INDIANA
Real Estate News
Uniting and Growing Real Estate Professionals in Indiana.
MIBOR OPPOSES REFERENDUM Page 6
IMPACT OF STORES CLOSING Page 16
Chris Zazzetti
Famous Marketing Co
KNOW YOUR RULES Page 18
March/April 2018
Iwww.indiana-realestate-news.com
EDITOR IN CHIEF Aaron Henze
EDITORS Aaron Henze Tera Moore Chris Zazzetti
WRITERS Aaron Henze Tera Moore
PHOTOGRAPHERS Chris Zazzetti Dustin Jenkins
CONTACT aaron@indiana-realestate-news.com
NEWS TIPS tera@indiana-realestate-news.com
Aaron Henze Editor-in-Chief
Hello Readers! Thank you for checking out Indiana Real Estate News’ second issue. For those of you who are being introduced to IREN for the first time, we are a multimedia organization dedicated to educating, uniting, and growing real estate professionals in all branches of the industry across the state by use of educational videos, informative articles, and networking opportunities that give back to the communities these professionals serve. And for those of you who are already familiar with IREN, welcome back! We’ve had an exciting couple of months since our January/February issue, and we’re excited to share some updates with you. First off, we’re happy to announce Chris Zazzetti, the former production manager at Ray Skillman, has partnered with us as the current owner/manager of Famous Marketing Company. Chris previously assisted with our videos in the early days of IREN, and we can’t wait to incorporate his talents and ideas to become a better company for you, our readers. We’ve also been working on new segments to make our magazine more enjoyable, including this issue’s introduction of “Know Your Rules”, a section that features real-world situations that jeopardized agents’ careers as a tool to help you understand real estate code and ethics. I’ve also enjoyed meeting several industry professionals while getting our company off the ground, and thanks to all of you who have helped with networking or given advice. Finally, as stated before, we at IREN want to hear from you! Thanks to everyone who shared or responded to our last issue. We want to keep growing so that we can continue to implement changes for the better, so please send us any feedback you may have. In addition to our wesite (Indiana-realestate-news.com), email (aaron@indiana-realestate-news. com), Facebook (Indiana Real Estate News), and Twitter (@Indiana_RE_ News), you can also contact Tera Moore with any news tips at tera@ indiana-realestate-news.com. We always have more material than we can fit into a bi-monthly magazine, so be sure to keep up with us on our various platforms between issues. Enjoy!
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Table Of
CONTENTS 06
MIBOR says NO
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Top 150 Standings
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Know Your Rules
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A new IREN feature about learning real estate code & ethics.
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National Brokerages From January 1, 2018 to March 31, 2018
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Learn about all the local happenings in Indiana
Top 150 Standings
Community Events
MIBOR opposes referendum funding for IPS school district.
Independent Brokerages From January 1, 2018 to March 31, 2018
Impact of Stores Closing
Stores closing all around Indianapolis could mean bigger opportunities.
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MIBOR OPPOSES REFERENDUM
FOR IPS SCHOOLS
It’s 2018, which means we’re nearing another midterm election. As is often the case, we will be voting for more than just the people who are running for office. One of the more important items on this year’s ballot is a referendum that would raise property taxes in order to increase funding for Indianapolis Public Schools (IPS). According to an article in Indianapolis Business Journal, the Metropolitan Indianapolis Board of Realtors (MIBOR) group representing real estate agents is opposing this bid. As a result, IPS has downsized its bid from $1 billion, to $725 million, and then finally to $211 million, citing lack of support from the public and harsh criticism. A statement from the MIBOR group says that they are more concerned with how this proposed bid to raise taxes will affect homeowners, claiming that the school has not given enough clarity on the funding’s impact. However, the group has given more consideration to supporting the funding since the budget was lowered.
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MIBOR CEO Shelley Specchio personally opposes the funding for IPS because she thinks it would be bothersome to Indianapolis residents. She was also quick to point out her criticism at the school for not providing sufficient information on how the funding would be used, as well as how it affects property owners. Specchio added though that she “does support and values strong quality schools”. Chief of Staff Ahmed Young of IPS commented that IPS is committed to putting taxpayer resources to good use. He continued that he lowered the bid referendum as part of keeping his commitment to the taxpayers. The MIBOR group has over 8,000 members in central Indiana, and has been a huge contributor to campaigning seats for the IPS board. The group has given thousands of dollars over the last few years in show of support. This is the first time that MIBOR has opposed funding for the school district.
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Other groups, including the Indianapolis Chamber of Commerce, believe that IPS needs more funding, but are concerned about the dollar amount requested. MIBOR is the first organization to take a position on the referendum, which has caused an uproar declaring lack of support for the school district. Ed Delaney, a Democratic state representative who lives in the IPS district, says he is sorry that an organization like MIBOR, who values interest in the community, would not be supportive of increased funding for local school districts.
The vote for the referendum was originally scheduled to take place during May’s primary election, but the IPS Board of School Commissioners decided on March 5 to delay their ask until the November election. According to an IndyStar article, this decision was “in exchange for more time to build community support and secure a potential powerful ally.” In its current incarnation, the referendum covers expenses of teacher pay, improvements to school structures, and funding for special education. If the vote passes, homeowners can expect a tax increase of 58 cents per $100 dollars of assessed value. For homes in the district, a median value of $123,500 would increase the property taxes to $23.24 per month.
WHAT ARE YOUR THOUGHTS
ABOUT THE REFERENDUM FOR IPS SCHOOLS ? JOIN THE CONVERSATION AT HTTP://BIT.LY/2JTV8WU
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TOP 150 Independent Brokerage Standings
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Independent Brokerage Standings January 1, 2018 - March 31, 2018
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TOP 150 Independent Brokerage Standings
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Independent Brokerage Standings January 1, 2018 - March 31, 2018
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TOP 150 Independent Brokerage Standings
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The Impact of Stores Closing:
Bigger Opportunies? Stores that have closed so far at Circle Centre Mall in 2018:
Nestle Toll House, Godiva Chocolatier, Andrews Jewelers, Teavana, Carson’s
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According to a recent CNBC article, 71% of global CFOs believe that the US economy will remain strong for the next three years. However, we also seem to be living in an era where more retail giants are shutting down than in recent memory. Longtime industry staples like Sam’s Club, Sears, K-Mart, and (sniff) Toys R Us appear poised to join the ranks of the all but forgotten dinosaurs of retail. But even with Mounds Mall in Anderson closing its doors, as well as multiple stores leaving Circle Centre Mall in Indianapolis, business experts believe that opportunities for regrowth and evolution are now possible. As reported in an article by WIBC, Circle Centre Mall of Indianapolis has lost an unfortunate amount of stores recently, including big chains like Carson’s, but Simon Property Group, owners of the mall, will find a way to rejuvenate business inside the mall, and business professionals are thrilled. Bill French, the executive director with Cushman and Wakefield, says that he is “excited for the repurposing of Circle Centre Mall”. “It is such a good location”, he continues, and there are “so many opportunities for a lot of new retailers and new restaurants to come to the marketplace and Circle Centre is where a lot of people want to be”.
After hearing the news of a major chain retail store with the magnitude of Carson’s leaving the Indianapolis Mall, John Talbott with the IU Kelley School of Business, is optimistic rather than worried. Talbott states that, “Retail is evolving and the nature of entities that occupy shopping centers are changing. It used to be that folks were entertained by purchasing an object. Today they’re entertained by maybe going to a really nice restaurant or by working out in a gym, or shopping for a Tesla vehicle. So, malls are really changing and evolving”. Talbott believes that Simon Property group will make room for more top-notch restaurants which are currently not present in Indianapolis, whereas French thinks a better move for the group would be to add motel or condo space. While it has not been revealed on what might occupy the space, Talbott understands that “preferences change frequently” and that Simon Property Group has the funds to invest wisely, whatever the preference for targeting more traffic into the mall may be.
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ANSWERING THE
FIRST QUESTION Most real estate agents know that success is achievable, but it takes a lot of hard work. Unfortunately, it can be much easier to fail by not following the proper business practices. Sometimes these mistakes can harm your reputation, but in certain circumstances, you may end up losing your license altogether. As part of an ongoing series of what to avoid in real estate, we will begin by featuring the case of Aaron Adams. Aaron Adams was a licensed real estate broker in the state of Indiana as well as in the state of California. While in California, Adams operated under the business name of Champion Real Estate. During this time Adams was in violation of multiple rules and regulations under the California Business and Professions Code (Title 10, Chapter 6 of the California Code of Regulations).
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In short, Adams committed fraud disbursing trust fund allocations from escrow accounts to other persons/accounts that had no property reference, without giving consent, as well as overcharging, over disbursing, and converting trust funds to fees and commissions earned without consent. Adams also performed and conducted unlicensed activities while operating under fictitious business names, as well as failing to retain license certificates for each of his salespeople. Adams didn’t use his own name anywhere under the business account’s name, nor was he a signatory. While allowing unlicensed and unbonded representatives to handle transactions with these accounts, Adams also failed to maintain property bookkeeping and paperwork for these accounts. While a case was building against Adams in the state of California, Adams tried to renew his real estate license online for the state of Indiana.
IREN The first question that is asked of anyone renewing a real estate license online is “Since you last renewed, has any professional license, certificate, registration, or permit you hold or have held been disciplined or are formal charges pending in another state?”. Adams answered “no”. After formal charges were made to Adams, Adams lost his real estate license for the state of California. Once these charges were made aware to the state of Indiana, and it was evident that Adams had made a fraudulent claim in his answer to question 1 when renewing his license, Adams was forced to pay a $3,000 civil penalty, take 4 hours of commission approved continuing education coursework that must be completed within 6 months, as well as be on probation for his Indiana real estate license for 18 months. Here is how you can avoid facing similar charges like those mentioned above: Be trusting. When working with clients it is important to be transparent and let your clients know where their money is going or how it will be used.
Always continue to be upfront with your clients and always keep them in the loop of what is going on with their money at all times. Stay organized. Paperwork may seem tedious, but it is a MUST. Keeping proper paperwork and records of every transaction you complete is necessary to figure out how money is being used, and if a profit is being made. Keeping proper records of employee information is also crucial, along with making sure business owners are signatories on ALL bank accounts that are tied to the business. Do not falsify. It is imperative not to lie or falsify information, especially when the government is involved. Even if you are in danger of getting in trouble, being honest is going to have a better outcome in the long run.
View the entire case at http://bit.ly/2rr5cAX
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THE REFERRAL RULE
When we reached out to MIBOR for comment, a spokesperson stated that under Indiana license law, “If the sender is suggesting that compensation for a referral will be paid to a non-licensee, this is prohibited”. MIBOR is also unable to disclose if the flyer has been reported or not, for confidentiality reasons.
When it comes to gaining clients, how do real estate agents get them? While there are countless ways to gain interested consumers, the simplest and most affordable way of gaining clients could be through the use of referrals.
We reached out to this unnamed real estate organization for comment about the flyer. The owner of the unnamed real estate organization said that the flyer was within legal limits of MIBOR’s rules of obtaining referrals.
Now while obtaining referrals is not illegal, it is however illegal to bribe/pay out the gatherers of those referrals. It is the oldest trick in the book, and it used worldwide, “Get me the name and number of someone who is looking to buy, and I will reward you for your time”. However, this is illegal and an unfair use of business practices, according to MIBOR.
The owner continued, saying that the referral system is only to generate leads, in which someone “refers” a person to the unnamed real estate organization and gets rewarded whether or not the “referred” buys or sells from the unnamed real estate organization. The owner believes this is a way of thanking someone for “keeping the organization in mind”.
Within the last month, an advertisement became known to the general public. It is shown below. The unnamed real estate organization created a flyer that was mailed out to the local community about giving out $25 gift cards for each referral submitted to the office of this organization for their “Connect a Friend” program. Also, each person who was referred would be entered in to win a vacation giveaway.
So why only $25? The owner of the unnamed real estate organization mentioned that under IRS tax deduction rules for businesses allows deductions for $25 gifts to each person that is awarded a gift (per household). All in all, the owner was in legal right of obtaining referrals in this manner, however, the advertisement made the referral obtaining system created by the owner look suspicious and unlawful otherwise.
SHOULD REFERRALS BE LEGAL? HTTP://BIT.LY/2RJ3270 20
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TOP 150 National Brokerage Standings
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National Brokerage Standings January 1, 2018 - March 31, 2018
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TOP 150 National Brokerage Standings
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National Brokerage Standings January 1, 2018 - March 31, 2018
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TOP 150 National Brokerage Standings
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COMMUNITY CALENDAR Noises Off
April 24th - May 20th
Indiana Repertory Theatre Ever gone to a play and something went wrong? What happens when everything goes wrong? Rehearsal implosions, backstage shenanigans and onstage disasters have the cast on life support—and the audience in stitches!
Indy Film Fest
April 26th - May 6th
Newfields (Indianapolis, IN) Everything from tear-jerking dramas to knee-slapping comedies. Check out the entire line-up of features and shorts programs at this year’s 2018 Indy Film Fest. This is your chance to see the films that will become tomorrow’s blockbuster hits before they blow up. You may even rub elbows with a filmmaker or two along the way. But hey, that’s what festivals are all about.
Hairspray Civic Theatre The 1950s are out, and change is in the air! Hairspray, winner of eight Tony Awards, including Best Musical, is a family-friendly musical, piled bouffant-high with laughter, romance and deliriously tuneful songs.It’s 1962 in Baltimore, and the lovable plus-size teen, Tracy Turnblad, has only one desire – to dance on the popular “Corny Collins Show.” When her dream comes true, Tracy is transformed from social outcast to sudden star. She must use her newfound power to dethrone the reigning Teen Queen, win the affections of heartthrob Link Larkin, and integrate a TV network, all without denting her ‘do!
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April 27th - May 12th
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INstateREIA
May 19th - 20th
Broadmoor Country Club Are you tired of the government getting into your real estate investment business? Do you know what new laws and regulations are coming this year? INDIANA STATE REIA is a non-profit group and has been formed to help our industry reach the public in a more comprehensive and strategic manner. Join us at the first annual STATE CONFERENCE on May 19 and 20th. This is a fundraiser event so we can complete 2 major projects this year: 1) Positive statewide PR program and 2) Call to Action Funnel where you can find out what is happening in your area as well as other areas of Indiana. 100% of the profits go to these projects. We have 6 national speakers joining us with the most current and profitable investment strategies.
Ray Skillman Summer Concert Series
June 7th - July 26th
Greenwood Park Mall Join the 10th annual Ray Skillman summer concerts series in the lifestyle center by the outdoor fountain! The concert series is free and open to all of the shopping community. Payless Liquors and Mallow Run Winery will be on site for all of your thirst quenching needs!
Critical Recall
June 15th - 24th
The Cat (Carmel, IN) Do the brilliant minds of our time come from some other dimension; some other time, some other place? And are they all somehow unknowingly connected? From the writer of the IndyFringe sellout hit The Gift, acclaimed playwright and author Dr. L Jan Eira re-imagines the life of a heart surgeon and takes us on a mind-bending journey in this theatrical “sci-fi” psychological thriller. It’s Groundhog Day meets No Exit.In keeping with their vision of creating, writing, and producing new plays and musicals, the award-winning Indiana Theatre Company - in conjunction with its resident new works troupe, the Nickel Plate Players - is thrilled to present the world premiere of Dr. L Jan Eira’s, Critical Recall!
Know of any other community events in Indiana? Please let us know so we can add them to the next issue! Email Aaron Henze at aaron@indiana-realestate-news.com
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THANKS FOR READING INDIANA REAL ESTATE NEWS MAGAZINE!
If you have any questions, comments, suggestions, or ideas for stories, send us an email at aaron@indiana-realestate-news.com.
INDIANA REAL ESTATE NEWS IS MORE THAN A MAGAZINE. To stay up to date on the latest news, opinions, videos, and events, be sure to regularly visit our website at http://indiana-realestate-news.com/, Like us on Facebook at https://www.facebook.com/indianarealestatenews/ Follow us on Twitter at https://twitter.com/Indiana_RE_News.