new land agent

New Land Agents: Overcome These Barriers and Get to Work

Overcoming Expertise Barriers

Decide on your specialty – We believe the best foundation for finding your niche is to go with what comes naturally to you and what you have plenty of life experience with. It’s imperative that you have confidence in your ability to market and represent the real estate and the clients you choose to work with.

mentor

Find your mentorFind someone that does what you want to do, really well, and join them. Rural real estate will throw you a new curve on a weekly and, sometimes, even daily basis.  If you can align yourself with a solid team and/or an experienced Broker within your specialty, you’ll remove the majority of the risk factor and frustration for everyone involved just from their experience and willingness to help.  Nothing is more exhausting than having an inexperienced Broker floundering on one side of a land deal that doesn’t know how to troubleshoot, problem solve, and keep everyone moving in a positive direction, causing one side to do most of the work in the best interest of their own clients.

Take Courses – Organizations like RLI provide courses, like those part of their LANDU Education Program, that can give new agents the expertise they need to get started and thrive in the land industry as an agent. Make sure to seek out these opportunities and to continue learning throughout your career.

Overcoming Cost Barriers

Vehicle/Fuel costs – If you choose a niche that you’re already living, chances are you have the appropriate vehicle.  Just clean it up and make it presentable. Again, if you join a team, they may have a company UTV available for showing properties. Fuels costs can be somewhat alleviated by having a plan in place to pre-qualify your buyers as far as their wants and needs and their ability to finance. Don’t waste your time in a truck with someone that doesn’t have the stack to purchase the properties they’re asking to see.

Marketing costs within a team can be shared and the experienced Broker can advise a new agent on what works and what doesn’t saving a lot of unnecessary output. Your team or established Broker will usually have a marketing plan in place with appropriate websites and subscriptions that come with no added cost to their Brokers.

Land real estate allows us to make a living at something we’re made of.  It gives us the ability to spend our work days with people that love the same way of life as we do.  It’s absolutely rewarding and can sometimes be brutally hard. Just be prepared to gather more lifelong friends than you could ever imagine, and be sure you protect and treat every one of them like they’re family.  Submerse yourself in education and always do the right thing and you’ll have an amazing career in land real estate!

Clint Flowers, ALCAbout The Author: Clint Flowers, ALC, is the top producer nationwide at National Land Realty, a member of the REALTORS® Land Institute, their RLI Alabama Chapter, and the Chair of their 2019 Future Leaders Committee. He was the NLR Top Producer Nationwide in 2016, 2017, and 2018. He also won the 2017 APEX National Broker of the Year award for Timberland and was in the 2018 APEX Producers Club.

Lisa JohnsonAbout The Author: Lisa Johnson, ALC, is the Owner/Principal Broker at Horsepower Real Estate. Specializing in Farms, Ranches, and Equestrian Properties in Western Oregon, her and her team of land Brokers are among the top rural agents in the area. Lisa is a member of the RLI Pacific Northwest Chapter, and a 2019 Future Leaders Committee member.

timberland agent

A Day In The Life Of A Timberland Agent

One of the reasons consulting forestry, and now land focused real estate brokerage, has been so appealing to me is that the job is not monotonous. Each day presents new challenges and, while experience helps navigate those challenges, timberland agents are constantly learning and coming across new things. It is hard to describe a typical day because each one is unique. There are certain characteristics that make timberland brokerage a unique specialty.

I worked as consulting forester early in my career before transitioning into land agency. These early experiences prepared me for the more technical aspects of timberland brokerage. Brokers need a strong knowledge to help them allocate value among the component parts of properties. The value in timberland can be thought of as comprising two major components: the underlying or bare land and the timber growing on the land (there may also be improvement value). The agent must be able to quantify the timber portion separately from the bare land in order to form an accurate purchase or selling price.

timberland agent in forest

The first step in this process is accurately describing the timber on the property. This usually starts with a current forest stand map that details the acreages associated with each unique stand. A forest stand is an area of similar species composition and age. We prepare for the initial tract visit with an aerial photograph of the tract, and the first visit involves touring the property to identify the stands and stand boundaries. We then describe those stands in terms of species composition, age, site quality, silvicultural treatments, and any other relevant features. We take this field information back to the office and, using our GIS system, create an accurate and up-to-date stand map with associated acreages.

We then decide if the property requires a full timber inventory (cruise) to accurately value the merchantable timber. Ideally, all merchantable stands of timber will be inventoried prior to a purchase or sell. This gives either the buyer or the seller confidence in the timber value of the asset. If this is not possible, or the party does not want to incur the expense, an experienced forester or broker can provide estimates of the per acre value based on a thorough inspection of the property. Walk through or “ocular” estimates are not as accurate but are significantly lower cost, and may be sufficient depending on the goals of the buyer/seller.

The timber inventory should detail all of the species, forest products, and volumes in each timber category. If the agent is not a forester, they should seek to establish relationships with local consulting foresters in their work area, so that he or she can be engaged to perform timber inventory and appraisal services clients when needed. Pre-merchantable stands, those too young for commercial sale, have value that should be estimated as well. These can be valued if the agent can determine the age, species, and site preparation invested in planted stands or natural stands of timber.

timber forest

Agents specializing in this area of the land business need to have a strong knowledge of timber markets in their work area. They should know the area mills, what products they purchase, how the trees are merchandised (cut up when harvested), and current market pricing of all forest products for the market. In my area of North and South Carolina, I work in five unique timber markets within a 200-mile radius, and the values for the same forest products can vary greatly between each of these markets. If you are going to advise investors on where to purchase land, and help them forecast future timber markets, it is imperative to be networked with consulting foresters, procurement foresters, timber dealers, and mill representatives. These relationships will keep you updated so you can help your clients make good decisions. Armed with a deep understanding of the markets and forest product pricing in the area, a broker can use the timber inventory data to estimate the value of the timber on the property with a reasonable amount of certainty.

Equally important is the ability of the broker to value the underlying land on the timber investment. There are two primary approaches timberland brokers can use to value the land:

  1. Comparable sales. The sales comparison approach is the primary method used for smaller acreages that have less potential for regular (annual) cash flows. The broker should have a strong understanding of recent timberland transactions in their work area with as much detail as possible to estimate the bare land price realized in each sale (the allocation). This allows the agent to make an apples-to-apples comparison of sold tracts to the subject property. Land focused real estate brokers and local rural appraisers can help agents obtain comparable sale information. Professionals are usually willing to share information with other professionals, so be sure you return the favor to those who assist you.
  2. Land Expectation Value (LEV). The Land Expectation Value (LEV) approach involves using discounted cash flow analysis (DCF) to derive the net present value (NPV) of the net income stream produced by a property over time. The LEV approach does require some specific knowledge to complete accurately – primarily a way to project timber growth into the future. Generally, this approach is reserved for larger transactions with many acres and forest stands involved, those likely to generate annual or at least semi-regular cash flows through frequent harvest events. To complete this approach, the analyst will need to understand the client’s investment parameters as well, including likely holding period and required return. Specialized training and knowledge is required to value a property using the LEV approach.

Timberland is a specialty, and this is a very high level overview of the types of task a timberland agent might work on in a given day. The REALTORS Land Institute offers and excellent introductory class, Timberland Real Estate, as part of their LANDU Education Program. I recommend this course as a first step for those who seek expertise in timberland.

Chris Miller, ALCChris Miller, ALC, is a land broker and consulting forester for American Forest Management, Inc. in Charlotte, North Carolina.

prospecting phone calls

Prospecting Scripts For Land Professionals

Not all REALTORS® love cold calling, but most of those that are successful in the business have learned to do so effectively while making it an integral part of their daily prospecting. Dedicating a portion of your day to cold calling will ensure that you stay sharp on market trends and connected with the owners in your region. There is no better way to keep a pulse on landowner perspectives than by talking with landowners on a regular basis.

A few things to remember before picking up the phone:

  • Plan what you want from the call. Is your goal to get a meeting and/or listing, submit an unsolicited offer, confirm contact info, etc.?
  • Empathize, put yourself in their shoes. What type of land are you calling on and what type of owner are they? What is important to them? You will have a higher success rate if you are able to speak to a landowner about activity in the market and/or topics that are relevant to them.
  • Preparation will lead to confidence. Know the market and data – but, don’t be afraid to tell an owner you don’t know something in response to a question. It is better to let them know you will research it and get back to them, than to guess and get it wrong. This will help to establish trust with the owner while simultaneously giving you a reason to follow up.
  • Enthusiasm is contagious. Nobody wants to have a depressing conversation. You should be excited about what you do. But also, try to mirror the pace and tone of the person you are speaking with. This doesn’t mean copying them, but rather speaking to them how they are speaking to you.
  • Personalize your approach. We are better when we are being ourselves. This could mean adjusting any cold calling script to play to your individual strengths.

prospecting phone and note pad

Below is an example cold call prospecting script for land professionals along with a few variations depending on the nature of the conversation.

Introduction

Good evening/afternoon, this is (name) with (company/firm). May I speak with (owner’s name), the owner of the (land asset) located in (name of city/area)?

The reason for my call is:

Approach 1 (We have buyers)

We have been active in the market and are in contact with several motivated buyers looking for property similar to yours. Would you be interested in considering an offer if one of these prospects would like to submit on your property?

(Wait for response)

  • If they are receptive – Great, it would be helpful to meet and discuss your goals in more detail so that we are able to guide the prospects toward a deal structure that best achieves your desired outcome. What is your availability in the next few days?
  • If they are moderately receptive – I understand this is a big decision and you haven’t had the chance to think about it. At a minimum, could we schedule a quick meeting in the next few days to discuss the market and any specific goals that you have regarding your property?
  • If they are not interested – I appreciate the consideration. Would you like to be kept apprised of market data and see similar properties that we are bringing to market? Is there a reasonable time frame for me to follow up and see if things have changed, perhaps 12 months?

Closing – Going forward, is this the best number to reach you? Would you prefer email? Thank you for your time and I look forward to speaking with you again.

Approach 2 (Recent sale)

We recently sold (name or location of property you recently sold) at a price of (price/acre or another applicable unit) which represented a record value in the market (Alternative – Or use another data point – like the number of offers, quickness of the process, etc. – that may be a motivating factor for another owner) and was shown substantial buyer interest.

Have you considered listing your property to take advantage of the current demand and strong values?

(wait for response)

  • If they are receptive – Great, it would be helpful to meet and discuss your goals, as well as tour the property so that we may provide you with our estimate of value. What is your availability in the next few days?
  • If they are moderately receptive – I understand this is a big decision and you haven’t had the chance to think about it. At a minimum, could we schedule a quick meeting in the next few days to discuss the market and any specific goals that you have regarding your property?
  • If they are not interested – I appreciate the consideration. Would you like to be kept apprised of market data and see similar properties that we are bringing to market? Is there a reasonable time frame for me to follow up and see if things have changed, perhaps 12 months?

Closing – Going forward, is this the best number to reach you? Would you prefer email? Thank you for your time and I look forward to speaking with you again.

Approach 3 (General)

We are active in (your region, specific location of the land, specific land type, etc.) and are reaching out to owners to learn about their goals and so we are able to speak generally about each asset in the market. Do you have a few moments to discuss your property or is there a better time to speak?

(wait for response)

  • If they are receptive(Start asking questions.) Given how strong the values are at this time, have you considered selling? Would it be helpful to your estate planning if we were to provide a broker’s price opinion? Have you considered purchasing more land to increase the scale of your operation? How is everything going with your operation? Would you like us to send you information about activity to keep you informed about market trends? (have several potential questions to ask based on the type of property, specific market trends, and type of ownership).
  • If they are moderately receptive(get to the point) I understand you are busy. I wanted to quickly understand if you have considering selling, buying or are simply holding at this time…. Any information we could provide or questions about the market we could answer to assist you with your planning?
  • If they are not interested(ask to follow up with questions via email. If they don’t want to talk and won’t give you their email, MOVE ON.)

Closing  Going forward, is this the best number to reach you? Would you prefer email? Thank you for your time and I look forward to speaking with you again.

Through the practice of cold calling, you will become more comfortable and capable at gauging the conversation and guiding it in the direction you would like it to go. The bottom line is to pick up the phone and remember, an imperfect cold call is far better than no cold call. Happy calling!

Matt DavisAbout the author: Matt Davis is a real estate broker with Cushman & Wakefield. He is based in San Diego, CA, and assists clients with the disposition and acquisition of investment grade agricultural and transitional land assets. He is also founding member of the company’s Land Advisory Group and Agribusiness Solutions Team. Matt is a member of RLI and has served on their Future Leaders Committee.

Five Books All Land Agents Should Read

What’s better than settling down with a really good book? The only problem we can think of is that there are so many great books out there about the land industry that there’s not enough time to read them all. For this article, we’re sorted through hundreds of books to find the five best books that can help land agents learn more about the industry, learn new skills, and study the success of other great land agents.

The Land Flipper: Turning Land Into Dollars by E.B. Farmer

This book was at the top of Accredited Land Consultant Lou Jewell’s list of his favorite books about land. It is an excellent introduction to the land industry and includes step-by-step chapters following the entire land selling process. Some of the chapters include:

  • How to find, negotiate and buy land with very little money out of pocket
  • Dividing land in order to multiply your profit.
  • Techniques for improving the land in order to make it attractive to buyers
  • Cheap, easy ways to market and sell your land

If you know a new agent who just started selling land, this book could be a great “welcome to the industry” or “welcome to the brokerage” gift.

Buying and Investing in Land: A Guide for Land Purchase: How to Buy Land the Smart Way and Learn How to Avoid Land Scams — Even if You Are a Beginner by Dianne Ronnow

This book shares the secrets to success of the wealthiest land sellers and investors. It also exposes the biggest scams in the land industry that even the most experienced land agents have fallen for and teaches you how to avoid being tricked. Whether you’ve just started your career as a land agent or have decades of experience under your belt, this book can be a great addition to your land library.

How I Turned $50 into $5 Million in Country Property – Part Time: And How You Can Do the Same by B.K Haynes, ALC

When a book is written by an Accredited Land Consultant, you know it’s going to be a read worthy of your time! B.K. Haynes, ALC, channels what he’s learned from over fifty years of buying and selling land into a comprehensive look at buying, selling, and investing in rural land.

The Greatest Salesman in the World, by Og Mandino

This book, found in William Burruss, ALCsGoodReads, may not be about buying or selling rural land specifically, but the lessons about salesmanship, hard work, and success are essential for land agents. The book even comes with a suggested reading structure so that you have time between chapters to reflect on and think about the different books.

Buying Rural Land: Tips and How-Tos by Tom Brickman

Looking for a quick read? Tom Brickman’s e-book is a collection of short essays and articles about rural land. Brickman shares what he’s learned from 40 years in land. The book covers includes “to-do” lists for buying and selling land, what to look for when inspecting a property, and tips on developing people skills. The best part of all? It’s free!

We’ve only covered the tip of the iceberg when it comes to great books for land agents. If you know of other books that helped your career in land, be sure to mention them in the comments section. Happy reading!

Want to learn about the land industry in a more hands-on way? Be sure to check out our upcoming LANDU courses to learn about everything from Transitional Land Real Estate to Land Investment Analysis.

About the Author: Laura Barker is a freelance writer based out of California for the REALTORS® Land Institute. She has been with RLI since October 2017.

commission split handshake

Navigating Commission Splits – How, When, and Why

If you’re successful in the land business, you work hard. You put in the time, the miles, the blood, and the sweat that it takes fighting the elements Mother Nature throws at you along the way… but we do it because we love it. And when you’ve done what it takes to build a business like ours, you don’t want to give hard-earned money away when doing commission splits. When you share your commission with an outside broker or agent, you want it to be earned and you want to achieve a mutually beneficial goal: closing. And not just any closing, one that satisfied your client’s goals.

commission splits time money intersection

The 50/50 Split
One of the most contentious topics I encounter amongst real estate agents in the land industry is commission splits. When to split, when not to, how to, etc. In my experience and in my own business, there is rarely a default split. We strive to be fair and competitive in the splits we offer, but we do typically pay relative to how involved or uninvolved the other agent was. Speaking from a listing agent perspective, while there are exceptions, in a 50/50 split scenario, we expect agents to:

  • have procured our listing(s) for their client or customer;
  • when required, show the property to those prospects; and
  • handle any and all paperwork that follows.

The Referral
If an agent calls and requests us to locate a property for their buyer and also show it for them or assist them with the showing, that acts more like a referral and that is typically how it is paid. What’s a normal referral split? As with most things in the land business, it depends… but we typically see a rate of 20-25% of the referring side. The total percentage is typically scaled based on the size of the referral, work required, etc.

money commission split

The Key to Successful Commission Splits
The key to preventing problems when doing commission splits is clear communication right from the start. Don’t operate under assumptions. If you do, you may learn later that the split structure being paid by the listing agent is different than you imagined. If you’re the listing agent, don’t be surprised if the split expected is more than you envisioned paying… especially to an agent that needed an abnormal amount of help from day one.

So, as a listing agent, before showing or negotiating tracts with selling agents, be sure to communicate clearly with them how compensation is structured. If you’re the selling agent, understand the responsibilities required of you as a selling agent to earn a strong split and determine how you will be compensated appropriately for your efforts before you invest a lot of time, effort, and miles to avoid being disappointed or frustrated later.

“Situations with poor communication can put your clients’ best interest at risk and hurt professional relationships.”

By communicating clearly, you’ll end up with relationships that prove much more fruitful over time rather than ones that leave you both angry and jaded about doing future business with each other. Handled correctly, splitting commissions with other agents can be one of the most profitable investments you’ll ever make. It can create professional friendships that have potential to produce for you both throughout your entire careers and quickly ramp up the scale of your book of business. This invaluable return is something found regularly in the roster of the REALTORS® Land Institute. Like my Dad tells me to this day, “Don’t lose dollars counting pennies.”

Clint Flowers, ALCAbout The Author: Clint Flowers, ALC, is the top producer nationwide at National Land Realty, a member of the REALTORS® Land Institute, their RLI Alabama Chapter, and the Chair of their 2019 Future Leaders Committee. He was the NLR Top Producer Nationwide in 2016, 2017, and 2018. He also won the 2017 APEX National Broker of the Year award for Timberland and was in the 2018 APEX Producers Club.

waterfront river land listing

Listen to the Land: Listing Advice

This article on land listing advice was originally published in the Summer 2016 Terra Firma Magazine.

Some years back, a long walk in a fallow field changed my career path forever. Peanut hulls, gobbler tracks, and flint flakes dotted the river-silt loam around my boots. It was March, right when Eastern North 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.

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.

carolina river

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 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.

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.

river land

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.

Three listing and marketing suggestions stand out that all have to do with “listening” to the property and refusing to compromise:

  • List properties that match you and your skill set, passions, and beliefs rather than taking everything that comes along.
  • Market those listings according to what they are by using platforms that mirror and properly display the property.
  • 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.

About the author: Douglas Cutting is the Vice President of Garden & Gun Land and BIC of Cutting Land & Consulting, LLC based in Charleston, SC. Cutting is an experienced outdoors-man and land broker with a diverse background in the woods and on the water.

Four Tips for a Successful First Year as a Land Agent

Becoming a land broker sounds fun. You see all the cool pictures, videos, and listings that agents post online and on social media, so you think “Hey, I like the outdoors, I like to hunt and fish, I know my way around the woods, so I’m going to become a land agent and just watch the money roll in.” As many a land broker will tell you, you are dead wrong. Selling land is a lot like farming. It takes time, money, strategic planning, and at the end of the day, a lot of your success still depends on the weather. Here are some tips for getting over the learning curve as a new agent:

  1. Hope for the best, plan for the worst – Don’t just run out and buy a fancy 4×4 truck, UTV, winches, and tires. Being able to navigate rural lands is important, but don’t spend money you don’t have yet to do it. Be modest, create a budget. Work with your broker to outline how much you should allot to your personal digital marketing, print marketing, networking opportunities, etc. and understand when you can expect those efforts to start taking hold. Don’t spend money you don’t have just to break even later. Economies change much like the weather, and as long as you’re not over extending and you are able to adjust, selling land in a bad economy can be equally or more profitable than selling land in a good economy. Learn how to pivot your business around whatever industry weather changes may come
  2. Educate yourself at every opportunity. If you want to be an expert, don’t just play one online. Invest in yourself and become one. Join professional organizations like RLI and align yourself with industry leaders, working toward meaningful designations like that of the Accredited Land Consultant. Learn from those around you in the industry, from their mistakes as well as their successes. Follow and understand pressing industry issues: income taxes, tax shelter opportunities, current or upcoming regulations, laws, or policies that effect your client base, etc. You will be most successful in this business when you know how to best make or save your clients money.
  3. Network & get referrals. Everybody uses postcards, letters, online gimmicks, etc. to promote. Nothing wrong with that; it’s a necessity we all face, but networking is one of the most fruitful investments of time you can make in our industry. The larger the network of people that understand who you are, what you do, and why you are an expert in your field, the more business will walk in your door without you having to spend your valuable budget dollars trying to procure new clients. Start with your friends and family. They are the bedrock of a strong network and the people that will be your biggest promoters. Add your past clients to that essential list once you start to have them. A major key to successful professional networking is reciprocating. Be generous and genuine in your referrals of other professionals first, without expecting or asking for anything in return, and it will pay great dividends throughout your career. Being an RLI member aligns you with a vast network of land professionals from across the country, so make sure to take advantage of it.
  4. Above all, align yourself with a strong brand. By now, we’ve all heard about branding and how important it is. In this context, it’s not only about having a recognizable logo. It’s about what’s behind the logo: like the leadership and support team. Before you join a company, understand its culture and make sure it aligns with your personality and your goals. Join a company that invests in you, promotes your growth, provides educational opportunities, mentorships, etc., one that is constantly innovating and evolving rather than one that’s just waiting on the next disruptor to emerge and knock them backwards.

At the end of the day, you are not successful in this business because you like land, have a real estate license, and want to be successful. It comes down to what you put into it and being too stubborn to quit when it gets tough. There’s a reason a lot of people in this business wear weather hewn boots and hats – They’ve earned them!

This post is part of the 2019 Future Leaders Committee content generation initiative. The initiative is directed at further establishing RLI as “The Voice of Land” in the land real estate industry for land professionals and landowners. For more posts like this, click here


About The Author: Clint FlowersALC is a top producer with National Land Realty, a member of the REALTORS Land Institute of Alabama, and a member of the 2018 Future Leaders Committee.  He was a NLR Top Producer Nationwide in 2016 and 2017. He also won the 2017 APEX National Broker of the Year award for Timberland.

Everything You Need to Know About Bringing in Outside Parties to a Land Transaction

The sale of property that predominantly consists of land requires an extension to the set of tools you would normally use in a residential listing. Listing land has unique requirements that necessitate additions to the team of professionals involved in a transaction, even prior to marketing the property. In certain circumstances, adding another agent or even another brokerage firm may increase both marketing power and product expertise. Opening title with a title company or attorney’s office aids the Escrow Officer in getting ahead of any title issues. Bringing environmental and biological consultants on board can provide crucial advice when working on developable acreage with sensitive habitats. Once the property is listed and ready to market, a land planner, economic development agency, and surveyor could inform potential buyers about what is for sale, or what could be produced on the property. Each phase of the process during a successful sale has important and legal ramifications if not completely correctly. Below are details on who the professionals are that we most utilize, when we recommend speaking with them and why.

Who: Surveyor/Engineer

When: At listing

Why: If the property you are selling hasn’t been surveyed, it is advisable to recommend the seller have a survey completed with the corners of the premise marked (for larger properties we like to have them stake the corners with 10′ white PVC pipe). This allows you to convey accurate measurements to perspective purchasers, while having the corners visibly marked so that buyers may visualize the boundary when touring the site.  Additionally, a survey will also bring to light any issues involving encroachments, potentially avoiding costly retrades or cancelled escrows when given the foresight to deal with these problems early in the process.

When marketing transitional land, primarily for residential development, a civil engineer who is familiar with the local zoning code can be engaged to provide a lotting study. Having this study, which shows a hypothetical layout for a residential subdivision in accordance with the minimum development requirements of the zoning code and site constraints, can help support value. Similarly, hypothetical site plans can be developed for nonresidential development sites that show potential layouts and building footprints. An engineer may also be able to provide guidance or connect you with the correct contacts at the municipality to gain an understanding on the ability to access public utilities (water, wastewater, stormwater, natural gas, etc.), along with their distance from the property and whether they have enough capacity to support the proposed use.

Who: Land Use Planner / Architect

When: At listing

Why: Engaging a land planner to provide hypothetical master plan layouts that incorporate a mix of future uses for larger development sites can help prospects understand the breadth of the opportunity, assigning value to the portions of the site allocated to different product types. Additionally, if they are familiar with the local municipality, a knowledgeable land planner should be able to provide a plan that will be well received by both the market and local decision-making bodies.

Similarly, (but more typically for infill development projects) having an architect provide a feasibility study highlighting the applicable development regulations for the site (including maximum square footage or density constraints) and a massing report that shows the maximum building envelope along with architectural renderings of what a potential building may look like. These resources can help purchasers quickly assess the scope of the development opportunity at hand.

Who: Land Use Attorney 

When: Prior to engaging the market

Why: To most local elected officials, nothing is more important than land use. For this reason, when working on a transitional land project it is important for the seller to have advice from counsel that understands local politics and the land use regulatory process. This will help assess the reasonableness and likelihood of success for any offers received that are contingent on development. They can also provide valuable insight during the entitlement process and increase a project’s chances of approval.

Who: Real Estate (Transaction) Attorney

When: Prior to receiving offers

Why: Throughout the sale process, the seller should seek the advice of real estate counsel to ensure they are appropriately mitigating risk. This includes reviewing their current situation prior to receiving offers so that the agent can make Buyers aware of any business terms that are unique to this seller’s specific situation throughout the process of developing an offer. Additionally, working with counsel to review all agreements and due diligence material prior to delivery can mitigate the potential for the seller to expose themselves up to unnecessary liability.

Who: Title Officer/Attorney

When: Prior to or at listing

Why: A title review should be completed as early in the process as possible to ensure marketable title. Confirming how title is vested and addressing any encumbrances (i.e. outstanding liens or deeds of trust, lis pendens, easements, etc.) early in the process can ensure you are dealing with a property’s true decision maker, along with providing time to address any concerns long before you have a buyer at the table.

Who: Water Rights Attorney

When: At listing

Why: For any asset where access to water is currently or potentially a critical component of value, having a water rights attorney provide an opinion on the validity and defensibility of any water rights may be necessary to support any assessment.

Who: Well Driller 

When: At listing

Why: In regions that are dependent on groundwater, it is advisable to discuss the site with a local well driller to determine the feasibility of developing a well at the property, the condition of existing wells (if applicable), and any known issues with the groundwater resources in the area.

Who: Environmental Consultant 

When: Prior to or at listing

Why: Unresolved soil and groundwater contamination can be devastating to the value of a property regardless of the source. Having a consultant provide a desktop report prior to listing the property can help educate you and the seller about any known issues in the area. If there are reasons for concern, an environmental consultant can help develop a strategy to address the concerns and provide certainty to a buyer. If the owner has a previously completed Phase I Environmental Site Assessment (ESA), a report that looks at the current and historic uses of the property to assess if they may have impacted the soil or groundwater beneath the property and could pose a threat to the environment and/or human health) a consultant can review the report and help summarize what was found previously, as well as what additional investigation (if any) may be warranted.

Who: Biological Consultant

When: At listing

Why: The existence of sensitive plant and animal species, or habitats could substantially impact the cost to develop as well as the actual developable acreage of a site. Asking an expert if there are any known species in the area along with any reasons for concern by having an informal site visit completed to look for any indications of sensitive species or habitats will provide increased certainty when engaging the market.

Who: Consulting Forester 

When: At listing

Why: As detailed in the Should I Invest in Timberland Real Estate? post by Clint Flowers, ALC, a fellow RLI member, developing a solid timber management strategy is critical to the successful investment in timberland.  Additionally, if a consulting forester is engaged earlier and familiar with the property, they can help prospective purchasers assess the opportunity and determine if it is the right fit for their investment criteria.

Who: Escrow Officer

When: At listing

Why: Having a trustworthy and capable Escrow Officer as part of your team will help keep a transaction on track. An Escrow Officer can often work with Title in advance of a transaction to address any issues that may need settling prior to getting the property into Escrow. This type of preparation can limit last minute issues and help ensure a smooth transaction from start to finish.

Who: Economic Development Agency (public and/or private) 

When: At listing

Why: For development opportunities and transitional land, economic developers should be made aware of the offering as early as possible. Not only are they a potential source of a buyer, but they can typically provide guidance on incentives, approval processing, and general market expertise. Leveraging their involvement can save time and increase the likelihood of a project getting approved.

Who: Other Brokers/Agents 

When: Prior to listing

Why: Fielding the best team on every deal is fundamental to our success in business. When given the opportunity to work on a project outside of our unique area of geographic or product expertise, a referral is not always possible depending on our relationship with the client. However, partnering with the right team of real estate professionals to provide the expertise you lack will improve your learning curve, expedite the sale process, and (most importantly) ensure you achieve the best possible results for your client. RLI has a vast network of agents across the country with extensive expertise in the various sectors.

Who: Appraiser 

When: Prior to listing

Why: When analyzing a new opportunity, speaking with an appraiser knowledgeable in the market can help establish the most defensible approach to valuing a specific asset along with developing a defensible baseline value. They may also be able to provide verified comparable sales to support your analysis.

As you can see, much of this work is recommended to be completed early in the process. Understanding these aspects of a property and addressing any areas of concern sooner than later can:

  • assist with establishing a defensible asking price of the property;
  • ensure you present a comprehensive offering to the market;
  • help you address buyers questions early and knowledgably, and most importantly;
  • and decrease the level of uncertainty around a property and reduce the likelihood of surprises during escrow that may lead to avoidable delays, price reduction requests, or failed escrows.

While this list has been assembled primarily from the perspective of a listing agent, a buyer’s agent could also benefit from using this as a guide to assist either their clients with due diligence or their own preliminary investigations to determine if a site fits their client’s acquisition criteria. The list is not meant to be comprehensive but, in our experience, it addresses the vendors, consultants, and professionals we engage with most frequently. Establishing a stable base of knowledgeable experts can expand your capabilities and allow you to more effectively guide a client through the process of buying or selling real estate.

This post is part of the 2019 Future Leaders Committee content generation initiative. The initiative is directed at further establishing RLI as “The Voice of Land” in the land real estate industry for land professionals and landowners. For more posts like this, click here
About the Author:
 Matt Davis is a real estate broker with Cushman & Wakefield. He is based in San Diego, CA, and assists clients with the disposition and acquisition of investment grade agricultural and transitional land assets. He is also founding member of the company’s Land Advisory Group and Agribusiness Solutions Team. Matt is a member of RLI and serves on their 2019 Future Leaders Committee.

About the Author: Cynthia Bynum started in Real Estate in 2003 as an investor and acquired her license in the State of Texas in 2009. She was raised on Eagle Mountain Lake and is quite familiar with properties in Parker and Tarrant Counties. Joining Trinity Territory Brokerage firm was the best move for her career. Her specialties range from representing buyers and listing residential properties to commercial, land sales, property management, foreclosures,  and leasing.

The Best Advice Top Agents Ever Got

A few words can change your life. The advice you get from your mentor, friend, or family member can even change the course of your career forever. Accredited Land Consultants Geoff Hurdl, ALC,, Bill Burruss, ALC, and Terri Jensen, ALC, share the advice that helped shape their successful careers in land.

Know Yourself to Know Others

Understanding yourself is an important part to succeeding in the land industry. You need to know your own strengths and weaknesses in order to improve your weaknesses and play up your strengths.

“Doing the best that I can and to ‘know myself’ have been the underlying themes to my leadership skills,” says Bill Burruss, ALC, winner of RLI’s 2018 Land REALTOR® of America Award.

“These two pieces of advice were instilled by my parents and reiterated by my teachers in high school. Respect for others was also a strong value. It could be argued that I was taught to live The Great Commandment, to ‘love thy neighbor as thyself’. I believe to be successful you have to know yourself. Both my parents and teachers would challenge me by having me evaluate myself regularly. This forced me to understand what I did well, and where I had problems, and ultimately make the needed changes to achieve my goals.”

Don’t Spread Yourself Too Thin

There are lots of ways to make money in real estate. Instead of trying to excel in every single field, Geoff Hurdle, ALC,  winner of the 2018 APEX Wrangler Award, found success by focusing his time and energy on the things he knew the most about.

“My father taught me there were many ways to make money in real estate,” says Hurdle. “One of the most valuable things he taught me was to stick with what you know.  I learned the value of that advice when I strayed from it. It cost me, a lot. I went back to what I knew and I have not looked back again!”

Respect and Hard Work Are Everything

Land real estate is a people business at its core. Respect for your fellow man can help you go far. Burruss also learned that the land industry is one where hard work and a love of land speak louder than race or gender.

“Respect was all about my generation, growing up in the ‘60s. I went through integration in the 7th grade. Within four years, women were hitting the streets in waves wanting equal pay and better job opportunities. Before I became a REALTOR®, I was hired by a person who was gay and then one who was African American. When I started real estate, my broker was female. The reason I got into leadership on the national level was by invitation from the Virginia Association of REALTORS® President-Elect, Nathan Booth, who was the first black president of a REALTOR® state association. All of these people had a great love for their fellow neighbor that I want to replicate. All of them are great because they are great, not because they are female, African American, or gay.”

Terri Jensen, ALC, with National Land Realty also highlights the importance of the three R’s. “Respect for self; respect for others; responsibility for all that I do,” says Jensen.

Hard work is also essential for success in the land industry, as Dan Murphy, ALC, with M4 Ranch Group explained in his 2018 Terra Firma article Getting To The Top: Finding The Apex Of Success.

“Each of us in the industry knows that we only eat what we kill. This industry makes no payment for a second place finish,” says Murphy. “If the transaction does not close, we don’t get paid. Our success at M4 Ranch Group in 2017 is without fail directly tied to the strength, intelligence, and the never-quit attitude of Team.”

Communication Is Key

Making sure that you are not just heard, but understood ensures that you and your client are on the same page.

“If you don’t know the answer to a question, let the client know that,” says Terri Jensen, ALC,. “Do let them know, though, that because of your years of experience, education, and expertise, that you probably know someone who can answer the question.”

The land industry is so massive and there are so many roads to take that it can be easy to feel lost. Listening to advice from land agents with decades of experience can help guide you in the right direction.

Looking to find a mentor in the land industry that can give you the advice that will change your career forever? Becoming a member of the REALTORS ® Land Institute gives you access to a national network of over 1,300 land professionals to connect with and learn from.

About the Author: Laura Barker is a freelance writer based out of California for the REALTORS® Land Institute. She has been with RLI since October 2017.

 

 

Five Tips for New Land Professionals

The timber business has always been in my family. Growing up, my dad owned his own timber brokerage company. It was something I was really familiar with. Being on land, buying, selling and trading it, were all things that I was accustomed to. But it was a career path my dad said I should never take.

I always wanted to do what my dad did, so when he sold his business I wasn’t sure where to go with my career. I ended up going to the University of Alabama and graduating with an environmental degree. And soon after, got a job in Mobile, working for an environmental company where I did safety and environmental consulting. I continued that line of work for about four years before I decided to go part-time with them and obtain my real estate license.

I had been looking for a different career opportunity for a while. Somewhere where I could grow and be my own boss. So, in April of 2016, I went to work for National Land Realty (NLR). The opportunity came up through a mutual friend who happened to be a broker for NLR. And I went full speed ahead with only the knowledge and experience in land I had gained while growing up. But it was a challenge I was driven to overcome.

Starting out at NLR as a Land Professional, the first listing I got was in Choctaw County, Alabama. I never really knew how many people were interested in buying land until I got that listing. I ended up generating over five sales on five different properties from that first listing. Closing on that first deal made me more motivated than ever before.

My biggest challenge thus far has been gaining trust within my clients. But trust comes from hard work and doing exactly what I say I’m going to do. Like making sure I talk to the previous landowners, spending more time on each deal… It’s about going above and beyond. And not being afraid to get out there and get muddy.

As a younger and newer Land Professional, I want to offer advice to others out there who are just starting out and want to reach that next level. Here are my top 5 tips on how to get there:

  1. Be persistent.

If I could only offer one piece of advice, it would be to always be persistent. You have to go out and get the business. You can’t just sit around and wait for it to come to you. You’ve got to go dig it up each and every day. Don’t be afraid to ask questions, ask other professionals for help and don’t take no for an answer.

  1. Network, network, network!

Networking is key in the land real estate business. It’s about keeping your name in front of people – creating your personal brand. So, make sure to attend all the outdoor events you can. Get on different outdoor committees and even go to city council meetings. Don’t be afraid to stop at your local bank, coffee shop or co-op store to market yourself and your business. You want to create a culture of, “That guy knows what he’s doing.”

  1. Find a mentor.

Finding someone who’s been in the industry for a while and can show you the ropes can benefit you greatly when you need that extra bit of knowledge on a certain topic or just a boost of motivation. A mentor can also help you see areas where you may need some improvement.

  1. Go above and beyond.

To be successful and get to the next level, you’re going to have to put in the time and the effort. Working longer hours, making those extra phone calls, going to those late-night meetings – all these will pay off in the end.

  1. Be honest and thorough with clients.

Always keep your word with a client. Spend that extra time with them going through each step of the process so they feel confident. You’ll be able to gain their trust and build a relationship with them that could last for decades to come!

Forrest During is an RLI member and land professional at National Land Realty who specializes in acquisitions, sales, recreational, timberland, and conservation properties. This post was originally published on the National Land Realty blog in August 2017.