Archives for August 2017

Hey Land Owners, What Have You Been Waiting For? Turning Your Land Into Multiple Sources of Cash Income is Easier Than you Think!
We live in the age of AirBnB and VRBO mania. Residential owners across the globe are taking advantage of the need for residential renting opportunities. They post their properties on listing websites like AirBnB or VRBO, and quickly turn their residential properties into piles of instant cash income. Guess what? Land owners can do this too! There is an enormous demand for private land use of various types, in which users are willing to pay. It’s time for landowners to get in on the money making action too.
The demand for private land use across our great nation is nearly immeasurable. Simply put, an exponentially enormous portion of the population has the desire or need to use private land for various purposes. As an example, in addition to being President and CEO of LandLeaseExchange.com, I am also Vice President of Maury L. Carter & Associates, Inc., a land investment and brokerage firm based in Orlando, FL. Our firm and our investors have owned hundreds of thousands of acres over a 50+/- year time frame. We currently have a portfolio of 12,000 acres.
Every year we get hundreds, if not thousands of unsolicited phone calls and email inquiries on the 12,000 acres in our portfolio. These inquiries are from individuals or companies searching for property to lease or rent. Again, it is important that landowners understand just how much demand there is for the leasing and use of land. We DO NOT market our properties for lease, yet we receive all of these unsolicited inquiries from users who are ready, willing, and able to lease a property.
Most of the land in our portfolio that we lease is conducive for production agricultural farming, cattle leases, citrus leases, timber leases, and hunting leases. These are fairly standard land leasing categories, yet they are just the “tip of the iceberg” when it comes to the possibilities available to landowners and how they can turn their land assets into cash revenue. The land leasing market has been identified as an extremely under-served marketplace. What am I saying? There are tens of millions of people in the U.S. that have a need for land, yet there isn’t even a small fraction of land available to them to do so. Enter the private landowner.
On the LandLeaseExchange.com side of things, I have many landowners say to me “John, all I have is (enter amount of land) acres, and there really isn’t much I can do with it to make money.” Really? I beg to differ. Each parcel of land is different and offers its own uses based upon its characteristics. Landowners don’t really need to get too creative, actually. They simply need to take advantage of the land they already own and provide leasing opportunities to users that are conducive to the characteristics of the land owned.
As land owners, we have to think outside of the box. We have opportunities that we take for granted, available to us RIGHT NOW on the land we own, that others are willing to pay to for to experience.
Here is a list of examples I have compiled. Remember, you can lease your entire property, or just a portion. For one use, or for many uses. No property is too big, or too small to turn into cash income.
Agricultural Opportunities

• Do you have land that you aren’t currently using that could be leased for agricultural purposes? Whatever agricultural use your land is conducive for, the likelihood of someone wanting to use it for commercial agricultural purposes is high. Our website offers listing categories on anything from citrus to peaches to tomatoes to more traditional commodities like soy beans, corn and cotton.

Recreational Opportunities

• Birdwatching, camping, equestrian, fishing, hiking, hunting, mountain bike trail riding, RV/Motor Home/Camper, Shooting, Off-Road Trail Riding/ATV/Motorcross, Waterfront properties, and more. Recreational use is one of the most desired uses for land right now.

Special Event/Corporate Retreats/Religious Retreats

• Do you have an old barn you could clean up, hang some lights and rent for weddings or parties? Brides and grooms and party hosts want to create something different and unique while hosting their parties.
• Corporate retreats – Does your land have activities available? Skeet shooting, hunting opportunities, adequate lodging amenities, meeting areas, etc.? Turn it into a corporate retreat and charge companies to use your property.
  Cabins, Rural Residences, Estates:
• People want to have a getaway weekend or an experience on a farm, ranch or property outside of the city. Provide the opportunity to them by leasing out cabins, rural residences or estate properties.

Agri-Tourism Sites

• Now, more than ever, people want the opportunity to get on land, see where their food is coming from, visit the farm and experience something outdoors and have a good time. What type of agritourism can you provide? U-Picks, corn mazes, pumpkin patches, vineyards, petting zoos, Christmas Tree U-Cut, etc.

Communications and Energy

• Do you have a site that would be perfect for a cell phone tower?
• Are you located near high tension power lines and you think your property would be good for a solar panel project?
• What about a road, and your property would be good to lease to a billboard company?

All of the above are ideas on how to turn your land into cash revenue. As a landowner, what are you waiting for? Additional cash income is only a few clicks away!
By: Jessa Friedrich (REALTORS Land Institute)
Click here to view source article.

New Mexico Showing Signs of Growth 

Hopefully you saw the great news coming out of New Mexico this week! A report issued by the Federal Bureau of Economic Analysis reveals that New Mexico’s gross domestic product, which is a key economic indicator, grew by 2.8 percent in the first quarter. It’s the third-highest growth of any state. The state’s most recent Labor Market Review shows a noticeable uptick in the construction industry, no doubt due in part to the construction happening at the Facebook data center campus in Los Lunas. Many of us in Albuquerque are acquainted with businesses in the construction trades that have dozens of employees working at the site. This steady employment base for our construction trades is incredibly important in keeping skilled workers in New Mexico. Your membership investment in AED powers the organization’s ability to lead projects such as Facebook that help improve the local economy, generating much-needed jobs and opportunities for all of us.

Facebook Expands in New Mexico…Again

Last year, Facebook selected the Albuquerque metro area for its newest state-of-the-art data center. Fast forward 10 months, and the company announced that it is again investing in the metro area. Here’s a snapshot of how New Mexico and its residents are benefiting from the project:

• Facebook broke ground on its initial 510,000-square-foot building last October, and announced in July it’s adding a second, 460,000-square-foot building to the data center campus in Los Lunas. The area of the buildings is equal to the size of 17 football fields.
• The two buildings represent more than $500 million in investment to the local community.
• Perhaps beginning as early as the 4th quarter of 2017, Facebook estimates the campus will have as many as 1,000 workers on site at the peak of construction.
• Facebook is creating several permanent positions and supporting thousands of jobs by way of construction, operations and service positions over the next several years. Currently, the company is looking for local talent to fill 15 permanent positions, primarily in operations, design and facilities management.
• Albuquerque-based Affordable Solar and Array Technologies were selected by Facebook to build three power facilities for the project, creating 40 full-time jobs and the potential for up to 300 construction jobs.
• The Economic Impact Analysis (EIA) commissioned by the Village of Los Lunas projects more than $75 million in gross receipts tax to the State of New Mexico on the construction costs alone.
• The EIA shows that that Village of Los Lunas will see an 18 percent increase to its general fund from the revenue generated by the project.

Facebook’s confidence in Los Lunas sends a powerful message to other employers about the attractiveness of the Albuquerque metro area for investments in mission-critical operations.

Growing the Outdoor Industry in New Mexico

Did you know? New Mexico’s natural resources and increased awareness as a tourism destination are setting the stage for economic development opportunities. In New Mexico, state outdoor recreation generates:

• $9.9 billion in consumer spending annually
• 99,000 direct jobs
• $2.8 billion in wages and salaries
• $623 million in state and local tax revenue

It’s a huge industry with the potential to attract more economic base jobs, injecting new dollars into our community. That’s why AED joined forces with state leaders and representatives from partner communities at the Outdoor Retailers Show in Salt Lake City, where the team spent four days meeting with companies and promoting the metro area as a great place for business investment.
Pictured here, from left to right, are Warren Unsicker, Four Corners Economic Development; Annemarie Ciepiela Henton, AED; Governor Susana Martinez; Keith Gardner, Chief of Staff for Gov. Martinez; Tim Nitti, New Mexico Partnership; Eileen Yarborough, Cibola Communities Economic Development Foundation; and New Mexico Economic Development Cabinet Secretary Matt Geisel.

Educate Voters About the Healthy Workforce Ordinance

AED is a member of the Albuquerque Coalition for a Healthy Economy (AHCE) a group of organizations that is educating voters about the effect the proposed Healthy Workforce Ordinance would have on businesses and employees alike. AED is concerned that the proposed ordinance could impede business recruitment efforts, cause companies to eliminate Albuquerque as a potential business location, or cause businesses that are already located here to consider relocating outside the city limits.
Albuquerque voters need to understand how the ordinance will affect them. Research shows that after voters are educated about the consequences of the proposed ordinance, they are less likely to support it. That’s why ACHE is raising money to get the word out. Visit the ACHE website at www.abqche.org to contribute to the effort. A donation of $1,000 is suggested, and a calculator at the ACHE website can help your business compare the cost of a donation vs. the potential hard costs of complying with the ordinance.

Albuquerque Featured in Southwest Airlines Magazine

If you’re taking a Southwest Airlines flight in August, make sure you check out the in-flight magazine. There’s a 26-page feature on Albuquerque, which includes a submission from AED on page 86 that highlights the benefits of business investment in the metro area. More than 12 million passengers will be on Southwest flights this month, giving us significant reach and helping us build awareness about what the community has to offer.
By: Gary Gordon (AED Chair)
Click here to view source article.

Learn about the possible legal risks when you use social media to communicate about your real estate business.
View the slides from this presentation

• NAR Antitrust Field Guide
• FTC Endorsement Guide(link is external)
• NAR Law & Ethics Resources
• NAR Code of Ethics

 

Window to the Law: Social Media’s Legal Risks: Transcript

Social media can provide businesses with robust access to clients, referrals, and business partners.  On the flipside, failing to take proper precautions when leveraging social media can land your business in hot water.
To mitigate potential risks, consider the following:
Have a transaction question about a client’s pending sale?  It may seem convenient to tap into the knowledge of your fellow professionals via a quick “seeking advice” Facebook post. Think twice before doing this.  Why?

•  Even if you’re careful not to mention a client by name, your local competitors may have information that would allow them to figure out the client and deal you’re referencing.  If that’s the case, your “seeking advice” post could be a breach of confidentiality.  It could also put your deal (and your reputation) at risk.
• The internet doesn’t acknowledge geographical boundaries.  Asking for advice on a pending contract in Idaho may elicit advice that’s fantastic for a California licensee…but totally inapplicable to you.

The best practice here?  When you have a transactional question, contact your attorney. And if your state REALTOR® Association offers a Legal Hotline, you can always start there – for free.
The Federal Trade Commission is the federal regulatory entity tasked with protecting consumers from unfair and deceptive commercial practices.  To that end, the FTC requires the disclosure of payment for endorsements.  For example, if you post a glowing review of a business, and that business is compensating you to do so – with money or with free products or other perks – you do need to disclose that fact.
Best practice:  If you’re getting something to say good things about someone else, be up front about it by including a simple disclaimer with your endorsement.
What does antitrust law have to do with your social media posts?  Two things.
U.S. antitrust laws prohibit competitors from joining up to boycott a particular individual or business.  For example: Let’s say you belong to a Facebook group for local real estate professionals.  You all agree that a particular businessperson in your community engages in ethically questionable business practices, and hurts the bottom line for all of you. The solution?  Everyone just agree to stop doing business with them.  This is not the solution.  This is a group boycott in violation of antitrust laws.
Best practice:  If you believe a business is engaging in ethically questionable practices, don’t discuss it on social media.  Instead, speak in confidence with your attorney, your local REALTOR® Association, or your state licensing body about appropriate next steps.
Think commissions are too low these days?  Think it would be a good idea to strike up a conversation on social media about how 10% commissions would make life sweeter for everybody?  Think again.  U.S. antitrust law prohibits price fixing among competitors.
Best practice:  Set your own prices. When it comes to everybody else… let the market do its thing.
And finally….
As a general proposition, “defamation” means harming someone’s reputation by making a false statement about them to someone else.  Simple enough to avoid, right?  Be nice. Don’t lie. In reality, tricky situations can come up. For example: Let’s say you’ve heard about an individual who shows up at open houses, and items mysteriously disappear in their wake.  A “heads up” to local real estate professionals via Facebook may seem like a great way to put people on notice.  But if your post identifies the suspected individual, and ends up being unfounded? …You could be engaging in defamation.
Best practice:   If you suspect criminal activity, first contact the police.  If you decide to put out an alert, make sure to frame it with the guidance of the authorities – and ideally, with the help of your attorney.
Knowing and following the NAR Code of Ethics is a failsafe for avoiding the bulk of the pitfalls discussed in today’s Window to the Law. So read it. Know it.  Then – and only then – go ahead and post those status updates to your heart’s content.
For more information on all of these topics, please see the following resources.
As always, thank you for watching Window to the Law.
By: National Association of REALTORS®
Click here to view source article.

Commercial real estate markets continue to improve, with Realtors® specializing in commercial real estate reporting both an increase in member’s gross income and sales volume, according to the National Association of Realtors® 2017 Commercial Member Profile.
The annual study’s results represent Realtors®, members of NAR, who conduct all or part of their business in commercial sales, leasing, brokerage and development for land, office and industrial space, multifamily and retail buildings, as well as property management.
“There has been an uptick in Realtor® members who choose to specialize in commercial real estate at the same time as commercial professionals report improvements in the market and their business activity,” said 2017 NAR President William E. Brown, a Realtor® from Alamo, California. “A stronger commercial market is a good indicator of a growing economy, so the outlook is positive for commercial members in the year ahead.”
The median gross annual income for commercial members in 2016 was $120,800, an increase from $108,800 in 2015. Brokers and appraisers tend to report the highest median annual incomes, while sales agents report the lowest among licensees. Those with less than two years of experience reported a median annual income of $31,500 in 2016, down from $43,400 in 2015; members with more than 26 years of experience reported a median annual income of $162,200 in 2016, down from $165,400 in 2015.
Commercial members completed a median of eight sales transactions in 2016, a decrease of one since 2015. A quarter of commercial members reported having one to four transactions, and 27 percent reported having more than 20 transactions.
While the number of transactions decreased slightly in 2016, the sales volume increased again this year. The median sales transaction volume in 2016 among members who had a transaction was $3,500,000, an increase from $2,931,000 in 2015. Only 7 percent of commercial members reported not having a transaction at all, which decreased from 8 percent in 2015.
The median years of experience in real estate increased to 24 years in 2017, up from 20 years in 2016, as did the median years of experience of members in commercial real estate – up from 15 years in 2016 to 19 years in 2017.
Forty-seven percent of NAR’s commercial members are brokers, and 30 percent are licensed sales agents, consistent with last year. Seventeen percent of commercial members have a broker-associate license while appraisal license holders account for 5 percent, also consistent with last year.
The median age of commercial members remained the same as last year, at 60 years old. Almost three out of four commercial members are male, identical to last year’s results. Men reported being active in any real estate capacity for a median of 25 years and in commercial real estate for a median of 20 years, the same as last year. Women have been active in real estate for a median of 19 years (up from 14 years last year) and in commercial real estate for a median of 15 years (up from 11 years last year).
Commercial members who manage properties typically managed 82,000 total square feet, representing 15 total spaces, up from 50,000 square feet and 17 spaces in 2015. Those who manage offices typically managed 25,000 total office square feet, representing seven total offices, up from 20,000 office square feet and five offices last year.
Thirty-three percent of commercial members were involved in international transactions in 2016, down 2 percent from 2015. Eighteen percent of commercial members reported an increase in international transactions, while only 1 percent had a decrease.
Sixty-five percent (up from 60 percent in 2016) of respondents are members of any of several commercial affiliated institutes, councils, or societies. These commercial organizations include the CCIM Institute, the Institute of Real Estate Management, the Counselors of Real Estate, the Realtors® Land Institute and the Society of Industrial and Office Realtors®.
In June 2017, NAR invited a random sample of 64,147 Realtors® with an interest in commercial real estate to fill out an on-line survey. A total of 1,926 responses were received for an overall response rate of 3.0 percent. All information in this report is representative of member characteristics in 2017 while sales and lease transaction values and income are characteristic of calendar year 2016.
By: Cole Henry (National Association of REALTORS®)
Click here to view source article.