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Lou Jewell ALC

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Nationional Realtor Land Institute VP Campaign Letter to RLI Members

08-28-09
Lou Jewell ALC

Greetings RLI Members

Disclose, disclose, disclose is drummed into our heads constituently. Even though we are lovers of Land and Land transactions, I'd venture to guess that probably all of us sale a home once in a while.

Most states have a "Residential Disclosure" mandatory forms. But very few states have a "Land Disclosure" form. In my research, Arizona, California, Georgia and Tennessee currently have one.

Last December I submitted my research to our North Carolina Commercial Form Committee. In May I was asked to join the committee and we are now moving forward with a "Land Disclosure" form for our state.

It is interesting that our North Carolina "Residential Disclosure" form has 28 entries. Taking the four state forms and private forms that were collected, there are 93+ entries that pertain to Land.

See my article:

http://www.landthink.com/land-buying-investing/due-diligence/93-plus-potential-land-disclosure-issues/

If your state does not have one, get involved and find the right committee that is responsible for your forms. There are a lot of liabilities that can be avoided with a comprehensive "Land Disclosure" form. If your state does have one, I would appreciate a copy to add to our research and shared with others.

If enough states adopt a comprehensive "Land Disclosure" form we may have an opportunity to pay lower Errors and Omission fees. This could be a wonderful membership benefit for RLI.

As your Vice President of RLI I will continue to identify and support the issues that can make our industry stronger and more efficient for all of us.

Online voting is accessible September 4-18, 2009, through the member - only section of the RLI website:

http://www.rliland.com/Login.aspx

Lou Jewell ALC

A Voice for Land

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Would you like to learn about Land?

08-21-09
Lou Jewell ALC

Would you like to learn about Land?

Want to learn about Land and Land Brokerage, then come to our next Realtors® Land Institute "Land 101" Class October 28th & 29th in Greensboro, North Carolina.

As real estate brokers and agents, we are not trained in real estate school anything useful in Listing or Selling Land. Our Realtors® Land Institute, established in 1944 and part of our National Association of Realtors® (NAR). Our website is www.rliland.com and here you can learn about our organization and about the ten Land classes we offer.

Land 101: Fundamentals of Land Brokerage

In this introduction to the land specialty, aspiring land professionals learn the basics of land brokerage, including the various types of land; the land brokerage process; the 1031 tax-deferred exchange process; market value; property rights and restrictions; subdivisions and assemblage; and environmental and regulatory issues.

In his is a two day, 16 hour accredited course and you will receive 4 hour North Carolina C.E Elective credits for by attending. We have catered lunch each day and one the first day during lunch, we will have a panel of experts speaking of current events and marketing.

Bring your "Haves" and "Wants" for a mini marketing session...Make contacts and make money...

You may go to this link https://sites.google.com/site/loujewellalc/ for the class registration link.

Come join us. I have been teaching this class since 2003 and have taught over 1,500 agents from 27 states.

My next class is in San Diego, Californian November 10th & 11that our NAR National Convention, so if you can not come to Greensboro, I'll see you in San Diego. Do not miss these opportunities. Land is where it is at right now.

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93 Plus Potential Land Disclosure Issues

07-06-09
Lou Jewell ALC
93 Plus Potential Land Disclosure Issues Anyone involved in a typical Land transaction, leasing, buying or selling may be exposed to 93 plus potential Land issues. For years now I have advocated for need of a “Land Disclosure” form throughout our country. So far only four states have such a document available for the real estate industry and they are Arizona, California, Georgia and Tennessee. Most states have “Residential Property Disclosure” forms which are executed at time of the listing by the sellers and reviewed and signed off by the buyers during the offering process. We recommend these forms to also be used even in cases where you are selling without the assistance of a real estate firm. North Carolina’s “Residential Property Disclosure” form has only twenty-one issues, far less than the Land form who should have and fewer than other comparable forms found around the country. Here are a few examples of the ninety-three plus potential Land Disclosure issues currently in place by the four states previously mentioned. “Are you aware of any?” Encroachments Easements Endangered species: Plant Animal Flooding whether currently or previously Forfeiture of rights (mineral, timber, development, etc.) Government sponsored clean-up of the property Goundwater contamination Illegal uses (manufacture of liquor, methamphetamine, marijuana cultivation, etc.) Landfill operations: legal or illegal or previous planned Mineshafts or tunnels Noxious fumes or odors Pipelines (natural gas, petroleum, etc.) Well water contamination: current or previous Conservation Easements Stream Restorations “Are there any Gravesites on the Property? “Are there any animal cemeteries or animal burial sites? “Are you aware of the presence of:” Asbestos, Benzene, Fuel/chemical storage, Paint (Lead based paint) (Other paint/solvents), Methane gas, Pesticides, Radioactive material, Radon gas, Underground storage tank(s), EPA Phase I, II or III studies. “Are you aware of any past or present issues or problems with any of the following on the property?” Soil settlement/expansion Drainage/grade Earth Movement Erosion Flooding Fissures Dampness/moisture other than around rivers, streams, lakes, etc. Sliding Wetlands or previous wetland areas Do you have a survey? When was it done? Who did the survey? Do you have a copy? Has it been recorded? Is or will it be subject to protective covenants, conditions or restrictions? Is the legal owner(s) of the Property a foreign person or a non-resident alien pursuant to the Foreign Investment in Real Property Tax Act (FIRPTA)? Is the Property located in an unincorporated area of the county? Is the Property subject to extra territorial jurisdiction? What is the current zoning of the Property? Has the property been timbered in the past 25 years? Harvest monitored by a Registered Forester? Timber replanted after the harvest with (species) Is the property in an Agricultural or Forest tax deferment program? Coming soon “Carbon Credits” that will also need to be disclosed. Land can have a lot of issues and knowing all the aspects involved is critical for all involved in any of these transactions. The Real Estate Industry “Realtor®” program has an established “The Realtor® Code of Ethics” as a guideline for practicing real estate. This code has seventeen articles. Article 11 states: “The services which Realtors® provide to their clients and customers shall conform to the standards of practice and competence which is reasonably expected in a specific real estate disciplines in which the engage; specifically, residential real estate brokerage, real estate syndication, real estate auction, and international real estate.” (Our Professional Standards Committee voted unanimously in Washington in May this year at the NAR Mid-Year Convention meeting to include the four letter word “Land” in Article 11 of the code, subject to the Executive Committee final approval this fall). “Realtors® shall not undertake to provide specialized professional services concerning a type of property or service that is outside their field of competence unless they engage the assistance of one who is competent on such types of property or service, or unless the facts are fully disclosed to the client. Any persons engaged to provide such assistance shall be so identified to the client and their contribution to the assignment should be set forth.” (Amended 1/95) See: http://www.realtor.org/MemPolWeb.nsf/pages/COde Unfortunately when one goes to real estate school around the country and takes the 160 +/- hours of classroom instruction and testing, they are not taught about Land, Commercial real estate, Property Management, etc., only about residential property and real estate law. Do not assume that all real estate agents have the knowledge in the specific areas of brokerage. If you are buying or selling Land or Farms or Ranches, make sure to find a member of the Realtors Land Institute to help you in this process. Specifically look for an Accredited Land Consultant, their Designation for those experts in Land who have worked hard to achieve it. See: http://www.rliland.com for the nearest RLI agent and the RLI programs and educational opportunities. Consult with a Land attorney if you plan to create your own “Land Disclosure” form. If you are a real estate agent, please check with your Broker-in Charge before creating or using even if your state has a standard required “Land Disclosure” form already approved. The potential risks and liabilities created because of non-disclosures can be very costly. Lou Jewell ALC Accredited Land Consultant “A Voice for Land” 7/2009
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Prospects Flourish for Land Brokers

06-03-09
Lou Jewell ALC

Prospects Flourish for Land Brokers

Chicago, IL, April 26, 2009:

The motto of the National Association of REALTORS is "Under all is the Land." It's a simple sentence that expresses just how central land brokerage is to the entire real estate industry.
Real estate has had it rough lately. Record foreclosures, falling home prices, stalling commercial sales, and financial gridlock seem to the perennial front page headline. But amid all of the bad real estate news, most types of land have held their value and continued to produce income for their owners.
"Land-especially income-producing farmland-is a more conservative investment than most other types of commercial/investment real estate, which means it's also less volatile," says Randy Hertz, ALC, owner of Hertz Real Estate Services in Nevada, Iowa.

Higher levels of equity in most land deals, combined with the growing demand for food and recreational space as the U.S. population grows, help ensure long-term stability and a strong future demand for land.

Land's low volatility is good news for owners, but it also helps insulate land brokers from the more dramatic market fluctuations common in the commercial and housing sectors. That's why selling land in all its forms offers an attractive niche for real estate professionals.

"The demand for land brokers should grow steadily in the next five to seven years. More than half of all farmland owners are over 65 and will be considering sales," says Hertz. In addition, retiring Boomers will fuel demand for more recreational ranch and timberland. "If you enjoy land and helping people buy, sell, and manage their investments, land brokerage is a great career for you," he says.

"How the United States uses and preserves land is very important today and will be even more so in the future," agrees real estate consultant and Boston College MBA Professor Frank J. Parker, CRE. "Development pressures will rise in the future decades due to a strong increase in the nation's birth rate and in immigrants with permanent residency. Land usage demand will elevate accordingly."

Land brokerage offers a viable niche for those already in real estate because many of the same techniques used with other forms of investment real estate also apply to land investment. Market comparisons of value, analyses of appreciation potential, and calculations of cash flow projections are similar for all real estate investments. In addition, land, like any other investment requires professionals who can help match a property to an investor's risk tolerance, holding period, investment goals, and available capital, says Lou Jewell, ALC, of Dan River Real Estate Inc., Pilot Mountain, N.C.

"A land broker, like any real estate professional, needs to be strategic. Brokers need to understand value based on current and potential uses and to interpret market conditions, says Hertz. Farmland, since it is often rented to a farmer/tenant, also requires skills in tenant selection and lease negotiation, as well as ongoing property management, to ensure that the value of the land is not undermined by erosion or misuse.

But if some real estate skills are readily transferable to land sales, the wide spectrum of land uses also requires specialized knowledge of individual niche products. Selling agriculture land requires knowledge of soils, crops, and government regulations. Land intended for livestock production must be analyzed to ensure sufficient water and acreage for stock. Timberland sales call for an expert on the life cycle and market desirability of different hard and soft woods. Selling land for future housing or commercial development requires an expert in zoning and land use regulation.

"Land brokerage is not a field you can go into cold," says Parker. Land sales require experience, specialized education, and a professional network.

For brokers wishing to explore the opportunities in the land discipline, there's only one national source-the REALTORS Land Institute, says Keith Morris, ALC, 2009 RLI President and head of Four M Land Company, Somerville, Tenn.

As a professional membership organization, the REALTORS Land Institute (RLI) serves the unique constituency of real estate professionals who broker, lease, sell, develop, and manage land assets. RLI offers superior education through its RLI Land University and professional development programs. Members of RLI may earn the prestigious Accredited Land Consultant (ALC) designation, which is conferred to only those land specialists who complete a rigorous education program and who achieve a volume of successful land transactions.

RLI also provides a unique opportunity to meet and learn from the most experienced and qualified land brokers in the business, adds Morris.

"Even with our housing markets in turmoil and commercial real estate markets at a near standstill, land remains a great investment," says Jewell.

That means that there's no time like the present to be a part of this thriving real estate specialty.

"If you enjoy land and helping clients buy, sell, and manage their land investments, land brokerage is a great career," concludes Hertz.

For more information on membership and land education, contact RLI at 800.441.5263, or go to www.rliland.com.

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Own a Piece of America

06-03-09
Lou Jewell ALC

Own a Piece of America

Chicago, IL, February 29, 2009: Whether you're buying that perfect site for your future retirement home or investing in crop or timberland for a stable financial return, land offers a great place to keep your money safe and watch your investment grow.

And buying land is easier than you think-with the help of an Accredited Land Consultant of the REALTORS Land Institute.
The wide range of options under the "land" umbrella makes land an accessible purchase for almost every potential investor. Recreational timberland offers a good choice for long-hold investors since it combines periodic income from timber cutting with appreciation and the opportunity for personal enjoyment, says Benton Gibson, ALC, president of United Country Gibson Realty, McComb, Miss. Recent yearly returns on recreational timberland have averaged 8 percent in Gibson's market, which are in line with national returns calculated by the USDA National Agricultural Statistics Service.

If one of your land-buying goals is purchasing a site for your future retirement home, now is a perfect time to take advantage of the market pressures on home builders to find a well-located lot at a great price. Rural land prices are also likely to accelerate as Boomers retire, notes Gibson. He cites a 2006 study by the National Association of REALTORS that found half of Boomers who live in an urban area would like to retire to a small town or rural area. Buying the land separately and not building until you're ready to retire also helps keep costs down.

Developers' financial distress may also produce some significant price reductions on land near the edge of current urban development, says Ray L. Brownfield, AFM, ARA, ALC, an associate broker with John Greene Land Company in Oswego, Ill. But these investments-although they have strong upside potential-are only for those with deep pockets and patience, since "there is little viable income compared to the total cost of the land," he says.
Speculative development land also carries higher risk than many land investments since it's difficult to predict when and where new home construction will occur, he adds. But if you buy right and have patience, this type of land investment can have a tremendous amount of upside, he says.

For investors seeking low volatility and reliable cash flows, Brownfield and many other land experts suggest concentrating on farm land.

"Good agricultural land in our market can yield a consistent 4 to 5 percent annual return. And since prices have stabilized this year after several years of appreciation, it's a good time to invest," he says.
Despite the ongoing financial crisis, funds are available for qualified farm land buyers. Interest rates remain near historic lows, and lending sources such as local community banks in rural areas and the Farm Credit System (www.farmcredit.com), a federally chartered network of borrower-owed lending institutions, are still offering loans for as much as 85 percent of purchase price with a 20-year amortization in early 2009.
If you already own other real estate investments, you can use a 1031 exchange to acquire land, says Brownfield. These exchanges permit real estate investors to trade one real estate holding for another but deter any capital gain taxes until the second asset is sold. (Note that 1031 exchanges have stringent rules, so consult an expert when considering an exchange.)
Another ready source of funds for land purchases is a ROTH or SEP IRA. IRS regulations permit individuals to use retirement funds to purchase real estate, including land, through an IRA custodian that offers real estate investments along with stocks and bonds.
"Several of my investors have contacted me recently to thank me for suggesting they diversify their retirement accounts into land holdings," says Lou Jewell, ALC of Dan River Real Estate Inc., in Pilot Mountain, N.C. "Others have told me that they wish they'd diversified before they lost their money in the stock market. I tell those people that it's not to late to invest in land. There are still great opportunities today."
But while there is almost certainly a land investment to fit any investor, finding the property that fits each individual's goals requires expert knowledge and experience. That's why the smart first step in making any land purchase should be consulting with a professional land broker, preferably one that holds the Accredited Land Consultant (ALC) designation from the REALTORS Land Institute (RLI).

The ALC designation is conferred only on those land specialists who complete a rigorous education program and achieve a volume of successful land transactions, says Dan Hatfield, ALC, 2009 RLI president-elect and owner of Hatfield Realty in Medina, Texas.
As a professional membership organization, the REALTORS Land Institute serves the unique constituency of real estate professionals who broker, lease, sell, develop, and manage land assets. RLI offers superior education through its RLI Land University and professional development programs, an array of services that encourage networking and referral opportunities, and legislative advocacy on land-related issues through the National Association of REALTORS?.
"One of the real benefits of the REALTORS Land Institute is that whatever type of land you're seeking, there are RLI members who are expert in that area," says Gibson. "Whether your interest is shale oil leases, timber, or ranches, RLI members have the knowledge and resources to find the answers."
For more information on locating an Accredited Land Consultant in your area, contact RLI at 800.441.5263 or go to www.rliland.com.

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