Showing posts from June, 2023

4 Farm Auction Myths Debunked

In recent times, the majority of farmland is sold through real estate auctions, with very few farms being listed privately for sale. However, there remains a significant misunderstanding regarding the effectiveness and rationale behind farm real estate auctions. Unfortunately, numerous myths and misconceptions persist regarding farm real estate auctions. Some people still believe that a farm goes to auction only when the seller is experiencing financial distress or is on the verge of losing the property. This perception couldn't be further from the truth.   Nonetheless, it is understandable that sellers have questions and concerns.   Competition is a driving force that often leads individuals to pay more for an item than they initially intended. The sale of farmland is no exception to this phenomenon. Over the past six months, every farm real estate auction I conducted resulted in at least a 10% increase in the final sale price compared to what we w

How Do You Extend A Helping Hand

The Bible reminds us of the enduring presence of the poor and needy; this truth remains evident in today's world. We don't have to search far to witness the overwhelming need surrounding us, with many individuals who could benefit from a helping hand. It's important to note that offering assistance doesn't imply a mere handout; rather, it signifies extending a helping hand. So, what should one do when approached by a person on the street asking for money to alleviate hunger? Even in our relatively smaller community of Lafayette, IN, such encounters occur more frequently than one might imagine. Allow me to share a couple of instances where I faced this situation. It's often easy to dismiss such requests with grumbling or even worse. However, one occasion, a gentleman caught me in the right mood, asking for money to buy a Coke from McDonald's. Instead of immediately dismissing him, I conversed, asking him questions. I expressed my uncertainty about his intentions—

Farm Auction Questions. Answered.

From the first time a potential client contacts me and right up until the time the auction starts, there is always a sense of uncertainty. The owners of the farm are curious: How does the auction work? If we have a bad day and the price doesn't get very high, are we required to sell? How does the online auction work? What if there are technical difficulties and people cannot bid, what do they do? Who will be bidding on my farm? We have so many questions. All these issues are addressed when meeting with potential clients before they ever sign a listing contract. During this meeting, we typically discuss two factors: how a real estate auction operates, and when people are pushed, they usually pay more than they normally would on a conventional listing. One common worry is whether they are obligated to sell if the auction doesn’t yield a satisfactory price due to unforeseen circumstances. To alleviate their concerns, I reassure them they are not obliged to sell the prope

What Determines The Actual Value of an Investment Property?

  What determines the actual value of an investment property? There is a multitude of value drivers that contribute to the value of commercial real estate. The adage of location, location, location , sure isn't wrong. But sometimes, investment real estate has different drivers of value. In my opinion, there are three main drivers of value to any investment real estate asset. It can be an apartment building, a single-tenant net-leased building, or a multi-tenant leased building.   1.)  Condition and age of the roof . Even in many net leases, the owner is responsible for the roof of the property. This can be a significant expenditure if your roof life has less than five years left when you purchase the property. A new roof is golden, an older roof (20 years or more) bears a fine toothcomb inspection and then you negotiate accordingly. 2.)  Condition of the parking lot. This is another high-ticket item that sometimes, even in net leased properties, is the owner's resp