TerraFirma FALL 2015 Vol. 69 No. 2
Under All Is The Land
OFFICIAL PUBLICATION OF THE REALTORS速 LAND INSTITUTE
R E T S I G ! E R NOW www.NationalLandConference.com
President’s Message . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 News Briefs from National . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Fall 2015 Edition
Member News . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
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: email@example.com Website: www.rliland.com Listing Website: www.thelandconnections.com
Chapter News . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Newest ALCs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 New Members . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Business Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Blog Corner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
FEATURES Government Affairs Briefing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Russell W. Riggs, Institute Government Affairs Liaison, National Association of REALTORS® The Shale Real Estate Development Cycle: Where Do the Major Players Fall? . . . . . . . 9 Mike Elliott, Managing Principal, Energy Real Estate Solutions, LLC Tom Bradley, Executive Vice President, Energy Real Estate Solutions, LLC
Editor/Publisher Michele Cohen, Chief Executive Officer/ Executive Vice President Editor Jessa Bertinetti, Communications and Marketing Specialist Contributing Editor Amanda Jenkins, Professional Development and Project Manager Graphic Designer David Hunter Cover Photo Copyright 2015. All rights reserved.
The Impacts of Business Coaching for Farm and Ranch Agents . . . . . . . . . . . . . . . . . . 12 Kasey Mock, Director of Farm & Ranch, Keller Williams Realty International Karen Brown, Business Production Coach, Keller Williams Mega Agent Production Systems (MAPS) Soil Science–A Quick Primer for Land Professionals . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Kirk Goble, ALC, Owner, The Bell 5 Land Company Five Major Considerations When Considering a Land Auction . . . . . . . . . . . . . . . . . . . 31 Jimmie Dean Coffey, Auctioneer/Broker, United Country Real Estate A Transition from Military to Land Professional . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .45 Caleb McDow, Land Specialist, Crosby & Associates The Time for Real Estate Agents to Adapt Has Come . . . . . . . . . . . . . . . . . . . . . . . . . . 46 Luke Worrell, ALC, Real Estate Broker, Worrell-Leka Land Services, LLC Section 1031 Exchanges are Important to a Healthy Economy . . . . . . . . . . . . . . . . . . 47 Jim Miller, Assistant General Counsel, IPX1031®
Copyright 2015. 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.
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FACING A FUTURE OF CHANGES, CHALLENGES & OPPORTUNITIES Over the course of our lives we all face change and challenges. These lead to new opportunities, both large and small, to experience things that will bring us into new worlds and expand our boundaries beyond the familiar. These include opportunities to learn, to meet new people, to be exposed to things we’ve never seen or done Terri L. Jensen, before. Serving as president for the Institute Accredited Land Consultant Advanced, has certainly provided all of these–changes, challenges, and opportunities–and I have 2015 Institute enjoyed every minute of it. National President I have especially enjoyed working with all of you and getting to know many more of you during this four-year commitment to leadership. The Institute has exceptional volunteers who willingly give of their time and expertise to make wise decisions for the Institute and have helped ensure the Institute is fiscally sound and well-positioned for the future. With that said, thank you all on behalf of the Institute to the 2015 Board of Directors, the 2015 Institute Committee members, and the 2015 Executive Team. All of you helped discuss, debate, and bring to the forefront ideas that enhance the future of this historic and leading organization for those who specialize in land. All have faced the many changes in technology, economic conditions, demographics, legislation affecting land, new challenges in marketing to four generations of landowners–the change and challenge list is long. Through the process with Executive Team, Board of Directors, Committee members and staff, the Institute continues to move forward to provide pertinent education, creative and innovative programs, collaboration, networking and marketing geared to land. LANDU Education Week’s participants worked diligently to gain information, with a record number completing the coursework requirements to earn the prestigious Accredited Land Consultant (ALC) designation. New courses were rolled out in 2015, with more scheduled into 2016, to meet the new needs of those in the business of land. Add to these the ALC-to-ALC Teleconferences and the Hot Topic Web Seminars and the final product offers strong land knowledge opportunities. This knowledge provides you additional opportunities to expand your expertise to better assist your clients. The 2015 National Land Conference: UNBRIDLED. UNLEASHED was the biggest yet. The increased break-out sessions allowed an attendee to individualize their experience at the conference. More partners than ever before showed their commitment to the Institute and Conference and more are expected to be valued partners at the 2016 National Land Conference: THE BEST STOP HERE, to be held in Dallas, Texas, March 11-13, 2016. Farmers National Company continued its support of the Institute with its fifth year as a Platinum Partner in 2015. A new Platinum Partner, Garden & Gun Land, joined our team as it rolled out its first official publication. Thank you to all partners who create opportunities to keep land professionals current and help build their successes.
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Smart Tools were developed as member benefits. These tools are designed to help each member and designee market themselves in diverse, effective ways. A Member Marketing Kit was developed that is full of tools to help you stand out from the rest and provide opportunities for you to grow your business. Many legislative issues on the Hill provided changes and challenges to our business and to the general economy. The Institute met those challenges with opportunities to have a voice in D.C. and stay abreast of land use and other relevant matters such as tax reform and property rights. The Institute joined coalitions against the repeal of the 1031 Like-Kind Exchange. I had the opportunity to participate via a fly-in to explain the importance of this tax code to our legislators. The opportunity to see firsthand how the legislative system works, and work with other coalition members, the Institute’s Government Affairs Committee, and NAR, is truly a benefit the Institute offers for land professionals to have a voice. The Institute also has a strong presence regarding blocking the EPA’s Waters of the US which would negatively affect property rights and ownership. Likewise, discussion on the Hill for the use of drones by land professionals is a change the Institute contributed to through its presence on the Hill. I would be remiss not to mention that staff faces change and challenges every year as leadership change. Staff has met these changes and challenges and has embraced the opportunity to work with new leadership, Board of Directors, and committee members to ensure that Institute operations are strong, that initiatives become reality, and opportunity is created for the Institute to be successful. Thank you to our exceptional staff. We all utilize our education, expertise, and experience to be true land professionals. The Institute is the only organization I have found that offers education, collaboration, networking and marketing to provide opportunities for land professionals to be the best in the business! Thank you for the opportunity provided to me to serve as the 2015 National President and to serve in 2016 as the Immediate Past President. Please feel free to call, text, or email me with any changes, challenges, or opportunities you encounter for land professionals as we move forward. The new Executive Team, Board of Directors, Committees, Institute members, and staff will all consider how to turn changes and challenges into opportunities for you to be successful land professionals as we move into 2016 and beyond. n Sincerely,
Terri L. Jensen Accredited Land Consultant Advanced 2015 Institute National President
NEWS BRIEFS from NATIONAL Feature
Building History— 2016 Institute Officers
Bob Turner, ALC Advanced, President, Southern Properties, Cordova, TN
Jimmy Settle, ALC, Vice President, Crye-Leike Real Estate Services, Clarksville, TN
The 2016 Institute officers are the future and will create the continued history of the prestigious REALTORS® Land Institute, the leading organization for those who specialize Brandon Rogillio, ALC in all segments of land. Advanced, PresidentElect, Rogillio Real Estate, The Induction ceremony takes place during the Baton Rouge, LA 2015 National Association of REALTORS® (NAR) Conference and Expo on November 13 at 6 p.m. in the Arena Room at the Manchester Grand Hyatt, San Diego. Chris Polychron, 2015 President of NAR, will Terri Jensen, ALC Advanced, Immediate be administering the oaths.
Past President, Farmers National Company, Omaha, NE
Bob Turner, ALC Advanced, 2016 National President, earned the ALC designation in 2006 and the ALC Advanced in 2014. He has been active in his local organization, the Memphis Area Association of REALTORS®, and is active in the National Association of REALTORS® (NAR). He has represented the Institute as its representative to the NAR Executive Committee. Turner states: I am truly honored that you selected me to serve as your 2016 National President. The REALTORS® Land Institute’s members are some of the hardest working, most ethical people in the REALTOR® family! I enjoy meeting our members anywhere we can get together whether it is at a LANDU Course classroom, while showing a piece of land, or having a cocktail in the bar at one of our meetings, because I know we always have something in common that we are willing to share. The Institute is moving across all boundaries and growing in many ways. We are up in membership, up in ALCs, and our businesses at home are up in sales! I hope to continue the progress and excitement that our organization is experiencing by enhancing the systems within our structure to listen to the members’ voices. I want to know what you, the members, think about the Institute, what you like and dislike about the Institute, what we can do that will help you be the best Land REALTOR® you can be! I want to be accessible to you and help in any way I can with the Institute. If you want to discuss any ideas, concerns, or would like for me to attend one of your meetings, please call me at 901-335-1384! n
Institute Leaders in Washington, D.C., in May Institute leaders met at the REALTOR® Party Convention and Trade Expo in Washington D.C. in May to attend NAR Committee Meetings, to visit lawmakers on the Hill regarding land issues, to meet with NAR Leadership, and to attend the NAR Board of Directors Meeting. The following Institute Representatives to the NAR Committees attended and had a voice representing the Institute:
Christina Asbury, ALC: Professional Standards Committee
Randy Hertz, ALC Advanced: Commercial Legislation and Regulatory Advisory Committee
Paul Bottari: Land Use, George Harvey: Global Property Rights, and Business and Alliances Environmental Committee; Resort and Second Committee Home Real Estate Committee
Cathy Cole, ALC Advanced: Federal Financing and Housing Policy Committee
Bob Turner, ALC Advanced: NAR Executive Committee
Tim Kellogg: Insurance Committee
Bill Burruss III, ALC: Commercial Real Estate Research Advisory Board
The Institute Government Affairs meeting took place at the Marriott Wardman Hotel on May 12. With a record attendance, Russell Riggs, Institute Government Affairs Liaison, NAR, shared a Hill Update on water rights, land use, and tax reform proposals. Evan Liddiard, Senior Policy Representative, NAR, discussed the support NAR is supplying to block the removal of 1031 Exchanges in the tax code. Alliances and coalitions have been formed regarding this topic with NAR having a strong presence and with the Institute signing on with these coalitions. Visit the Government Affairs tab at www.rliland.com for thorough information on all land topics and the Institute’s voice in D.C. n
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NEWS BRIEFS from NATIONAL
First Ever ALC Networking Retreat Planned Accredited Land Consultants (ALCs) will meet in Louisville, Kentucky, at the Embassy Suites Hotel for the first ALC Networking Retreat. Beginning officially at 7:30 a.m. on October 17 and ending after breakfast on October 18, the itinerary is loaded. OCTOBER 17 Morning Breakfast and Network Interactive Session: TeamUp to Problem Solve Facilitated by Denise Cumberland, PhD, Professor, University of Louisville Learn how to build relationships among team members and find out what team problem-solving style works best. Aim to Win The day will heat up on the shooting range during an ALC Shooting Competition. BYOG (Bring Your Own Gun or rent one). Prizes will be won ending with a “box lunch” as the group hits the road for the next stop. Afternoon Bourbon: Behind the Scenes Tour the Jim Beam American Stillhouse, the Bourbon Capitol of the World (arguably, of course). Evening: Let’s Be Happy, Happy Hour Wind down with other ALCs at the host hotel, the Embassy Suites Downtown Louisville. Dinner Dinner will be at the Gordon Biersch Brewery on the famous 4th Street Live. OCTOBER 18 Farewell Networking Breakfast Say so longs and be sure to exchange business cards. Companions are welcome. For additional information, visit www.rliland.com/alc-networking-retreat or call 1.800.441.5263. n
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Professional Standards Task Force A Professional Standards Task Force was charged with the development of policies relating to professionalism and integrity including the proper use of the designation and enforcement of the Chapter Core Requirements. The task force was composed of Aaron Graham, ALC Advanced, Task Force Chair; Jeramy Stephens, ALC Advanced; Cathy Cole, ALC Advanced; Flo Sayre, ALC Advanced; and Jimmy Settle, ALC. After the approval of the Board of Directors, these procedures will be posted on the official Institute website. n
Aaron Graham, ALC Advanced
Jeramy Stephens, ALC Advanced
Flo Sayre, ALC Advanced
Cathy Cole, ALC Advanced
Jimmy Settle, ALC
New Institute Treasurer George Clift, ALC Advanced, has been named the Institute Treasurer. This member volunteer position was developed by the Board of Directors to start in 2016 for a two-year term. The Treasurer’s focus is on supporting the financial management of the Institute. The Treasurer helps develop fiscal policies for recommendation to the Board to ensure the financial integrity and sustainability of the organization with the Board having overall fiscal responsibility. n
NEWS BRIEFS from NATIONAL
Distinguished Institute Award Recipients The following individuals were presented with the Institute’s prestigious awards at the 2015 National Land Conference held in Tucson, Arizona:
Meeks Distinguished Service Award
Rising Star Award
2016 National Land Conference: THE BEST STOP HERE!
Land REALTOR® of America and Excellence in Instruction Award Conferences do not get better than this one. Professionals convene to gain knowledge, to meet like-minded individuals, and to make deals. All of these are powerful.
Fletcher Majors, ALC Advanced, Great Southern Land, LLC, Alabama
Kyle Hansen, ALC Advanced, Hertz Real Estate Services, Iowa
Ben Crosby, ALC, Crosby & Associates, Inc., Florida
2015 Land Market Survey: A Collaborative Effort The REALTORS® Land Institute collaborated with the National Association of REALTORS® (NAR) in March 2015 on the development of the 2015 Land Market Survey. This tool is aimed at developing accurate information on current trends in the land markets and on the general state of land sales. The results are representative of over six-hundred land professional respondents. Below is a summary of the results: Land prices rose steadily by eight percent in the last part of 2014, with individuals and families accounting for sixty-one percent of all buyers/investors in land sales transactions, according to the 2015 Land Markets Survey. In addition, the survey revealed that fifteen percent of land purchasers were corporations/partnerships, twenty-three percent were investors, and nine percent were expansion farmers. According to the survey, forty-seven percent of the purchases where individuals/families bought, the land was purposed for farm and ranch (twenty percent agriculture and seventeen percent ranch) and thirty-one percent for recreation. Of those surveyed, expansion farmers purchased eighty-eight percent of land for farm and ranch use (seventy-one percent agriculture and seventeen percent ranch). Investors purchased a diversified portfolio of land including: thirty-three percent agriculture, fourteen percent timber, twenty-one percent development, and five percent commercial. Of the land purchased by corporations, development land accounted for twenty-eight percent, commercial land accounted for twenty-five percent, and timberland accounted for five percent. Terri Jensen, ALC Advanced, 2015 Institute National President, REALTORS® Land Institute, stated, “The outlook appears strong for several land types and locations. The demand from expansion farmers and investors exceeds supply—particularly in the Midwestern states. Grassland/ranch land demand and prices continue to be strong.” Close to ninety percent of the respondents expected moderate to stronger sales growth in the first half of 2015, with prices rising at about three percent. The results appropriately correlate to the findings that responding land professionals across the United States primarily focus their practices in agriculture (sixty-three percent), recreation (fifty-five percent), and development (forty-eight percent).
A record attendance is expected at the 2016 National Land Conference: THE BEST STOP HERE! taking place in Dallas, Texas, on March 11-13. Institute committee meetings will take place on March 10, with the official Conference starting on March 11. An expanded ALC Tier takes place on the morning of March 11 along with the opening of the partner exhibits. More and new networking opportunities have been added as well as more breakout sessions allowing participants to create a personalized experience. A DENIM IN DALLAS BASH will take place on the evening of March 12, after a day of attending presentations by expert presenters and following the Greatest Cowboy Auction on Earth III. Donations are already being pledged, including caps with the Institute logo signed by celebrities. Register today at www.NationalLandConference.com. See the full preliminary schedule on page 15. n
The Institute Gives Back
In September, the REALTORS® Land Institute and its members gave back. Through the Institute Gives Back program, the organization community donated to Feeding America and Freedom from Hunger charities. As stewards of the land, members understand the need to give back to the community by providing food and resources from the land to those in the world that need it most. Feeding America is the leading domestic hunger relief organization, with network food banks serving every state. Feeding America’s nationwide network of over 200 food banks provides food and groceries to 33,500 food pantries, 4,500 soup kitchens and 3,600 emergency shelters. Each week nearly 5.7 million people receive emergency food assistance from an agency served by a Feeding America member. Freedom from Hunger brings innovative and sustainable self-help solutions to the fight against chronic hunger and poverty. Together with local partners, the organization equips families with the resources they need to build futures of health, hope and dignity. n
To view the full survey results, visit www.rliland.com. The Institute and NAR will be collaborating on another Land Markets Survey in October. If you would like to be included on the list of those to participate, contact firstname.lastname@example.org or 800.441.5263. n
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NEWS BRIEFS from NATIONAL
Let’s Make Deal$: New Marketing Tool
Let’s Make Deal$ marketing sessions are online marketing venues for members of the Institute to present their properties to members and others to make deals happen. The first thirty members who register for this unique marketing opportunity present a listing which is viewed on the computer screen while the presentation is being given. Members are encouraged to invite clients to participate. The April 23 and July 9 presentations may be heard and viewed at www.rliland.com/lets-make-deals. The final Let’s Make Deal$ Marketing Session of 2015 takes place on November 5 at Noon CT. Registration is open. For more information contact 800.441.5263. n
Institute Military Transition Program (MTP) The Institute welcomes the following new Military Transition Program (MTP) members for 2015: Whitney Palmer Bernson, Izzay R. Denney, Jr.; Matthew Fletcher, Dennis Goode, and Richard Yeager. The MTP is designed for those who are looking to build or enhance a career in the land business and who served in the military starting in 2000 or later. Those who joined as part of the MTP program in 2015 received the following: a one-year free membership in the Institute, invitations to MTP conference calls with industry leaders and other MTP members, one free LAND 101 course, and one free elective LANDU course of the member’s choice. Scholarships for MTP members are also available through the John Eshenbaugh Military Scholarship.
An MTP Story
Whitney Bernson, MTP Institute Member, received a John Eshenbaugh Scholarship this year. This scholarship fund was developed by Bill Eshenbaugh, ALC, in his brother John’s name who was awarded two Purple Hearts and a Bronze Star for valor. Five John Eshenbaugh Scholarships are awarded each year to be used toward a LANDU course by new MTP members.
Bernson sent the below thank you note to Eshenbaugh, and the Institute thanks him for sharing his story: “My name is Whitney Bernson and I’m currently in the Military Transition Program with the REALTORS® Land Institute. I’m just transitioning into real estate and working with my dad to try and get my foot in the door. I spent six years as an Airborne Infantryman between 2004 and 2010. During that time, I was deployed to Iraq for eighteen months, and afterwards I spent twelve months in Afghanistan. During my deployments I spent a lot of time behind a .50 caliber machine gun and walking around high peaks in Afghanistan as a squad leader. My unit suffered a lot of casualties and we came into contact with the enemy on countless occasions. I, myself, was blown up on four separate occasions by Improvised Explosive Devices (IEDs) while driving in a vehicle and sustained multiple injuries. Needless to say, my wife and two daughters are very happy that I made it through those difficult times. My family and I are doing great and looking forward to a wonderful future. I tell you this because I just wanted you to know how grateful I am to be a recipient of your John Eshenbaugh Scholarship. Your generosity is giving me an opportunity to better myself and develop a unique skill set which I otherwise probably wouldn’t have done. Again, thank you so very much!” n
2016 Institute Dates January January 2-10: ALC Advanced Applications Due January 4: Awards Nominations Submitted Land Investment Analysis: HYBRID COURSE Mineral, Oil, and Property Rights: ONLINE COURSE January 18: MLK Day
February Agland Brokerage & Marketing: HYBRID COURSE Google Earth for the Land Professional: HYBRID COURSE February 15: Presidents’ Day
March March 11-13: 2016 National Land Conference: THE BEST STOP HERE! Adolphus Hotel, Dallas, TX Conference White Paper Course Option
April April 21: LET’S MAKE DEAL$ MARKETING SESSION Tax Deferred 1031 Exchanges: HYBRID COURSE New: Strategic Planning for your Business: HYBRID COURSE
May New: Updated Mapping & Practical Navigation: HYBRID COURSE
International Aspects of Real Estate: ONLINE COURSE May 9-14: REALTORS® Legislative Meetings & Trade Expo May 30: Memorial Day
June June 5-13: LANDU Education Week plus, Little Rock, AR Auction Tool: HYBRID COURSE
July July 21: LET’S MAKE DEAL$ MARKETING SESSION Land 101: Fundamentals of Land Brokerage: HYBRID COURSE Marketing Strategies: ONLINE COURSE July 4: Independence Day
August New: Intro to Land Valuation: HYBRID COURSE Essentials of Negotiations: ONLINE COURSE
September INSTITUTE COMMUNITY GIVE BACK September 5: Labor Day Land Investment Analysis: HYBRID COURSE Google Earth for the Land Professional: HYBRID COURSE
October October 20: LET’S MAKE DEAL$ MARKETING SESSION Tax Deferred 1031 Exchanges: HYBRID COURSE Updated Mapping & Practical Navigation: HYBRID COURSE
November New: Strategic Planning for your Business: HYBRID COURSE Transitional Land: HYBRID COURSE November 24: Thanksgiving November 13-16: REALTORS® Conference & Expo
December December 25: Christmas Holiday
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AFFAIRS BRIEFING Russell W. Riggs Institute Government Affairs Liaison National Association of REALTORS®
News and Notes from Inside the Beltway EPA Finalizes WOTUS Rule The EPA and the Army Corps of Engineers Clean Water Rule: Definition of “Waters of the United States” was published in the Federal Register on June 29, 2015. The rule became effective on August 28. The final Clean Water Rule, despite a few changes, would bring under federal jurisdiction all tributaries of streams, lakes, ponds and impoundments as well as wetlands that affect larger downstream waters and has the possibility of sweeping in many other waters on a “case-by-case” basis. The final rule expands federal jurisdiction over more U.S. waters beyond current practice, guidance and the limitations affirmed by two Supreme Court decisions. Property owners still have a lack of clarity about what is needed or required to not be regulated by the Army Corps of Engineers or the EPA under the Clean Water Act. For that reason, the REALTORS® Land Institute will pursue legislative opportunities that would require the EPA to withdraw the rule and start from scratch. The three main areas of the rule include: n 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. Ephemeral drainages (which may flow only for a few hours or days following a rain event) that were historically outside of CWA jurisdiction will now be regulated as tributaries. Because ephemeral features are pervasive on the landscape, particularly in the arid southwest, deeming these typically dry land features “waters of the U.S.” will result in a drastic increase in federal jurisdiction. n New expansive jurisdiction over adjacent waters – The rule
allows for jurisdiction over all waters (not just wetlands) based on adjacency, including ponds, lakes, oxbows, and other similar water features. And the rule’s expansive definition of “neighboring” to include floodplain areas allows the agencies to assert CWA jurisdiction over many isolated features that were not previously regulated, such as isolated industrial ponds, because they are simply located near other “waters of the U.S.” n 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 onerous for applicants to prove (through topographic maps, historic photographs, etc.) that their ditch meets the exclusion criteria. While the EPA and the Corps have gone about finalizing the Clean Water Rule, Congress has been busy moving legislation that would stop or delay the final rule.
n S. 1140, the Federal Water Quality Protection Act, sponsored by
Sen. Barrasso (R-WY), passed out of the Senate Environment and Public Works Committee. Bill requires withdrawal of the rule and sets new criteria for what waters should and shouldn’t qualify for Clean Water Act protection. No timeframe for moving bill to the floor at this time. n H.R. 1732, the Regulatory Integrity Protection Act, sponsored
by Rep. Shuster (R-PA) passed out of the House in May. Bill also requires the withdrawal of the rule and tells the EPA and the Corps to start the process over from scratch. n Both House and Senate Appropriations Committees have passed
bills containing a provision that prohibits the EPA from using any funds in FY 2016 to implement the rule. No timeframe yet for moving the Senate bill to the Senate 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 back to the House floor for a vote. Last but not least, a litigation strategy may be the last line of defense against this harmful rule. Several lawsuits have been filed against the EPA and the Clean Water Rule – one was filed by the U.S. Chamber of Commerce with other organizations and the other was filed by the American Farm Bureau with other organizations. Almost 30 state Attorney Generals have also filed suit against the Clean Water Rule, alleging that the rule infringes on state authority. All the lawsuits seek to have the final rule withdrawn. The REALTORS® Land Institute is exploring options for engagement related to all of these lawsuits.
REALTORS® Land Institute Builds the Case for the Value of Like-Kind Exchanges There has been lots of activity in connection with the 1031 Like-Kind Exchange issue, mainly building the case of the value that like kind exchanges bring to the real estate sector (especially land and real property) and the broad-based economic development that this tax benefit stimulates. An academic study has been finalized and rolled out to the media and policymakers earlier this summer. In addition, NAR conducted a comprehensive member survey on 1031 like-kind exchanges. The survey’s results complement the academic study quite nicely, and unveiling the two at the same time added to the total impact of the briefing and captured more media attention. Both the study and the survey were the subject of a press conference and meetings in Congress with key staff and policy makers in July. The Ling-Petrova study on “The Economic Impact of Repealing or Limiting Section 1031 Like-Kind Exchanges in Real Estate” examined the economic effects of repealing Section 1031 for real estate exchanges. After documenting the widespread use of real estate
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like-kind exchanges, the study developed a model that quantifies the present value (cost) of an exchange to the owner. Overall, the analysis suggests that the cost of like-kind exchanges is likely largely overestimated, while their benefits are overlooked. The elimination of real estate exchanges will likely lead to a decrease in prices, in the short-run, followed by an increase in rents, in the longer run. These negative effects will be more pronounced in high tax states. Elimination will also likely produce a decrease in real estate investment, increase in investment holding periods, and an increase in the use of leverage. The exchange rules often provide a REALTOR® with an opportunity to facilitate two transactions: the sale of the relinquished property and the purchase of the replacement property. Any curtailment of the exchange rules will make both pieces of exchange transactions more difficult to conclude and would mean that many transactions would not take place. The like-kind exchange technique is among the most important of all tax provisions for real estate investors and commercial REALTORS®. Current law provides investors with the maximum flexibility in managing their real estate portfolio, and REALTORS® Land Institute and NAR oppose any change that would undermine the deferral mechanisms associated with exchanges. While no legislation has been introduced in the current Congress (which began in 2013), members of Congress in both Houses and both parties have expressed the desire to overhaul the tax system, and some leaders have indicated that “everything is on the table.” Both the House Ways and Means Committee and the Senate Finance Committee have held wide-ranging discussions and hearings to look at all current-law tax provisions and have both released reports that proposed repealing Section 1031. The Obama Administration’s budget for Fiscal Year 2016 also proposes limits on the deferral provisions of Section 1031. NAR joined with a number of other commercial real estate associations in strongly condemning these proposals as being harmful to economic growth, job creation, and likely to lower property values. While these discussion drafts are a long way from becoming active in Congress, the REALTORS® Land Institute and NAR are working with other interested stakeholders to oppose the repeal of the like-kind exchange provision and to educate Members of Congress and their staffs on the importance of this provision to the economy.
Drones Take Off Through the Exemption Process The Federal Aviation Administration announced earlier this summer that it has surpassed 1,000 approved applications to fly unmanned aircraft commercially under a Section 333 exemption. The FAA has received more than 2,300 exemption applications On July 30, the Association for Unmanned Aerial Systems International (AUVSI) released a report on the first 500 commercial unmanned aircraft systems exemptions. The report indicated that UAS have been approved to support more than 20 industries, spanning almost every state, with real estate supported in nearly a third of all exemptions. Real estate and five other industries are highlighted with a spotlight that includes industry-specific platform data and examples of use cases.
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According to Brian Wynne, president and CEO of AUVSI, “Businesses across every industry sector have been waiting to use UAS for years and are excited to finally get this technology off the ground. From inspecting pipelines and surveying bridges to filming movies and providing farmers with aerial views of their crops, the applications of UAS are virtually limitless and offer a superior way to see what needs to be seen, in less time and at less expense.” However, he says, “This current system of case-by-case approvals isn’t a long-term solution for the many businesses wanting to fly. As an industry, we want to see the integration of UAS proceed and without any further delays,” Wynne said. “The FAA needs to finalize the small UAS rules as quickly as possible. Once this happens, we will have an established framework for UAS operations that will allow anyone who follows the rules to fly.” Neither the Senate Commerce Committee nor the House Transportation and Infrastructure Committee have unveiled their proposals for FAA reauthorization. Between ongoing scheduling issues and deciding how to treat air traffic control, Congress will likely have a short-term extension that may push action on a reauthorization measure into next year, according to Senate Commerce Chairman John Thune. On the regulatory side, the proposed regulations integrating these machines into the national airspace are scheduled to be finalized late in 2016. The regulations as proposed are a positive step forward to helping REALTORS® Land Institute members use drones in their business.
House Passes Healthy Forests Bill The House recently voted to approve the Resilient Federal Forests Act, which will improve forest health and resilience to wildfires by expediting logging sales on national forestland and limiting environmental lawsuits that slow restoration projects. NAR supported this legislation because of the increasing threat of wildfires to private property and buildings adjacent to federal forested areas. NAR will encourage the Senate to take up this legislation as soon as possible. The bill also would ensure the Forest Service has sufficient resources to fight the more frequent and intense wildfires and would allow the Forest Service and Bureau of Land Management to perform shorter environmental reviews for logging projects that are designed to reduce wildfire risks, increase forest resilience to insects and disease and protect water supplies. n
About the author: In his position with the National Association of REALTORS®, Russell Riggs serves as 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 at the 2016 National Land Conference: THE BEST STOP HERE! taking place on March 11-13 in Dallas, TX.
The Shale Real Estate Development Cycle:
Where Do the Major Players Fall? Mike Elliott Managing Principal Energy Real Estate Solutions, LLC
Tom Bradley Executive Vice President Energy Real Estate Solutions, LLC
Real estate development in shale play markets can bring some of the highest returns in North America. Each market is unique, but all lack the necessary infrastructure to sustain the lightning fast growth that has taken place across the last five years. Now is a great time to look for real estate opportunities in these markets – Where do these opportunities lie? Oil prices have forced many developers and investors to the sidelines to allow for market stabilization. In addition, land continues to be hit the hardest amongst all real estate products, highlighting a decline in pricing close to fifty percent in some energy markets. To truly see the light (and the opportunity) at the end of the tunnel, it is especially important to rely on historical data and long-term industry trends. As many of the shale plays have evolved, commonalities in the real estate development cycle have emerged. These trends are excellent indicators to the future of investment and development opportunities. The following highlights key details regarding each major shale play, its placement within the development lifecycle and the current and expected impact of the oil price decline.
Permian Basin Stage 6 – Office Buildings The Permian Basin can trace its roots back to 1925, when the first well was drilled. Reports estimate that the Permian holds approximately twenty-nine percent of estimated future oil reserve growth in the U.S. Midland/Odessa serves as the largest city in the play and has been at the center of oil and gas activity for decades. This longstanding activity has allowed Midland/Odessa to be more prepared for the boom earlier this decade. With over four million square feet of commercial office space in the central business district alone, Midland is unlike any other shale play in the U.S. Oil Price Impact? Due to declining oil prices and other related factors, the rig count is down fifty-two percent from the same time last year. This will impact demand across all real estate products and has already yielded a steady decline in the residential market. Home sales are at a five year low, however, commercial real estate continues to see very little vacancy. In terms of new development, those finalizing new hotels and multi- or single-family housing projects may wish for better timing; however, there is still enough demand to drive success. The impact on land prices in the Permian Basin has been relatively insignificant; however, this is not attributable to resilience within the West Texas market. The Permian Basin and the surrounding area has proven to be landlocked even prior to the decline in oil prices. Therefore, this shale play never experienced a land-related boom or the corresponding bust that other markets have seen.
Eagle Ford Stage 3 – Hotels/Industrial Development The Eagle Ford sprawls across South Texas from the border at Laredo to north of Austin. It was first developed as a natural gas play around 2008. In 2011, the Eagle Ford emerged as the highest in capital spending among all U.S. shale plays. Then, in mid-2014, output rose to 1.4 million barrels per day, putting it ahead of the Bakken and second only to the Permian Basin. The Eagle Ford has had a multi-billion dollar impact on the local South Texas economy and quickly created over one-hundred thousand jobs within its twenty-county area. Similar to the Bakken, the Eagle Ford is responsible for building cities. With little to no infrastructure available when this market boomed earlier this decade, housing inventory was a significant problem. Less expensive workforce housing communities began to pop up and were quickly filled to capacity. Today there is little to no vacancy within most commercial real estate products and numerous opportunities exist to capitalize on this under-saturated market. Oil Price Impact? The rig count is down forty-three percent in the Eagle Ford from this time last year, however, demand for more pipeline construction continues (an estimated $135 billion of future projects). The market will benefit from this trend, providing another catalyst to drive significant activity within the land development and commercial real estate markets.
Bakken Stage 5 – Retail Spanning North Dakota, Montana, Saskatchewan and Manitoba, the Bakken has approximately nine thousand wells, with estimates prior to the recent dramatic shift in oil prices highlighting potential growth between fifty thousand and one-hundred and fifty thousand wells. With key areas in the Bakken projecting some of the most significant population growth estimates in the U.S. and Canada, the highest industrial, retail, office, and residential rates in the U.S., and some of the lowest unemployment and vacancy rates, a need for increased infrastructure and support will be key to supporting the future development of this rural energy market. Development of multi-family communities has been significant and the retail sector is now starting to take shape. With multiple $100 million retail/multiuse projects underway, the Bakken has gone through each phase of the shale play life cycle faster than any other market. Oil Price Impact? There is no question that the oil price decline has impacted the pace of development in the Bakken. However, this market continues to be very strong with housing rates remaining high and industrial lease rates in the eighteen dollar NNN range. That said, raw land has been hit fairly hard. Developers are not keen on horizontal development as capital becomes harder to secure.
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Niobrara Stage 5.5 – Between Retail and Office The Niobrara is primarily situated in northeastern Colorado but spans into parts of adjacent Wyoming, Nebraska and Kansas. Since 2009, oil production in Colorado has risen over forty-six percent. Productivity in and around the Niobrara shale formation is in its early stages but business is booming. Infrastructure challenges and shortfalls in the Niobrara’s most active drilling zones are not as significant as in other shale plays due to its close proximity to a major metropolitan area (Denver). However, companies are quickly buying land for future drilling activity and the development of additional supporting infrastructure. The Niobrara has been compared by some to the Bakken shale formation farther to the north. However, since drilling and logistics in the Niobrara are far less expensive than the Bakken, the Niobrara is often seen as a “land of opportunity”, particularly during unstable economic times in the energy industry. The Weld County market, in particular, has seen an enormous amount of development over the last five years directly linked to oil and gas activity. Many big fast food chains, retail stores and car dealerships have found new homes in the Greeley, Colorado area which has prompted a revitalization of the area. Oil Price Impact? Interestingly, the Northern Colorado market continues to be very strong and has not yet felt a major impact from a real estate perspective. Time will tell, but with a high quality of life and a more diversified economy than other shale plays, the impact of the decline in oil prices is likely to be tempered. Currently, speculative developments are not quite as common in this market from an industrial and office perspective. However, as oil prices stabilize we suspect more developers to test this very strong market. Regarding land prices, northeast Colorado is one of the few energy markets where minimal impact has been felt as a result of declining oil prices. Pricing for industrial zoned raw land generally sits above two dollars per square foot and improved land hovers above three dollars and fifty cents per square foot. Thus, the Niobrara provides great opportunities to invest in land development.
STACK, SCOOP, Mississippian, Cana Woodford – Oklahoma Between Stage 3 & 4 – Hotels & Multifamily As a state, Oklahoma sits behind only Texas in the number of active rigs. With so many different shale plays, the activity is dispersed across the entire state. From a real estate perspective, this makes assessing the available opportunity challenging. Towns like Purcell, Cushing and El Reno have all experienced sky rocketing property values. Since these markets are in close proximity to a larger metropolitan market (Oklahoma City/Tulsa), the development of new multi-family, retail and office builds will be limited. Oil Price Impact? From an industrial perspective, lease rates never jumped through the roof like they did for Bakken or South Texas. Vacancy rates have remained steady around nine percent and rates for flex industrial space sit in the six to nine dollars per square foot range. As drilling
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activity has picked up across the last few years, many users were able to retro-fit existing industrial space reducing the need for speculative development and new builds. From a high level, real estate development will be steady and will continue to improve as oil prices rise and stabilize.
Marcellus Stage 5.5 – Between Retail and Office The Marcellus Shale is the second largest pure gas play in the world spanning Pennsylvania, Ohio, West Virginia, New York and Maryland. Since the Marcellus is a gas play, it has not seen the dramatic decrease in rig activity like many oil/liquid plays and is currently down only twenty percent from this time last year. With much of the activity taking place so close to the Pittsburgh metropolitan area, a nice economic windfall has been created for The Steel City. There has not been quite as much speculative building in this market due to a number of factors including its challenging topography, low natural gas prices and political tension. Oil Price Impact? The Marcellus is another major energy market where land prices have not been heavily impacted by declining oil prices. This is primarily due to higher population density, a challenging topography and a lack of developable land.
What lies ahead? For current or speculative land owners in these markets, now is a great time to recalibrate your business strategy. Those with large parcels of land for sale should consider strategically subdividing to increase the price per square foot and drive up buyer activity. Inevitably oil prices will stabilize and rise. Those land owners who will succeed now, and when the energy markets turn around, will be those who understand the nuances of the shale markets, recognize the likelihood for future growth despite current challenges, and respond accordingly to capitalize on trends. n
About the author: Mike Elliot is the Founder and Managing Principal at Energy Real Estate Solutions, LLC. Elliot has over twenty years and more than five billion dollars of diversified national and international real estate experience. He is a licensed real estate broker in Colorado, Montana, Nebraska, North Dakota, and South Dakota.
About the author: Tom Bradley is the Executive Vice President of Energy Real Estate Solutions, LLC. Bradley is a real estate consultant, specializing in the energy industry with specialized expertise in helping clients navigate the complexities of rural energy markets.
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倀爀漀瀀攀爀琀礀 䔀氀椀最椀戀椀氀椀琀礀 匀瀀攀挀猀 ∠ ㈀㔀⬀ 挀漀渀琀椀最甀漀甀猀 愀挀爀攀猀 眀椀琀栀 栀漀洀攀 ∠ 倀爀椀洀愀爀礀 愀渀搀 猀攀挀漀渀搀愀爀礀 爀攀猀椀搀攀渀挀攀猀 攀氀椀最椀戀氀攀 ∠ 䰀漀愀渀猀 猀琀愀爀琀 愀琀 ␀㈀㔀 Ⰰ 愀渀搀 甀瀀
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The Impacts of Business Coaching for Farm and Ranch Agents Kasey Mock Director of Farm & Ranch Keller Williams Realty International
Karen Brown Business Production Coach Keller Williams Mega Agent Production Systems (MAPS)
While the concept of using a business production coach has been around for a long time, the concept of using a coach to support your rural land real estate business and production goals is recently catching on. In an industry that might be described as “Lone Rangers in real estate,” business coaching could be the difference-maker for land specialists in the future.
Coaching Increases Productivity and Net Profits by as Much as Two-Hundred and Eighty-Three Percent Ever had one of those days where you felt like you couldn’t get the most important things accomplished because of constant interruptions? We all have. Have you ever quantified what this lack of production is costing you? The typical business owner only achieves sixty to seventy percent of their annual goals; so, at the very least, diversions are costing you thirty to forty percent in production and revenue. How much is that? You do the math, right now. Here’s a sobering truth: The difference between those who are achieving their goals and those who aren’t, is the ability to master their use of time. Those who are achieving their goals are able to minimize time spent off track and focus on the primary activities that allow them to reach their goals. Here’s what we know: We have four thousand thoughts per day, plus emails, text and voice messages, phone calls, meetings, advertisements coming at us and continual interruptions vying for our time. A qualified business coach will help you identify the key things that lead to increased production and the systems to help minimize diversions. What would your production and net profits look like if you spent the bulk of your time on the tasks that will achieve onehundred percent of your goals? To take it a step further, how much more time would you have for other important things in your life, like family, friends, interests? Let’s rein this in to real estate terms. According to a national study, real estate agents that are coached see two-hundred and eightythree percent higher productivity rates than agents who aren’t. So, take out your calculator and multiply your current level of production by two-hundred and eighty-three percent. What would that level of production do for your real estate sales business? Let’s discuss net profit for a minute as a bi-product of higher production and revenue. Just because your production and revenue increases, doesn’t mean your net profit will too. Your business coach can help by reviewing your profit and loss statement on a consistent basis to determine the return you are getting from each dollar spent and the costs associated with each transaction. Maintaining net profitability in your business is something that is learned, not something most of us do innately.
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Coaching is Accountability The definition of accountability is: to answer for. In business coaching, it is about defending your activities to an objective observer. “By having someone invested in the outcome, through a relationship as a coach and an accountability partner, has rocked my business and personal world. To be held accountable by a respected peer, that walks this journey with me, raises the bar and helps me identify solutions, is remarkable.” -Tara Stark, Farm and Ranch Agent/Owner, Keller Williams Realty A weekly session with your coach is going to hold you accountable to the activities you committed to. You won’t want to disappoint your coach (or yourself for that matter) by not getting your most important things done. You will do whatever it takes to complete your important tasks, thereby moving your business forward every week. Without a coach, how many consistent weeks can you honestly say you have moved your business forward?
Coaching expands your thinking - Permeates your life I have had clients say, “I heard your voice in my ears and you asking me questions like: ‘will doing this get you closer to or further from your goal?’” It allowed the client to spend less time in diversion, and more time on production. Coaching heightens your awareness. “The mindset awakened by an educated focus on building a business
naturally flows into other areas of my life. I find myself more aware of my time when I’m not working, choosing activities which are beneficial emotionally, physically, or spiritually. I’ve always strived for those things, but coaching and other activities, like a frequent consumption of business and personal growth literature, has made the decision for productivity almost subconscious...” - (Tomas) Craig Bowen, Plateau Land Group/Keller Williams Here is another impact of utilizing a business coach. When you achieve incremental goals on a regular basis, you allow your mind to think about taking the next step and build on your achievement. As your thinking grows and expands, your coach will challenge you to think even bigger; for instance: n What is the highest number of listings you’ve ever had? n What if you could double that? What would it take? n How would you approach it? n What if you asked yourself: “what will it look like to double my
highest number of listings?” Your coach will foster these questions and the brainstorming that will produce the answers and change your financial future. Another way to look at this is not continuing to do things the same way year after year (because that’s the way you’ve always done them in the past); which brings the same results. A coach will challenge you to look at things differently and to continually expand your thinking. Lastly, a coach will look at the environment you are in. Is it one that is feeding a healthy, growing company, or are you surrounded by people who do the same thing over and over year after year? Why not immerse yourself in a culture that fosters increased production, accountability and expansive thinking? A lot can be learned from other highly productive real estate and business professionals, and a qualified coach will filter this information to you. The positive benefits of business and production coaching are proven in residential real estate, and we believe it will revolutionize the land business. n
About the author: Kasey Mock is the Director of Farm & Ranch at Keller Williams Realty International. Mock is also a founding partner in Plateau Land Group, LP serving buyers and sellers of premier Texas Land.
About the author: Karen Brown is a coach with Keller Williams Mega Agent Production Systems (MAPS) Coaching. Brown challenges and empowers clients to breakthrough and reach their potential.
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best the stop here
Registrations are strong for the 2016 National Land Conference. The 2016 lineup includes general sessions led by world-renown experts in their fields, more breakout sessions, the Greatest Cowboy Auction on Earth III, the Letâ&#x20AC;&#x2122;s Make Deal$ LIVE Marketing Session, the Denim in Dallas Bash, and unlimited networking opportunities that will build lasting connectionsâ&#x20AC;&#x201D;and business. Learn, network, and make deals! If you have not already registered for this must attend, one-of-a-kind conference, visit http://nationallandconference.com/ or call 1.800.441.5263.
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Schedule of Events*
SATURDAY, MARCH 12
*Cancellation Policy: The Institute reserves the right to cancel or 7:00-8:00 a.m. reschedule the conference or individual sessions at anytime.
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 8:00 a.m. 8:00 a.m.-3:15 p.m.
Registration Opens Partner Exhibits Open
Building Business Plans Marilyn Wilson, Founding Partner, Wav Group 10:00-11:00 a.m. Technology Use for Your Business Nobu Hata, Director of Member Engagement, NAR 11:30 a.m.-1:00 p.m. Building Identity Marshall Brown, Founder and CEO, Marshall Brown & Associates, Inc.
FULL CONFERENCE BEGINS Let’s Make Deal$ LIVE Session
Presented by LandBrokerWebsites.com
4:15-5:30 p.m. 4:15-4:25 p.m.
Bill Eshenbaugh, ALC & Ben Crosby, ALC
Welcome & Awards Ceremony Introduction and Pledge Cathy Cole, ALC Advanced, President, Texas Institute Chapter Welcome Dallas Association of REALTORS® Institute Welcome Michele Cohen, CEO / EVP, REALTORS® Land Institute Passing of the Gavel Ceremony Terri Jensen, ALC Advanced, 2015 Institute Immediate Past President, REALTORS® Land Institute Awards Ceremony Bob Turner, ALC Advanced, 2016 Institute President, REALTORS® Land Institute Best Pitch Networking Contest
4:25-4:30 p.m. 4:30-4:40 p.m. 4:40-4:50 p.m.
Presented by AgAmerica Lending
3:00-3:45 p.m. Take Your Pick Break-Out Sessions V • Building a Global Client Base for U.S. Property: TBD • Drone Use Strategies in the Land Business: Clover Carroll, Owner, New Story Media • PR to Build ROI: Karla Jo Helms, CEO, JoTO Public Relations • How To Build a Winning Team: Dan Perez, Broker/ Owner, Whitetail Properties 4:00-4:45 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 5:00-5:45 p.m. Take Your Pick Break-Out Sessions VII • Building a Business Website for Success: Jay Taylor, MBA, Managing Director, Leverage Digital • News on the Hill: Russell Riggs, Institute Legislative Staff Liaison, NAR; Evan Liddiard, Senior Policy Representative, NAR • 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
Partner Appreciation Breakfast for All Partner Exhibits Open 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 9:30-9:45 a.m. Partner Visits 9:45-10:30 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 10:45-11:30 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., Partner, Morrison, Frost, Olsen, Irvine, & Schwartz, LLP • An Overview of Wood Energy in North America: Presented by Williams & Williams Richard Vlosky, PhD, Director, Louisiana Forest 8:00-10:00 p.m. DENIM IN DALLAS Bash Products Development Center Featuring The Redwine Band • Negotiating Oil and Gas Leases and Surface Use Agreements: Ezra Johnson Esq., Partner, Uhl, Fitzsimons, Jewett & Burton, PLLC 11:30 a.m.-12:15 p.m. Take Your Pick Break-Out Sessions III • Wood Pellets: A Game Changer in the Global Forest 8:00-10:00 a.m. Round Table Topics Breakfast Products Market: Richard Vlosky, PhD, Director, Presented by Famers National Louisiana Forest Products Development Center • The Activist Client: Terri Jensen, ALC Advanced • Climate Sceptic: The Spin on Climate Change: • 1031 Tax Exchanges: Jim Miller, Esq. Mark Morano, Executive Director and Chief • Land Valuation: Boyd Harris, ALC Correspondent, The Climate Depot • Drone Techniques for the Best Coverage: Clover Carroll • Implication to Proposed Tax Reform to Commercial • Predictions for the Future of the Land Brokerage Real Estate: Ryan McCormick, Esq., Vice President & Business: Aaron Graham, ALC Counsel, The Real Estate Round Table • Eminent Domain: Scott Doggett, Esq. • Negotiating Oil and Gas Leases and Surface • Riparian Rights: Dan Dalton, Esq. Use Agreements: Ezra Johnson Esq., Partner, Uhl, • Don’t Be Held Hostage By Your Website Company: Fitzsimons, Jewett & Burton, PLLC Mike Ciesiensky 12:30-1:45 p.m. ALC Recognition Luncheon • PR for Success: Karla Jo Helms Presented by Garden & Gun Land • Connecting with International Clients/Investors: TBD 1:45-2:00 p.m. Partner Visits • Tax Implications of Commercial Real Estate: Ryan 2:00-2:45 p.m. Take Your Pick Break-Out Sessions IV McCormick, Esq. • Land Development: Dan Dalton, Esq., Partner, • On the Hill: Russell Riggs Dalton & Tomich, PLC • Effective Business Websites: Jay Taylor • PR to Build ROI: Karla Jo Helms, CEO, JoTO Public • Transitional Land: Jesse Armistead, ALC Relations • Putting the Benefits of the Institute to Work: Jessa Bertinetti • Building a Global Client Base for U.S. Property: TBD More sessions to be announced • • Agritourism: What It Is and How It’s Working: 8:00-10:00 a.m. Key Note Speaker-TBD Martha Glass, Executive Director, National Agritourism Professionals Association • Real Estate Auctions: The Increasing Role of Liquidity: www.NationalLandConference.com Dean Williams, Chairman & Co-Owner, Williams & Williams Host Hotel: 7:00 a.m.-5:00 p.m. 8:00-9:30 a.m. 8:00-8:45 a.m.
Sunday, March 13
Full details at:
The Historic Adolphus Hotel
*Cancellation Policy: The Institute reserves the right to cancel or reschedule the conference or individual sessions due to unforeseen circumstances. Registration fees, less a $175 cancellation fee, are refundable if written notice is received prior to February 15. After February 15, no refunds will be issued. The Institute is not responsible for nonrefundable airline tickets or related expenses.
BIG CONFERENCE EVENTS Denim in Dallas Bash
Get your cowboy boots and denim attire ready! Attendees are in for a night full of live country music by the Redwine Band, networking, hors d’oeuvres, drinks, and fun! The DEMIN IN DALLAS BASH will be an event that attendees won’t soon forget. The BASH will take place on March 12 at 8:00 pm following the wrap-up of The Greatest Cowboy Auction on Earth III. Get ready to turn up the networking and turn up the fun as we turn up the music! This event is ticketed, so be sure to register!
Let’s Make Deal$ LIVE
Claim your place in the spotlight! Participate in a live Haves and Wants session and a land listing marketing session at the 2016 National Land Conference: THE BEST STOP HERE! For the first time in Institute history, the NEW Let’s Make Deal$ Marketing Session, presented by LandBrokerWebsites.com, will be hosted as a LIVE event for all conference attendees. The best-in-the-business pros, Bill Eshenbaugh, ALC, President of Eshenbaugh Land Company and Ben Crosby, ALC, owner of Crosby & Associates Inc. will lead this unique marketing opportunity.
The Greatest Cowboy Auction on Earth III
Kick up dust at The Greatest Cowboy Auction on Earth III! THE GREATEST COWBOY AUCTION ON EARTH III, presented by Williams & Williams World Wide Real Estate Auction, will be at its biggest and best in 2016. The 2016 Institute Auction Team is coming up with ways to bring the auction to a whole new level! Artwork, vacations, subscriptions, gift cards, hunting and fishing trips, hotel room accommodations, antiques, jewelry, belt buckles, course scholarships and more are welcome to be put up for auction–start dreaming ideas up now!
16 Fall 2015
2016 NATIONAL LAND CONFERENCE DALLAS, TEXAS • MARCH 11-13, 2016
The REALTORS® Land Institute extends special recognition to the partners of the 2016 National Land Conference: THE BEST STOP HERE! for their commitment to the organization and to land. PLATINUM PARTNER
LET’S MAKE DEAL$ LIVE PARTNER
Fall 2015 17
Member News The Institute is pleased to recognize the below members for their outstanding accomplishments and contributions.
Bill Eshenbaugh, ALC, Broker/Owner, Eshenbaugh Land Company of Florida, received the Regional Land Top Producer Award during the 2014 Pinnacle Awards presented by the FL Gulfcoast Commercial Assn. of REALTORS® and the FL Gulfcoast Commercial Assn. of Real Estate Professionals.
Brian Andrus, ALC, Owner, Stonebridge Real Estate, received the Deal of the Year Award and the Regional Investment #2 Award during the 2014 Pinnacle Awards presented by the FL Gulfcoast Commercial Assn. of REALTORS® and the FL Gulfcoast Commercial Assn. of Real Estate Professionals.
Aaron Graham, ALC Advanced, Owner/Broker, Land Pros Realty, was appointed Chair of the Professional Standards Task Force. Graham is also Vice President of the Future Leaders Committee and an active member of the Institute Board of Directors.
Chris Bowers, Broker, Eshenbaugh Land Company, received the Million Dollar Producer Award during the 2014 Pinnacle Awards presented by the FL Gulfcoast Commercial Assn. of REALTORS® and the FL Gulfcoast Commercial Assn. of Real Estate Professionals.
George Harvey, Owner/Broker, The Harvey Team, is a candidate for Regional Vice President (Region XI) of the National Association of REALTORS® (NAR). Regional Vice Presidents are an information conduit to and from NAR to their regional states.
Ray Brownfield, ALC Advanced, Owner, Land Pro LLC., was showcased on This Week in Agribusiness in April and May. Brownfield discussed the impacts of an increase in non-farming land investors as well as lower interest rates and commodity prices for the land sales market. Brownfield is also the Chair of the Institute Military Transition Program.
David Hitchcock, ALC Advanced, Certified Commercial Investment Member, Coldwell Banker Commercial Saunders Real Estate, LLC., FL Chapter President, was a presenter at the FL REALTORS® Annual Meeting in Orlando, FL, on Florida Land Values.
George Clift, ALC Advanced, 2015 Immediate Past President, Owner, Clift Land Brokers, was a featured presenter at the RE/MAX R4 Convention, as a result of the Institute’s strategic alliance with RE/MAX. Clift spoke on Land: The Core of Building Business and explained the benefits of the Institute and the designation.
Terri Jensen, ALC Advanced, 2015 Institute President, Real Estate Investor Relations & Appraisal Manager, Farmers National Company, represented the Institute in D.C. on March 17-18 to educate lawmakers on the reasons to block the repeal of the 1031 Like-Kind Exchange tax code.
Daniel Crocker, ALC, Owner, Crocker Realty, was selected as the 2014 Thomasville Area Board of REALTORS® REALTOR® of the Year. This is the second time Daniel has been named REALTOR® of the Year by his local board. Crocker is the past president of the Georgia Institute Chapter.
Jared Martin, Broker Associate, Keller Williams, was elected 2016 Treasurer of the California Association of REALTORS® (CAR). Martin is an NAR Golden R recipient and in the NAR President’s Circle.
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Mark Cumbest, ALC, Owner, Cumbest Realty Inc., was recently recognized by the FL Gulf Coast Assn. of REALTORS® as the Top Seller of Commercial Properties in 2014 winning the Commercial Platinum and the Commercial Emerald awards.
Caleb McDow, Land Specialist, Crosby & Associates, is the third REALTOR® in the state of Florida, and one of only eighteen REALTORS® nationwide, to receive an exemption from the Federal Aviation Administration to fly a drone for commercial purposes.
Bruce Erhardt, ALC, received the National Land Top Producer #2 Award during the 2014 Pinnacle Awards presented by the FL Gulfcoast Commercial Assn. of REALTORS® and the FL Gulfcoast Commercial Assn. of Real Estate Professionals.
Ryan Sampson, ALC Advanced, Broker-Associate, Eshenbaugh Land Company, received the Regional Land Top Producer #2 Award during the 2014 Pinnacle Awards presented by the FL Gulfcoast Commercial Assn. of REALTORS® and the FL Gulfcoast Commercial Assn. of Real Estate Professionals.
Dean Saunders, ALC, Owner, Coldwell Banker Saunders Real Estate, was named the highest producer for Coldwell Commercial and is the First Place Winner of the Top Five Sales Professional Awards. He also received the Overall Top Producer Award presented by the FL Gulfcoast Commercial Assn. of REALTORS®. Danny Smith, ALC Advanced, Owner/Broker, Smith & Smith Realty, received the 2014 Deal of the Year Award from the Central FL Commercial Assn. of REALTORS®. In August, Smith won the 2015 Commercial REALTOR® Achievement Award from the FL REALTORS®. He is the Chair of the ALC Accreditation Committee of the REALTORS® Land Institute. Jeramy Stephens, ALC Advanced, Owner /Broker, Mossy Oak Properties of Stuttgart, will be a featured presenter at the 2015 REALTORS® Conference and Expo in San Diego, on November 13 on Land: Investment Opportunities. Stephens is the President of the Institute’s new Arkansas Chapter. Nancy Surak, ALC Advanced, Broker-Associate, Eshenbaugh Land Company, received the Land Deal of the Year Award, the Overall Deal of the Year Award, and the Regional Land Top Producer #3 Award by the FL Gulfcoast Commercial Assn. of REALTORS®. Clay Taylor, ALC, Real Estate Sales Associate, CBC Saunders Real Estate, earned the honor of placement in the Circle of Distinction with a Bronze sales award from Coldwell Banker Commercial. Taylor is the Treasurer of the FL Institute Chapter.
Bob Turner, ALC Advanced, Owner/Broker, Southern Properties, presented at the meeting of the Northern California Commercial Assn. of REALTORS® explaining the Institute and the value of the designation. Turner also presented at the NAR Leadership Summit in Chicago, Illinois, on the importance of building relationships with lawmakers.
ALC Networking Retreat n Leadership session n Aim to Win—Shooting Range Competition n Tour of the Jim Beam Distillery n Food and Beverage n Business Building
For more information and to register, visit www.rliland.com/alc-networking-retreat or call 1.800.441.5263.
The Institute is as Strong as its Membership Last year was a record breaking year for the Institute with 201 new members. The Institute is shooting even higher this year, aiming at a goal of 225 new members--and is on its way to reaching that goal with over 175 members so far. Thank you to all of the current members who spread the word to help bring in new members. Members can contribute to building the strength and voice of the Institute by becoming an Ambassador. Ambassadors can also earn money as a thank you for helping to build the Institute: n Recruit two new members by the end of 2015: Receive
gift card n Recruit three to four new members by the end of 2015: Receive
$100 cash gift card n Recruit
five new members by the end of 2015: Receive front page listings on THE LAND CONNECTIONS for one month in 2015 and a $200 cash gift card
Membership Ambassadors The Institute is as strong as its membership. A special thank you to the following Ambassadors who brought new members to the Institute in 2015: Amber Johnson Ben Crosby, ALC Ben Van Dyk Bill Luedecke Brad Van Weelden, ALC Brandon Stafford Brian Rose Brian Smith Cathy Cole, ALC Advanced Clover Carroll Cory Clark Dale Fulk, ALC Dan Perez Dan Ward, ALC Dave Milton, ALC Dean Saunders, ALC Eric Schlutz, ALC Advanced Gar Lile George Clift, ALC Advanced Howard Halderman Jacob Casanova, ALC Jason DurJava, ALC Jeff Bernson, ALC Jeffery Waddell, ALC
Jeramy Stephens, ALC Advanced John Dean Jr., ALC Advanced Julian Morgan Kurt Hollenberg Lance Langenhoven, ALC Lar Voss Lou Jewell, ALC Maggie Thomas Michael Lauher Molly Suarez Patrick Karst, ALC Rick Merrill, ALC Sandra Bahe, ALC Scott Pumroy Shawn Keefe Sheldon Snyder, ALC Sherman Shanklin Stefanie Cobb Steve Anderson, ALC Advanced Tom Morse Tom Smith, ALC Advanced Woody Fender, ALC Zurick Labrier, ALC Advanced
Fall 2015 19
Chapter News Texas Chapter The Texas Chapter has provided three LANDU classroom courses so far in August 2015. Mineral, Oil and Property Rights and Marketing Strategies and Th e Land 101: Fundamentals of Land Brokerage. The Chapter plans to provide Essentials to Negotiations and Google Earth classroom courses before the end of the year. During the Texas Association of REALTORS® Conference in Fort Worth, Texas, the following 2016 officers were sworn in: Cathy Cole, ALC Advanced, 2016 Texas Chapter President Minor Taylor, ALC Advanced, 2016 Texas Chapter President-Elect Marc Bradberry, 2016 Texas Chapter Secretary Rick Doak, 2016 Texas Chapter Treasurer The Texas Chapter thanks Rusty Lowe, ALC Advanced ,for his two years of service as chapter president.
Led by the Wyoming Chapter President, Chia Valdez-Schwartz, the Wyoming Institute Chapter hosted a meeting in February. Special guest Rob O’Neill, a Montana native who was part of the military operation to capture Osama Bin Laden, discussed leadership and decisionmaking in uncertain environments. .
Iowa Chapter In January, the Iowa Chapter #2 hosted a discussion on Land Trends led by Kyle Hansen, ALC Advanced, the Chapter’s Land Trends Chair. The Chapter also hosted a Land Trends & Values Press Conference and held their Iowa Chapter Annual Dinner in September during which inductions took place. Terri Jensen, ALC Advanced, 2015 Institute National President, swore in the following members at the dinner: Eric Schultz, ALC, 2016 Iowa Chapter Past President Chris Smith, ALC, 2016 Iowa Chapter President TBD, 2016 Iowa Chapter President-Elect Matt Adams, 2016 Iowa Chapter Vice President
Kansas and Colorado Chapters Joint Meeting In July, the Kansas and Colorado Chapters held their first joint chapter meeting in Goodland KS, across the eastern border of Colorado. Together, they participated in a joint marketing session reviewing the region’s agricultural offerings and discussing market trends both in real estate and commodities. The chapters toured the Homestead Ranch where they learned how to incorporate Holistic Management principles into their land, animal and business decisions.
20 Fall 2015
Join the Conversation: Get Social The Institute is social! The latest industry news and updates as well as Institute event announcements can be found by following us. Add to that the ability to market yourself as an expert by sharing and joining discussions on the Institute social media sites and you have winning tools. Follow the Institute on the following: A little birdie told us that “The 2016 National Land Conference hashtag (#) will be #16NLC. LinkedIn Follow the Institute on our NEW Company LinkedIn Page for the latest industry updates and Institute news! WordPress Blog Read the latest blog post at www.rliland.wordpress.com Facebook Join conversations about hot topics like How do I Find Out If I Own Mineral Rights? Twitter Stay in the loop with daily tweets from the Institute like “Four #Land Trends Worth Watching | Ag Land Values are Decreasing, Yet Quality Land Retains its Value. #agriculture”
Accredited Land Consultants
Only the best will do when buying land. Use the best -- use an Accredited Land Consultant. The future depends on it! When buying or selling contact the highest performing, most knowledgeable, and most trusted professional. Contact an ALC.
REALTORS速 Land Institute 430 North Michigan Ave., Chicago, IL 60611 P: 1.800.441.5263 | E: email@example.com www.rliland.com | www.thelandconnections.com
Visit www.rliland.com to find an ALC or learn how to obtain the ALC designation.
Congratulations to the newest Accredited Land Consultant (ALC) Designees of the REALTORS® Land Institute Albert Allen, ALC Allen Realty Advisors Houston, TX 281-496-7621 firstname.lastname@example.org Albert Allen, ALC, is an appraiser and real estate agent in Houston, TX. Experienced in commercial appraisals, he specializes in farms and ranches throughout South Texas as well as transitional land in the Houston Metro area. Allen is an author and lecturer on appraisal, right of way and eminent domain litigation. Brian Andrus, ALC Stonebridge Real Estate Co., Inc. Clearwater, FL 727-443-5000 email@example.com Brian Andrus, ALC, has developed a reputation for service and results in Tampa, Florida. His brokerage is currently on the Top 25 List for Commercial and Residential Real Estate in the Tampa Bay Business Journal. Blair Bachman, ALC Texas Diamond Properties New Braunfels, TX 210-643-5263 firstname.lastname@example.org Blair Bachman, ALC, is a licensed Real Estate Broker and the owner of Texas Diamond Properties, LTD (TDP). The company’s primary focus is land planning, development and sales of rural properties in the Central Texas Region with an emphasis on the Texas Hill Country. Casey Berley, ALC Hortenstine Ranch Company Rockwall, TX 214-422-7253 email@example.com Casey Berley, ALC, is dedicated to assisting both buyers and sellers of farm, ranch, and recreational land located in Oklahoma and Texas. Berley is impassioned by meeting the needs and goals of his clients. Jeffrey Bernson, ALC JHB Realty Advisors, Inc. Midvale, UT 801-550-2515 firstname.lastname@example.org Jeffrey Bernson, ALC, bases his business models on understanding and implementing a strategic plan of acquisition, entitlement, development and disposition of real estate assets. Bernson’s knowledge in superfund and brownfield sites is invaluable when working with clients’ legal and environmental professionals to navigate the EPA.
22 Fall 2015
Steve Bilicek, ALC Texas Ag Realty Richmond, TX 281-615-8117 email@example.com Steve Bilicek, ALC, is the owner of Texas Ag Realty providing real estate consulting and brokerage services. Bilicek understands that buying or selling a ranch can be a complex process. He strives to simplify the process and to provide each client with a personal, professional experience. Jason DurJava, ALC Century 21 M&M Associates Turlock, CA 209-633-1826 firstname.lastname@example.org Jason DurJava, ALC, has been active in all aspects of real estate and has knowledge and experience in residential and agricultural properties. DurJava provides his clients the commitment to outstanding service from start to finish on every transaction. Clint Flowers, ALC A&M Forest Consultants Mobile, AL 251-387-0787 email@example.com Clint Flowers, ALC, is a multimillion dollar producer in his service area and a board member of the REALTORS® Land Institute of Alabama. He has a strong background in Investment Management to help clients reach goals. Chip Fortenberry, ALC Crosby & Associates, Inc. Winter Haven, FL 863-293-5600 firstname.lastname@example.org Chip Fortenberry, ALC, specializes in Florida agriculture and commercial real estate. Backed with years of experience in citrus production, Fortenberry expertly assists his clients in finding their ideal real estate investment and qualified property buyers. Carell Freeman, ALC Humble, TX 281-844-3130 email@example.com Carell Freeman, ALC, is the owner and broker for a farm management and real estate services company in Humble, Texas. He manages farm and ranch properties under contract retainer. He brokers farms and ranches in the Southeast and coastal bend areas of Texas.
Boyd Harris, ALC Farmers National Company Centralia, MO 573-682-6500 firstname.lastname@example.org Boyd Harris, ALC, is an Appraiser licensed broker, and auctioner located in Missouri. His primary focus is on agricultural properties, agri-business facilities such as grain elevators, and specialized livestock production facilities. Mike Matre, ALC Matre Forestry Consulting, Inc. Albany, GA 229-639-4973 email@example.com Mike Matre, ALC, is the President of Matre Forestry Consulting, Inc. Matre is a Georgia & Alabama Registered Forester, a Georgia & Alabama Real Estate Broker. Mehdi, Mostaedi, ALC NAI Capital Victorville, CA 760-559-6807 firstname.lastname@example.org Mehdi, Mostaedi, ALC, brings knowledge and experience. His projects have included a master planned residential community, an executive resort, and a conference center and golf course in Reno, Nevada, which included the largest rightof-way acquisition in Nevadaâ&#x20AC;&#x2122;s state history. Chris Peacock, ALC Halderman Real Estate Services, Inc. Winchester, IN 765-584-2227 email@example.com Chris Peacock, ALC, serves clients in East Central Indiana and West Central Ohio performing services in real estate, farm management and appraisals. Peacock has a strong background in Agricultural Economics. Calvin Perryman, ALC Great Southern Land Camden, AL 334-682-9825 firstname.lastname@example.org Calvin Perryman, ALC, has a deep knowledge in land, farming, timber production, and deer and turkey hunting. Perryman is skilled in GIS mapping. He is the youngest ALC in the State of Alabama and the fourth youngest in the Nation.
Jason Robbins, ALC RE/MAX Central Realty Asheboro, NC 336-465-2321 email@example.com Jason Robbins, ALC, is committed to helping customers reach their real estate goals through an honest and direct approach. His specialties include development land, farm land, horse property, investments, and lake/beach property. Bill Sheridan, ALC Sheridan Realty and Auction Co. Mason, MI 517-676-9800 firstname.lastname@example.org Bill Sheridan, ALC, is the President and CEO of Sheridan Realty and Auction Co. He conducts livestock, real estate, and farm machinery auctions. Sheridan is also the Vice President of Brokerage Land Co. in Jackson, Michigan, specializing in multi-tract land auctions. Debbie Solano, ALC Coldwell Banker Select Tulsa, OK 918-724-8201 email@example.com Debbie Solano, ALC, specializes in selling land, country estates, horse properties, cattle ranches, and rural properties. She has a diverse background in masonry, carpentry, web design, oil and gas drilling and production, horse management, broodmare and foaling. Sue Stephens, ALC Westmark Realtors Commercial Lubbock, TX 806-777-8923 firstname.lastname@example.org Sue Stephens, ALC, works with clients interested in farm and ranch investments and in other commercial investment and development opportunities. Brad Van Weelden, ALC Peoples Company Des Moines, IA 515-745-4079 email@example.com Brad Van Weelden, ALC, specializes in recreational and combination type farms. He has experience with tillable farmland, and focuses on farms, ranches, recreational land including hunting properties, and timberland.
Fall 2015 23
Welcome New Members They are more than real estate people…they are land people!
Diane Alexander Southwest Partners & Global Partners International Realty Brenham, TX firstname.lastname@example.org
D’arcy Browning Re/Max Real Estate (Central) Calgary, AB email@example.com
Chip Bubela Pete Alfano Bubela & Associates, Inc. Whitetail Properties Schulenburg, TX St. Francis, MN firstname.lastname@example.org email@example.com Rene Burchell Albert Allen, ALC Keller Williams Realty Plano Allen Realty Advisors Plano, TX Houston , TX firstname.lastname@example.org email@example.com Dane Carver Alexandra Armitage Dutchman Realty Home On The Range Real Estate, Inc. O’Fallon, MO Nederland, CO firstname.lastname@example.org email@example.com Bradley Chandler Millie Arnold Buy A Farm Land & Auction Co Llc Dutcher/Arnold Llc Hecker, IL Boswell, OK firstname.lastname@example.org email@example.com Brenda Chandler Steven Barnett Buy A Farm Land & Auction Co Llc Keller Williams Hecker, IL Tulsa, OK firstname.lastname@example.org email@example.com Tony Chrisco David Baughman Whitetail Properties Hancock Farmland Services Pittsfield, IL Savoy, IL Tony.Chrisco@whitetailproperties.com firstname.lastname@example.org Mike Ciesiensky Jeffrey Bernson, ALC Land Broker Websites.com JHB Realty Advisors, Inc. Garland, TX Midvale, UT email@example.com firstname.lastname@example.org Wendy Cline Tim Bishman Wendy Cline Properties Re/Max Edge Realty Houston, TX North Canton, OH email@example.com firstname.lastname@example.org Stefanie Cobb John Boyken Cobb Properties Whitetail Properties Cranfills Gap, TX Cross Plains, IN COBBPROPERTIES@yahoo.com email@example.com Tai Cobb Klam Chuck Braxton Cobb Properties Roche Realty Group, Inc. Cranfills Gap, TX Meredith, NH firstname.lastname@example.org email@example.com
24 Fall 2015
Craig Conlee Keller Williams Realty Farm & Ranch Mason, TX firstname.lastname@example.org
Fargason Erb Burch Realty Group Olive Branch, MS email@example.com
Paul Cox Century 21 Legacy Wills Point, TX firstname.lastname@example.org
Nancy Erni Berkshire Hathaway Home Services Park City, UT Nancy@SkiResortProperty.com
Doug Cutting Garden & Gun Land Charleston, SC email@example.com
Jeff Evans Whitetail Properties Real Estate, LLC. Griggsville, IL firstname.lastname@example.org
Steve Decker T3 Property Management, Inc. Solvang, CA email@example.com
Matthew Fletcher Three Rivers Land & Commercial at Silvercreek Realty Group Meridian, ID firstname.lastname@example.org
David Dempsey Berkshire Hathaway Greenville, SC Ddempsey@JoynerCommercial.com Brenda Doudican Ek Real Estate Emporia, KS email@example.com Shellie Downing Jirasek Realty Temple, TX firstname.lastname@example.org Chris Duff Re/Max Associates Corpus Christi, TX email@example.com
Corey Fraise Fraise Auction & Real Estate New London, IA firstname.lastname@example.org Lance Fullerton United Country - Great Plains Auction & Real Estate Emporia, KS email@example.com Kevin Gann UC Deer Capital RE & Auction Antlers, OK firstname.lastname@example.org
Janotte Garcia Woodside Worldwide Resources Corp Pogo, Phillipines Wayne Dunwoody Century 21 Mckeown & Associates Inc. email@example.com Moberly, MO Mike Garrett firstname.lastname@example.org Keller Williams Northwest Cartersville, GA David Efird Lake Lure Professionals Realty Group email@example.com Lake Lure, NC firstname.lastname@example.org
Joel English Siterra Properties Cypress, TX email@example.com
Ruth Garrett Farm & Ranch Finders, LLC Waco, TX firstname.lastname@example.org Matt Gerding Re/Max Elite Mason, OH email@example.com
New Institute Members
Denver Gilbert Clark & Associates Land Brokers, LLC Billings, MT firstname.lastname@example.org
Alex Henderson Land Solutions, Inc. Fort Myers, FL email@example.com
Kirk Gilbert Whitetail Properties Real Estate, LLC. Quincy, IL firstname.lastname@example.org
Kenny Herring Peoples Company Indianola, IA email@example.com
Susan Goehrs Goehrs Properties Coldspring, TX firstname.lastname@example.org
Bonnie Herring Wise Terrain Marketing Brokers Dunn, NC email@example.com
Ernesto Gonzalez Mega InMuebles San Pedro Garza Garcia, Mexico firstname.lastname@example.org
Russell Hickey Bachman And Associates La Veta, CO email@example.com
Dennis Goode Friedman Real Estate, Inc. Austin, TX firstname.lastname@example.org
Paul Hogue Timberland Realty, LLC Louisville, MS email@example.com
Ashley Goodroe Coldwell Banker Commercial Lake Country Eatonton, GA firstname.lastname@example.org
Mark Hutson Hancock Farmland Services Turlock, CA email@example.com
Charles Gregory Lile Real Estate, Inc. Little Rock, AR firstname.lastname@example.org Michael Gugar Keller Williams Bullard, TX email@example.com David Hagert AgriData Inc. Grand Forks, ND 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 William Harrison The Harrison Company Benson, MN email@example.com
Larrae Iencarelli Century 21 M & M and Associates Merced, CA firstname.lastname@example.org Jason Ingram United Country Bulldog Realty Starkville, MS email@example.com Heleen Jacobsen Real Estate Centre Tabor, Alberta, AB firstname.lastname@example.org
Amber Johnson Coldwell Banker Heritage House Realtor Durango, CO email@example.com Dennis Johnson Halo Group Realty, LLC Allen, TX firstname.lastname@example.org Eric Johnson CJ Auctions Tulsa, OK eric@CJ-auctions.com Mandy Johnson Land Pro Real Estate, Inc Dobson, NC email@example.com Timothy Johnson Circle J Real Estate, Inc. Lakewood, CO firstname.lastname@example.org William Jordan Re/Max Homeland Realty Kaufman, TX email@example.com
Priscilla Koser Greene Farm Management Service Inc Dunlap, IL GFMPriscilla@mchsi.com Rosa LaCerva California Outdoor Properties Greenbrae, 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 Clara M Rojas University Of Houston-downtown Houston, TX email@example.com Ruben M. Pena T.C. Austin Residential Group, LLC San Antonio, TX firstname.lastname@example.org
Craig Kerfoot Rocking X Land Co Ltd Burlington, CO email@example.com
Nick Marinelli Mossy Oak Properties Land And Luxury Mooresville, NC firstname.lastname@example.org
Chad Kies Hertz Real Estate Services Geneseo, IL email@example.com
Steve Martens Tom Smith Land Madison, MS firstname.lastname@example.org
Mark Knight Davis Dubose Knight Forestry & Real Estate, PLLC Little Rock, AR email@example.com
Janet Martin Janet Martin Realty Sulphur Springs, TX firstname.lastname@example.org
Jana Jacobsen Berkshire Hathaway Home Services Park City, UT Linda Koehl email@example.com Raynice Shudde Real Estate Uvalde, TX Jon Jewell firstname.lastname@example.org Land Pro Real Estate, Inc Pilot Mountain, NC Juvy Kopitzke email@example.com Juvy Kopitzke Realty Paranaque City, Phillipines Kate Jewell firstname.lastname@example.org Land Pro Real Estate, Inc. Pilot Mountain, NC Ted Koros email@example.com Suncrest Commercial San Diego, CA firstname.lastname@example.org
Jared Martin Keller Williams Fresno ,CA email@example.com Michael Matre, ALC Matre Forestry Consulting, Inc. Albany, GA firstname.lastname@example.org Joy McClinthen Joy Mcclinthen Realty Pachuta, MS email@example.com
Fall 2015 25
New Institute Members
Harry McIntosh Leconte Realty, LLC Maryville, TN firstname.lastname@example.org
R. Omar Richardson United Country RealQuest Realty, LLC Grand Junction, CO email@example.com
Joel Presley Presley Realty N. Augusta, SC firstname.lastname@example.org
Lee Schramer National Bank & Trust Co. of Sycamore Sycamore, IL email@example.com
Mark McNamee Clark & Associates Land Brokers, LLC Hulett, WY firstname.lastname@example.org
Kenneth Osborne Century 21 Triad Mocksville, NC email@example.com
Richard Pressley, ALC Coldwell Banker Commercial King Asheville, NC firstname.lastname@example.org
Melissa Schroder Realty Concepts Hanford, CA email@example.com
Shawn Melton Whitetail Properties Huntertown, IN firstname.lastname@example.org
Michael Oswalt Tom Smith Land And Homes Madison, MS email@example.com
Jack Pretti Coldwell Banker Mason Morse Real Estate Carbondale, CO firstname.lastname@example.org
Nikolaus Schroth Nai Southcoast Stuart, FL email@example.com
Chris Miller Afm Land Sales, LLC Charlotte, NC firstname.lastname@example.org Cindy Miller Keller Williams Rockwall, TX email@example.com Kasey Mock Keller Williams Austin, TX firstname.lastname@example.org Lisa Moden Ebby Halliday Realtors Whitesboro, TX email@example.com
Hon. Benito Owusu-Bio Parliament of Ghana Accra, Ghana firstname.lastname@example.org Whitney Palmer Bernson JHB Realty Advisors Midvale, UT email@example.com Clay Patrick JP Real Estate Incorporated Bascom, FL firstname.lastname@example.org Tanner Peacock Churchhill Oaks Realty, LLC Santa Rosa Beach, FL email@example.com
Barry Moore College Station, TX firstname.lastname@example.org
Christopher Peacock, ALC Halderman Real Estate Services, Inc. Winchester, IN email@example.com
Will Moore James Wm. Moore Real Estate Co. Lexington, VA firstname.lastname@example.org
Maryann Pearson RE/MAX Gold Larkspur, CA email@example.com
John Morris AlaLand Co. Hoover, AL JohnMorris@alalandco.com
Yu-en Peng Lipar Property Investment Taipei City 101, Taiwan firstname.lastname@example.org
Donna Motley Emerald Realty & Signing Agency Chicago, IL email@example.com
Brian Philpot AgAmerica Lending Lakeland, FL firstname.lastname@example.org
Robert Oâ&#x20AC;&#x2122;Leary, ALC Berkshire Hathaway Woodstock, IL email@example.com
David Pope Coldwell Banker Burnet Hastings, MN firstname.lastname@example.org
26 Fall 2015
Thomas Quagliata RE/MAX All Pro Bloomingdale, IL email@example.com Izzay R. Denney, Jr. Denney Properties, Inc. Winterville, NC firstname.lastname@example.org Richard Randals New Mexico Property Group LLC Tucumcari, NM email@example.com Thomas Rayburn Mossy Oak Properties AgriRec Land & Auction Elk Grove Village, IL 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 Ariel Steele Keller Williams 1st Realty Assoc Longmont, CO email@example.com Max Stinson Doug Rushing Realty McComb, MS firstname.lastname@example.org Larry Story Total Care Realty, Llc Greensboro, NC email@example.com
Ben Richardson Whitetail Properties Real Estate Collinsville, AL Tommy Stroud, Jr. firstname.lastname@example.org National Land Realty Cameron Roth St. Simons Island, GA Results Realty, LLC email@example.com Burlingtonv, KS Brandon Swartzlander firstname.lastname@example.org Whitetail Properties Caleb Rundorff Salem, IL National Land Realty brandon.swartzlander@ Greenville, SC whitetailproperties.com email@example.com Kyle Swicegood, ALC Cory Ryden The Swicegood Group, Inc. Pilkerton Realtors Mocksville, NC Nashville, TN firstname.lastname@example.org email@example.com Rosalinda Tabios Hon. Ameen Salifu Woodside Worldwide Resources Corp. Parliment of Ghana Pogo, Phillipines Accra, Ghana Rstabios8@gmail.com firstname.lastname@example.org
New Institute Members
Christine Taylor Ruhl & Ruhl Realtors Moline, IL email@example.com
Betsey Timmons Lyons Realty Lubbock, TX firstname.lastname@example.org
Jason Walter National Land Realty Charleston, SC email@example.com
Harley Wilcox West Group Real Estate Victor, ID firstname.lastname@example.org
Jay Taylor Leverage Digital Tampa, FL email@example.com
Jeff Titus Century 21 M&M and Associates Oakdale, CA firstname.lastname@example.org
Robert Washburn Re/Max Real Estate Group Glenwood, IA email@example.com
Leena Wong Realty Links LLC Houston, TX firstname.lastname@example.org
John Teel Re/Max Lakeside Dreams Corsicana, TX Johnteelremax@gmail.com
Kevin Tubbesing The Land Source Mission, KS email@example.com
Noah Wendt Agland Realty Cambridge, IA firstname.lastname@example.org
Richard Wood, ALC R.L. Wood & Company, LLC Mesa, AZ email@example.com
Garet Thompson CJ Auctions Tulsa, OK firstname.lastname@example.org
Eric Turpen Clift Land Brokers Littlefield, TX email@example.com
Susie Westbrook Arellano Realty & Investments, LLC Clermont, FL firstname.lastname@example.org
Kenneth Woodruff Fairfax Realty, Inc. Falls Church, VA email@example.com
Julia Thompson Brassfield Commercial Franklinton, NC firstname.lastname@example.org
Joe Van Aelstyn Cindy Gerke & Assoc Inc La Crescent, MN email@example.com
Andrew Westlake Peoples Company Clive, IA firstname.lastname@example.org
Richard Yeager NY Living Realty Willsboro, NY email@example.com
Cynthia Tibbs Cynthia Tibbs Properties Houston, TX firstname.lastname@example.org
Josh Waddell Martin, Goodrich & Waddell, Inc. Sycamore, IL email@example.com
Daniel Whitney Landmarketing, Inc. Olathe, KS firstname.lastname@example.org
Andrew Zellmer Peoples Company Clive, IA email@example.com
Fall 2015 27
Soil Science–A Quick Primer for Land Professionals Kirk Goble, ALC Owner, The Bell 5 Land Company
“Under All Is The Land” - the motto of the National Association of REALTORS® could not better encompass the enormity of that statement so succinctly. Indeed, the essence of all we do is upon, within, and determined by the land; its location, structure, depth, topography, and a myriad of other land factors that dictate and influence our lives and, certainly, our livelihood. We build our homes, cities, factories, and roads on the land, and put the lines and pipes to serve them under it. We till and farm and irrigate the land to feed ourselves and much of the rest of the world. We draw imaginary lines on the land and fight wars over it. Land is literally and figuratively our foundation. Of particular interest to the land brokers who comprise the REALTORS® Land Institute, is that portion of the land we call soil. “It’s not dirt, its soil” is an oft used distinction between what you plant your crops in and what you track into the house on your boots. While the words are colloquially used interchangeably, the study of soils is a fascinating exploration into the resource beneath our feet. Land brokers, particularly those involved in farm sales, can benefit from some basic soil knowledge. Many farm brokers were raised on farms and work in the ag communities where an understanding of “good dirt” is common. The underlying reasons that make up good soil are important to the users of the land, particularly farmers, and means that those who broker that land should also have a basic understanding of the elements of soil science. Topsoil is the uppermost layer of soil and comprises the elements that make crop production possible. Topsoil is a very valuable and precious resource - it takes 500 to 1,000 years to create a single inch of topsoil that can be lost in minutes to erosion or improper management. Soil is developed from parent material (rock) over the span of millennia by the ongoing natural actions of weathering: wind, water, heat, cold, freezing, thawing, chemical and biological action, topography, and This photo was taken November 10, 2014 in Bent County, CO. Photo by Jack Goble
28 Fall 2015
time. Constant, careful, and deliberate management measures must be applied to property manage our topsoil resource, keep it healthy and productive, and prevent unnecessary loss due to erosion. The largest manmade environmental disaster in the U.S. was the great Dust Bowl of the 1920s and ‘30s. Because of mismanagement, and a lack of foresight and understanding, a vast area of the central U.S. was devastated by loss of topsoil due to improper farming practices and sustained wind which resulted in economic collapse and the largest relocation of our population in U.S history, as farms went broke and people left the land. This is not just past history that can be acknowledged and forgotten, because without vigilance, it could happen again. In just the last 5 years, virgin grasslands in sensitive, arid areas have been plowed and planted with the expectations of profits from high commodity prices. When those prices inevitably adjust downward, those fragile soils may be subject to excess erosion. In the wake of the Dust Bowl, the Soil Conservation Service was formed by the Federal Government to research the causes and prevention of massive soil erosion and take steps to train landowners, make relevant law and policy, and buy back and set aside formerly privately owned land for restoration. The establishment of our system of National Grasslands came about by these efforts. Other government efforts that offered landowner incentives to take highly erodible lands out of production produced programs such as the original Land Banking program and the decades-old Conservation Reserve Program, still in use. The efforts of decades of the soil conservation movement are evident throughout U.S. farmland with the use of terracing, tiling, contour farming, grass waterways, strip farming, retention of crop residues, irrigation management, and numerous other practices that are a part of modern American agriculture.
Soil is very much alive. The makeup of topsoil includes the geosphere (rock and parent material), the biosphere (millions of bacteria, fungi, worms and other life), and the atmosphere (air and pore spaces for water movement, and oxygen for chemical and biological action). A healthy soil is teeming with life. Preserving and enhancing a soil environment that can host and encourage biological action is a goal of proper soil management. Management and the health of topsoil are critical and include proper tillage methods, prevention of soil erosion, and retention of crop residue to enhance organic matter content. The Natural Resources Conservation Service (NRCS), formerly the Soil Conservation Service, is an agency of the United States Department of Agriculture (USDA) that provides information, education, services, and assistance to landowners to develop and maintain conservation plans. Most crop price support, crop insurance, and cooperative assistance programs offered by the Farm Service Agency (FSA) require that a landowner must have an NRCS approved conservation plan as a condition of participation in the program. NRCS is also responsible for creating and updating the Soil Survey, a valuable source of information in both printed and on-line digital form (more on that later).
It is common for a farmer or landowner to discuss soil types in terms of the soil’s texture, such as a “loamy” soil or a “clay” soil. Soil is comprised of three soil texture types, all based on the size of the soil particles. The three basic soil textures, in order of size from largest to smallest, are: sand, silt, and clay. A loam is a mixture of varying amounts of sand, silt, and clay. Specific soil textures are determined by using a soil textural triangle based upon the percentage of sand, silt, and clay in a particular soil sample (see illustration). NRCS provides an on-line calculator that can be found at: http://goo.gl/eZ7HBo. Soil health and fertility status is best determined by an on-site sampling of soils, usually in a grid pattern, submitted for laboratory analysis.
The soil test lab report provides valuable information on the makeup of the soil, its pH (acidity or alkalinity), and cation exchange capacity (CEC). CEC is a determination of the ability of the soil components (primarily clay and humus) to allow for the absorption and transport of soil nutrients from the soil to the plant roots. It is essentially a measure of the soil’s ability to hold nutrients and feed the plants. Fertilizer recommendations are based on the results of a proper soil test. Variations of soil types on a farm, and even in a particular field, can be identified and accounted for. When the information is translated to geospatial formats, current precision agriculture technology using Global Positioning System (GPS) location equipment has the ability to make on-the-go adjustments for varying soil types and fertilizer needs. A farm broker often needs to provide soil information on a property to prospective buyers. As always, the landowner, manager, or operator is a good first source, particularly if they utilize the services of a crop production advisor who analyzes the soil conditions periodically. A very good general source of soil information is the USDA/NRCS Web Soil Survey, an online resource that provides information on most U.S. soils. A broker can readily create a soils map, from the Web Soil Survey, and accompanying summary of soil capability, average expected crop yields, and more.
The Web Soil Survey is found at websoilsurvey.nrcs.usda.gov. The opening page has links to a vast amount of soil information, education, and a tutorial on using the survey. A handy green “start” button opens the survey itself. The process is started on the Area of Interest (AOI) tab by defining the subject parcel as a specific area which narrows the parcel search to the level of section, township, and range. Other methods to find and define the AOI are street address, GPS coordinates, and other reference maps, in addition to the Public Lands Survey System legal description. Once the map is zoomed to the general selected area, a specific location is automatically plotted on an aerial map utilizing the AOI tool to define rectangular or trapezoidal parcel boundaries. Once the Area of Interest is defined, a click on the Soil Map tab creates a map of soil types shown on the subject parcel. Once presented with the soil map, a click on the Soil Data Explorer tab provides an extensive selection of soil
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attributes, analyses, and limitations on use for the area defined. Ag lands would utilize info such as crop production capability classes, expected yields, and erosion susceptibility. One can also find info and potential limitations in regard to septic system leaching fields, road construction, and other engineering and construction topics. Once the map and information is selected, the user clicks on the Shopping Cart tab to obtain the map and report in digital form for download, or in printable form. The information is free, despite use of the term “shopping cart.” For the brokers who wish to provide basic soils information for a particular parcel, the Web Soil Survey is a quick, easy to use tool that provides the ability to create a comprehensive soil map and report for any listing. This is a good way to work with your clients to provide valuable information on a sale property and impressive data to prospective buyers. More specific information and education can be obtained locally at the nearest USDA Farm Service Agency. Most counties in the U.S. have an office and can direct you to the best sources of information, including a locally or regionally available soil scientist. A comprehensive understanding of all things soil related would require much study and education, but a great deal of this valuable information can be obtained, analyzed, and presented for free through the programs explained here. Hopefully, you will have gained a bit of historical perspective and direction to another useful tool which can help you better provide the services of a professional land broker and member of the REALTORS® Land Institute. n
About the author: Kirk Goble, ALC, Owner of The Bell 5 Land Company, Greeley, Colorado, has served twice as Colorado Chapter President. He was the Chair of the Institute’s National Education Committee, and has been on the Board of the National Institute. Goble is an award-winning LANDU instructor, was the recipient of the 2013 Land REALTOR® of America award, and was a presenter at the 2015 National Land Conference.
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Five Major Considerations
When Considering A Land Auction Jimmie Dean Coffey Auctioneer/Broker United Country Real Estate 1. Seller’s (Client’s) Best Interests 2. Highest & Best Use a. Who is the Potential Market 3. Rights Being Offered 4. Absolute vs. Reserve 5. Bidding Format An Auction is a “Time-Defined Sale by Competitive Bid.” Conventional marketing methods sustain, yet the opportunity for progress can require more. Jimmie Dean Coffey, CAI, AARE, UCMA, Institute Member, Broker/Auctioneer, United Country, realized this and became an innovator with the utilization of auctions over thirty years ago in his area, which has since grown nationally. “Forward thinking can separate you from other land practitioners,” says Coffey.
FIRST THING’S FIRST The auction process requires attention to detail. This includes keeping in mind a number of variables, including remembering that the property belongs to your client and that we are agents for the seller and must keep their best interest in the foreground; paying full attention to the listing contract; recognizing all owners of record, looking for any and all issues with a full title search ensuring a clear title with a pre-auction commitment. Mountains of other needs are also required, such as a current survey, and well thought out and thorough terms and conditions of the sale (approved and signed by the seller) just to name a few. We should put the buyer’s thoughts and wishes in front of our own while determining how to best sell our clients’ properties. Consider how or what rights a buyer of a particular property would possibly like to purchase. Sellers can become one-sided as they usually think of their land only in the way in which they’ve used it. It’s our job to think “Out-Of-The-Box” for them and point out options.
The Property’s “Highest & Best Use” Land types weigh heavily into this process and should also be taken into account depending on a multitude of differences such as: farmland (row crop, permanent cropland or grazing); soil types; water availability; timberland (fee simple or timber harvest rights); recreational (hunting rights); development; building lots (commercial or residential); and mineral or sub-soil interests. Other thoughts that we must take into account while considering highest and best use options: What are the accesses to the property’s highway or road frontage, easement, etc.?
1. Overall topography. 2. Local absorption rates. 3. Easements, overlays, restrictions and zoning. 4. Community growth pattern, City/County master plan. What IS the property’s Highest and Best Use? Many times, after determining a property’s Highest and Best Use, it makes more sense to sell or offer that property in multiple parcels; it is very cumbersome to get a property completely sold simultaneously via a traditional real estate listing. However, the Multi-Parcel auction format has been used very successfully across the country to allow bidders the opportunity to bid on any single parcel or any combination of parcels up to and including the entire property. This format will allow bidders at different resource & need levels to bid against anyone.
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Rights Being Sold Regarding the “Bundle of Rights,” what or how many do we have to offer? Does your particular property include all of the rights? Would the potential buyers pay more for selected rights? These are the questions we have to answer. Many times offering a property at auction may mean selling or leasing a specific right to the land. Those offerings could be 1) Fee Simple. 2) Underground or mineral rights. 3) Farming or grazing. 4) Hunting or recreational uses. 5) Commercial land lease. 6) Condominium or shared use rights. 7) Air or line of sight. 8) Wind Farm or Tower leases. As you can see, we all know that there are many rights to real estate ownership. What we see in today’s market are many buyers that may be willing to, or have the need to purchase only one or a portion of the rights to land. We, as professionals, need to be aware of area and local needs so that we can offer the best solution of sale for our sellers. Any of the rights to land mentioned above as well as countless others could be offered for sale at public auction.
Absolute vs. Reserve In the United States there are two types of auctions: 1) With reserve 2) Without reserve (i.e. “Absolute”). The definitions are derived from UCC Section 2-328. With the exception of Louisiana this section of law has been adopted by every state, and is best explained by my good friend Mike Brandly, Auctioneer, CAI, AARE, explains in his blog post from November of 2009:
“We, as professionals, need to be aware of area and local needs so that we can offer the best solution of sale for our sellers.” As we can tell by the difference between the two, a seller must be made fully aware of the differences and potential consequences of each type of auction. While an “Absolute Auction” will create more interest, it also comes with the greatest risk for the seller. The seller MUST be ready, able and willing to transfer ownership if they choose an “Absolute Auction”.
Bidding Format What bidding format is best for your client and their property type? For centuries we have been selling property (real and personal) at oral outcry public auctions. In 1995 eBay changed the rules to the auction business as we knew it. We now offer real property to be sold via public auction utilizing many different online bidding platforms. With generation X and generation Y becoming adults and entering the business world we are seeing more and more buyers preferring the opportunity to bid online from their smartphones and mobile devices. As real estate auction professionals, we have to determine if our client’s property is best offered via a live, online-only or simulcast combination live/online auction, and there are many factors to consider (ie. location, region, culture, buyer, and many more).
“The “with reserve” auction can come in several varieties. Sometimes the owner reserves the right to accept or reject the high bid. Other times, the auctioneer and seller agree to publish a minimum bid that the property will not sell below. Sometimes too, the auctioneer and seller have an undisclosed minimum bid, which only they know, and is only disclosed if the bid reaches that amount during the auction, or following the auction. At “with reserve” auctions, the seller may bid if that right is disclosed to the audience. The seller may withdraw the property from the auction any time prior to the auctioneer declaring the property “sold.” If the seller bids at a “with reserve” auction, courts have ruled that as a form of withdrawal.
One more potential auction format is the “Sealed Bid Auction”. A Sealed Bid Auction is a type of auction in which all bidders simultaneously submit sealed bids to the auctioneer, so that no bidder knows how much the other auction participants have bid. The highest bidder is usually declared the winner of the bidding process. Sealed bid auctions are often used when the seller wishes to keep the bid amounts undisclosed to the public.
The “without reserve” auction is also known as an “absolute” auction, and there can be no reserve of any kind, including no minimum nor reserve amount. Too, at an “absolute auction”, someone such as the seller or other party must guarantee that any liens are paid up through the closing of the item (mostly applicable with real estate). The seller is NOT permitted to bid at a “without reserve” auction, announced or not, unless it is a “forced sale” meaning a sale that is conducted without the consent of the owner (for example, a seller COULD bid on his own car that had been repossessed because the sale of the car is being forced upon the seller without their consent). Otherwise, neither the seller, nor anyone on the seller’s behalf can bid at a “without reserve” auction as this would constitute a withdrawal of the property.
The sale of land in a Time Defined Sale By Competitive Bid “Auction” can and will flush out the market, and will often exceed the seller’s expectations. n
An interesting difference between “with reserve” auctions and “without reserve” auctions is that in a “without reserve” auction, once the item is put up for sale, and a bid is received within a reasonable time, the item may not be withdrawn.”
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As we can see there are many moving parts to land auctions. Therefore, a professional land auctioneer needs to have a broad range of real estate auction knowledge and training.
About the author: Jimmie Dean Coffey, CAI, AARE, UCMA, is an Auctioneer/Broker. Coffey is the Director of Business Development at United Country Real Estate – Auction Services, and a National Auctioneers Association (NAA) Education Trustee.
You Create Your Own Opportunities New ALC Requirements Starting in 2016
The Board of Directors has approved the below new ALC requirements:
The ALC Advanced is designed to offer opportunities for ALCs to stay current in the area of land to assist clients through up-to-date knowledge and through stewardship in the National organization of the REALTORS® Land Institute.
ALC Professional Development Requirement
Congratulations to the elite group of Accredited Land Consultants (ALCs) who have achieved the ALC Advanced in 2015. Their commitment to continuing professional development is what makes them stand out from the rest.
n Successful completion of one, sixteen hour LANDU Course
Congratulations to the following elite group of ALCs who earned the ALC Advanced:
Starting in 2016 ALCs are required to fulfill one of the below professional development options once every five years: OR n Successful completion of two, eight hour LANDU courses OR n Attendance at two National Land Conferences OR n Successful completion of one, eight hour LANDU course
and attendance at one National Land Conference
Code of Ethics Requirement Current ALCs: In 2016, all current ALCs will be required to take the Institute Code of Ethical Excellence (ICEE) session. This four-hour session will be offered via independent study with a stand-alone remote exam. The submission of the signed ALC Code of Conduct form will also be required along with successful completion of the ICEE exam. After fulfilling this requirement by June 1, 2016, ALCs are required to take the session during the next ICEE window (2021-2026). This will be a continued requirement for all ALCs to fulfill during the appropriate fiveyear ICEE window. 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-along remote exam to be successfully completed. The submission of the signed ALC Code of Conduct form and proof of successful completion of the ICEE exam are required with the ALC portfolio submission. After the first completion of these requirements, ALCs are required to take the ICEE session during the next ICEE window (2021-2026). This will be a continued requirement for all ALCs to fulfill during the appropriate five-year ICEE period. n
ALC Fast Track Program A “Fast Track”to the ALC designation is available to those real estate professionals who hold the following designations: CCIM, SIOR, CRE, AFM, ARA, RPRA, AAC, MAI, CAI, SR/WA or to those who hold either a B.S. or M.S. with a major in real estate or program related specifically to land. For additional information about earning the ALC designation through the Fast Track program, call 1.800.441.5263 or visit http://www.rliland.com/fast-track-program.
Andrea Anderson, ALC Advanced Steve Anderson, ALC Advanced Mac Boyd, ALC Advanced Ray Brownfield, ALC Advanced George Clift, ALC Advanced Cathy Cole, ALC Advanced Gene Curtis, ALC Advanced Tom Damon, ALC Advanced John Dean, ALC Advanced Aaron Graham, ALC Advanced Kyle Hansen, ALC Advanced Renee Harvey, ALC Advanced Randy Hertz, ALC Advanced David Hitchcock, ALC Advanced Jo Ann Holba, ALC Advanced Willy Hugron, ALC Advanced Larry Ilfeld, ALC Advanced Ellery Jensen, ALC Advanced Terri Jensen, ALC Advanced Bob King, ALC Advanced David Klein, ALC Advanced Zurick Labrier, ALC Advanced Rusty Lowe, ALC Advanced Fletcher Majors, ALC Advanced Jim Maxwell, ALC Advanced Tom McDonald, ALC Advanced Norma Nisbet, ALC Advanced Patricia Purvis, ALC Advanced Deitra Robertson, ALC Advanced Brandon Rogillio, ALC Advanced Russ Russell, ALC Advanced Ryan Sampson, ALC Advanced Flo Sayre, ALC Advanced Eric Schlutz, ALC Advanced Tim Smith, ALC Advanced Chris Smith, ALC Advanced Danny Smith, ALC Advanced Jeramy Stephens, ALC Advanced Winnie Stortzum, ALC Advanced Nancy Surak, ALC Advanced Minor Taylor, ALC Advanced Glenn Thomas, ALC Advanced Bob Turner, ALC Advanced Kirk Weih, ALC Advanced Chuck Wingert, ALC Advanced Luke Worrell, ALC Advanced
ALC Code of Conduct Accredited Land Consultants (ALCs) are honorable land professionals who recognize the importance of land to life. ALCs share in the responsibility to conduct themselves with high morals following the ALC Code of Conduct and the Code of Etchics of the National Association of REALTORS®. 1. Protect and promote the best interest of clients 2. Display high moral and professional standards 3. Avoid exaggeration and misrepresentation of relevant facts 4. Treat all with honesty and respect 5. Stay current in industry knowledge and trends 6. Enhance the integrity and professionalism of the industry 7. Cooperate with fellow real estate professionals 8. Follow local, state, and national laws regarding disclosure 9. Will not condone or participate in discriminatory practices 10. Support, understand, and champion Institute policies
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2015 Course Schedule
Timberland October 6-31: HYBRID (16 contact hours) Register online or call Institute Staff at 1.800.441.5263. Tax Deferred 1031 Exchange October 6-31: HYBRID (16 contact hours) Register online or call Institute Staff at 1.800.441.5263. Land 101: Fundamentals of Land Brokerage October 19-20: Davenport, IA (16 contact hours) Contact Molly Suarez at firstname.lastname@example.org to register. Google Earth for the Land Professional November 3-December 4: HYBRID (16 contact hours) Register online or call Institute Staff at 1.800.441.5263.
Left to right: Albert Allen, ALC, Drew Ary, Kenneth Woodruff, Amy Johnson, Jared Martin, Wendy Johnson, Joy McClinthen, Fargason Erb, Justin Todd, Karen McCartin Foster
LANDU Education Week plus Update
The 2015 LANDU Education Week plus was held in Memphis, TN, and lasted nine days. It featured expert instructors and best-in-the class education. From June 7-15, Institute members and ALC designees completed one to six courses. Congratulations to Justin Todd and Jessica Armstrong on completing the 104 required education hours for earning the esteemed ALC designation during LANDU week. The 2016 LANDU Education Week plus will take place at the Arkansas Association of REALTORS® in Little Rock, AR on June 5-13. A special thank you is extended to the Arkansas Association leadership and to Jeramy Stephens, ALC Advanced, Arkansas Institute President, for their roles in bringing this educational opportunity to their location. Courses offered during the 2016 event will be available in November 2015. n
“Ten days away from my business, courses on the weekends, plus the monetary investment–was it worth it? Absolutely! I attended LANDU Week plus because of a recommendation. It was a diverse group of land professionals. Many of the contacts made have become friends.” -Joy McClinthen, Joy McClinthen Realty “I have spent a lot of money on continuing my education and I must admit LANDU Week plus was the most well spent money yet. Not only were the Instructors the best in the business, so were the other students. It was a great week and a wealth of information. I would suggest it to anyone who plans to be in the land business for the long run.” - Drew Ary, Williams and Williams
2016 New Courses
The Institute is pleased to announce the addition of three new sixteen-hour courses in 2016 to the LANDU curriculum. Introduction to Land Valuation Explore the fundamentals of land valuation, and provides the skillset to understand valuations. Learn to effectively use soil surveys, GIS, and spreadsheets to calculate agricultural land values. Covers implementation of the agricultural land valuation process. (16 contact hours) Strategic Planning for your Business Effective strategy 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. (16 contact hours) Updated 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)
The REALTORS® Land Institute’s Education Committee presents the ALC-to-ALC Teleconference Series, exclusively for ALC designees. These complimentary teleconferences, facilitated by ALC designated members of the Education Committee, are opportunities to bring together ALC designees to share experiences, stories, and best practices -- while connecting with colleagues.
Best Practices for International Business On April 8, 2015, ALCs participated in a teleconference covering the Best Practices for International Business. This teleconference was facilitated by Jeramy Stephens, ALC Advanced, member of the 2015 Education Committee with Minor Taylor, ALC Advanced, and Zachary Benjamin, Manager of International Market Development of NAR Commercial and Global Services, as presenters. Taylor shared his International Business successes. He works with global investors from India, Russia, Mexico, and Europe. Benjamin discussed the differences in international cultures and how being aware of these differences can lead to building strong relationships with global investors.
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Increase your listings. Maximize your buyers. This year, United Country is celebrating 90 YEARS as the nation’s leader in land sales and rural real estate! We’ve implemented significant marketing and technology enhancements to futher differentiate our affiliates from the rest, and the results speak for themselves. Land sales up 37%, Farm sales up 28%, Timberland sales up 112%, Ranchland sales up 31%*
What can you get with the new United Country? • Land-specific marketing programs for farms, ranches, recreational land & more • Exclusive, top-ranked & wholly owned websites for all property types • The nation’s largest land buyer database – 550K+ • Rated the top land brokerage by LandReport
If you’re a Broker, Agent or Auctioneer looking to take your career to the next level, join the team that sells more land than anyone else.
800.999.1020 TerraFirma Fall 2015 35 *January 2012 to July 2014
Education Best Practices: Using the Google Earth App On August 19, 2015 ALCs participated in the teleconference covering Best Practices: Using the Google Earth App. This session was facilitated by Jeramy Stephens, ALC Advanced, with Eric Pimpler, LANDU Instructor, sharing strategies for the use of the App. He gave the best tips and tricks for using the Google Earth App when locating and showing a property and marking a property within the App. Pimpler also provided ideas for how to use the App to market the property to the perfect client.
Best Practices for Negotiation On October 7, 2015 the complimentary ALC-to-ALC Teleconference covered techniques on how to effectively bargain and negotiate to “land the deal”. Strategies, planning, ethics, finding and using negotiation power, effective communication, cross-cultural negotiations, and best practices were explored. This event was facilitated by Terry Pauling, ALC, Education Committee Member, and Kurt Stanberry, Esq, LANDU Instructor.
Hot Topic Web Seminars
Video-The Future of Real Estate Marketing and Using Drones to Grow Your Business Clover Carroll, CEO of New Story Media On October 28 at noon-1 CT, Video-The Future of Real Estate Marketing and Using Drones to Grow Your Business will cover how video is a powerful tool in the buying and selling of property with aerial imagery becoming more accessible through the proliferation of drones. Register at http://www.rliland.com/hot-topic-web-seminars or call 800.441.5263.
Top 10 Apps for the Land Professional The Institute hosted a Hot Topic Web Seminar on the Top 10 Apps for the Land Professional on July 22. Land professionals learned how to make the most of the following apps by applying them to their businesses: MileIQ, iTopoMaps, GeoElevation, JotNot Scanner, Photo Measures, DropBox, Evernote, Planimeter, Easy Measure, Metes and Bounds. The web seminar was facilitated by Eric Pimpler, Founder/ Owner, of GeoSpatial Training Services (geospatialtraining.com).
Ins and Outs of the 2014 Farm Bill On February 18, Land owners and clients trying to determine which of the new federal programs are best for them had the opportunity to attend the Ins & Outs of the 2014 Farm Bill Hot Topic Web Seminar. Purdue University’s, James Minter, PhD, Director of the Center of Commercial Agriculture, and Michael Langemeier, PhD, Associate Director of the Center of Commercial Agriculture, facilitated this live discussion with our land experts. A recording of Institute web seminars can be purchased in the Institute’s General Store at http://www.rliland.com/the-general-store or by calling an Institute Staff Member at 1.800.441.5263.
Personalize Your Path to Knowledge- LANDU Course Delivery Methods
LANDU offers courses through traditional classroom courses, online classes, hybrid courses, blended courses, independent study opportunities, and the National Land Conference course elective option.
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Hybrid Courses combine independent study with optional instructorled phone lectures and discussions; no-travel is needed. Online Courses are in an online college classroom setting. Interaction takes place with the professor and the students. Available 24/7. Traditional Classroom courses are held face-to-face and offer participants the chance to attain knowledge while networking with like-minded professionals. Independent study is self-paced with no instructor or classmate interaction. Students have ninety days during which to complete the program. Land 101: Introduction to Land Brokerage is offered as an independent study course. This course plus one other course approved by the Manager of Professional Development may be taken in this delivery. White Paper Option at the National Land Conference counts as a sixteen contact hour elective option toward earning the Accredited Land Consultant (ALC) designation. This option includes the submission of a substantive white paper developing information on a topic covered at the conference.
New White Papers
Get up to speed on issues and trends impacting the land industry. New white papers from the 2015 National Land Conference were added to the Institute’s Members-Only General Resources section of the website. “Canadian Farm Land: Value, Demand, Market & Pricing” by Ben Van Dyk, Real Estate Centre “Texas Soil – Diggin’ Into the Dirt” by Courtney Bishop, RE/MAX Landmark “Climate and Land Issues” by Heleen Jacobsen, Real Estate Centre “Marijuana Reform and Its Effect on the Real Estate Market” by Jeff Titus, Century 21 M&M Associates “North Central Texas Soil” by Lisa Moden, Ebby Halliday Realtors “No-Till Farming for Land Brokers” by Marty Major, United Country – Rocking X Land Company “Lasso the Wind: Bank the Green” by Phyllis Clary, Keller Williams Realty Lake Conroe “Increasing Real Estate Value through a Federal Approved Compensatory Mitigation Program” by Ren Martyn, Steamboat Sotheby’s International Realty “Soil: What’s in Your Dirt?” by Ron Charity, Land Pros Realty “US Economy Under Attack” by Terry Dean, Upper Midwest Management Corp. “The Art of Fishery and Management” by Wendy Johnson, ABR, RE/ MAX Landmark White papers are a member benefit. They are also available for purchase in the Institute General Store at http://www.rliland.com/thegeneral-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, and White Papers. 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. n
2016 Course Schedule January: Mineral, Oil, and Property Rights
February: AgLand Brokerage & Marketing
March: March 11-13: NATIONAL LAND CONFERENCE, Dallas, Texas White Paper
Land Investment Analysis
Google Earth for the Land Professional
April: Tax Deferred 1031 Exchanges
May: Updated Mapping & Practical Navigation
June: Auction Tool
International Aspects of Real Estate ONLINE COURSE
June 5-13: LANDU EDUCATION WEEK plus, Little Rock, Arkansas
July: Marketing Strategies
August: Intro to Land Valuation
September: Land Investment Analysis
Land 101: Fundamentals of Land Brokerage and Marketing
Essentials of Negotiation ONLINE COURSE
Google Earth for the Land Professional
November: Business Development
October: Tax Deferred 1031 Exchanges HYBRID COURSE
Updated Mapping & Practical Navigation
Transitional Land HYBRID COURSE
New LANDU Instructors
The Institute is proud to welcome five new LANDU instructors: Jesse Armistead, ALC, is a LANDU Transitional Land instructor. Armistead obtained his Accredited Land Consultant (ALC) designation in 2012 and has been active in transitional land development in the Atlanta metro area. He served as President of the Heart of George Board of REALTORS速 in 2015.
Jesse Armistead, ALC
Phil McGinnis, ALC
Phil McGinnis, ALC, is a Land Investment Analysis instructor. McGinnis is a Managing Broker and is a licensed real estate agent and REALTOR速 in Delaware and is a Delaware Certified General Real Property Appraiser, in both Delaware and Maryland. He served eight years on the Delaware Council of Real Estate Appraisers, serving five years as Chairman. Paul Bierschwale is an Introduction to Land Valuation instructor. Bierschwale has been active in field appraising of all types of real property since 1977. He has served as President of the Texas Appraiser Coalition and has been an instructor of appraisal courses.
Marilyn Wilson is a Strategic Planning for Your Business instructor. Wilson is founding partner of WAV Group, a premiere provider of strategic insights and the leading provider of consumer research in the real estate industry. She is one of the founders of RETechnology.com. She was SVP Global Marketing, Strategic Planning and Product Development for Fisher-Price and was recently named one of the Top 100 Most Influential People in real estate. Steve Roberson, a professional cartographer, is the founder of MapRight. Roberson is an experienced GIS professional with high-end custom mapping for commercial real estate developments, wind farm developments, oil and gas operations, land owners, managers, and real estate professionals. n
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RAW UNTOUCHED LAND
G A R D ENA ND G UNL A ND . C O M
Listen to the Property Douglas Cutting Vice President Garden & Gun Land Some years back, a long walk in a fallow field changed my career path forever. Peanut hulls, gobbler tracks, and flint flakes dotted the riversilt loam around my boots. It was March, right when Northeastern Carolina starts to warm. The soft dirt slowed me down, and I accepted it as a vehicle to better observation — of crows raising cane in the hardwoods, of deer crashing through a cypress slough, of wood duck squeals, of the muddy Roanoke River hissing along cut banks. This property was four-hundred acres of fields and hardwoods set to be developed into twenty acre strips, river to road, like someone cutting tenderloin into steaks with their eyes shut. I was working for the developer, fresh from a long jaunt as equal parts boat captain, writer, rod and reel wholesaler, and boat salesman. I was young and ready to make some money. The rush was on for waterfront land, and this developer found a niche cutting up river and marsh-front farms in off-radar towns. But surely not this farm, I thought, bending over to pick up the base of a quartz spear point.
in scratching plan A and trading off for the ultimate end user. Each element saw its higher and better use by keeping the property intact as a joint equity hunting property. Strangely enough, the real credit goes to the developer. Instead of banging his head against the wall, he was willing to take a new approach. He listened to me and he really listened to the land and let it guide him toward a better solution. Here was a guy in a Tommy Bahama shirt, with his loafers on the desk, making a quick decision based on a very sophisticated hybrid of economics and land stewardship. In that sense, a huge part of land listing and marketing is letting the property be what it is rather than forcing it into a box or flaunting it for something it’s not—which means that someone, most likely a land owner, may have to concede their original vision. It sounds corny, but it’s critical as a good broker to “feel” the land and how it fits with wildlife and the surrounding neighborhood.
As luck would have it, the marketing plan didn’t work. The grand opening had few attendees. Only one of the twenty lots was reserved. Several of the migratory investors cited dissatisfaction that the only place to buy a snack was a Red Apple gas station thirty miles away. The developer, who had picked up on my outdoor affliction and who did not often put on boots, called me into his office. “What should we do?” He asked me, having never sold fewer than all his lots in a single day. He was on seriously foreign turf. “I could sell the whole thing to someone for a hunting place,” I said. “Hunting? Would they pay me enough?” He asked, chewing on a giant cigar. “I need to get one point two out.” “Yes sir,” I said, crossing both sets of fingers in my pockets. “Well, then, you got your first listing,” he said. It’s a good story for me, one that hits home because it finally turned my avocation into a vocation that could put food on the table. The “listing” moment and the drive home from closing were like lightning bolts hitting pine bark – burning out all the job doubts I’d had until then. But many years later, looking back, I see new things –so many other critical lessons learned from that one sale that had very little to do with me. I sold the farm to a sporting investor who had a mind for everything from deer, to dirt, to conservation, to equity-share sporting clubs. You could say that we “rescued” or changed the life course of that four-hundred-acre farm forever, but I believe that the farm did the work. Location, habitat, proximity to water and wildlife corridors, soil, floodplain, and agriculture – all of these things played specific roles
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Business Development If you have a good sense of the land and surroundings, you’re ahead of the game with the seller. I think it’s important to stick with what you believe when you meet with a listing client – whether you’re discussing price, preservation, the property’s long term potential, or lack thereof. Not sugarcoating things with the listing client or the end user always yields more solid footing, and in my experience, more closings. A good friend of mine came to Charleston yesterday, and we rode my skiff out to a newly listed property in the Santee River called Cane Island. Mottled ducks traded across the river in the late light, and all sorts of birds moved before roost – roseate spoonbill, least bittern, glossy ibis. It was a bird and fish paradise, and we clinked bottles to that, talking about the value of Cane Island as a fish and waterfowl haven and a no-brainer conservation easement play. Riding back upriver, my friend talked about his own properties in North Carolina, one of which he was beginning to develop. “You know those old hay fields north of town,” he said, “I’m about to ruin them, I guess.” “Nah,” I said, “That farm is naturally on the residential path.” His other properties include big managed pine tracts south of his town, ones further from the progress stream. Outside the ducks and fish, his passion is quail, and he follows his setter around in the open longleaf on his days off. In a sense, he epitomizes the point by taking one tract to market based on location and timing, and preserving the other for its life in recreation.
“If you have a good sense of the land and surroundings, you’re ahead of the game with the seller.” Three listing and marketing suggestions stand out that all have to do with “listening” to the property and refusing to compromise: n List properties that match you and your skillset, passions, and
beliefs rather than taking everything that comes along. n Market those listings according to what they are by using platforms
that mirror and properly display the property. n Recognize when the buyer and property don’t match, and concede.
As luck would have it, my first listing both fit and shaped me. I learned from the experience, and finding a great steward for wild land became my ultimate goal – the model for the listings and buyers that I would pursue. At the time, I just used a simple hunting network via email and phone to locate the buyer. Today, I would use a marketing venue that fit the property – whether that was the local newspaper or a sophisticated digital platform. In any real estate niche, the goal should be the same – Find the right buyer for the property and the right property for the buyer. I believe that an honest evaluation of the land is critical to that match. n
About the author: Douglas Cutting is the Vice President of Garden & Gun Land, a 2015 Platinum Partner, and BIC of Cutting Land & Consulting, LLC based in Charleston, SC. Cutting is an experienced outdoorsman and land broker with a diverse background in the woods and on the water.
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Video: The Future of Real Estate Marketing Clover Carroll Owner New Story Media “A man who stops advertising to save money is like a man who stops a clock to save time.” – Henry Ford You know that taking advantage of cutting-edge innovations will keep your business ahead. Here’s a look at the future of real estate marketing: video. In June 2013, one-hundred and eighty-three million Americans viewed more than forty-four billion online videos. Currently one third of all online activity is spent watching video. Cisco predicts that within two years, ninety percent of internet traffic will be video content. Companies are investing more in video as they realize the positive impact it has on their bottom dollar. As a matter of fact, it is estimated that next year, national video ad spending will increase from one billion and ninety-seven million to five billion and seventyone million dollars. In the September issue of “Real Estate” magazine, Stephen Schweickart, CEO of VScreen, said, “The handwriting is on the wall. It’s not a matter of whether or not REALTORS® will incorporate video into their marketing … but rather, how far behind they will fall before seeing the light.”
VIDEO IN EMAIL Email campaigns are an important part of today’s real estate market, but with the instant unsubscribe button you have to work to keep your audience. Implementing video is a great way to do this. An email subject line with the word “video” results in fifty percent more opens than one without. Important: when you say video, there had better be a real link. Don’t try to fool your customers, it could drive them away. Spammers don’t have friends. Email clients can’t handle videos embedded directly into emails. However, you can get around this by using an image with a play button. Create a static image that is actually a link to a video; this can lead to five to six times more clicks.
VIDEO ON YOUR WEBSITE Adding video to all your web properties will direct more traffic to your business. Once you have invested in quality video, you will want to use it to its full potential. It’s got to be on the landing page. You want it front and center, not buried on an obscure page of your site. Just as your website is your virtual storefront, having video available when they land on your page is like handing them a nice cup of coffee and inviting them to have a seat. To encourage even more involvement from your visitors, be sure to put actionable content next to the video, (i.e. “Click here for...”). Video, coupled with actionable content, is a great combination to elicit action from casual browsers. Not only can video direct repeat traffic to your website, but, if you have compelling video, your customers will advertise for you. People
love to share videos on the internet, and social media has made this easier than ever. Putting your corporate or marketing film on a shareable platform allows individuals to share the video with their family, friends and co-workers. The beauty of this medium is that it can potentially go viral; thousands or millions of hits equal free advertising for your business on a grand scale. In addition, video is an easy way to draw people in because they feel more involved, even if they only click “Like”. Up until now, virtual tours have been your only option. Many REALTORS® use this to simulate video. At this point, it is important to differentiate between film and video. In the old days, “film” was a more expensive process shot on cellulose while “videos” were of the amateur handheld camcorder variety. However, as technology has advanced, it’s not uncommon for major motion pictures to be “filmed” with a digital camera. Now, the terms can be used as more of a description of quality. Video is your wedding video from the 1980s; film is a beautiful cinematic expression of awesomeness. High quality film is the future. Film has an advantage over virtual tours for a myriad of reasons. Virtual tours (still images linked together and set to music) provide a limited view of the property and may require plug-ins to work. Most importantly, they offer nothing more than what was posted in the Multiple Listing Service’s listing. You have high-end clientele who can spot low quality in an instant; why offer them low-end, dated marketing materials? A cheap production only cheapens the property and your reputation. Film gives you an edge over your competitors and communicates to customers that you are serious about selling their property. Done well, film gives an emotional hook that invites potential clients to pursue more information. According to Vindico, a leading video ad server, eighty percent of online video ads are abandoned within the first half of the ad. Audiences can “tell the sell” and you want to capture their attention before they click off your site. How do you accomplish that? Tell them a story.
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In our media-driven society, you’ve got to be a cut above the rest. continuing source of information. This encourages ongoing business relationships and repeat business. Don’t overlook social media channels such as blogs, Twitter, Pinterest, LinkedIn, and Facebook. These are perfect tools for content marketing. Instead of renting advertising space, you own the media and control your message. For example: Do you have experience in gardening, wildlife management, or have a great venison chili recipe? Offer these tidbits/services through your social media to direct traffic to your website. Keep your accounts updated regularly to build an audience (and make sure you have interesting content).
IMPLEMENT BRANDED CONTENT Storytelling is a method brand marketers rely on to captivate, and film is now their chosen medium. Branded content blurs the line between conventional advertising and entertainment. It’s a story that draws the viewer in and is highly branded. Branded content can amuse or inform. It delivers a chuckle, just for kicks. It’s brought to you by a brand that leans more on emotional appeal than a heavy-handed sales pitch. You can implement branded content by telling your audience the story of your business, your property, and your firm. Give them such a compelling experience that they will forward your film to their co-workers and friends, post it on their social media platforms, and return to your website for more. Meanwhile, your business is getting marketed every time the film is viewed.
AND DON’T FORGET CONTENT MARKETING Content marketing is another important component to reaching your audience. It’s staying in touch with your customers, not necessarily to sell them something, but to establish yourself as a reliable,
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In our media-driven society, you’ve got to be a cut above the rest. If your audience is not immediately captivated by your ad, they will tune out, click off or turn the page. With such high-quality technology now becoming accessible, you’ve got an incredible toolbox at your fingertips. Combining film with a powerful content marketing campaign is vital to staying up to date in today’s market. n
About the author: Clover Carroll, entrepreneur and CEO of New Story Media, has experience as a film producer, audio video specialist, and chief story teller. Carroll and his team use cinematic techniques to capture an audience and tell a story. Carroll is a certified drone operator. He will be presenting at the 2016 National Land Conference.
The Technology Guide for Land Pros Nobu Hata Director of Member Engagement National Association of REALTORS® I know what many of you are thinking…“Technology! Bah!” And I would agree with you. The fact of the matter is that technology really hasn’t changed much in real estate, except for one thing: it has muddied the water. As land professionals, tech use can be even more confusing as, by and large, your clients may not be using it. So how does a land professional use tech? The answer is easy--in their everyday productivity processes and marketing, that’s how. Let’s start with productivity. A mobile-first ideology, with the ability to be productive wherever you are in the world, is the most future-proof way to think about your processes. So, think about a smartphone or a mobile Wi-Fi solution: Do you need an iPhone to survive? No. You should consider having a mobile Wi-Fi solution -- called a hotspot -- in your bag of tricks. You can buy these little hotspots (also called Mi-Fi’s) at every cell phone provider’s website or kiosk, and they will allow you to use internet on multiple laptops or tablets while on the go. Many of you work in isolated areas devoid of cellphone data connectivity. Many newer cars and trucks have the same Mi-Fi functionality built-in as an option through their “On-Star” service. Thus, you can be wired in these isolated areas.
Apps are the bonuses of going the smartphone route. They really do make the world go ‘round, and many are functional with both Apple and Google phones. Go-to apps include: Dropbox: Synchronize everything on your laptop, tablet or phone (documents, spreadsheets, videos, pictures) and have all accessible from the cloud via the Dropbox app. The first two gigabytes of storage are free with plans starting at ten dollars per month (for one terabyte!), which is well worth the money. Evernote: Think of this handy app as the digital incarnation of your yellow note tab that you scribble your life on, which you could end up losing. You can write on, type on, record audio on and take pictures on this app. Then, share your “notebook” with anyone who has an internet connection. It’s free “to boot.” Google Maps, Browser and Remote Desktop: Google’s Map app is one of the best mobile GPS systems available, hosting a handy feature that allows you to save directions from your laptop to your phone. You can also “save a map” for later on your phone by typing “ok maps.” This is handy for taking an aerial screen shot of a plot of land on your phone to email later. The Chrome browser synchronizes all of your bookmarks from your laptop and tablet together on your phone, and the Remote Desktop allows you to access your computer from your
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phone in a pinch. All three apps are free. Microsoft Office: This is now on iDevices for a monthly fee. Want a free version? Use CloudOn. It synchronizes with all of the Word, Excel and PowerPoint documents in your Dropbox. Canva: Design flyers, social media graphics, post cards, infographics and more with this iPad app, coming soon to Android. You can use any of the free graphics in the app, or use any of the pictures you store in Dropbox. Planimeter: For eight dollars, iPhone users get access to this handy app that can measure plats of land via its awesome geolocation feature. Contactually CRM: If you’re ready for an upgrade of your client resource management solution from an Excel document, Contactually is the Customer Relationship Management (CRM) system for you. It’s easy to use; it synchronizes with websites (more on that later), your contact lists and social media, and grades you based on your activity for the motivation we all need. This app is free, as is the first thirty days of use. Mailchimp: Manage your email newsletter with this beautiful app. It syncs with the aforementioned Dropbox and Contactually apps for fantastic on-the-go productivity. There is literally an app for anything, but keep in mind that there is no such thing as a perfect real estate app. Instead, use these business apps in your real estate processes for a more productive you. Any real estate professional can see the value in that. After you’ve nailed productivity tech, marketing tech becomes the next hurdle. However, before you start with technology, know your marketing and content strategy. Who is your audience? How do you want it to grow? What is the value of your online presence? What is your goal with that presence? How are you different from your colleagues and what will you do to convey it to your audience? Do you want to spend money or time on your online presence? Answer these questions first, because all the technology in the world won’t save you from the lack of a plan. Once you’re ready to roll, nail down the easy stuff--starting with your online reputation. Claim your business brand on Yelp! (biz.yelp. com) and Google (google.com/business), along with your personal brand on LinkedIn.com. While these sites might not appear to have value, they have a ton of search engine juice for those searching for information on you or your specialties online. So, fill the review sites out completely and get recommendations from past clients on LinkedIn. Get in the habit of asking for recommendations after a transaction or at least once a year from the previous year’s clients. When it comes to your website, get ready to answer online all of the marketing campaign questions you posed to yourself. No matter how much you spend on your website (it’s not unheard of to spend over $10,000 on a site with ZERO leads guaranteed) the only thing that matters is content. The best is local content sourced from your expertise and backed up by the value of your services and the trustworthiness it denotes. Take a page out of the residential agents’ playbook in this regard. Start a blog on wordpress.com and share your brain with the world. Load the app onto your smartphone or tablet and share the salable elements of your new land listings. Give people
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a vision with pictures and graphics created with Canva. Be an expert and a visionary! Do you need three thousand words with every post? No. Consistently sharing a picture with a two-hundred word story will suffice. Your local chamber of commerce and/or visitor’s bureau websites are good models for a website and content strategy for land professionals. Want to boost your cred even more? Share your content with like-minded residential and new construction agents for a sustainable content sharing strategy from which everyone benefits. Video has increasingly become a marketing tool with mass appeal. It’s very social and very mobile, transcending language and time barriers with the average smartphone being able to record, then load, videos on the platforms of your choice (like WordPress, mentioned above). Options run the gamut. You can start with attachments bought at hdhat.com that turn iPhones and iPads into full feature camera rigs complete with audio microphones. Cheap GoPro cameras take fantastic action video shots and still pictures, albeit with horrible audio, and modern DSLR cameras can take fantastic pictures and shoot videos complete with higher end audio. Some tips for video--if you go down this road, be short and sweet, no more than a minute for audio heavy videos and no more than two minutes for visual heavy ones. Next, create a YouTube channel to host them on, which you can then post on your WordPress blog or website as well for double the search engine presence. Give people something to talk about! If you have the inside track on new developments in the area, a scoop on a new business, or the information on land usage change, talk about it and show it off. Be a source of the source! The payoff for these types of marketing tech endeavors is potentially huge with the relatively small amount of competition land professionals have. However, implementation of technology within a business strategy is not for the faint of heart. It’s less about learning how to talk tech and more about talking to people. Learn how to collaborate. Summer is a great time for college interns—interns who are natives to this type of technology. Talk to residential agents about what they’re doing and how you can fill in the blanks. Use Google and research for that. At the end of the day, it’s what ISN’T showing up in Google that is the true real estate professional’s value proposition. Give present and future clients things they did not know or cannot get. Tell them what’s important. Do the work. Be consistent and commit to business in the future. As with all technology in the real estate world, it should be used to save money and make money by bridging the gap between you and your clients. If what you’re doing - techy or non-techy - doesn’t do that, stop doing it. n
About the author: Nobu Hata is the director of Digital Engagement for the National Association of REALTORS® (NAR). As a real estate technology and new media expert, he brings value-added information to NAR members, brokers and associations. Hata will be presenting at the 2016 National Land Conference: THE BEST STOP HERE! in Dallas, Texas, March 11-13
A Transition from Military to Land Professional Caleb McDow Land Specialist Crosby & Associates
On June 22, 1944, President Franklin D. Roosevelt signed into law The Servicemen’s Readjustment Act of 1944. More commonly known as the GI Bill, this act provided millions of returning service members the opportunity to receive educational and financial benefits. These benefits included money for education and training, home loan guarantees, and even unemployment benefits. By the time the original bill ended in 1956, almost eight million World War II Veterans had participated in an educational or training program. The GI Bill has undergone two major revisions since its original adoption, but the core aim of the bill has remained constant-- to provide educational benefits for Veterans of the United States Armed Forces. In recent years, our country has seen a large number of men and women separating from the military services, and the transition to civilian life can be difficult. The services themselves, and the Department of Veterans Affairs, have many programs to help ease this transition. This helps service members get jobs, apply for college, or receive job-specific training. The REALTORS® Land Institute has created its own program to assist transitioning service members. It was implemented in 2014 and is known as the Military Transition Program or MTP. The MTP provides enormous benefits for service members who are interested in the land or real estate industry. Anyone who has served in any U.S. military service since the year 2000 is eligible. I have personally benefitted a great deal from the MTP and would like to tell you all about it. First, here is a short personal military history. I spent nine years in the U.S. Navy after receiving my commission thorough Auburn University’s ROTC program. I had dreamt of flying jets on and off aircraft carriers since I was very young. So…that’s what I did. After training to fly and receiving my Wings of Gold in Pensacola, FL, in 2005, I was assigned to Naval Air Station Oceana in Virginia Beach, VA, where I trained for nine months in a F/A-18 Super Hornet. I then spent three years stationed in Atsugi, Japan, and deployed aboard the USS Kitty Hawk and the USS George Washington in the Western Pacific Ocean. Following my operational tour, I was sent to Naval Air Station Lemoore, CA, where I served as a flight instructor in a F/A-18. After one year, I was assigned to serve as Flag Aide to the Commanding Admiral of the Joint Detention Center in Guantanamo Bay, Cuba. Once complete there, I returned to Lemoore, CA, where I served an additional year as a flight instructor. I left active duty in July of 2012 after nine years of service. I transitioned to the Navy Reserve and continue to serve the standard “one weekend a month, two weeks a year” in Jacksonville, Florida. After separation, my first task was to return to school--just like a veteran returning from WWII. I attended the University of Florida and received my Masters in Real Estate. I then joined Crosby & Associates, Inc., in Winter Haven, FL, to start my new career in land real estate. Thanks to the MTP, my transition was a smooth one. My first experience with the REALTORS® Land Institute was at the National Land Conference in Charleston, SC, in March of 2014. I had only been in the land business a few weeks and was somewhat apprehensive about fitting in and networking with all the other land professionals in attendance. But my apprehension soon turned to excitement. At
the opening session, I was introduced to the entire assembly. I also participated in an exclusive MTP session which included the Institute president, past president, and entire executive committee. This gave me the opportunity to meet others as I attended various sessions and networking events. It was easy to strike up a conversation-mainly due to having been introduced at the opening session. Each and every person I met went to great lengths to welcome me to the Institute and to offer help or advice whenever I needed it. I realized very quickly that the Institute was the perfect launching platform for my new career. To get a little more specific, the MTP is targeted at people who have served in the U.S. Military in the year 2000 or later and offers the following benefits: n First year of membership - FREE! ($445 value) n Land 101: Fundamentals of Land Brokerage course - FREE! ($295
value) n One additional LANDU elective course - FREE! ($445 value) n Additional educational scholarship opportunity: John Eshenbaugh
Military Scholarship ($500 value) When you do the math, that’s over $1600 worth of benefits! Plus, the non-monetary benefits are even greater. When I first joined the Institute through the MTP, I was personally called by Ray Brownfield, ALC Advanced. Brownfield is also a veteran who spent several decades in the military in addition to the land business. He personally contacts every person who joins through the MTP. I must say, although I have joined many real estate related organizations since leaving the Navy, the REALTORS® Land Institute is the only one I have ever joined where someone called to welcome me to their group. I also had the benefit of a conference call for MTP members with Bill Eshenbaugh, ALC, who donated several education scholarships to the MTP in honor of his brother, John Eshenbaugh. Eshenbaugh is a very experienced land broker in Tampa, FL, who does an incredible job of networking and connecting various individuals. He did a great job of encouraging the MTP members in our new careers and gave us the opportunity to leverage his network to connect with others in the industry. Opportunities like these are just a small sample of my experiences after having joined the Institute through the MTP. In general, 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. So, for everything that I have benefited from since the day I joined the organization, let me turn the tables and say to the REALTORS® Land Institute, “thank you for your service!” n
About the author: Caleb McDow joined the institute in 2014 as a Military Transition Program member. McDow is a land specialist for Crosby and Associates in Winter Haven, FL. He regularly blogs on real estate issues and is a member of the Institute Future Leaders Committee. He is an FAA certified drone operator.
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Blog Corner Education
The Time for Real Estate Agents to Adapt Has Come Luke Worrell, ALC Real Estate Broker Worrell-Leka Land Services, LLC I have to admit; I don’t particularly enjoy talking about the environment. In fact, I try to avoid it if it is anything beyond the current weather needs of our crops or soil. It’s a hot button for some, so perhaps I am just leery of pushing it. It can also get complex and the verbiage can start sailing over my head pretty quickly. This might be a unique personality trait, but I get the sense other ALCs and land professionals agree with me. I get busy in the day to day tasks of my job, and the larger scale or “macro” environment chatter passes me by. I totally understand the importance and like to think I am not being naïve with a certain level of apathy that I might have. I am also willing to admit that the time has come for me, and perhaps others like me, to change. The time is coming where farm managers won’t be able to get by with the basics of environmental small talk and what regulations might be in place. This became clear to me recently when I was privileged to participate in a “Next Gen” program in Springfield, sponsored by DuPont Pioneer. We spent a day and a half in and around the Capitol hearing from professionals in the governmental and regulatory arena. The take away was obvious: there are some real, serious and valid concerns regarding where we stand as an industry and how we handle our farms. Councils, Coalitions, Alliances, etc. are forming (and with sound reasoning) to see change implemented. We heard from the Illinois Council on Best Management Practices, the Environmental Protection Agency (EPA) and the Alliance for Sustainable Agriculture. Those present got the sense that some of these efforts are in their infancy, but will become much hotter topics of discussion in the years to come. If I was more qualified, I could write several articles on the ongoing water rights issues across the nation (Google “Des Moines Water Rights Lawsuit” and set aside thirty-six hours to read it all), that will garner most of the headlines--but it doesn’t end there. Nutrient stewardship, field print calculators, cover crops, increased organic practices; the list could go on until you get bored and stop reading my article. Yet, another facet that environmental chatter infiltrates is the slew of ongoing energy projects throughout the Midwest. My company’s footprint is comparatively small to others but, none the less, we have multiple clients greatly affected by three massive energy undertakings in West Central Illinois alone. Ameren has been battling for over a year with courts and the Illinois Commerce Commission, but a very large transmission line is darting through this area. Dakota Access, LLC., is ramping up their efforts which will see crude oil transported from the Bakken and Three Forks through North Dakota, South Dakota, Iowa and finally arriving at a crude oil hub near Patoka, IL. The “Grain Belt Express Clean Line” is the newest energy project in our area. Clean Line Energy Partners is attempting to capture wind energy from Western Kansas and transmit it to the Illinois and Indiana borders. There are always two sides to these energy projects, and this
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article isn’t about me firmly stepping on either one. The guarantee with these, however, is that they are always heavily debated. The proposed environmental friendliness will be a banner waved by the companies proposing these projects. “Clean Energy,” “Clean Power” and “Renewable Energy” will become buzz words as these projects try to gain traction and land owner cooperation. The game is changing on multiple levels, perhaps none more quickly than environmental concern and subsequent regulation. I haven’t been in the industry even nine years but when recollecting on what the landscape looked like when I started, I see a totally different world. I had no idea what “fracking” was, if that word even existed then. I would not have predicted I would see a honey bee on the cover of TIME magazine, nor would I have anticipated the depth of the ongoing WOTUS debate. I hope to be in this profession a long time. The changes I and other colleagues will see are most likely indescribable. Farming can be very generational. I grew up in the 80’s/90’s going to my grandparents on the weekend. I lost my Grandpa late last year but we loved talking about the “olden days” and my memories of watching him farm as a child. In retrospect, the “olden days” we spoke of aren’t all that old. The world moves quickly. Think about what the industry looked like when you started. Farmers are doing things today that would shock their predecessors. We have to adapt and be savvy when it comes to these environmental issues. So, let’s educate ourselves, have an open mind and prepare for dialogue to get tricky at times. Most importantly, let’s treat Mother Earth kindly and prepare to show her respect because she is going to be demanding it in the future. n
About the author: Luke Worrell, ALC, specializes in agricultural real estate and land management in west central Illinois. He writes articles included in the Institute blog and is on the Institute Outside Marketing Task Force.
Section 1031 Exchanges are Important to a Healthy Economy Jim Miller Assistant General Counsel IPX1031® Over the past two years there have been numerous proposals to restrict or eliminate I.R.C. §1031 tax deferred exchanges. These proposals are based on misunderstandings about §1031 and do not account for the powerful stimulus impact that §1031 exchanges have on the U.S. economy. This article will debunk a few of those myths and discuss the findings of a couple of recently released studies that quantify just how important §1031 exchanges are to a healthy U.S. economy. Myth: Section 1031 allows taxpayers to avoid capital gains taxes, and to defer gain indefinitely. Truth: Under §1031, taxes are deferred—not eliminated. Section 1031 exchanges structured under the IRS regulatory safe harbors are neither tax savings vehicles nor “abusive tax avoidance schemes.” Payment of tax occurs: 1) upon sale of the replacement asset and 2) incrementally, through increased income tax due to reduced depreciation deductions. A recently conducted study entitled “The Economic Impact of Repealing or Limiting Section 1031 Like-Kind Exchanges in Real Estate” conducted by Professors David Ling and Milena Petrova (“Ling & Petrova Study”) examined more than 1.6 million commercial real estate transactions between 1997 and 2014. It found that nearly eighty-eight percent of properties acquired in a 1031 exchange were ultimately sold in a taxable sale, rather than a subsequent exchange.
Myth: Elimination of §1031 like-kind exchanges will raise significant revenue. Truth: Elimination of §1031 would result in a long-term reduction in Gross Domestic Product (“GDP”) of the U.S. Section 1031 is a powerful economic stimulator, encouraging investment in small and medium sized growing businesses, thereby promoting US job growth. Section 1031 exchanges contribute to the velocity of the economy by stimulating a broad spectrum of transactions ancillary to the actual exchange which, in turn, generate jobs and taxable income through business profits, wages, commissions, insurance premiums, financial services, and discretionary spending by gainfully employed workers. This transactional activity raises state, local and federal tax revenue through transfer, sales and use taxes and increased property taxes.
Myth: The absence of a precise definition of “like-kind” is administratively difficult for the IRS and creates the opportunity for abuse. Truth: The definition of “like-kind” is well understood, §1031 is neither administratively difficult nor abusive. Like-kind exchanges facilitated by professional Qualified Intermediaries, and conducted within the regulatory safe harbors, are straight-forward transactions that follow a well-understood set of rules (including definitions), procedures and documents. Myth: Like-kind exchanges are used only by the wealthy. Truth: Like-kind exchanges are used by a broad spectrum of taxpayers at all levels. Section 1031 is fair, benefitting taxpayers of all sizes, in all lines of business, including individuals, partnerships, limited liability companies, and corporations. A 2011 industry survey concluded that sixty percent of exchanges involved properties worth less than one million dollars, and more than a third were worth less than five-hundred thousand dollars. Exchanged properties include real estate, construction and agricultural equipment, railcars, vehicles, ships and other investment and business-use assets.
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Blog Corner Education
Ernst & Young recently released a macro-economic study, Economic Impact of Repealing Like-Kind Exchange Rules, that found that the U.S. economy would contract by approximately $61 – $131 billion over ten years if §1031 was eliminated. Other key findings of the Ernst & Young and Ling & Petrova studies included: n Like-kind exchanges encourage capital investment. On average,
taxpayers purchased replacement property that was approximately thirty-three percent more valuable than their relinquished property. n Elimination would increase the cost of capital and slow the velocity of investment. n Like-kind exchanges contribute significant federal tax revenue. Thirty-four percent of exchanges were only partially tax deferred; some federal tax was paid in the year of the exchange. Additionally, eighty-eight percent of replacement properties are eventually sold in taxable sales rather than in a subsequent exchange, resulting in higher taxes paid due to increased capital investment. Elimination would result in less federal revenue. n Like-kind exchanges create jobs. Real estate acquired through a like-kind exchange is associated with greater investment and capital expenditures (job creating property improvements) than properties acquired without the use of a like-kind exchange.
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n Elimination of §1031 would impact the overall economy, with an
unfair concentration in certain industries including real estate, construction and equipment manufacturing and leasing. Both studies quantify that like-kind exchanges are important to a healthy economy. They increase transactional activity, provide an incentive to improve properties and increase investment in the U.S. Make sure your elected representatives know the facts. Send them a letter telling them that §1031 is important to you and your livelihood. n
About the author: Jim Miller is the Assistant General Counsel for IPX1031® a Qualified Intermediary, a national leader in §1031 tax-deferred exchange transactions. Miller is an approved LANDU instructor and helped author the ALC Exam and the “ALC Core Course Manual.” He can be reached at 602-850-8630 or at james. email@example.com.
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