Accredited Land Consultant (ALC) honored with 2013 National Commercial Award

Accredited Land Consultant (ALC) honored with 2013 National Commercial Award

The REALTORS® Land Institute
An affiliate of the National Association of REALTORS®
Clay Taylor, ALC, recognized for his achievements

December 18, 2013 (Chicago, IL) – Accredited Land Consultant (ALC) Clay Taylor was awarded the National Association of REALTORS® 2013 National Commercial Award for his excellence in the commercial real estate industry. Taylor is one of 24 national award recipients.

As an ALC, Taylor successfully completed a rigorous education program with a proven track record of performance and a commitment to the land profession. The REALTORS® Land Institute grants the designation to only the most accomplished, experienced, and highest performing land experts across the country.

Clay Taylor, ALC, received the 2013 National Commercial Award because of his local achievements, and dedication to the REALTORS® Land Institute and the land profession. His commitment and successes were acknowledged when he received the 2012 Florida Land REALTOR® of the Year award. Taylor serves as the REALTORS® Land Institute Florida Chapter Treasurer.

Taylor, of Coldwell Banker Commercial Saunders Real Estate in Lakeland, FL was given the Bronze Circle of Distinction award from Coldwell Banker Commercial in 2011 and 2012 for his sales accomplishments.

About the REALTORS® Land Institute
The REALTORS® Land Institute is the professional membership organization for real estate practitioners who specialize in land transactions. An affiliate organization of the National Association of REALTORS®, the Institute provides a wide range of programs and services that build knowledge, relationships, and business opportunities for the best in the land business. Through its best-in-class LANDU curriculum, the REALTORS® Land Institute confers its Accredited Land Consultant (ALC) designation to only those real estate practitioners who achieve the highest levels of education, experience, and professionalism. For more information visit www.rliland.com.

###

Generous Accredited Land Consultant (ALC) Funds John Eshenbaugh Military Scholarship of the REALTORS® Land Institute

Scholarship Provides Quality Land Education to Military Service Members

December 9, 2014 (Chicago, IL) – The REALTORS ® Land Institute announced today that Accredited Land Consultant (ALC) Bill Eshenbaugh will continue to fund five  John Eshenbaugh Military Scholarships of the REALTORS® Land Institute through 2017. The scholarships, valued at $445 each, will be available to the first five Military Transition Program (MTP) Applicants who request the scholarship.

The MTP is designed to assist military members in jumpstarting their careers as real estate land professionals. Through this program, the Institute will waive fees for one year of membership, a LAND 101 course, and one elective LANDU course, valued at over $1500. Course hours accumulated will contribute to the requirements of the ALC designation—an indication of the most accomplished, experienced, and high performing land sales experts.

Bill Eshenbaugh, ALC, 2013 Institute Meeks Distinguished Service award recipient, is the owner of Eshenbaugh Land Company in Tampa, Florida. As a successful ALC land expert, Eshenbaugh has served as an instructor and course contributor for the Institute. He created the scholarship in honor of his brother John, who was awarded two Purple Hearts and a Bronze Star for valor.

About the REALTORS® Land Institute
The REALTORS® Land Institute is the professional membership organization for real estate practitioners who specialize in land transactions. An affiliate organization of the National Association of REALTORS®, the Institute provides a wide range of programs and services that build knowledge, relationships, and business opportunities for the best in the land business. Through its best-in-class LANDU curriculum, the REALTORS® Land Institute confers its Accredited Land Consultant (ALC) designation to only those real estate practitioners who achieve the highest levels of education, experience, and professionalism. For more information visit www.rliland.com.

###

Six New Accredited Land Consultants Earn Prestigious Designation

August 28, 2015 (Chicago, IL)—The REALTORS® Land Institute congratulates the following real estate professionals who have recently distinguished themselves by earning the esteemed Accredited Land Consultant designation through the Institute. Earning the ALC designation is an indication of the most accomplished, experienced, educated, and highest performing land experts.

The following Institute members have earned and been conferred the esteemed ALC designation in August:

Albert Allen, ALC; Allen Realty Advisors, Houston, TX
Jeffrey Bernson, ALC, JHB Realty Advisors, Inc., Midvale, UT
Steve Bilicek, ALC, Texas Ag Realty, Richmond, TX
Carell Freeman, ALC, Independent Broker, Humble, TX
Mehdi Mostaedi, ALC, NAI Capital, Victorville, CA
Jason Robbins, ALC, RE/MAX Central Realty, Asheboro, NC

ALCs have successfully completed the rigorous LANDU education requirements, have a proven track record of success in the business and have been evaluated and approved by the Institute’s Designation Committee and Board of Directors. As a result of their commitment to professional development and a strong code of conduct, they are the most trusted land professionals in the industry.

The REALTORS® Land Institute is the professional membership organization for real estate practitioners who specialize in land transactions. Over 100 years old, the Institute provides a wide range of programs and services that build knowledge, relationships, and business opportunities for the best in the land business including the Annual National Land Conference being held on March 11-13 in Dallas, Texas. Through its best-in-class LANDU curriculum, the REALTORS® Land Institute confers its Accredited Land Consultant (ALC) designation to only those real estate practitioners who achieve the highest levels of education, experience, and professionalism. For more information, visit www.rliland.com or call 800.441.5263.

2015 Land Markets Survey Now Open: What’s Happening in Your Land Market?

November 4, 2015 (Chicago, Ill.) — The REALTORS® Land Institute collaborates twice a year with the research department of the National Associations of REALTORS® to create a biannual Land Markets Survey. This survey is a one-of-a-kind report that benefits the entire land industry and contains pertinent statistics about the current state of the land market. The survey also compares current findings with past findings, setting benchmarks for the industry and revealing new insights to land professionals.

Terri Jensen, ALC Advanced, 2015 Institute National President of REALTORS® Land Institute, shared “This tool provides insight into the land industry’s many market segments:  farm & ranch land, timber, development land, transitional land, and other market segments such as auction and private treaty sales, as well as investor activity. The results of this market survey can be used with your expansion buyers, investors, and 1031 exchange buyers – it’s a great marketing tool!”

To put forth the most accurate, authentic and comprehensive results possible, expert land professionals are encouraged to take the survey before it closes on November 20. All participants will receive a FREE electronic copy of the survey upon its release and will be entered into a drawing for one of two $50 AMEX Gift Cards. The 2015 Land Markets Survey is an instrumental tool for land professionals around the globe, no matter what industry of the land market they serve, and participation is greatly appreciated.

The REALTORS® Land Institute is the professional membership organization for real estate practitioners who specialize in land transactions. Over 100 years old, the Institute provides a wide range of programs and services that build knowledge, relationships, and business opportunities for the best in the land business including the Annual National Land Conference being held on March 11-13 in Dallas, Texas.  Through its best-in-class LANDU curriculum, the REALTORS® Land Institute confers its Accredited Land Consultant (ALC) designation to only those real estate practitioners who achieve the highest levels of education, experience, and professionalism. For more information, visit www.rliland.com or call 800.441.5263.

REALTORS® Land Institute Lands New EVP As They Look To The Future

March 18, 2016 (Chicago, Ill.)- Bob Turner, ALC, 2016 REALTORS® Land Institute (RLI) National President, announced Aubrie Kobernus as the Institute’s new Executive Vice President (EVP) during the 2016 National Land Conference in Dallas last weekend. The change comes as the Institute pushes to bring members added value to their membership in an effort to further enrich their careers as land professionals.

Current RLI President Bob Turner, ALC, expressed “Aubrie has the talent and skills to lead The REALTORS® Land Institute into the future. She is a member-driven leader that has tremendous organizational knowledge and skills from her experience with the Memphis Area Association of REALTORS® (MAAR). We are truly lucky to have a leader with such strong core values and extensive experience within the REALTOR® Family. I think she is the perfect choice to lead the Institute into the future!”

Kobernus brings fourteen years of experience in multiple facets of the real estate industry including association/non-profit management, governmental affairs, public policy, affordable housing, and community development.  She has extensive experience in program development and management, culled from working at the Memphis Area Association of REALTORS®, where she managed three divisions: Governmental Affairs and RPAC, the Commercial Council, and the MAAR Benevolent Fund Corporation.

“I am thrilled to be chosen as RLI’s next Executive Vice-President. I am excited to work in partnership with RLI leadership and our exceptional staff to return RLI to being a member-driven organization with the tools and resources to make our members the best in the land business anywhere in the world,” Kobernus stated.

Kobernus will be moving from Tennessee to work at the REALTORS® Land Institute’s headquarters in Chicago this April.

About the REALTORS® Land Institute
The REALTORS® Land Institute is the professional membership organization for real estate practitioners who specialize in land transactions. Over 100 years old, the Institute provides a wide range of programs and services that build knowledge, relationships, and business opportunities for the best in the land business. Through its best-in-class LANDU curriculum, the REALTORS® Land Institute confers its Accredited Land Consultant (ALC) designation to only those real estate practitioners who achieve the highest levels of education, experience, and professionalism. For more information, visit rliland.com or call 800.441.5263.

2016 National Land Conference Draws Best In The Business

March 16, 2016 (Chicago, Ill.)- Over two-hundred and fifty land professionals from thirty-one states gathered in Dallas, Texas, from March 11-13 to attend the 2016 National Land Conference hosted annually by the REALTORS® Land Institute (RLI). Ninety-six Accredited Land Consultants (ALCs) attended the conference and over twenty 2015 ALCs received their ALC pins at the conference’s ALC Luncheon. During the conference, the Institute presented seven distinguished ALC members with esteemed Institute Awards.

George Clift, ALC, of Amarillo, Texas, received the 2015 Land REALTOR® of America Award. The Land REALTOR® of America Award recognizes members of REALTORS® Land Institute for their effort and work expended in the interest of their fellow Institute members, their profession, and their community.

Aaron Graham, ALC, of Gretna, Nebraska, received the 2015 Rising Star Award. The Rising Star Award recognizes a member approaching a mid-level in his/her career who is on his/her way to making significant contributions to the land profession and to the Institute.

Porter Martin, ALC, of Traverse City, IL, received the 2015 Meeks Distinguished Service Award. In honor of dedicated, long-time Accredited Land Consultant Robert C. Meeks, the Distinguished Service Award is presented to an ALC in recognition of long-term commitment and service to fellow-Institute members, the land profession, and the community. Otto Sprenger, ALC, was also recognized at the conference as a recipient of this award in 2003.

Steve Anderson, ALC, and Andrew Van Rensburg, ALC, were both posthumous recipients of the 2015 Excellence in Instruction Award. The Excellence in Instruction Award recognizes REALTORS® Land Institute instructors for their exceptional teaching skills, contributions to LANDU professional development, and volunteerism for the REALTORS® Land Institute education program.

David Hitchcock, ALC, and Clay Taylor, ALC, both of Lakeland, Florida, received the ALC-to-ALC Networking Award after working together to complete an $8,150,471 transaction. The ALC-to-ALC Networking Awards showcase the range of referral opportunities available to those land professionals who have achieved the Accredited Land Consultant (ALC) designation.

The Institute also awarded the RLI Illinois Chapter with the Chapter of the Year Award and Molly Suarez of the Iowa Chapter as the Chapter Administrator of the Year.

About the REALTORS® Land Institute
The REALTORS® Land Institute is the professional membership organization for real estate practitioners who specialize in land transactions. Over 100 years old, the Institute provides a wide range of programs and services that build knowledge, relationships, and business opportunities for the best in the land business. Through its best-in-class LANDU curriculum, the REALTORS® Land Institute confers its Accredited Land Consultant (ALC) designation to only those real estate practitioners who achieve the highest levels of education, experience, and professionalism. For more information, visit rliland.com or call 800.441.5263.

A Transition from Military to Land Real Estate

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 and has a service end date within the last five years 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.

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!” For more information about the benefits available through the MTP, please contact RLI at 800-441-5263.

mcdow, calebCaleb 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 rli@realtors.org.

Integrated Content Marketing (Made Easy) for Real Estate Professionals

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?

Reduces Costs

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.

Customer Communication

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.

Blog Posts

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

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

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

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.

Reports

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.

Social Media

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.

 

In Conclusion

 

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.

16 Ways to Use a RLI Membership in 2016

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:

  1. Take advantage of member rates with savings of up to $150 on all LANDU courses.
  2. Join the nearest RLI Chapter to start networking and learning locally.
  3. Post and search property listings on TheLandConnections.com at no cost.
  4. Network and learn at the 2016 National Land Conference: THE BEST STOP HERE!
  5. Take advantage of discounts on industry services with the Member Advantage Program (MAP).
  6. Read Institute communications to stay current with industry news, trends and more.
  7. Use the Find A Land Consultant tool to find other members and ALCs near you.
  8. Join a Committee and help write the Institute’s history and build its future.
  9. Showcase your properties during a Let’s Make Deal$ remote marketing session.
  10. Email your properties to other members with the Institute’s e-Properties platform.
  11. Attend the 2016 LANDU Education Week plus in Little Rock, AR, at a discounted rate.
  12. Enhance your marketing with the Member Marketing Kit.
  13. Network with ALC Allies to learn how to achieve the designation and make the most of Institute benefits.
  14. Connect with the Institute on its social media channels, including Facebook, LinkedIn and Twitter.
  15. Contribute a piece to the Institute Blog and share it to promote yourself.
  16. 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 rli@realtors.org.

Happy New Year!!

REALTORS Land Institute 1031 Exchanges

An Alternative to the 1031 Like-Kind Tax Exchange

It was a brutally cold, windy and overcast morning in the Dakotas Territory. The year was 1871. Every living creature exhaling air was immediately turned into vapor from the freezing temperatures. We were soldiers in the 7th United States Calvary Regiment and this particular morning, we were not singing “Garyowens”. Thousands of settlers were flocking to the territory and our job was to protect them. At this moment, many of the settlers were being threatened by the bad guys and we were preparing to ride to their rescue.

Commanding F Company was the American icon Capt. John Wayne. His Second in Command was WWII hero Lt. James Stewart. Work with me here. We were divided into two wings. One the left wing, 1st Squad was manned by the great Virginian Sgt. Randolph Scott and 2nd Squad was led by the incomparable Sgt. Errol Flynn.

The right wing was led by the 3rd Squad’s fearless Sargent Glenn Ford, who later helped defeat the Japanese Navy at the Battle of Midway, and the 4th Squad was led by Yours Truly right out of “The Point.” Again, work with me. The battle lines were drawn and we were ready for action. Captain Wayne gave the order and the bugler belted out the Calvary charge. The horses leaped into action, our swords at the ready and at that very moment….my alarm went off and it was a Wednesday morning in 2015. Another missed opportunity to ride to the rescue. Or was it?

Scrutiny Looms Over Section 1031s

Section 1031 is beginning to receive scrutiny by Congress and that’s probably not a good thing. All of the appropriate organizations including the Institute are lobbying Congress to leave 1031 exchanges alone–and for all the right reasons. But this is Congress, and that means that this will probably become a huge political football. I have no inside information but based on being in practice since the late 70s, my gut feeling is that 1031 exchanges will be modified to some extent. Perhaps, the first 500k in capital gains can be passed on to a new replacement property or something along those lines may be the final result.

Can You Help Your Clients Without Using 1031s? Yes!

So, assuming that Section 1031 is changed in some fashion, how can Institute members ride to the rescue to still help their clients defer capital gains taxes, state taxes where applicable, depreciation recapture, the Obama care tax and possibly the alternative minimum tax when selling a clients’ property. Actually, there are options now and you don’t even need a 1031 to defer taxes. Let’s turn a negative into a positive.

Imagine not having to deal with a forty-five day identification time limitation or loan to value ratios. What if you could sell a client’s great property now, defer taxes and at any time in the future, you can buy any property that you would like for your client AND while you are looking for that property, your client can receive a check every month for roughly five to six percent of the sales proceeds while those proceeds are still tax deferred. Do you think that this might give you a competitive advantage over other brokers that are unable to provide this opportunity?

Imagine working and taking constant risks for thirty or forty years or more and when you’re finally ready to retire, you have to write a check for twenty-five to thirty percent of your liquid assets to the US Treasury before you can retire. Well, fortunately you don’t have to but when selling your clients properties, they do have to write a check to the US Treasury for twenty-five to thirty percent of their sales proceeds and for many, that’s THEIR retirement plan. You can still defer those taxes for your clients and keep more of their hard earned sales proceeds in their pocket and send less to Washington, even if a 1031 isn’t appropriate. Do you think that this might give you a competitive advantage over other brokers that are unable to provide this opportunity?

Another tax deferral strategy that might face Congressional scrutiny in the future is the stepped up basis. I have met a number of older land owners who intend to pass their property on to their heirs instead of selling their property because of the large tax liability that the sale will create, and because a 1031 isn’t appropriate. That’s not necessarily a bad strategy unless you make a living selling real estate.  If you do sell real estate, it is possible for the land owner to sell their property and defer taxes and turn an illiquid asset into a lifetime retirement income. When the land owner passes on, the income can be passed on to the heirs. And you just sold a great property.

The great thing about the REALTORS® Land Institute is the sharing of ideas and strategies and that’s why Institute members and Accredited Land Consultants (ALCs) tend to be more successful and have higher incomes than non-members I certainly hope that Congress doesn’t make changes to Section 1031 but if they do, we can still ride to the rescue of our clients without having to be John Wayne or….even me. Let’s turn a potential negative into a positive today by recognizing there are other ways to defer our clients’ taxes than a 1031. You will sell more real estate and keep more of your clients’ hard earned sales proceeds in their pockets and sending less to Washington. Happy selling and deferring taxes!

David Fisher, Creative Real Estate Strategies

David is a Partner at Creative Real Estate Strategies, a 2015 Silver Partner of the Institute, and has been in the industry since the late 70s. His years of experience help him to assist land brokers in helping their clients defer capital gains tax, state tax and depreciation recapture taxes on their client’s sales proceeds when either their clients are unable to complete their 1031 or the client would like to sell and retire but still defer taxes. By understanding these tax deferral strategies, brokers have been able to sell more real estate. David can be reached at 713-702-6401 or at David@cresknowsrealestate.com