I have been to Texas countless times. I always enjoy my time there, especially when visiting my sister and her family down in Harlingen. My most recent trip was to the REALTORS® Land Institute’s 2016 National Land Conference in Dallas. I have visited enough to where I playfully laugh off some of the “Texas-isms” I am so used to hearing, namely “Everything is bigger in Texas.” That one came up a lot during the advertising and early stages of this conference. It wasn’t just a cute saying however; this time they were serious. Barring an emergency or the birth of a child (the reason for my 2015 absence) I don’t miss the National Land Conference. I love my one year old but thank goodness he isn’t a big brother because the Dallas conference was a can’t miss event.
There are many reasons professionals across the country leave home for a few days in March to attend; I go for two mains reasons. First of all, the educational value is exceptional. It is easy to get lost in your own neighborhood sometimes. Traveling to hear world class speakers, national experts and legislative representatives is an invaluable experience. Just take a look at my Saturday schedule to capture a small sample: I started the day hearing from renowned economist Dr. Mark Dotzour and Senior Credit Risk Officer of SunTrust Bank, KC Conway. After participating in a 45 minute Q&A session with both distinguished speakers, the agenda then provided a wide variety of 45 minute breakout sessions throughout the day. I was able to get first-hand information on potential tax reform and how that could affect agriculture. I learned about “Delaware Statutory Trusts” becoming a more commonly used method of a 1031 exchange. I was able to spend some time focusing on our business and heard from a Public Relations professional and listened to a presentation on better utilizing technology to brand ourselves and serve our clientele. I also participated in breakout sessions centered on networking and collaboration with other firms. This was just one day! The conference was three days long. I haven’t even talked about the breakfast round tables, legislative updates straight from Washington or the presentations on new technology.
Where else can I glean that much knowledge in three days from that caliber of sources? I leave the National Land Conference every year a better land consultant, broker and farm manager. The quality and depth of the education keeps me coming back year after year.
The other main reason I attend is the people. The opportunity to gather with accomplished and trusted colleagues is an amazing experience. The chance to bounce ideas off one another, share stories and ideas is a monumental learning experience in itself. The REALTORS® Land Institute is like many organizations in that you get out what you put in. I have been fortunate to become involved with the Illinois chapter. I was honored to accept the “National Chapter of the Year” award on behalf of Illinois (shameless plug for my Illinois friends). The genuine friendships made and professional networking is immense within the REALTORS® Land Institute organization. It also is a valuable resource for my clients. I have a network of trusted and accredited professionals across the nation who would be happy to help and assist our clients should their scope expand beyond west central Illinois. Even if they don’t, I am more equipped than ever to handle tax reform, 1031 exchanges, legal issues, communication and collaborative marketing efforts on their behalf.
It was a memorable and valuable trip. Barring an unexpected third Worrell baby (my wife, and proofreader, panicked a little when she read that!), next year’s conference in Charlotte is on my schedule. I simply can’t afford to miss it…And neither can you.
Luke Worrell, ALC, is a Broker and Accredited Farm Manager at Worrell Land Services in Jacksonville, IL. He specializes in agricultural real estate and land management in west central IL. Luke enjoys all things sports and traveling. He resides in Springfield, IL, with his wife Allison and sons Kale and Benson.
Are real estate land brokerages going the way of the dinosaur?
With the advent of drone videos, Google Earth, digitized County GIS records, and property advertising websites, are the traditional services of rural land brokers still needed? This article is my attempt to address that question.
If you are a part-time or mediocre land agent who only does an occasional land deal, you should be worried about how necessary you are going to be to consumers going forward. Your services will probably not continue to be as relevant in the near future. Brokers that continue to get better at their jobs and excel in professionalism have a bright future ahead.
My conclusion comes from observing craftsmen in their trades. A mediocre cabinet maker with access to fine tools, will continue to make substandard cabinets. A master with ordinary tools can accomplish surpassing quality because they pour their heart and mind into their work. It isn’t the tools that do the work, it is the expertise and discipline of the craftsman.
Websites, videos, mapping systems, UTV’s, and internet access to information are all tools of the land brokerage trade. There have been immense advancements in technology in my short 8 years in this business. Mapping technology is infinitely easier to use than when I entered the field. Now every buyer has access to Google tools that allow them to zoom in and out, draw boundaries, measure distances and area, and determine distances to their home. This is no longer proprietary information that consumers rely on brokers to obtain. There have been similar developments in finding property listings and also about obtaining county tax assessor information on parcels.
A conversation like this begs the question, “What do land brokers really do?” If you are a broker and your answer to that is that you put properties online and in the newspaper, then your days in this business are likely numbered. I answer it this way, “I help people buy and sell land.” The emphasis in that sentence is on, “I help people.”
Consumers like to work with people they trust.
Our job as brokers is to give people all the information they need to make the best decision possible. For our clients, we also provide advice as to the proper course of action for their situation. In order for a broker to be able to provide expert advice, one must continue to learn and develop professionally. It takes a deep level of commitment to follow current trends, join professional organizations, network with others in the business, and constantly reflect on issues and trends that affect our industry.
My feeling is that brokers that are in this career for the long haul should join an organization like the REALTORS® Land Institute (RLI), and work toward earning their Accredited Land Consultant (ALC) designation. The Institute was founded by and for land brokers to promote the level of professionalism and increase the level of service to our customers and clients. Our members take an oath to conduct business in the most ethical manner, and agree to be held to a higher standard in their daily practices. The ALC designation is earned by those who demonstrate a commitment to obtaining the education and exercising proficiency in serving people who buy or sell land.
A consumer may be thinking, “But brokers are not necessary because I can use the internet to do what you do.” A portion of that statement is true, the internet is helping to educate consumers. There is an ample amount of good information from Toyota on how to change the timing belt on my truck. Is that something that I would personally try? Probably not. My feeling is to leave that to the experts, because messing up such an important task could cost me more than it would save me. WebMD is filled with information on diagnosing many important health conditions. Is it a good idea to diagnose and treat yourself based merely on the range of symptoms contained in the two paragraphs you read? No. You should seek out the person with the training and knowledge to help you diagnose and treat the actual condition.
We should work hard to offer our clients the best possible service that leads to the best possible outcomes for them. Those brokers who take the time to get the proper instruction, master the tools of the trade, and do their work with expert skill will have a successful career. There will be changes in our industry, and some among our ranks will be weeded out. Make a commitment to do the things necessary to help you excel in our profession and elevate the reputation of our industry. There will never be a replacement for a passionate person, driven to excellence who excels in serving people. Those are the brokers consumers will line up to work with.
About the Author: Jonathan Goode, ALC, is an active member of the REALTORS® Land Institute. He is a Co-owner of Southeastern Land Group, LLC (SELG) and is the Responsible Broker for the company in Mississippi. He is passionate about helping people buy and sell land.
On June 22nd, 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 US military service since the year 2000 is eligible. I have personally benefited 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 9 years in the US 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 9 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, FL. 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 Military Transition Program (MTP) is targeted at people who have served in the US Military in the year 2000 or later and offers the following benefits:
- First year of membership – FREE! ($445 value)
- Land 101: Fundamentals of Land Brokerage course – FREE! ($445 value)
- One additional LANDU elective course – FREE! ($445 value)
- 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. Ray 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. Bill 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!”
Caleb McDow, Institute Member, is a member of Crosby & Associates, Inc in Winter Haven, FL. Caleb is originally from Shelby County, AL, and attended college at Auburn University graduating in May of 2003. After graduation, Caleb spent 9 years in the US Navy flying the F/A-18F Super Hornet and was stationed in Japan, California, and Guantanamo Bay, Cuba. He continues to serve in the US Navy Reserve. Caleb’s current specialty is with agricultural land in Florida, focusing primarily in the north and north central regions. Caleb has a Section 333 Exemption from the FAA to operate as a certified commercial drone pilot.
If you know of a service member who would benefit from MTP, please refer them. For more information about the Military Transition Program, contact the Institute at 800.441.5263 or firstname.lastname@example.org.
Today, email remains the most effective way of digitally marketing your services. It still beats social media and direct mail by a longshot. In this article you’ll learn why email marketing is important as well as get an overview of the different types of content you should be using in your email marketing.
Why It’s Important?
Email marketing greatly reduces marketing costs. The cost to reach a potential customer is very low compared to direct mail, which requires materials, production and postage. Email marketing does require the use of an email service provider. There are many such providers including Constant Contact, MailChimp, Aweber, and many others. These service providers help you manage your list of email addresses, sending emails in bulk, provide templates that you can use, and most include other options as well including social media integration.
Ease of Use
What other method of marketing allows you to reach your entire customer base with the click of an email? Through the user of an email marketing provider like MailChimp or Constant Contact you can write your email once, schedule it, and have the service provider sent out the email to all your subscribers at once.
Email service providers make the job of email marketing easier by providing functionality such as a database for storing your contacts, web and mobile HTML templates for your email communications, sending of email to your entire list or a segment of your list, automated unsubscribe, and the ability to group or segment your list.
Email allows you to quickly and easily communicate with your audience, drive traffic to your website, develop loyalty, increase brand awareness, and gain referrals.
6 Types of Email Content
Real estate professionals should constantly strive to add fresh, new content to email marketing campaigns. Many of us fall into a rut of sending out the same old boring content over and over. Not that there is anything wrong with letting your email subscribers know all about your current listings.
That certainly has a place in any email campaign, but your readers want and expect more from you. And I’m not talking about providing buyer and seller checklists, tips for selling your home, and other articles that we’ve all seen a million times. Guess who reads those? That’s right — no one. Don’t waste your time writing these, because no one is going to waste time reading them.
There are many different types of content that can be integrated into your overall email marketing strategy. You should not think of these content types in isolation but rather as individual components that are combined into an overall strategy. In this article we’ll give you a high level overview of the basic content types that can be used in real estate email marketing.
It’s really difficult to separate email marketing from your overall content marketing strategy including the obvious need for a website. And you shouldn’t separate them. You want to create an integrated content marketing strategy with email marketing playing a central role. Your email should be directing readers to your website so they can consume your great content, and in turn the great content on your website should attract many new readers (and potential clients). Ultimately you want the great content on your website to trigger a desire on the part of the reader to register for your email newsletter.
Here, then, are six basic content types that every real estate professional should be using in email marketing efforts. There are many email marketing providers but they should all be able to support all of these content types.
Your blog posts will be the primary way that you generate content. Blog posts can contain many different types of content including articles about local events, restaurants, shopping, schools, and other local information. And yes, your property listings will play a big role as well. You should also include market reports and neighborhood tours as well as property tours. Tours are a great way to introduce video to your site. Other blog posts include curated content and graphic visualizations. Portions of these blog posts can be placed into your email newsletter along with links to the full article on your website. Again, you want to use the email to funnel readers to your website. The Your Berkeley site provides a great example of how to provide fresh content that can also be integrated into an email newsletter.
Video is becoming more and more widespread and important. In real estate visualization is extremely important and video is the best way to visualize a property without actually being at the physical location. Video allows potential buyers to sort through potential properties without physically visiting each location. It is a more efficient way of searching for properties from a buyers point of view and saves you time as well. You should plan on using a video sharing site like YouTube or Vimeo to host your videos. Using a video sharing site increases the potential viewership of your videos so that search engines can organically display your videos in search results.
Also keep an eye on the drone (UAV) video space. As of the writing of this article we are still awaiting FAA guidelines on how drones can be used for real estate marketing. However, drones have the potential to revolutionize how video is used for marketing various properties. It has particular significance for high properties and large acreage properties.
There are also many apps that you can use to record high quality video. I recently wrote about the Hyperlapse application and its potential to add unique video capabilities for marketing properties.
Audio is sometimes neglected in content marketing efforts but don’t overlook this opportunity to provide great content. However, audio is not for everyone. Some people are not comfortable with this medium, don’t like to hear their own voice, or simply don’t know what to talk about. With a little practice though most people can become reasonably comfortable and effective with this content medium. Podcasting has become extremely popular and is a great way to attract attention to your website and social media channels. You could interview local or industry experts, talk about important topics or simply record question/answer sessions.
Graphic visualization is a diverse and exploding content type. This can include many types of visualization including maps, infographics, charts and graphs, and photos. These provide unique, highly visual content that people really enjoy. These content types require specific software and expertise to create but are highly effective in generating traffic.
Buyers and sellers want information about their homes and the areas where they live. In particular, sellers want to know how much their house is worth and buyers want to the general trends in an area. Your reports should ideally be generated and shared on a monthly basis and should contain information such as active listings, recently sold properties as well as market trends.
You shouldn’t consider email and social media to be isolated activities, but rather different channels that should be integrated into an overall plan. Today, email remains the most effective way to digitally market to your customers. While social media gets all the attention, it is not as effective as email. That doesn’t mean it isn’t useful, but you really need to combine the channels to take full advantage of everything they provide. The question is how? Most email marketing providers are fast becoming integrated solutions providing functionality that allows you to embed social media follow and share buttons into your emails as well as automatically send notifications to Twitter, Facebook, Instagram, and other channels. The integration capabilities of providers will vary widely so you’ll need to do your research in this area.
Today there is no excuse for not providing your email subscribers with fresh, compelling content. A wide variety of content types supported by easy to use technologies make it easy to attract and keep readers.
About the Author
Eric is an approved LANDU Instructor for RLI. He is the founder and owner of the GeoSpatial Training Services and has over 20 years experience teaching GIS solutions and other technology. You can learn more about this topic in his company’s upcoming Getting Started with Email Marketing for Real Estate Professionals Course offered by Location3x.
There’s no doubt 2016 will bring new challenges and new opportunities to land professionals. From legislative changes to shifting industry trends, land professionals will need to be prepared to adjust and adapt in the New Year. Institute members can take advantage of the Institute’s many member benefits to help them reach their professional potential. Here are 16 of the best ways to use a REALTORS® Land Institute Membership in 2016:
- Take advantage of member rates with savings of up to $150 on all LANDU courses.
- Join the nearest RLI Chapter to start networking and learning locally.
- Post and search property listings on TheLandConnections.com at no cost.
- Network and learn at the 2016 National Land Conference: THE BEST STOP HERE!
- Take advantage of discounts on industry services with the Member Advantage Program (MAP).
- Read Institute communications to stay current with industry news, trends and more.
- Use the Find A Land Consultant tool to find other members and ALCs near you.
- Join a Committee and help write the Institute’s history and build its future.
- Showcase your properties during a Let’s Make Deal$ remote marketing session.
- Email your properties to other members with the Institute’s e-Properties platform.
- Attend the 2016 LANDU Education Week plus in Little Rock, AR, at a discounted rate.
- Enhance your marketing with the Member Marketing Kit.
- Network with ALC Allies to learn how to achieve the designation and make the most of Institute benefits.
- Connect with the Institute on its social media channels, including Facebook, LinkedIn and Twitter.
- Contribute a piece to the Institute Blog and share it to promote yourself.
- View white papers written on the hottest industry topics by RLI members and ALCs at no charge.
For more information on any of these benefits, please contact Institute Staff at 800.441.5263 or email@example.com.
Happy New Year!!
We as agricultural professionals know how hard we work to find buyers and sellers of land. We spend years of hard work to build our clientele and our reputation. Marketing a property correctly and in a timely manner is paramount to selling the property. Getting the listing is just the first step in the process of selling the property. There is still much work to do. I am sure that most of us are already marketing our properties in an informative, professional manner, but we can all improve our marketing efforts.
Most medium to large brokerage firms have an in-house marketing department which handles flyers, mailers, websites, etc. Other smaller firms may use an outside marketing company. The first step as the listing agent is to get all the pertinent information to the marketing team in a timely manner. This information should include: The full address of the property, GPS coordinates, acreage, photos, aerials, the property description, property highlights, improvements, soils and topo maps, production records / yields, well information, location maps, zoning, permitting, future land use, and demographics. Multiple location maps should be used, as many buyers may live out of state or out of the country and need detailed information to understand the property location.
The completed flyer or brochure and any other pertinent information should then be posted on the company website. After this, the flyer is emailed to recipients in the company database. The recipients should be filtered based on his or her property interests. For example, if the subject property is a citrus grove, the email blast should be sent only to people interested in citrus groves. People tend to trash these emails or even block a sender who constantly sends information that is not relevant to his or her wants and needs.
The next step is to post the flyer and all pertinent information on the various real estate marketing websites. These may include MLS, LoopNet, Land Flip, Total Commercial, and Lands of America, just to name a few. You should make sure to have any additional pertinent information posted on these websites. There is plenty of room to add additional information such as detailed soils map, location maps, demographics, etc. The greater the amount of information, the better. In many cases, we are dealing with very sophisticated buyers. They need all the information they can get to make an informed decision. It is very frustrating when the only information provided is a plat map and a brief description of the property. We are professionals and should market our properties in a professional manner.
Sometimes, you have to get creative with property marketing. There are a few other methods which could prove effective or even critical. Some people, believe it or not, don’t have an email address. In this case, direct mail might be called upon to reach the buyer, whether through personal letters or postcards. There are various trade magazines and newspapers in which to advertise as well. Lastly, let’s not forget the old phone, whether a cell phone or land line. We must keep in touch with our buyers and alert them when we have new listings that might interest them.
I hope this article was helpful and informative. Good luck marketing your properties!
Chip Fortenberry, ALC, MBA
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 US 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 US 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: 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.
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 US. 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.
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:
Like-kind exchanges encourage capital investment. On average, taxpayers purchased replacement property that was approximately thirty-three percent more valuable than their relinquished property;
Elimination would increase the cost of capital and slow the velocity of investment;
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.
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.
Elimination of §1031 would impact the overall economy, with an unfair concentration in certain industries including real estate, construction and equipment manufacturing and leasing.
The complete Ernst & Young and Ling & Petrova studies can be found at:http://www.ipx1031.com/wp-content/uploads/2015/03/EY-1031-Economic-Study-3-2015.pdf and http://www.ipx1031.com/wp-content/uploads/2015/07/Ling-Petrova-Economic-Impact-of-Repealing-or-Limiting-Section-1031.pdf.
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 US. Make sure your elected representatives know the facts. Click hereto send them a letter telling them that §1031 is important to you and your livelihood.
Contributor James Miller, Assistant General Counsel, IPX1031®
Jim Miller is the Assistant General Counsel for IPX1031® a Qualified Intermediary, a national leader in §1031 tax-deferred exchange transactions and a wholly owned subsidiary of Fidelity National Financial. He is an approved LANDU instructor for the “Tax Deferred 1031 Exchanges” course, “Advanced Tax Deferred 1031 Exchanges for Land Professionals” course and helped author the ALC Exam and the “ALC Core Course Manual.” Miller can be reached at 602-850-8630 or at firstname.lastname@example.org. To reach your closest IPX1031® office, call 888-771-1031 or visit www.ipx1031.com.
This piece was published in the 2016 Fall Terra Firma publication.