strike small deals where he can to generate wins for vulnerable senators.

Russell Riggs is the Government Affairs Liaison for the National Association of REALTORS' Resort Committee and the Senior Policy Representative for NAR. Russell has a Bachelors degree in Political Science from Virginia Commonwealth University, a Masters in Public Policy from Tufts University, and a Masters in Public Administration from New York University.

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As we prepare for the 2021 National Land Conference in Louisville, we take an inside look at the history and revitalization of Hermitage Farm, a success story in farmland preservation situated near the banks of the Ohio River.

Courtesy of Hermitage Farm and Boxcar PR

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ust a short drive from downtown Louisville, in Goshen, Kentucky, Hermitage Farm provides visitors with unique opportunities to connect with seven hundred acres of historic land. Owners Laura Lee Brown and Steve Wilson have long celebrated and worked to protect Kentucky’s agricultural heritage for future generations to enjoy. The pair values tradition and wishes to pass on the spirit of Kentucky to everyone who visits Hermitage Farm.

Built in 1835, The Main House at Hermitage Farm was owned by the Henshaw Family from Virginia. In 1936, the family sold the land to a famous thoroughbred horse breeder, Warner Jones. In the years following Jones’ death, fellow equestrian Carl Pollard purchased the land and continued operations until Brown and Wilson acquired the farm in 2010.

While Hermitage Farm is now a staple of the Bluegrass state, the future of the farm has not always been so certain.

According to the United States Department of Agriculture and American Farmland Trust, in the years between 2001 and 2016, nearly 270,000 acres of farmland in Kentucky have been developed or compromised in some way. As Oldham County residents themselves, Brown and Wilson felt a responsibility to protect Hermitage Farm’s storied property from suburban development. The duo also fought to secure a conservation easement so that the grounds remain as active farmland in perpetuity.

“Laura Lee and I both grew up on farms and understand firsthand the importance of protecting them for future generations,” said Wilson. “We are committed to simultaneously preserving rural farms and revitalizing cities. We see these goals not in opposition, but as complementary.”

Historic Preservation Brown and Wilson are devoted to maintaining the tradition and sharing the history of Hermitage Farm. While they have updated some features on the farmstead, the integrity of the property remains. The land still produces award-winning racehorses, sustainable produce and everlasting memories.

At Hermitage Farm, guests can experience renowned thoroughbred operations, enjoy organic farm-to-table cuisine and taste exclusive local bourbon while exploring the grounds. Tours of The Main House and Garden are available for guests who would like to hear the stories behind the reimagining of the 19th Century farmstead.

Along with its adjacent Smokehouse, The Main house is listed in the National Historic Register. Although both have been updated to include present day amenities, their timeless charm has been preserved. Surrounded by stately pin oaks that frame views of lush, green farmland, the property provides a unique and luxurious escape.

READ ON >>

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A Restored Barn Turned Restaurant New to Hermitage Farm in 2020 is Barn8, a farm restaurant and bourbon bar. What was once Hermitage Farm’s 8th horse stable is now a beautifully restored barn turned restaurant. Nearby sits one of the property’s three climate-controlled greenhouses that provides much of the restaurant’s ingredients for an authentic fresh from the farm experience.

The Barn8 chef works with a local horticulturalist to create seasonal menus that highlight the best produce that Hermitage Farm has to offer. Guests are invited to engage in the process of farm-totable cooking on a tour of the kitchen and greenhouse. During the tour, they will learn about the seasonality of food and the inspiration behind some of Barn8’s most popular dishes. While the menu does contain some staple items, most of the offerings are changed daily for a unique dining experience every time.

The Bourbon Bar & Lounge Barn8 is home to The Bourbon Bar & Lounge, where guests can experience the one-of-a-kind flavors of bourbons from every Kentucky Bourbon Trail distillery. The bar also features exceptional small-batch selections from unique craft distilleries, vintage options, rare bottles and popular brands from across the Bluegrass and beyond.

Hermitage Farm also offers bourbon tastings for connoisseurs and novices alike. Knowledgeable bourbon stewards teach guests about Kentucky’s rich bourbon heritage while they enjoy flights of select bourbons and craft their own unique cocktails.

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Renowned Artwork Collection

Hermitage Farm encompasses all of what makes the Bluegrass state so special.

Brown and Wilson are avid art enthusiasts and guests can enjoy their wide-ranging collection of contemporary art on display in the Main House and Smokehouse. They believe that showcasing works from local and global artists allows everyone to gather perspectives from around the world and help us all better see our own place within it. While outdoor exhibits are located throughout the farm, the owners’ collection of art is on a rotating display in the houses and restaurant on the property to provide a unique experience at every visit.

Thoroughbreds The biggest draw to Hermitage Farm is the thoroughbred nursery where winners of the Kentucky Derby, Kentucky Oaks, Breeder’s Cup and most every other stakes race have been raised. Tour guides are available to take guests through the barns while discussing the history of horse racing and giving them a close look at some future champions.

Sports horse tours are also available, where visitors can see a collection of historic and contemporary carriages. They will also meet highly groomed horses celebrated for their skilled abilities and appearances. For a custom experience, carriage rides are also available by request.

Hermitage Farm encompasses all of what makes the Bluegrass state so special. Immersive experiences connect even the most metropolitan guests to their country roots. The history of the property transports you to another place in time while food and art inspire the future. Whether you’re an avid equestrian, an adventurous foodie, a bourbon enthusiast or something in between, Hermitage Farm offers a memorable experience for all.

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E D U C A T A I O N L A N D U

LANDU: Leading the Industry in Education LI National has been busy hosting LANDU virtual instructor-led training (VILT) courses throughout 2020, with a total of 20 courses offered. Combined with 10 chapter-led courses throughout the year, RLI’s education outreach extended to over 650 students.

If you are interested in hosting a LANDU course in your area for your chapter, please contact RLI Education Manager Amanda Morrone at amorrone@realtors.org or 312-329-8411 for more information.

LANDU Instructor News Congratulations to Tim Hadley, ALC, for being approved as a new LANDU instructor. He is now approved to teach Recreational Land Real Estate and Land 101: Fundamentals of Land Brokerage.

Tim is an Accredited Land Consultant with Hadley & Associates Brokered by Keller Williams Land in Gladstone, MO. He has been in land sales for seven years. As an approved instructor, Tim looks forward to sharing his experience and help other land agents improve their skills and advance their careers.

Along with teaching Land 101: Fundamentals of Land Brokerage, Raborn Taylor, ALC, is now approved to teach Recreational Land Real Estate.

Visit the LANDU Instructor Center at rliland.com for a list of instructors and for information on becoming an approved LANDU instructor.

2021 LANDU Upcoming Courses More course offerings are coming soon! For the most up-to-date course calendar, visit rliland.com/education.

January 2021

February 2021

March 2021

May 2021

Agricultural Land Brokerage & Marketing Instructor: Kirk Goble, ALC VILT Online Format

Transitional Land Real Estate Instructor: Butch Armistead, ALC VILT Online Format

Real Estate Mapping Technologies & Techniques Instructor: Steve Roberson VILT Online Format

Agricultural Land Brokerage & Marketing Instructor: Kirk Goble, ALC VILT Online Format

Land Real Estate Site Selection Instructor: Ben Crosby, ALC VILT Online Format

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Land Investment Analysis Instructor: Phil McGinnis, ALC VILT Online Format

April 2021 Subdivision Land Development Instructor: Bobby Mink VILT Online Format

S AVE T HE DAT E F O R

L A N D U

LANDU Education Week June 6-14, 2021 • Murfreesboro, TN

E D U C A T A I O N

The 2021 LANDU Education Week will be held at the Middle Tennessee Association of REALTORS® in Murfreesboro, TN from June 6-14, 2021. RLI will work with the RLI Tennessee Chapter to host this event.

LANDU Education Week offers land professionals the opportunity to network with their peers and greatly enhance their expertise by completing all education requirements needed to earn the Accredited Land Consultant (ALC) Designation in one place, at one time. More details to come.

The REALTORS® Land Institute’s Land Education Foundation (LEF) seeks to provide financial scholarship grants for assistance in land-based education opportunities, including the pursuit of the elite ALC Designation through RLI’s LANDU Education Program.

LEF Scholarships Available Scholarships of up to $535 are available per person, per year. If you or someone you know might be interested, please download and complete the full scholarship application at rliland.com/LEF.

CONGRATULATIONS TO THE

2020 LEF Scholarship Recipients Benjamin Bogardus Andrew MacVittie Stephanie Gordon

Jonathan Kennedy Altimese Dees Dorie Colbert Veal

THANK YOU TO THE

2020 LEF Board of Trustees Minor Taylor, ALC Fred Hepler, ALC Dan Hatfield, ALC Ray Brownfield, ALC Randy Hertz, ALC John Dean, ALC

Chuck Wingert, ALC Johnny McAllister, ALC Flo Sayre, ALC A. Lloyd Thomas Bob Turner, ALC

Special thanks to John Dean, ALC, who concludes his board service in 2020, for his years of dedication to the Land Education Foundation.

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THE MAGAZINE OF THE AMERICAN LANDOWNER THE THEMAGAZINE MAGAZINEOF OFTHE THEAMERICAN AMERICANLANDOWNER LANDOWNER THE MAGAZINE OF THE AMERICAN LANDOWNER “As the nation’s premier land magazine, “As“As thethe nation’s premier land magazine, nation’s premier land magazine, The Land Report’s partnership with the “As the nation’s premier land magazine, TheThe Land Report’s partnership with thethe Land Report’s partnership with REALTORS® Land Institute provides The Land Report’s partnership the REALTORS® Land Institute provides REALTORS® Land Institute provides invaluable public recognition ofwith excellence REALTORS® Land Institute provides invaluable public recognition of excellence invaluable public recognition of excellence through the annual APEX Awards. The invaluable public recognition of excellence through thethe annual APEX The through annual APEX Awards.

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RLI brokers across through the annual APEX Awards.

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The Land Report and challenging RLI are dedicated to the landowners during challenging The Land Report and RLI are dedicated to to thethe Land Report and RLI are dedicated the education and service ethic thattimes. keep Land Report and RLI are dedicated to the education and service ethic that keep the education and service ethic that keep the land industry thriving as a foundation of our education and service ethic that keep land industry thriving a foundation ofthe ourour land industry thriving a foundation of nation’s economy. ” as as land industry thriving as a foundation of our nation’s economy. ” ” nation’s economy.

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Value Beyond the Surface The Economic Opportunity of Land Resources for Real Estate Agents AUTHORED BY:

Eric Thompson VP of Business Development at LandGate Yoann Hispa Director, CEO, and Co-Founder of LandGate Dan McCue VP Land and Co-Founder at LandGate Adjunct Professor at the University of Texas

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and real estate agents can earn significant income by marketing land resources which increase the value and revenue potential of land. These land resources can oftentimes exceed the traditional real estate land values and create exciting opportunities for agents.

Some of the key questions agents are asking include: How do you know if the land has valuable mineral, solar, or wind resources? How much are these resources worth? How do you market land resources for the true market value given the complexity of land resource valuations?

The reality is that land resources can be worth anywhere from two to ten times the value of the surface land real estate. In certain parts of the country, minerals alone have sold as high as $100,000 per acre and landowners have received as little as $250 per acre for their minerals in the same location.

Land Resource Market: $5 Trillion Per Year Based on data before the Covid-19 pandemic, the total US residential real estate market was around $9 trillion per year. The land real estate market was estimated to be a $500 billion market. The market of land resources associated with land is around $5 trillion per year. As the demand for energy continues to grow, the land resource market will continue to increase. Land resources are a large market but due to the complex process of evaluation, the market has only been accessible to resource companies with the capacity to value these assets. Sellers and their agents have fallen prey to land resource flippers and small sale prices due to their lack of information.

Continuous Opportunities After a Sale Real estate agents may think once they sell a property to a buyer, their work is done. But in fact, the buyer (new landowner) has additional options to lease certain property rights to resource companies, providing an additional way for agents to monetize the same property they just sold.

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Land Resource Marketing: Challenges and Solutions

CHALLENGE #1: Comparable Sales Misleading in a Flippers’ Market Resource companies commonly send multiple offers from subsidiaries to create a false sense of market value. Some comparable sales data from resource companies is relevant, most isn’t. Resource companies always use the income approach to value acreage by risking future cash flows, the same exact way financial analysts value assets and companies.

Land resource valuations are extremely complex because there is a string of data points, calculations, and forecasting involved.

To determine the acreage value, a resource company calculates the resource availability, extraction, commodity sale price, forecasted revenue generation, installation cost, operational costs, capital costs, taxes, incentives, and much more. These complex calculations leave agents and landowners at a disadvantage and in a position where they must rely on the developer to offer fair terms, which is rarely the case.

SOLUTION #1: Transparent Marketplace with Land Resource Experts Help The only way to fix this market deficiency is to properly assess the full economic value of the land resources. Negotiations always involve exchanging ownership information, negotiation, economic valuation exchanges, complex lease negotiations, title verification, and closing. Companies like LandGate have land experts who solve this market deficiency and do all of the work for the agent making it easy for them.

LandGate and other companies provide data intelligence and land experts who help calculate land resource value the way that resource companies would, making the subsequent considerations easy for land agents to understand.

The result is that middlemen come into the market, commonly known as flippers. These flippers know that they can lease these rights to resource companies for up to ten times what they paid for it. Another scenario is that landowners enter into long-term agreements with a wind or solar developer leaving significant money on the table, or agreeing to unfavorable terms.

Landowners and agents rarely achieve alone the best deals without land resource experts supporting them.

Most online mineral marketplaces do not provide valuations because they lack the technical expertise but also because they get paid by mineral buyers to capture great properties for cheap.

Agents also need to be careful partnering with any land resource marketplace since some of them charge fees to both buyers and sellers which creates legal challenges.

CHALLENGE #2: Buyers are Specialized and Transactions are Complicated Another challenge in land resource marketing is that the process involves contacting buyers specific to each land resource. Within a resource type, most the buyers that landowners will be able to contact are likely to be middlemen.

Even within a single segment, such as oil and gas minerals, specific top buyers change frequently depending on funding availability.

Just in the past four years, oil and gas buyers have transitioned from public exploration and production companies, to private equity, to private investors and family offices as being the primary buyer class today.

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SOLUTION #2: Land Resource Experts Critical to Negotiate Given the ever changing market, it is essential that agents work with land resource experts who know these buyer segments.

LandGate, as an example, has over 30,000 buyers of land resources. Work has been done with oil and gas, solar, and wind developers so that the language used in these transactions is industry standard and results in the best deals for agents.

The following are a few specific examples of the more common resources that landowners and agents often overlook when considering an acreage transaction.

Land resource deals are very complex: true market value, reasonable terms, and expectations. It is very important for agents to find experts who are able to assist them with these transactions: valuation, title, negotiations, terms, and closing.

Resource Values & Deals Solar Landowners can now potentially earn millions of dollars from lease options, rental payments, and cash bonuses paid by solar developers. In some examples, a property owner with 40 acres can generate a total of $1.2 million dollars over the life of a utility scale solar project, but may have settled for 10-20% of the property’s resource potential by falling prey to competitive leasing tactics.

Successful solar lease negotiations are defined by the property owner and developer reaching an agreement that is advantageous for both parties in the long term. The best way to reach an agreement is with a more transparent leasing process and by providing access to solar rights data, valuations, and expertise to real estate agents.

The important value drivers for solar on a specific property include: » State and local credits and subsidies to developers » Local marginal prices and nearby demand » Nearby existing grid connection sites such as transmission lines and substations » Solar irradiance » Topography of the surface » Buildable area (removing flood zones, forestry, dwellings, etc.) » Network intake capacity

Wind Wind leases function very similar to solar, with the exception that it is often possible to exploit both wind and oil and gas simultaneously, giving energy companies additional options.

Unlike solar, wind can be exploited in various terrain conditions.

The important value drivers for wind development on a specific property include: » Nearby existing grid connection sites (transmission lines, sub-stations) » High average wind speeds » Credits and subsidies to developers in specific states » Spaces that are away from heavy residential areas to avoid noise and viewpoint damage Beyond the energy markets, there are additional resources to consider such as water, mining, cell towers, agriculture, and recreation. The reality is that land resources impact the value of land and create additional opportunities for real estate agents to monetize on the transactions involving these property rights.

Oil and Gas One of the more profitable energy resources derived from land would be oil and gas minerals. It is important for land agents to understand the potential of oil and gas development on the property, its value, and whether or not the mineral rights are part of the transaction. The property owner also has the right to sell the surface and retain the oil and gas mineral rights. The mineral owner has the right to use the surface in a reasonable manner to extract the minerals or lease those rights to an oil and gas operator, making these rights much more important than many realize.

The important value drivers for oil and gas on a specific property include: » » » »

Location - value can change quickly over a mile Commodity prices and market conditions Type of ownership Operators activities and plans: » Existing production on the property » Horizontal development or permitting on or near the property » Is the owner receiving royalty checks » Is the owner receiving offers from mineral buyers/lessees » Is the owner receiving drilling notices or force pooling notices

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Marketing these land resources to specialized buyers, which include energy companies, involves a specialized skill and network. New and exciting platforms, such as LandGate, do all of the work for the agent and allow the agent to control the deal.

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Marketing Evolution & Future Opportunities Land Resource Values Continuously Change

Conclusion

Technologies, developers activities, commodity prices, market conditions, costs, and subsidies change very rapidly in the energy sector. As a result, the valuation of land resources changes frequently. Real Estate agents need to have the latest information about activities and values at their disposal to inform their clients and leads.

There are big opportunities for land agents in today’s market and even more in tomorrow’s. Land resources are very complex, and it has been very difficult for landowners and their real estate agents to realize the full value of this very large market. Data and evaluations about land resources have been accessible only to large energy companies.

Most states have energy divisions where people can painstakingly glean information about leasing activity, development, permits, and additional information. The process involves finding the specific division for the resource type, locating specific tracts, compiling documents, and researching the current activity.

It is amazing how little information landowners still have about the resources sitting on or beneath their property. It creates an incredible opportunity for agents to assist these clients and access the full potential of multimillion dollar transactions in land resources. Agents need land experts to help them transact on land resources.

LandGate and other companies work to compile data from major land resources across the U.S. and make them easily accessible and available for more efficient and profitable transactions. Agents need land resource experts to be able to manage these transactions.

Eric Thompson is the Vice President of Business Development at LandGate, an online marketplace for land resources. Since entering the oil and gas industry in 2015, he has handled over $300 million in asset transactions. Eric holds both graduate and undergraduate degrees and lives in Houston, Texas.

Dan McCue is Vice President Land at LandGate.

He has been a successful Oil and Gas Land Professional for 40 years. He is an adjunct professor and twice-published author with The University of Texas at Austin’s Petroleum Extension (PETEX).

Yoann Hispa is CEO and co-founder of LandGate. Yoann has 17 years of experience in the energy industry doing billions of dollars in valuations, acquisitions, divestitures, and development projects in leadership and technical roles. Yoann holds an Executive MBA, three Masters in Engineering and Geoscience, and a BSc in Math.

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The future is bright for land real estate agents as the growing demand for energy is likely to increase the value of land significantly, as long as they manage to reap the benefits of this value. The industry will continue to see innovation providing the ability for agents to earn more income while helping landowners maximize their profits. The agents who have access to the tools needed to transact on land resources will be the ones that landowners will trust with their large, revenue generating, land assets.

Oil & Gas

Solar

Wind

Water

Mining

Cell Towers

Agriculture

Recreation

Earn Income on Property Rights Get Full Support from The Experts

What does LandGate do?

What do you have to do?

Professional Appraisal

Just Connect Us with Landowners

Our industry experts prepare a Valuation Report

Leverage your network - We do the work, you lead

Data Intelligence

We help present nearby activities to landowners

Ownership VeriďŹ cation

We help landowners understand what they own

Signing up Your Client

We help you sign up landowners

Listing

We prepare the listing material

Largest Network of Buyers

We market the property to resource-speciďŹ c buyers and negotiate following your lead

Closing

We assist in the closing

Easy Extra Income!

Have Questions?

Contact us at account@landgate.com 855-867-3876 or LandGate.com