Lincoln Business Builder (October 2013) by Home Builders Association of Lincoln

The LINCOLN BUSINESS BUILDER October 2013 Published monthly by the Home Builders Association of Lincoln Volume 50 No. 10

Sixth Annual Sporting Clay Shoot Oak Creek Sporting Club Friday, October 18, 2013 See pages 6-7 for more information.

Scan this QR code with your smartphone to view the Lincoln Business Builder on the go! Need a QR code scanner? It’s easy and free to download an application from your service provider.

In this issue...

• Business & Marketing Bootcamp page 10 • Your Sure Path to Savings pages 14-16 • Award Nominations pages 18-19

www.nebtitleco.com

President’s Message October 2013 Vol. 50, No. 10

Contents President’s Message 3 Upcoming Events 4 Fall Parade of Homes 5 Sporting Clay Shoot 6-7 Member News 8 Financial Column 9 Business & Marketing Bootcamp 10 NSP Carrier Enforcement to Hold Town Meetings 11 Mike Dynasty Membership Drive 13 NAHB: Your Sure Path to Savings 14-15 September General Membership Meeting 16 Forgone Profit is Not a Constructive Dividend 17 Award Nominations 18-19 More Tips for Social Media & Online Marketing 20 Builder Best Financing Provides Constructive Flexibility 20 New Members 22 Directory Changes 22 Cancellations 22 Renewals 23 Directory Ad Space Available 24 Higher Wages, Spending & GDP 25 Building Permits 26

President’s Message Mike Rezac HBAL President Business as Usual and an Improving Market! As you can see in the above picture, I’ve been out of town for a few days. Thank you to Mike Kinning for stepping up and taking the reins to provide HBAL with the leadership to continue with business as usual. I hope everyone enjoyed the Mike Dynasty membership drive video update. I encourage you to take a few minutes in October to recruit members for HBAL. I would hate for anyone to miss out on those sprikle, er....I mean TRIPLE Spike points. You can check out the teaser video on the HBAL Facebook page if you are curious what I’m talking about. The market continues to improve as shown in the building permits report on page 26. The timing for a presentation on the fundamentals of profit, pricing, costs, sales and commitment was perfect. If you get the chance to hear Al Trellis speak at the International Builders Show or other conferences, it is certainly worth your time. Another great opportunity for your business will be in November as Jon Goldman presents a Business & Marketing Bootcamp sponsored by HBAL (see page 10). Although I’ve expressed my gratitude in person, I do wish I had been able to attend our September meeting to congratulate Michaela and Jennie on their career milestones. Their commitment and passion for excellence is greatly appreciated!

Home Builders Association of Lincoln

Executive Committee

6100 S. 58th Street, Suite C, Lincoln, NE 68516 (402) 423-4225 phone • (402) 423-4251 fax www.hbal.org • info@hbal.org

Mike Rezac, President

Jeff Bielenberg

Mike Kinning, President Elect

National Directors

The Lincoln Business Builder is published 12 times per year by the Home Builders Association of Lincoln, 6100 S. 58th Street, Suite C, Lincoln, NE 68516. The Lincoln Business Builder is mailed to all members of the HBAL.

Mike May, 1st Vice President Perry Haralson, 2nd Vice President Lori Pippitt, CKD, CGR, CAPS, Secretary Bob Bryant, Treasurer

The Home Builders Association does not accept responsibility for or endorse any statements or claims made by advertisers or authors of any articles.

Dan Klein, Sr., Immediate Past President

The annual subscription rate is included with your membership dues.

Mark Aksamit, Jess Baker, Roger Bumgarner, Ruth Hietbrink, Eric Hoke, Justin Johnson, Matt Kleinschmit, Jerry Maher, CGP, CAPS, CGB, Chuck Pfenning, Herb Reese, CGR, CAPS, Lance Roach, Ken Svoboda

Mike Benker Jennie Korth

Publisher Editor, Photographer, Design

HBAL Staff

Mike Benker, Executive Vice President

Board of Directors

Remodelers Council Dan Klein, Sr. Justin Johnson, Alternate

National Life Directors Jim Christo, CGR, CGB, Joe Hampton, Duane Helmink, John Hoppe, Jr., Ward Fred Hoppe, Joe McKee, Robert Peterson, J. Greg Schwinn, Bob Stephens, Jerry Witthuhn

Past Presidents Allen Barber, Jerry Boyce, Steve Fulton, CGP, Mike Goings, CGP, CSP, Lois Hartzell, GMB, CSP, Rick Krueger, Dan Kubr, Donn Mann, Sam Manzitto, Roger Reynolds, CGR, CAPS, Greg Shinaut, CGP, Ken Westerhold

Michaela Harrison, Jennie Korth & Melissa Hilgenkamp

3  Lincoln Business Builder

Upcoming Events

Calendar of Events Oct. 17

Oct. 2

Oct. 6-13

Oct. 18

Board of Directors & Foundation Meetings HBAL Office • 6100 S. 58th Street, Ste. C 10:30 a.m. & 11:45 a.m. Remodelers Council Meeting Pinnacle Bank Arena Tour 12:15 p.m. Lunch at Brewsky’s 1:00 p.m. Tour of Arena Fall Parade of Homes Sporting Clay Shoot Oak Creek Sporting Club 12:30 p.m. rules • 1:00 p.m. shotgun start $65 per person

Annual Coat Drive It’s time again for HBAL’s Annual Coat Drive. Bring your coats, mittens, hats or other warm clothing or blankets to the HBAL office or the November General Membership Meeting. HBAL will take all donations to the People’s City Mission in November. Our members have been so generous the last few years, we hope to once again provide warm clothing for many of Lincoln’s needy citizens.

HBAL’s Toys for Santa Cop Project Saturday, November 9, 2013 8:00 a.m. ~ Until Completion Lincoln Northeast High School Shop 2635 N. 63rd Street • west side of school Thanks for all you do to make this annual project a great success! Donations to help pay for the materials may be sent to: Lincoln Home Builders Care Foundation 6100 S. 58th Street, Suite C • Lincoln, NE 68516 RSVP to 402-423-4225 or fax 402-423-4251 ____ I cannot attend, but here is my donation of $_____ to the Santa Cop Project. ____ Yes, I will be there.

My guests: _________________________

___________________________________ ____ No, I can’t attend. Name: ______________________________________ Company: __________________________________

You don’t have to be a carpenter to help. We have lots of jobs for the inexperienced but willing workers!

Toy Donations Although we have discontinued the Dolls vs. Wheels toy drive, HBAL will be happy to accept your donation. Any toys dropped off at the HBAL office will be distributed to local charitable organizations in time for Christmas. Please contact the HBAL office at 402-423-4225 for more information. 4  Lincoln Business Builder

Fall Parade of Homes

October 6-13, 2013 Hours: Weeknights: 6:00 - 8:00 p.m. & Weekends: 1:00 - 6:00 p.m.

View the online flipbook at www.HBAL.org. You must remove your shoes at these lovely homes. SCOTT’S CREEK, HICKMAN

WATERFORD ESTATES

KING RIDGE

2. 808 Autumn Road Campbell Construction New Homes, Inc.

19. 10050 Crystal Water Bay MK Builders, Inc.

FALLBROOK

1. 914 Autumn Road Keystone Homes

MEADOWLARK HILLS

e Not Op

3. 17575 Prairie Vista Drive Ironwood Builders

DAKOTA SPRINGS

4. 11901 W. Santee Court Maher Custom Homes

WILDERNESS HILLS

5. 2811 Forest Avenue Great Plains Custom Homes, LLC 6. 9421 S. 29th Street Great Plains Custom Homes, LLC

VAVRINA MEADOWS

en Not Op

7. 8301 Ryley Lane Third Generation Builder

WINDMILL RIDGE ESTATES 8. 7135 Countryview Road Brester Construction, Inc.

THE WOODLANDS AT YANKEE HILL 9. 7320 Pinwheel Court Woita Homes & Remodeling

18. 10020 Shore Front Drive Smetter Custom Homes

20. 1423 N. 96th Street Prairie Home Builders, Inc.

HARRISON HEIGHTS

21. 9233 Garland Street DeRun Construction and Homes, Inc. 22. 9241 Garland Street Dun-Rite Homes, Inc. 23. 9309 Garland Street Bugbee Homes 24. 9229 Leighton Avenue Aspen Builders, Inc.

PRAIRIE VILLAGE NORTH

25. 3147 Colt Avenue Prairie Home Builders, Inc. 26. 3208 Rawhide Drive Vistar Homes, Inc.

REGALTON

27. 2421 City View Court Regal Building Systems, Inc.

28. 3166 King Ridge Blvd. Summit Homes, LLC 29. 595 Penrose Drive Urban Homes, LLC

TIMBER VALLEY HEIGHTS 30. 1809 SW Derek Avenue Hartland Homes

HUB HALL HEIGHTS

31. 4522 W. Hub Hall Drive Cherry Hill Construction, Inc.

ASHLEY HEIGHTS

32. 4330 W. Thatcher Lane Legacy Construction

SOLDen ot Op N ADDITIONAL ENTRIES ACREAGE, RAYMOND

33. 2550 W. Masek Drive Neighbors Family Homes, Inc. 9520 White Pine Road Legacy Homes 9530 White Pine Road Legacy Homes

Not Op

10. 7239 Rutha Lane Innovative Homes & Design, Inc.

VILLAGE MEADOWS

11. 6211 Chatsworth Lane Aspen Builders, Inc.

Not Op

12. 7516 Blanchard Blvd. Signature Homes, LLC 13. 7211 Blanchard Blvd. Trademark Builders

ARTISAN MEADOWS

14. 6230 Artisan Way Custom Design Homes, Inc.

GRAND TERRACE

15. 8000 Mandalay Drive Geysun Style Homes, Inc. 16. 7600 S. 81st Street Smetter Custom Homes

BOULDER RIDGE

17. 8710 & 8720 Rutherford Drive Goings Homes, LLC

5  Lincoln Business Builder

Sporting Clay Shoot

Shooter Registration Please register my team for the Lincoln Home Builders Care Foundation’s Sporting Clay Shoot Name: Company:

Sixth Annual Sporting Clay Shoot

Phone: E-mail:

Oak Creek Sporting Club 2890 W Road • Brainard, NE

Friday, October 18, 2013 10:30 a.m. Check-in & Side Games Begin 12:30 p.m. Rules & Regulations

(must be present in order to shoot)

Don’t have a full team? No problem! We’ll team you up! l My other team members are:

1:00 p.m. Shoot

4:30 p.m. BBQ

l Enclosed is $65 per shooter. Pre-payment is required to shoot.

• “Shot Gun” start at 1:00 p.m. • Cost is $65 per shooter and includes 100 rounds (12 gauge) per person, course fees and BBQ. • Bring 12 gauge shot gun (limited number available at club house if needed). • Eye protection and ear plugs required (available at club house if needed). • Must be present at 12:30 p.m. for Rules & Regulations to shoot. • Teams of approximately 5 will complete the 15-station course shooting “true pairs,” “report pairs,” etc. • Prizes will be awarded during BBQ following the shoot. • Warm-up Trap and Novice Lessons available starting at 10:30 a.m. • Dress appropriately for the weather and lots of walking. • No alcoholic beverages allowed.

The proceeds from this event will go to the Lincoln Home Builders Care Foundation. Its mission is to support the educational and charitable activities of the Home Builders Association of Lincoln. The Foundation strives to support the community by contributing to community service projects focused on housing, as well as providing scholarships for students pursuing a career related to the building industry, and providing funding for other industry related educational and research programs. Gifts are tax deductible to this 501(c)(3) non-profit organization. 6  Lincoln Business Builder

Sponsorship Registration Yes! I would like to be a: l BBQ Sponsor........................................... $400 l Target & Ammo Sponsor.......................... $300 l Elite Station Sponsor................................. $200 l Station Sponsor........................................ $100

l Prize Sponsor............................................. $75

Name: Company: E-mail: Total Amount Due: $ Deadline for Sponsorships is August 15, 2013 or until all sponsorships are filled. Send registration form and check made payable to: Lincoln Home Builders Care Foundation 6100 S. 58th Street, Ste. C • Lincoln, NE 68516 Fax: 402-423-4251 • Email: info@hbal.org Volunteer and sponsorship opportunities are also available. Please contact Jennie at 402-423-4225 or jennie@hbal.org if interested.

Sporting Clay Shoot

Sponsors (as of 9/23/13)

BBQ Sponsor

Sponsorship Levels BBQ Sponsor..............................................$400 • • • • •

Sponsor sign featuring company name or logo at clubhouse Company name or logo on score cards Station Sponsorship 1/4 page ad in the Lincoln Business Builder for three months (a $300 value) Recognition in the Lincoln Business Builder and in event promotions

Target & Ammo Sponsor.............................$300

Target & Ammo Sponsor

• • • •

Sponsor sign featuring company name or logo at clubhouse Company name or logo on score cards Station Sponsorship Recognition in the Lincoln Business Builder and in event promotions

Elite Station Sponsor...................................$200 • •

Elite Station Sponsors

Exclusive sponsorship at station Display space at station to showcase equipment, vehicle or other products may be possible • Sponsor sign featuring company name or logo on designated station and at clubhouse • Recognition in the Lincoln Business Builder Representation is encouraged to meet and greet the shooters and keep score at that station.

Station Sponsor...........................................$100 •

Stephens & Smith Construction Co.

Sponsor sign featuring company name on designated station and at clubhouse • Recognition in the Lincoln Business Builder Representation is encouraged to meet and greet the shooters and keep score at that station.

Prize Sponsor.................$75 (or equivalent value in prizes) • • •

Station Sponsors 84 Lumber Gana Trucking & Excavating Action Plumbing & Lincoln Winair Company Heating, Inc. Millard Lumber Big Red Tire Pros Nebraska Furniture Mart Bouwens Plumbing Outdoor Solutions Brester Construction, Inc. Window Option Specialists Christensen Lumber Co. & Integrity Windows

Prize Sponsors Bielenberg Builders, Inc. Nebraska Title Co. Custom Countertops Oak Creek Sporting Club Earl Carter Lumber Co. Tall Tine Taxidermy Lincoln Winlectric Union Title Co. Murphy Tractor & Equipment Co.

Prizes will be purchased in your name to be given away at the BBQ Sponsor sign featuring company name at clubhouse Recognition in the Lincoln Business Builder

402.483.7575 3133 S. 7th Street • Suite D

Fax 402.483.7577 info@pioneerprintinginc.com www.pioneerprintinginc.com Multi Color Printing Graphic Design Ad Specialties Bindery Services

Digital Color Copies Digital Black & White Engineering Copies Personalized Service

Providing Offset Printing & Digital Services in Lincoln since 1980.

Water Sponsor

Culligan Water Conditioning

7  Lincoln Business Builder

Member News

Award-Winning HBAL Members

Harrison Honored for 15 Years of Service

Congratulations to the following HBAL members who were recently honored at the Better Business Bureau’s annual awards luncheon and the Lincoln Chamber of Commerce awards luncheon.

On August 24, 1998, Michaela Harrison accepted Nadine’s offer for a good starter job to get a little office experience. Through the past 15 years, Kayla has continued to grow as an individual, educate herself, assume more responsibility and provide leadership within our association. The plaque she was given is especially fitting:

HBE Becker Meyer Love, C.P.A.’s BBB 2013 Integrity Award Winner Rezac Construction, Inc. BBB Ambassador of Integrity Award Winner John Henr y’s Plumbing, Heating & Air Conditioning BBB Ambassador of Integrity Award Winner

“Excellence”

By holding the highest standards and consistently exceeding them, you help us achieve extraordinary results. Because of you, our team is stronger every day.

The Glass Edge, Inc. LCC Small Business of the Year Award Winner

Korth Honored for 5 Years of Service

Lunch is on us!

On August 4, 2008 Jennie accepted Nadine’s offer to become part of a team, a family and an association. The plaque she was given was also especially fitting:

“The Power of One”

The little things you do each day have the power to affect a great many people. You inspire us with your willingness and ability to help others. You take on the world, one day at a time, continuously searching for a way to make things better, seizing the opportunity to improve everyday life. You make a world of difference!

Congratulations to

Vance Stauffer,

Structural Component Systems

on winning the September drawing! We will be in touch to make plans for your free lunch!

When it AbsolutelY PositivelY

HAS to be RIGHT...

window

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8  Lincoln Business Builder

12201 Cary CirCle laVista, Ne 68128 (402) 334-8286 (800) 999-1494 Fax (402) 334-7994

5601 N. 57th street liNColN, Ne 68507 (402) 464-7433 (800) 927-7969 Fax (402) 464-7437

www.norandex.com

Financial Column

Estate Tax Changes Under the 2010 and 2012 Tax Acts

This article summarizes the changes made to the federal gift and estate tax and the federal generation-skipping transfer (GST) tax under the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (the 2010 Tax Act) and the American Taxpayer Relief Act of 2012 (the 2012 Tax Act). A chart at the end of the discussion summarizes the effects of this law.

Background

The Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) was a sweeping piece of legislation that significantly changed the federal gift and estate tax and the GST tax for the years 2001 through 2010. The maximum tax rates gradually decreased from 55% to 45% (35% for gift tax) and the exemptions gradually increased from $675,000 to $3.5 million ($1 million for gift tax). The provisions of EGTRRA repealed the estate and GST taxes (but not the gift tax) for 2010; then, for 2011, EGTRRA provisions expired, effectively reinstating the tax rules that were in effect prior to 2001.

Estates of persons who died in 2010

The 2010 Tax Act reinstated the federal estate tax for 2010, retroactively applying a 35% maximum estate tax rate and a $5 million estate tax exemption. The 2010 Tax Act also allowed the estates of persons who died in 2010 to opt out of the tax. If an executor chooses to elect out of the estate tax, estate property will receive a modified carryover income tax basis, and not a step-up (or step-down) in basis. Step-up (or step-down) generally means that the tax basis of the estate’s assets increases (or decreases) to fair market value at the date of death. The modified carryover basis regime carries over the cost basis of the deceased individual to the heir. It is “modified” because cost basis can be supplemented by a step-up in basis of $1.3 million of property, with a step-up in basis of an additional $3 million of property received by a surviving spouse. The GST tax was also reinstated for 2010 with a $5 million exemption, but with a tax rate of 0%. The gift tax remained the same: a top rate of 35% and a $1 million exemption.

Exemptions and top tax rates in 2011 and 2012

For 2011 and 2012, the gift and estate tax exemption is $5 million per person (the $5 million is indexed for inflation in 2012, and thus is $5,120,000); the top tax rate for these years is 35%. Similarly, for 2011 and 2012, the GST tax exemption is $5 million per person (the $5 million is indexed for inflation in 2012, and thus is $5,120,000), and the GST tax rate for these years is 35%.

remarries and is predeceased by the second spouse. In other words, if the surviving spouse survives Spouse 1, the surviving spouse can use Spouse 1’s unused exemption even if the surviving spouse marries Spouse 2. However, if Spouse 2 also predeceases the surviving spouse, the exemption of Spouse 1 can no longer be used. However, the surviving spouse can then use the unused exemption of Spouse 2. Tip: The portability feature is available to the estate of a deceased spouse dying in 2011 and later to transfer the unused exemption of the deceased spouse to the surviving spouse. Caution: The portability feature applies only to the gift and estate tax; it does not apply to the GST tax. Without a trust, any unused GST tax exemption of the first spouse to die will be lost.

Summary of Provisions 2011 - 2013

2011 2012 2013 Top Gift and Estate Tax Rate 35% 35% 40% Top GST Tax Rate 35% 35% 40% Gift and Estate Tax Exemption $5,000,000 $5,120,000 $5,250,000 GST Tax Exemption $5,000,000 $5,120,000 $5,250,000 Is Gift and Estate Tax Exemption Portable? Yes Yes Yes Is GST Tax Exemption Portable? No No No The article is written by Broadridge Investor Communication Solutions, Inc., but is provided by Brian W. Willet. It is meant to be used for informational purposes only and should not be construed as investment advice. Please consult with your tax, legal and financial advisor prior to making financial decisions. Insurance products are offered through insurance companies with which Waddell & Reed has sales arrangements. Copyright 2013 - Broadridge Investor Communication Solutions, Inc., all rights reserved. Waddell & Reed and Broadridge Investor Communications Solutions, Inc. are not affiliated companies. Brian W. Willet is a District Manager with Waddell & Reed in Lincoln, NE and can be reached at 402-484-7526. Waddell & Reed, Inc. Member FINRA and SIPC

Exemptions and top tax rates in 2013

For 2013 and later years, the gift and estate tax exemption is $5 million per person (the $5 million is indexed for inflation in 2013, and thus is $5,250,000); the top tax rate for these years is 40%. Similarly, for 2013 and later years, the GST tax exemption is $5 million per person (the $5 million is indexed for inflation in 2013, and thus is $5,250,000); the GST tax rate for these years is 40%.

Waddell & Reed

1001 S. 70th Street, Suite 201 Lincoln, NE 68510 402-484-7526 800-399-4468 www.lincoln.wrfa.com www.lincoln.wrfa.com

Portability of gift and estate tax exemption

The 2010 Tax Act introduced a new estate planning concept--exemption portability. In short, the estate of a deceased spouse can transfer to the surviving spouse any portion of the federal estate tax exemption that it does not use. The surviving spouse can then add that amount to the exemption he or she is otherwise entitled to, increasing the total amount that can be passed on tax free. This new feature makes it easier for married couples to minimize the potential impact of gift and estate tax. Prior to the 2010 Tax Act, if a spouse died without having planned for his or her exemption, the deceased spouse’s estate would have passed tax free to the surviving spouse under the unlimited marital deduction (assuming all assets passed to the surviving spouse), and the deceased spouse’s exemption would be lost or “wasted.” The surviving spouse’s estate could then only transfer an amount equal to his or her own exemption free from federal estate tax. To solve this dilemma, married couples typically set up what is commonly referred to as a credit shelter trust (or bypass trust) that sheltered or preserved the exemption of the first spouse to die. Portability can achieve a similar result without the use of a credit shelter trust. To use the exemption portability, the estate of the first spouse to die must elect to use portability on the estate tax return. An estate tax return must be filed by the estate of the first spouse to die to use portability even if the return is not otherwise required to be filed. Exemption portability is available only from the last deceased spouse. The exemption of the first spouse will be lost if the surviving spouse

Brian Willet, CMFC Financial Advisor bwillet@wradvisors.com bwillet@wradvisors.com

Let Us Help You Make The Most of Your Financial Future    

Personal Financial Planning Investments Retirement Planning Business Financial Planning

   

IRA Rollovers Long-Term Care * Risk Management * Estate Planning

Financial Planning - Investments - Insurance Solutions *Insurance products offered through insurance companies with which Waddell & Reed has sales arrangements Waddell & Reed, Inc. Member SIPC

9  Lincoln Business Builder

Business & Marketing Bootcamp

Business & Marketing Bootcamp Jon Goldman, President, Brand Launcher

Builder Marketing Moves to Make Now Monday, November 11 • 2:00 - 3:30 p.m.* *Time subject to change.

Nebraska Champions Club 707 Stadium Drive Parking is available in the garage south of the Champions Club. Cost:

$50 for HBAL Members • $70 for Non-Members

“Me-too” marketing doesn’t cut it in today’s competitive marketplace. Your prospects are savvy and cynical -- and there’s always someone to undercut you. In this challenging environment, the traditional sales-and-marketing approach is Dead On Arrival. In this powerful, eye-opening session, you’ll discover practical, real-world strategies that you can use immediately in your building business. Here’s what you’ll learn: • The RIGHT way to get more word-of-mouth referrals • How to generate “buzz” for your business – without spending a fortune • The single most powerful word to use in your marketing (not ‘free’ or ‘you’)

Jon Goldman is Founder and President of Brand Launcher, a strategic business and marketing company focused on supporting entrepreneurs in their businesses and their lives. The company’s international team includes coaches who are expert in marketing, business operations, sales, and management. Previously he was co-owner of one of the largest promotional-products companies in the US, with sales of $20,000,000+. Over the span of his career, he and his team have worked with companies including IBM, National Geographic, and Häagen-Dazs, in addition to numerous small-to-midsized businesses. A successful entrepreneur, rainmaker, business coach, and speaker, Jon’s powerful presentations have attendees laughing, participating –even jumping in the aisles! Jon’s fresh approach, combining marketing savvy with deep personal insight, has been rated “#1 for Presentation Style and Takeaway Content.” He is the author of two works on business and marketing strategy, including one that has been translated into Japanese. Goldman’s weekly e-letter brings a wealth of business growth and marketing tips to thousands of subscribers. His campaigns have been featured on NBC and CBS and in The Wall Street Journal and BusinessWeek.

• A simple idea that cost only $4,800—but brought in nearly $750,000 in sales!

Home Lending Team

Managing a Multi-Generational Workforce Tuesday, November 12 • 9:00 - 10:30 a.m. Cornhusker Bank 6100 Apple’s Way Cost:

Scott Williamson

Adam Flanagan Denise Spencer

Matt Fuller Marla Stahl

$50 for HBAL Members • $70 for Non-Members

Chances are, your construction business will soon include Baby Boomers (born 1946-1964), Generation X (60s and 70s), and Gen Y (1982-2000). They don’t just think, talk, and work differently -- they have different expectations of themselves, each other, and you. As the owner or manager, you are responsible for making it work… but how do you do that when your employees and subs come from different worlds? This session shows you how to “bridge the gap” --even between employees who are 40 years apart. • Understand the expectations of Boomers, Xers, and Yers regarding the 3 P’s: Policies, Promotions, and Personal space • Avoid becoming a Referee by encouraging employees to “intercommunicate” • Utilize the power of Recognition in your business across generational lines

RSVP for both classes and SAVE! $80 for HBAL Members • $120 for Non-Members 10  Lincoln Business Builder

Strong Foundations Begin

With Great People

West Gate Bank recognizes that people make the difference. Our staff is knowledgeable, experienced and committed to providing excellent service. Whether you are building, buying or reﬁnancing your home, experience the West Gate Bank difference. Create your customized loan program today.

Lincoln’s Bank | westgatebank.com 402-434-3456

member FDIC

NSP Carrier Enforcement to Hold Town Meetings

Your Hometown Source For • House Beams

• Joists & Deck

From medical certification to a cell phone ban, the Nebraska State Patrol (NSP) Carrier Enforcement Division will again host informational meetings in towns across Nebraska to provide updated information on the Federal Motor Carrier Safety and Hazardous Material Regulations. The meetings will include information on the Federal Motor Carrier Safety Administration’s (FMCSA), Compliance, Safety, Accountability (CSA) program.

• Miscellaneous Plate, Angle, Pipe & Tubing

Implemented in December 2010, the CSA program monitors a motor carrier’s on-the-road performance, and implemented new penalties for unsafe driving behavior.

• Columns • Brick Lintels

APOLLO STEEL COMPANY Fabricating The Future of Nebraska 7200 Amanda Road, Lincoln, NE 68507 Phone: 402-466-8587 • Fax: 402-466-0594

”There have been several updates that should be of interest to all drivers and operators of a commercial motor vehicle, including a ban on cell phones and texting,” said Captain Gerry Krolikowski, Carrier Enforcement Division Commander. “With all the changes, we would encourage those individuals who have attended in the past, to attend one of the six meetings scheduled for 2013.” Information will also be provided regarding the law which requires holders of a Commercial Driver’s License (CDL) to provide the Nebraska Department of Motor Vehicles with a current copy of their medical examiners certificate, as well as the revised “Hours of Service” rules. Two of the six meetings will be held in Grand Island during Husker Harvest Days, allowing individuals not only in that general area to attend, but also those who travel to participate in this annual event. The meetings should be attended by anyone who operates any of the following vehicles: • • • • • • •

A pickup pulling a trailer (over 10,000 lbs. combined weight or gross combined weight rating). A pickup or truck weighting over 10,000 lbs. or gross vehicle weight rating over 10,000 lbs. A pickup, trailer, truck or semi requiring a class A, B, C, Commercial Driver’s License (CDL). Any motor vehicle transporting hazardous material of any quantity. Any farm truck displaying farm plates and registered for more than 16 tons. Any passenger carrying vehicle designed or used to transport 8 or more passengers, including the driver for compensation. Any passenger carrying vehicle designed or used to transport 15 passengers, including the driver and not used to transports passengers for compensation.

October 16, 2013 at 7:00-10:00 p.m. When it comes to cabinetry, Millard Lumber offers a vast and diverse selection. Whether it’s a color, finish, or look, Millard Lumber has the solution to any builder or contractors needs. Stop by our Design Center today for design assistance and free estimates. Millard Lumber also offers installation for all cabinets and hardware. 11200 N. 148th St., Waverly NE

402.786.3030

M-F 7:30am - 5pm

Lancaster Event Center, Business Center Nebraska Room 4100 North 84th Street • Lincoln For the complete schedule of NSP Carrier Enforcement Division Town Meetings go to statepatrol.nebraska.gov. No registration required. Questions concerning the town meetings or groups interested in holding a town meeting should contact the NSP Carrier Enforcement Division at (402) 471-0105.

11  Lincoln Business Builder

12 ď ´ Lincoln Business Builder

Mike Dynasty Membership Drive

Team Mike1

Current Standings 1st Place

2-way tie for 1st Place New Members: 4 x $50 = Potential prize winnings: $200 or $100 per winner

2nd Place

Recruiting Tools

Available at www.hbal.org/members/mike-dynastymembership-drive/ • The “6 Reasons” card can be printed directly from the HBAL website and shared with prospective members. • A sample letter can be downloaded and formated to fit on your letterhead. Mail it along with a HBAL Membership Packet which can be picked up from the HBAL office. • A sample email is also available to send to prospects along with an application and “Your Sure Path to Savings” flyer. • Request a list of cancelled members or hot prospects from the HBAL office. • Review your business contacts and encourage them to join. • Anyone who benefits from a healthy housing industry should be a member of HBAL. Download a helpful list of company categories to think about and start recruiting today!

Triple Spike Month HBAL members will receive triple Spike points for members recruited before the October 17 Board Meeting!

2-way tie for 2nd Place New Members: 2 x $40 = Potential prize winnings: $80 or $40 per winner

3rd Place

17-way tie for 3rd Place New Members: 1 x $30 = Potential prize winnings: $30 or $1.76 per winner

Alan Sutton (1)

• Campbell Construction New Homes, Inc.

Donna Youngquist (1) • Erickson Homes

Linda Potter (1)

• Hoback Custom Homes

Steve Champoux (1) • Legacy Homes

Jerry Boyce (1)

• Lincoln/Lancaster County Habitat for Humanity

Mike Kinning (4) • • • •

X Foundations, LLC Cory Reimnitz - Mutual of Omaha Sound & Security Innovations RCI Roofing Supply Company, Inc.

John Hoppe, Jr. (1) • A & A Contracting

Bob Ruskamp (1)

Membership Prizes 1st Place Prize

$50 per new member recruited up to $500

• Anden Bruns Construction

Bob Weichert (1)

• Inspired Composites

Lance Roach (1)

• James Hardie Building Products

2nd Place Prize

Team Mike2

$40 per new member recruited up to $400

3rd Place Prize

$30 per new member recruited up to $300

Bonus Prize

$100 for the first 10 members who recruit 10 new members Membership contest runs from January 1, 2013 to November 11, 2013. For complete rules or to find out which team you’re on, contact HBAL at 402-423-4225.

$250 Participation Award

Vladimir Oulianov (4) • • • •

DeRun Construction and Homes, Inc. Dun-Rite Homes, Inc. Geysun Style Homes, Inc. Manion Construction, Inc.

Pat Ohmberger (1) • Legacy Construction

Terry Kraft (1)

• Prudential Ambassador Real Estate

Team Mike3 Stephanie Krueger-Ponce (1)

Participate in the most HBAL or Remodelers Council meetings and events and receive $250 in cash!

• A & G Concrete

Contest runs April 15, 2013 to December 12, 2013. In case of a tie, the cash prize will be distributed evenly among the winners. Volunteering for or paying to attend/ participate in an event qualifies as an entry in this contest.

Mark Lewis (1)

Fred Hoppe (1) • DLR Group

• Entity Designs

Justin Johnson (2)

• Holz Lawn & Landscaping • The Hoppe Law Firm

Lunch is on us!

Jim Crawford (1)

Each month one lucky HBAL member will receive a free lunch on us! Lunch will be brought to your office or jobsite by a member of the HBAL staff or Membership Committee.

Brian Hester (1)

One drawing will be held each month from April 11, 2013 to December 12, 2013. Additional chances can be obtained by filling out an entry form or dropping your business card at an HBAL or Remodelers Council meeting or event or at the HBAL office. Only one entry per person per meeting/event.

• James Moock, CPA • Trademark Builders

Pat Mooberry (1)

• Willow Ridge Builders

Mike Rezac (2)

• Big Red Tire Pros • Swanson Russell

13  Lincoln Business Builder

NAHB: Your Sure Path to Savings

Your Sure Path to Savings NAHB actions on the legislative, regulatory, codes and legal fronts saved the typical home builder about $7,250 per housing start in 2012 – and this year, we’ve taken steps to provide even more bang for your membership buck.

800

$77 million

Number of builders who went to Capitol Hill during NAHB’s 2013 Legislative Conference to call on Congress to maintain essential housing tax incentives and support smart immigration reform.

NAHB convinced Congress to extend energy efficiency incentives (45L), providing a $2,000 tax credit for the sale of homes that meet program goals – for $77 million in savings to members.

$150,000 $824,124

Estimated savings by just one member after NAHB filed a successful amicus brief with the U.S.Supreme Court that explained why governments shouldn’t extort money from landowners in the Koontz v. St. Johns River Water Management District case.

Additional revenue in 2012 earned by companies led by NAHB CGP designation holders.

$727 million NAHB lobbied Washington to extend the Existing Home Retrofit Tax Credit (25C) for purchasing energy-efficient projects – which in turn spurred about 18% of remodeling projects this year.

ILLINOIS $6,316 Typical savings per home for keeping fire sprinklers voluntary. Illinois became the 43rd state to do so with NAHB Construction, Codes and Standards assistance.

14  Lincoln Business Builder

10,100

Estimated additional new home sales with flood insurance victories.

NAHB: Your Sure Path to Savings

$3.4 million

Builder 20 Clubs Ahead On average, members of NAHB 20 Clubs for builders and remodelers double their company profits within three yearsof joining.

Savings in the first six months of 2013 through NAHB Member Advantage.

Value, in the first six months 2013, of the NAHB legal team’s free advice on subjects from contracts, mechanics liens and more in phone calls with members.

$225,000 $1 million Total saved on 2013 IBS registration by NAHB members.

REDUCED BY

$42,000

NAHB’s stands on 750 building code proposals and its advocacy on building safety and cost effectiveness represent smart building practices and savings of more than $42,000 per house.

$1,500

VIRGINIA $300 million NAHB joined the Commonwealth’s successful lawsuit against EPA’s attempts to regulate stormwater, saving Virginia small businesses and taxpayers $300 million and discouraging similar actions in other states.

Average cost of an environmental consulting fee saved by using the members-only endangered species mapping tool.

September General Membership Meeting

Guest Speaker, Al Trellis, taught us how to make more money in our business. Al’s presentation, “From Feeble Financials to Exceptional Earnings: Learn how to make more money!“ will be available on www.HBAL.org soon.

September General Membership Meeting

Members enjoy the social hour, meeting new contacts and reconnecting with friends and family. Four HBAL members were recognized for obtaining the following Spike levels: Joe McKee

Statesman Spike

Greg Shinaut

Royal Spike

Jenny Samek

Blue Spike

Bob Bryant

Blue Spike

Mike Kinning presented services awards to Michaela Harrison and Jennie Korth. Michaela reached her 15 year milestone on August 24 and Jennie reached her 5 year on August 4. 16  Lincoln Business Builder

Mark Aksamit announced the upcoming Santa Cop Project which will take place on Saturday, November 9. Lance Roach helped show the attendees a sample of the tables and chairs to be built at the event.

Forgone Profit is Not a Constructive Dividend

Forgone Profit is Not a Constructive Dividend by Bryan P. Robertson1

In what sounds more like a tax professor’s musings2 than a court case, the Tax Court recently held that the forgone profit margin of a corporate entity with respect to services rendered on behalf of its sole shareholder is not a constructive dividend. Electing not to constructively impose income, the court found that a corporation’s decision not to make a profit on services provided to its shareholder, who fully reimbursed the corporation for the cost of the services including overhead, did not constitute a distribution of property.

Opinion

The court first reviewed constructive dividend cases related to electrical and home construction services, distinguishing the unreimbursed costs involved in those cases form the unimposed profit margin at issue. Obviously unimpressed with the position of the IRS, the court concluded that the forgone profit did not rise to the level of a distribution of property. Respondent does not explain how a corporation’s decision not to make a profit on services provided to a shareholder who fully reimburses the corporation for the cost of the services (including overhead) constitutes a distribution of property that reduces the corporation’s earnings and profits under section 316(a), nor does respondent cite any cases supporting such a position.

Facts

North Dakota taxpayer Terry J. Welle is the sole shareholder of Terry Welle Construction, Inc. (TWC), a subchapter C corporation specializing in the construction of multifamily housing. In 2004, Mr. Welle began building his second home on a lakefront property he and his wife owned. As a result of the project, Mr. Welle caused TWC to open a “cost plus” job account on its books. During the construction, TWC paid the subcontractors and vendors directly and its farming crew framed the lakefront home. Mr. and Mrs. Welle repaid TWC for all amounts paid to the subcontractors and vendors and reimbursed TWC for its labor and overhead costs. TWC did not charge the Welles, and the Welles did not pay to TWC, an amount equal to the customary 6% to 7% profit margin fee that TWC charged to unrelated parties. Asserting a $48,275 constructive dividend to reflect the uncharged profit margin fee, the IRS sought to impose a deficiency and an accuracy-related penalty.

The court then distinguished forgone profit from cases involving the bargain sale of property to a shareholder concluding that such a sale “diverts actual value otherwise available to the corporation for the benefit of a shareholder.” The court likewise distinguished forgone profit from cases involving other than incidental or insignificant use by a shareholder of corporate property noting that, in those cases, “the shareholder has received a constructive dividend equal to the fair market value of the use of the property.” The court found the use by Welle of the corporate infrastructure and workforce was incidental to their business purpose. The most that can be said about Mr. Welle’s use of TWC is that he used the corporation as a conduit in paying subcontractors and vendors and that he obtained some limited services from corporate employees. Mr. Welle fully reimbursed the corporation for all costs, including overhead, associated with those services, and TWC did not divert actual value otherwise available to it by failing to apply its customary profit margin in determining the amount Mr. Welle had to reimburse the corporation.

Your Building Envelope Specialist!

Based on its findings, the court concluded that Welle did not receive constructive dividend income. It vacated both the asserted deficiency and the associated penalty. _______________________________________ Bryan is the Managing Director of Juris Valuation Advisors, LLC, a Lincoln firm offering a wide range of business valuation and related consulting services. 1

These facts seem destined to take their place in the toolbox of “gross income hypotheticals” alongside classics like the full-time banker and gardening enthusiast who spends $1,500 on vegetable seed and ultimately harvests and consumes vegetables with a fair market value of $3,000. 2

• Solving problems for contractors with Icynene foam since 1995. • Spray foam is only as good as the installers. • Both open cell and closed cell insulation available.

Contact Rick McConnell

402-643-2340 or 402-641-1254 rickmcconnell@inebraska.com www.mcconnellthermalservicesllc.com

Did you know? Australia was actually given its name before it was even discovered by Europeans. Rumors of Terra Australis (“land to the south”) persisted for centuries until the Dutch confirmed its existence in 1616. - The Amazing Fact Generator 17  Lincoln Business Builder

Award Nominations

Associate of the Year Award Send in your nomination by November 1 Purpose The purpose of the “Associate of the Year” program is to recognize an outstanding Associate member of the association who has conducted themselves in an exemplary manner so as to bring credit to the building industry, community and HBAL.

Eligibility Each nominee shall be an active Associate member of HBAL and must have been a member for a minimum of three years on January 1, 2013.

Deadline Submit your nomination by filling out the form and returning it to HBAL before November 1. If you need additional space, please attach a separate sheet of paper to the nominating form. From the nominations received, the winner of the award will be chosen by the selection committee.

Selection Committee The committee will have a minimum of five members. The committee shall consist of the President, President Elect, First Vice President, Immediate Past President and the 2012 “Associate of the Year,” Mark Aksamit.

Basis of Selection The basis for selection shall include the following criteria: 1. Business conduct and experience (25 percent) 2. HBAL activities/involvement (50 percent) 3. Civic and volunteer activity (25 percent)

Presentation The 2013 “Associate of the Year” will receive a personal award at the installation meeting in January 2014. The presentation will be made by the outgoing President, Mike Rezac, or the previous “Associate of the Year” winner. The recipient’s name will be added to a permanent trophy on display at the HBAL office.

One Nomination Needed A single nomination assures the nominee’s consideration by the selection committee. Each nominee will be considered on the basis of the criteria, not on the number of nominations. Call Mike Benker at 402-423-4225 if you have any questions. 18  Lincoln Business Builder

Associate of the Year Nomination Form Name ________________________________________ Company ______________________________________ Nominee’s background: (Involvement in HBAL, business, community, etc.) _______________________ _______________________________________________ _______________________________________________ _______________________________________________ _______________________________________________ _______________________________________________ I nominate this Associate for the following reasons: __ _______________________________________________ _______________________________________________ _______________________________________________ _______________________________________________ _______________________________________________ Signed ________________________________________ Home Builders Association of Lincoln 6100 S. 58th Street, Suite C • Lincoln, NE 68516 Fax: 402-423-4251

Past Associates of the Year Below is a list of past “Associate of the Year” winners. Their contributions have helped to make the Home Builders Association of Lincoln the vital organization it is today. 1983 - L.D. “Bud” Robinson 1984 - Robert Gabriel 1985 - Robert Knuth 1986 - Jim Crawford 1987 - Vince Collura 1988 - Cheryl Haecker 1989 - Robert Marshall 1990 - Larry Kness 1991 - Mike Stranathan 1992 - Duane Helmink 1993 - Roger Reynolds 1994 - Ron Brooks 1995 - Paul Schaer 1996 - Dan Walker 1997 - Lanny Ash

1998 - Jo Lewis 1999 - Ardy Mendenhall 2000 - Bill Fuelling 2001 - Doug Porter 2002 - Doug Gates 2003 - Delrae Hirschman 2004 - Greg Shinaut 2005 - Connie Strohmyer 2006 - Mike Gray 2007 - Perry Haralson 2008 - Bob Bryant 2009 - Eric Hoke 2010 - Dave Rainforth 2011 - Greg Shinaut 2012 - Mark Aksamit

Award Nominations

Nominations Wanted

Development Services Center Outstanding Employee (formerly Building & Safety Department Outstanding Employee)

The Home Builders Association of Lincoln will present a plaque at the January 2014 General Membership Meeting to an employee of the City of Lincoln Development Services Center. The employee shall have provided outstanding service, either in the field or at the counter, to assist a member of the association in keeping their project(s) on schedule. Please call or send in your nomination for this award to the HBAL office. I nominate ________________________________________, an employee of the City of Lincoln Development Services Center, to receive this annual award for outstanding service presented by the Home Builders Association of Lincoln. Nominated by: _____________________________________ Return to HBAL Phone: 402-423-4225 â&#x20AC;˘ Fax: 402-423-4251 6100 S. 58th Street, Suite C Lincoln, NE 68516

Past Recipients 1998 Dale Stertz 1999 Lana Tolbert 2000 Michele Williamson 2001 Mike Petersen 2002 Rick Dunn 2003 Ron Peery 2004 Wilma McCamley 2005 Gordon McGill 2006 Allen Gilbert 2007 Shawn Johnson 2008 Ray Paulson 2009 Steve Weiss 2010 Steve Weiss 2011 Terry Ullsperger

19 ď ´ Lincoln Business Builder

Social Media & Online Marketing | Builder Best Financing Provides Constructive Flexibility

More Tips for Social Media & Online Marketing for HBAL Members As part of our ongoing column for HBAL, Tomorrow’s Online Marketing is back with more tips and strategies for social media and online marketing. Tomorrow’s Online Marketing, or TOM for short offers a variety of online marketing programs including Authority and Ranking packages (SEO) and Optimized Lead Generation. TOM focuses on programs that help you continue to do what you do best instead of worrying about more headaches online. One other thing that stands out with TOM is that they guarantee results in writing. Most months, TOM will be sharing ideas right here for HBAL members to get more out of their online marketing and social media. These tips are simple steps you can take to get more business! You don’t have to be a pro to take the first steps and get in the game so to speak. TOM has committed to help provide this information for HBAL as one more great benefit of your membership. If you missed the previous column, be sure to go back and review! More social media tips and strategies to improve your online marketing: 1. Make sure in each social media platform you use, that you fill out the description and entire profile. SPAM accounts often don’t have these filled out and so you are penalized and appear to be a bad account if you don’t! Also filling out the description and other fields allows you another opportunity to provide a link to your main website. 2. We mentioned in the last column that consistency is important. There are tools out there to make your life easier. One of the easiest is called HootSuite. It makes scheduling and making posts on multiple sites (ie. twitter, Facebook, and Google Plus at the same time) EASY! Another service is Sprout Social. Both of these services allow you to plot things out days, weeks or months in advance and put it on autopilot! 3. Use pictures! People are very visual, so using pictures with your posts on social media provides an opportunity to catch people’s eye and gain their interest. Even if you are posting quotes or tips, you can often pair it with a picture and get even more of an impact. 4. Testimonial videos are tremendously powerful for your website and for your social media. Written testimonials can be made up and they are very static….on the other hand, videos are much more dynamic AND since people can see and hear the person giving the testimonial, it is much more authentic and powerful. These should not be long videos. 30-60 seconds is a great target range. For more information or questions about online marketing, email Jeff Dousharm and Wayne Boesiger (owners of TOM) at Jeff@tomorrowsonlinemarketing.com.

Builder Best® Financing Provides Constructive Flexibility Wells Fargo Home Mortgage’s exclusive Builder Best program provides long-term protection against market volatility while your dream is taking shape. This exceptional financing option works to minimize the effects of fluctuating interest rates and protects your loan pricing during the time it takes to complete your home. Enjoy Builder Best protection from financial market fluctuations in interest rates for up to 12 months.1 • If the overall interest rate market goes up during the construction process, you remain protected. • If interest rates decline, you may seek to exercise your onetime float down option to obtain new pricing on your loan if the market improves prior to closing.2 • Choose from a variety of adjustable-rate mortgage (ARM) products. • Switch to any eligible product within 60 days of closing on your permanent loan. Wells Fargo Private Mortgage Banking will embrace your immediate and long-term objectives and provide sound options to further your construction financing strategy. For additional information, please contact: Angie Schwartz Shane V. Podliska Private Mortgage Banker Branch Manager 1248 O Street, 2nd Floor 1248 O Street Lincoln, NE 68508 Lincoln, NE 68508 402-434-4334 402-434-4201 NMLSR ID 613608 NMLSR ID 400302 1. A non-refundable participation fee or an extended lock fee will be required for participation in a Builder Best® program. The Builder Best program is allowed with qualified products with lock features ranging from 3 months to 12 months. Due to daily pricing variations between products, you are encouraged to work with your home mortgage consultant to ensure that pricing available on the Builder Best lock feature that you choose is the most advantageously priced Builder Best lock feature for you. 2. Change of loan product or program, change in loan to value ratio, float down or re-lock of rate will require underwriting approval. Changing products is not allowed within 30 days of the original lock. You must qualify for the new product and be within 60 days of loan closing. Onetime float down option is available within 60-days of closing to any lender program or re-lock your existing product at the current available price range. Re-lock is not allowed within 30 days of the original lock. If re-lock period exceeds 60 days, applicable extended lock fees will be assessed. Wells Fargo Home Mortgage is a divisions of Wells Fargo Bank, N.A. © Wells Fargo Bank, N.A. All rights reserved. NMLSR ID 399801. AS997813 Expires 12/2013

“The purpose of life is not to be happy. It is to be useful, to be honorable, to be compassionate, to have it make some difference that you have lived and lived well.” -Ralph Waldo Emerson 20  Lincoln Business Builder

Bob Nohavec Plumbing

420-1552

Service • Remodeling • New Construction Free Estimates Bob Nohavec, Master Plumber 3400 S. 6th Street, Lincoln, NE 68502

• Furniture • Flooring • Appliances • Electronics

Give Your Customers

MORE!

More choices, more brands, more savings.

Nebraska Furniture Mart provides an unrivaled selection of products and services all under one roof, making it a one-stop center for your contracting and building needs. We understand your business needs, and understand what you need to make it successful.

Showroom open everyday at 10am

21  Lincoln Business Builder

New Members | Directory Changes | Cancellations

Welcome New Members Anden Bruns Construction Anden Bruns (Lindsey)

Directory Changes • New principal contact for Sam’s Club is Marvin Schumacher. • New contact for Pella Products of Omaha & Lincoln is Melissa Paladino. Phone: 402-861-7904. Email: melissapaladino@pellaomaha.com.

5320 Canterbury Lane, Lincoln, NE 68512 Phone: 402-223-0649 Email: amb4274@yahoo.com Website: www.andenbrunsconstruction.net Company Description: Anden Bruns Construction is a custom home and remodeling contractor with an emphasis on quality. We serve Lancaster and surrounding counties. Sponsor: Bob Ruskamp, Lincoln Electric System

• Stacy Sovereign is a new affiliate contact for Wells Fargo Home Mortgage. Phone: 402-434-4152. Email: stacy.m.sovereign@wellsfargo.com.

Reason I joined HBAL: I joined HBAL to get more involved with the community and ultimately grow the business. What I hope to get out of my membership: I hope to participate in HBAL community activities and in the Parade of Homes within the next three years. Desired areas of involvement: Golf, Sporting Clay Shoot, Education Company Information: Anden Bruns Construction was founded in 2009 and profitability has grown 20% in each of the last three years. My #1 priority is providing customers with a quality finished product. Personal: Family hobbies are sports and outdoor sporting.

• John Ankerson, Home Real Estate, is no longer an affiliate member.

• Oncenter Construction, Inc. is now a builder member. • Quinn Small, Custom Blinds and Design, is no longer an affiliate member.

• Journal Star Printing Co. is now LJS Media Group. • Taylor Ashburn is now the principal contact for Union Bank & Trust Co. Gary Carbaugh will be an affiliate member.

Sorry to See You Go! If you see your company listed below, contact HBAL at 402-423-4225 to renew your membership TODAY!

Inspired Composites

Quality First Drywall

Dana Stefanidis

1701 Windhoek Drive, Lincoln, NE 68516 Phone: 402-438-1545 Email: dana@inspiredcomposites.com Website: www.inspiredcomposites.com Company Description: Inspired Composites’ manufactures custom countertops for residential and commercial applications. These surfaces consist of a Zero-VOC resin, and a combination of recycled and reclaimed glass and mirror. Sponsor: Bob Weichert, Lincoln Laminating, Inc. Reason I joined HBAL: We are looking to increase our exposure of our business and product. What I hope to get out of my membership: We hope to create working relationships with other firms. Company Information: Inspired Composites is a locally owned and operated business in Lincoln that manufactures custom countertops out of resin, recycled glass, mirror and marbles.

James Hardie Building Products Vishal Shah

314 S. 11th Street, Apt. 203, Omaha, NE 68102 Phone: 630-240-3592 Email: vishal.shah@jameshardie.com Website: www.jameshardie.com Company Description: Leading Manufacturer of fiber cement cladding & tile backer. Sponsor: Lance Roach, JL Exteriors, Inc. Reason I joined HBAL: To network with the building community What I hope to get out of my membership: sustained partnerships Desired areas of involvement: Parade of Homes

Almost Any Brick You Use Can Last for Hundreds of Years. So Be Particular.

ANKEE HILL BRICK manufactures the highest quality FBX brick in a color palette ranging from the traditional reds and buffs to the innovative pinks, maroons, and lavenders. Standard and custom color ranges, sizes, and shapes are our specialty. Brick murals and ornamentation are brought to a new level of sophistication at Yankee Hill Brick. Rely on Yankee Hill to supply your project with the nest of materials.

3705 S. Coddington Lincoln, NE 68522

(402) 477-6663 22  Lincoln Business Builder

Face brick Paving brick Thin brik veneer Pool Coping Ceramic tile and marble Keystones Address & entry signs Brick mural & ornamentation Crushed landscape brick

4212 S. 133rd Street Omaha, NE 68137

(402) 330-2751

Renewals

Thanks for Renewing Your Membership! (Please allow 60 days for names to appear on this list.)

ABC Seamless House Siding, 24 years

Fireplace Center, 23 years

Nebraskaland Siding & Windows, 20 years

American Electronics, Inc., 25 years

Gana Trucking & Excavating, 13 years

Neighbors Family Homes, Inc., 12 years

Aqua Systems, 14 years

General Excavating, 29 years

Pioneer Overhead Door, Inc., 52 years

Art F/X, 17 years

Hickman Area Economic Development Association, 5 years

Raymond Contracting, Inc., 12 years

Becker Construction, Inc., 10 years

Home Real Estate, 62 years

Re-Bath of Lincoln, 4 years

Brainard Heating & Air Conditioning, Inc., 7 years

Home Innovations Spas, Inc., 20 years

Renewal by Andersen, 6 years

Buhr Homes, Inc., 26 years

Innovations Siding & Windows, 3 years

Casburn Construction, 25 years

Innovative Homes & Design, Inc., 2 years

Christensen Lumber Co., 7 years

Jensen Well Co., 2 years

City Bank & Trust Co., 16 years

JL Exteriors, Inc., 5 years

Strain, Slattery, Barkley & Co., CPA’s, P.C., 23 years

Comfort Techs, Inc., 4 years

KLKN-TV 8, 17 years

Structural Component Systems, 25 years

Cornhusker Bank, 23 years

Krueger Development, 26 years

Tomasek Homes, Inc., 7 years

Cummins Sprinkler, 25 years

Lewis Homes, 11 years

United Rentals, Inc., 27 years

Custom Blinds and Design, 9 years

Lincoln Title, 7 years

Usher Custom Cabinets, Inc., 35 years

Endicott Clay Products Co., 51 years

Lincoln Concrete Specialists, 14 years

Versa-Lok, 14 years

Eric’s Electric, Inc., 12 years

Micek & Crouch, P.C., 27 years

West Gate Bank, 21 years

Ernie’s in Ceresco, 19 years

Millard Lumber, Inc., 26 years

Wolfe Electric Co., Inc., 36 years

Reynolds Design & Remodeling, 27 years Simeck Carpentry, 9 years Stark Siding, Inc., 7 years

Nebraska Bank of Commerce, 5 years

The Place to go for Everything Fireplace and Stone! “Bringing Quality to Life”

You won’t find a larger selection of fireplaces & stone in town! Our showroom displays 37 fireplaces and over 170 brick and stone samples. Also available at Lumbermen’s: • Wood & Pellet Stoves • Grill Islands & Kitchens • Erosion Control Products

• Outdoor Firepits • Paving Stones • Stone Veneers • Brick

Showroom Hours: Mon-Fri 9am-5pm, Sat 10am-2pm | 8655 Amber Hill Court, Lincoln, NE 68526 | 402.421.0948 | www.lumbermens.biz

23  Lincoln Business Builder

Directory Ad Space Available

DIRECTORY AD SPACE AVAILABLE There is space available in the 2014 Membership Directory. This publication is distributed to all HBAL members (over 700 people). Don’t miss out on this great opportunity! Please contact HBAL no later than Friday, November 1 if you are interested in advertising.

2014 Membership Directory and Buyers Guide Directory Pricing        

Full Page (5" W x 8" H; black & white) .....................................$475 Half Page (5" W x 4" H; black & white) ....................................$250 Fourth Page (2-1/4” W x 3-3/4” H; black & white) ....................$150 Back Cover Full Page (5” W x 8” H; full color) .........................$750 Inside Front Cover Full Page (5” W x 8” H; full color) ...............$650 Inside Back Cover Full Page (5” W x 8” H; full color) ...............$650 Inside Front Cover Half Page (5” W x 4” H; full color) ..............$375 Inside Back Cover Half Page (5” W x 4” H; full color) ..............$375 Previous advertisers receive first right of refusal.

Check one

 Use last year’s ad  Ad enclosed Company: ____________________________________ Name: _______________________________________ Address: ______________________________________ City, State, Zip: _______________________________ Phone: ___________________ Fax: ________________________ E-mail: _____________________________

CONTACT JENNIE BY NOVEMBER 1 TO ADVERTISE! Please return to: Home Builders Association of Lincoln 6100 S. 58th Street, Suite C, Lincoln, NE 68516 Phone: 402.423.4225 Fax: 402.423.4251 info@hbal.org

24  Lincoln Business Builder

Higher Wages, Spending & GDP

Elliot Eisenberg, Ph.D. • GraphsandLaughs, LLC Thanks to the rise of outsourcing and the Great Recession, labor costs have, for some time, barely risen. And while this has caused great pain to workers, it has been a boon to business. To give you an idea of how anemic wage growth has been recently, keep in mind that real compensation per hour rose at an average annual inflationadjusted rate of 1.6% since record keeping began in 1947. Since 2000, it has averaged slightly less than one percent per year (0.95%), and since the start of the great recession in January 2008, it has averaged a trivial one-seventh-of-one-percent. I now think we are entering a period of more rapid wage growth. This will impact corporate spending on technology, corporate profits and GDP growth.

Local service for the life of your mortgage loan. At Cornhusker Bank, we believe when you come to us for a mortgage loan, you expect to continue to work with us well beyond closing. This is why we offer to service your mortgage right here in Lincoln.*

Life is good when banking is simple. Stop by, call, or visit us online to learn more. 56th & South St.

CornhuskerBank.com

402-434-2265

* Not all mortgage loans qualify for the local servicing program. Please contact a mortgage lender for details.

Member FDIC

Merritt

Est. 1904 402-435-3213 • 26th & Randolph

Natural Veneer Stone Custom Cuts & Blends Visit Our Showroom

• Sand / Gravel • Rock / River Rock • Promix / Colored Cement • Crushed Concrete Fines

• U-Kart Ready-Mix • Concrete Block • Mulch • Lennox Fireplaces

We provide quick delivery and quality service.

Visit us at www.dhmerritt.com

Due to small wage increases, firms have largely reduced their purchases of technology equipment and software. After all, a major reason firms buy computers and software is to reduce the amount spent on salaries. But with salaries largely stagnant, why buy laborsaving technology? As a result, business spending as a share of GDP has fallen by about 20% since the onset of the recession, and annual increases in corporate spending on technology equipment and software are now lower than they have been in fifty years. While you might think this is because computers continually get cheaper, they have been getting cheaper since they were first built. The key difference this time is that the combination of reduced spending on salaries and technology has boosted corporate profits, despite weak top line sales gains. This golden era of corporate profit is now nearing an end for several reasons. First, because of limited investment in technology, productivity gains, or increases in output per worker per hour, have steadily declined over the last several years to the point where they are now zero. Second, steady job gains have been slowly chipping away at the unemployment rate. And while much of the reduction has been due to declines in the labor force participation rate, some of that is due to baby-boomers retirements, something which will continue for another decade. Third, outsourcing work to, for example, China no longer packs the profit punch it once did because wages there are rising rapidly, by 14% last year, and 12.3% in 2011. As a result, US firms will soon be forced to pay higher wages and thus will invest in technology to meet rising consumer demand for goods and services and lessen the impact of higher wages. While this will reduce corporate profits and act as a headwind for stock prices, it will also help the economy tremendously. Here’s why: Consumer spending is the biggest driver of the U.S. economy, accounting for 69% of GDP. Since the year 2000, wages as a percent of GDP have fallen from 46% to 42.5%. A reversal of this trend, even if small, would boost spending on durable goods, restaurant meals, clothing and more. And we need additional spending, because even though house prices and the stock market are up, many workers own neither. The only way to increase their spending is for their paychecks to grow. Finally, to get out of a recession it is necessary for all cyclical sectors including housing, automobiles, non-residential private construction, and corporate purchases of equipment and software to increase in unison. While all cyclicals aside from corporate purchases are now contributing to GDP growth, bringing corporate purchases in from the cold would significantly strengthen the recovery and boost GDP. Elliot Eisenberg, Ph.D. is President of GraphsandLaughs, LLC and can be reached at Elliot@graphsandlaughs.net. His daily 70 word economics and policy blog can be seen at www.econ70.com.

25  Lincoln Business Builder

Building Permits Building Permits

City of Lincoln - 10 -Year Table SF 74 73 137 124 113 107 114 87 829

Jan. Feb. March April May June July Aug. YTD

Jan. Feb. March April May June July August Total Avg. Cost

2004 TH 8 9 18 22 33 52 21 146 309

19 13 34 52 57 59 49 44 327

MF 5 24 20 0 100 4 10 2 165

SF 54 66 92 80 88 96 89 94 659

2006 Cost 333,000 426,676 613,750 560,472 907,924 520,942 645,103 433,967 4,441,834 13,584

2005 TH 21 10 11 16 12 37 35 96 238

SF=detached single family - TH=townhouses - MF=multi-family (including duplexes)

MF 0 4 4 4 4 20 70 26 132

7 4 33 56 55 62 46 56 319

SF 72 58 82 91 83 93 52 66 597

2006 TH 14 20 17 16 20 15 28 18 148

2007 Cost 87,400 314,300 1,283,155 539,511 818,301 481,374 728,615 807,215 5,059,871 15,862

MF 0 2 16 60 16 68 2 612 776

SF 40 35 59 61 65 67 59 37 423

2007 TH 8 4 40 70 39 17 28 2 208

MF 4 12 112 66 0 64 0 2 260

2008 TH 19 0 28 2 15 17 10 20 111

SF 35 22 41 50 59 39 31 37 314

MF SF 6 11 4 29 2 30 2 30 4 38 10 60 2 35 0 37 30 270

2009 TH 14 2 14 14 28 4 10 14 100

MF SF 0 24 3 32 2 42 15 33 24 29 0 36 0 31 0 33 44 260

2010 TH 7 18 6 8 19 6 18 6 88

Remodeling Permits: Additions City of Lincoln - Detached Single Family - 8 Year Table #

9 9 36 62 52 19 11 13 211

2008 Cost 1,364,460 141,600 589,154 1,208,366 809,323 543,997 212,984 583,602 5,453,486 25,846

2 5 10 10 9 14 17 8 75

2009 Cost 52,000 125,240 206,900 198,413 183,000 297,872 554,070 244,470 1,861,965 24,826

6 3 11 19 9 12 15 11 86

2010 Cost 152,980 99,500 317,000 706,474 148,500 460,740 697,500 219,300 2,801,994 32,581

3 7 18 15 20 16 9 12 100

MF SF 2 22 60 26 8 42 0 28 0 39 4 34 0 38 2 35 76 264

2011 TH 0 0 10 26 14 18 12 21 101

2011 Cost 80,100 178,700 452,005 908,366 340,080 603,388 248,618 478,200 3,289,457 32,895

MF 4 20 180 3 44 0 48 2 301

2 5 10 11 20 7 10 9 74

SF 27 31 47 43 41 45 48 58 340

2012 TH 4 13 24 19 21 14 26 36 157

MF 0 144 36 24 0 8 0 275 487

2012 Cost 43,500 107,786 691,458 600,931 723,945 224,812 414,975 545,217 3,352,624 45,306

SF 24 34 46 69 58 68 83 60 442

6 2 8 10 13 9 9 10 67

2013 TH 2 4 9 18 20 8 29 41 131

MF 0 0 0 0 128 0 24 232 384

2013 Cost 422,000 33,000 357,600 212,603 776,408 379,500 264,975 300,579 2,746,665 40,995

Remodeling Permits: Alterations

Jan. Feb. March April May June July August Total Avg. Cost

89 87 100 87 120 97 94 44 718

2006 Cost 1,007,372 967,125 1,147,674 706,214 1,042,668 985,229 1,072,119 433,967 7,362,368 10,254

88 78 107 88 115 97 117 110 800

2007 Cost 1,163,863 909,207 1,280,089 1,031,776 1,578,971 736,760 1,258,848 1,138,598 9,098,112 11,373

City of Lincoln - Detached Single Family - 8 Year Table #

81 76 89 82 79 76 77 92 652

2008 Cost 907,619 947,505 800,412 877,275 723,878 662,915 1,143,624 1,264,374 7,327,602 11,239

STACK UP $5,000 IN POTENTIAL VALUE

71 76 72 85 65 89 96 77 631

2009 Cost 784,232 706,588 946,927 813,112 617,270 766,615 1,172,764 790,319 6,597,827 10,456

57 69 125 154 124 117 161 119 926

2010 Cost 502,454 600,743 1,229,150 1,386,859 931,223 754,480 1,181,825 1,006,147 7,592,881 8,200

69 79 104 133 111 112 99 129 836

2011 Cost 988,395 893,584 900,086 1,292,245 946,242 819,225 1,104,259 1,032,748 7,976,784 9,542

81 69 96 96 123 110 109 114 798

2012 Cost 804,484 565,929 1,055,957 871,985 1,544,337 1,093,867 1,029,087 1,148,868 8,114,514 10,169

66 42 65 108 92 87 114 87 661

2013 Cost 751,024 702,668 1,000,016 1,158,054 605,739 784,050 1,331,940 883,068 7,216,559 10,918

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26  Lincoln Business Builder

Accessory Cash Allowance3

In potential value

Offer valid toward the purchase or lease of eligible 2012, 2013 and 2014 model year GM passenger cars, vans, SUVs and truck models. Excludes: Chevrolet Caprice, Captiva Sport, Volt; all Cadillac models. Not available with some other offers. Not valid on prior purchases. Program subject to change without notice. See dealer for details. Take delivery by 1/3/14. 2 Offer eligible for non-CAP customers only through 12/31/13. See dealer for details. 3 To qualify, vehicles must be used in the day-to-day operation of the business and not solely for transportation purposes. Must provide proof of business. Visit gmbusinesschoice.com or your Chevrolet or GMC dealer for details. Take delivery by 9/30/13. 4 According to your vehicle’s recommended maintenance schedule for up to two years or 30,000 miles, whichever comes first. Does not include air filters. Covers six oil changes for gasoline engines and four oil changes for diesel. Extra charge may apply for dual rear wheel tire rotations. See participating dealer for restrictions and complete details. ©2013 General Motors. All rights reserved. 13-00057-007 (1/2013) 1

2013 CHEVY SILVERADO 2500HD

National Fleet Purchase Program (FVX)2

27 ď ´ Lincoln Business Builder

Home Builders Association of Lincoln 6100 S. 58th Street, Suite C Lincoln, NE 68516

PRST STD US POSTAGE PAID LINCOLN NE PERMIT NO 51

ADDRESS SERVICE REQUESTED

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