Rich Kelley, Broker February 2018
Rich Kelley Realty
Profile – Complete
Back Ground – Early Years
Hailing from the New England states which includes; Providence Rhode Island (Born), Warwick Rhode Island, Lexington Mass, and the Lakes Region of New Hampshire in a small country town named Moultonboro, where our family lived on the shores of Lake Winnipesaukee. With the family owning and running a seasonal lake side cabin colony, summer was always interesting and fun meeting new vacationers. 1975 Graduated from Kingswood Regional High School in Wolfeboro N.H. with most interest and emphasis on Construction Trades.
After High School, joined the U.S. Air Force and became a Carpenter with the 56th Civil Engineering Squadron out of MacDill AFB, Tampa Florida. Worked on and supervised some of the larger construction projects on the base including an F-4 Pedestal and park area adjacent to the former Readiness Command (REDCOM) and presently US. Special Operations Command. (USSOCOM).
Light Note: the site of the displayed F-4 was located where the Base Gym had been prior to 1976 and currently sits a 3 Story Garage š. Also while at MacDill, volunteered and became part of the flight referred to as Prime Beef which was a rapid deployment outfit composed of personnel from all the various construction trades.
After Military 1980 - 1985
After 4 years was honorably discharged, left Florida for the cooler climate of New Hampshire but after half a year, felt it was time for new adventures. So, in 1980 drove across Canada via Montreal to Fairbanks where upon finding the local and state economy stagnant after the whirlwind oil pipeline had been completed. Spent the next few years working as a civilian out of the Eielson AFB and Ft. Wainwright Army Base Carpenter Shops. The next few years after that, using the G.I. Bill, went full time at the University of Alaska, Fairbanks boning up on basic courses with emphasis on business.
BINGO - Also, during the initial 4 years in Fairbanks was employed as a Bingo Caller at several of the local non-profit organizations including Al-anon, Eagles Fraternal, and American Legion.
1982 – 1984 Fairbanks Economy
After large sums of oil revenue was obtained by the State, the State in turn injected large sums in capital projects into the economy. Construction was thriving in Fairbanks for a few years as new commercial and residential construction was in high gear. There was talk around that there was a lot of opportunity in real estate sales.
Real Estate Companies
April 8, 1985 – Alaska Real Estate License #10670
1985 – 1989 Properties Unlimited (1988 became Associated Broker)
1989 – 1993 Re/Max of Fairbanks
1993 – 1995 CNN Real Estate Sales
1995 – 8 mos. Coldwell Banker Great Land Realty
1996 – Present Rich Kelley Realty, Owner/Broker
1985 Properties Unlimited - Scenario
Up to the spring of 1985, the housing market was flourishing. Once the new Sales Agent License was mounted on the wall, the market came to a complete halt. Over the next year the veteran agents would optimistically state that it was just “lull” in the market. That “lull” lasted 5 years or at least that’s how many years the market was in downward spiral. In general, estimations the housing values decreased on the average of 8% per year for 5 years (40%). Agents were leaving their careers, finding new jobs if they could, or moved away and real estate offices were failing. Over that time there were hundreds of foreclosures in the Fairbanks North Star Borough along with thousands throughout the state. Realtors at that time made up a large percentage of the first batches of defaults and foreclosures as logic would have it, once the sales stopped, the commissions stopped. (more to it than that but that’s the basics).
1987 Bought first computer. Macintosh 512K !
During the second half of the eighties listing private houses was fruitless in particular if the property was purchased during the first half of the eighties as most homeowners were “upside down” on their loans aka “negative equity”. It was almost inevitable, if you needed to make a living in real estate, marketing and selling foreclosed property was essential.
Properties Unlimited was able to obtain the contract to manage Dept of Housing and Urban Development REO (Foreclosed) properties of which I became the key contact aka worker bee. Along with management and sales of HUD owned properties, the door was open for other bank owned properties in particularly from Savings & Loans and associated FDIC REO holdings.
Became quite proficient at selling: HUD, VA, FNMA, FHLMC, AHFC, FDIC, FmHA REOs along with bank and mortgage insurer owned properties such as MGIC.
HUD Dept. of Housing and Urban Development
VA Veteran’s Administration
FNMA Federal National Mortgage Association aka Fannie Mae
FHLMC Federal Home Loan Mortgage Corporation aka Freddie Mac
AHFC Alaska Housing Finance Corporation
FDIC Federal Deposit Insurance Corporation
FmHA Farm Home Administration now known as USDA – Rural Development
REO “Real Estate Owned” property owned by a bank, lender, government, insurer etc.
MGIC Mortgage Guaranty Insurance Corporation, aka MAGIC
Valuations, Residential: 1986
Typical Realtor estimates utilize the Grid Analysis Method which show the subject property’s general specifications in comparison to other properties in various statuses such as active, pending, sold, expired/withdrawn. This not only helps with getting a general feel for the subject value but also provides an over-view of current market conditions for that type of property.
That stated, HUD required a market analysis utilizing adjustments such as would be typical for a residential appraisal. This type of report initially requires some training and supervision; thus, an affiliation was established with a local appraisal company, “Layard & Associates” which lead to membership with the “National Association of Independent Fee Appraisers”. That association lead to a week-long introductory appraisal training. Typically use market analysis and/or Grid and cross check using Cost Approach for estimations. Yes, incorporate: Physical, Functional, & Economic Depreciation/Obsolesce within the Cost Analysis.
Note: Never did an official appraisal and am not a certified appraiser.
Valuation, Income 1988
Further education with the valuation of incoming producing properties with education via CI 101 and RS 204 Classes. Shortly thereafter developed a computerized Investment Analysis spread-sheets calculating internal rate of returns. Note: Currently the Certified Residential Specialist Council has their own spreadsheets which are essentially the same.
1989 Spring – Re/Max of Fairbanks – Scenario
Re/Max at that time was the office where most of the high transaction agents had congregated. There were other successful companies, but Re/Max of Fairbanks stood out “above the crowd”.
Primary motivation for moving was to further my career by going where the action was. At the time did not have the background as an all around real estate professional as had spent most of the last 4 years involved with REO management and sales. At Re/Max you were around some of the best all around agents so there was plenty of good associates to learn from and in return they could benefit from having an experienced REO agent to lean on. Side note; The Re/Max broker used to brag she had an agent with a computer (funny). Anyway…..
HUD - Secured the newer HUD contract when it came up for renewal. The new HUD contract was not management but a different tacked taken by HUD (first in the country) as Exclusive Right To Sell Listing Agreement for all HUD REOs north of Denali National Park (half of Alaska). That sounded good but in reality it was Fairbanks, North Pole, Salcha, Delta Junction, Nenana, Anderson/Clear, and Healy (all within around 170 miles all with road access).
AHFC – Secured contract along with 7 other companies for the Alaska Housing Finance Corp. foreclosures known as AHP “Alaska Home Properties”. At the start there were ample properties to go around. In addition to receiving property assignments on rotation, requested and received all properties south on the Parks Highway consisting of; Nenana, Anderson/Clear, and Healy.
At the end of 4 years with Re/Max, most of the original associates had moved on. Along with that, the residential foreclosure market was vastly diminished. (But the Commercial Market was not)
1993 CNN Real Estate Sales
Formally known as CNN Management Company aka Crawford, Naylor & Naylor.
CNN Management Company managed (not listed) most of the REO Commercial Properties in the Fairbanks / North Pole area. Office, Retail, and Apartment Buildings.
HUD Contract continued on at CNN and with the license transfer, their sales department was created.
With that, remained involved in selling REO properties and as stated above as HUD’s Exclusive Listing Agent.
List & Sales - State of Alaska Commercial REO Holdings – Providing Seller Representation
These properties types were either Commercial Acreage, Office, Retail, or Apartments.
HUD Department of Housing and Urban Development
Key Bank Commercial, Residential, & Land REOs
AIDEA Alaska Industrial Development & Export Authority – Commercial
Alaska, State State of Alaska, Teacher’s Pension Fund – Commercial
Banks Miscellaneous Other Lending Institutions case to case
1995: 1031 Tax Deferred Exchanges
Coordinate 7 multi-family sales that had previously been REOs sold over time to client during the recession to obtain funding for REO Commercial Condominium Retail Strip Mall purchase. Utilized the 1031 Tax Deferred Exchange to defer taxes from the sold real estate onto the newly acquired property.
Also, as a side note, wrestled away for two additional Commercial Condominium units for same client after they had come under contract by a competing party. Did this by means of studying the Commercial Condominium By-Laws regarding “Unit Owner’s First Right of Refusal”.
After that particular exchange, have gone onto other transactions using deferred, reverse, simultaneous exchanges, and sometimes direct trades in some creative ways.
1995 Coldwell Banker, Great Land Realty
Was recruited to go to Coldwell Banker by it’s Broker. Believed it might work out as it was more main stream than where I had been working. The Broker painted a picture of autonomy whereas I could operate as I had become accustom with Re/Max and CNN. Did not turn out as represented. After 8 months transferred Associate Broker’s License to Broker’s License and opened Rich Kelley Realty.
1996 Rich Kelley Realty
HUD Homes – Continued Marketing and Listing until 2006 when they changed their marketing system.
America’s Most Referred Realtors - Member - Now defunct national referral company that selected 3 local agents by survey and voting by their peers.
Permafrost Technology Foundation – Became more experienced with permafrost properties. Marketed and Listed the 10 properties owned by “PTF” which were AHFC REOs that were suffering with foundation failures due to unstable soils. When PTF obtained the properties from AHFC, they would study the soils and foundation of each house independently, derive a fix, study the fix over several years, create a report of the operation then derived conclusions. There were 10 different properties with 10 different circumstances, requiring 10 different fixes. Due to the Seller’s engineering achievements combined with marketing strategies, the organization was able to obtain a much higher return than anticipated.
AIP – Modular Homes – Working with Contractor, Alaska Interior Properties to market and sell modern, energy efficient Canadian Modular Homes. (Approximately 14 units)
Side Note: with one home, volunteered as a pilot car from the Canadian Border to North Pole (for fun).
FNHS – Fairbanks Neighborhood Housing Services – Contracted for procurement of an office building – done. Further, sold several of their real estate assets which included an apartment building and house foreclosure. Also, NSP: Procured 3 additional properties for FNHS using the “HUD Neighborhood Stabilization Program” https://www.hudexchange.info/programs/nsp/
Builders, Assorted – Marketed and listed with various builders counseling on building with emphasis for selling with favorable financing to obtain the highest feasible price.
Financing: Noted for taking on newer or deeply involved financing for projects that are advantageous to the client, either buyer or seller (typically both). Have been on the forefront of such loan programs as:
AHFC Energy Efficiency Interest Rate Reduction Program
AHFC Interest Rate Reduction for Low Income Buyers
Fairbanks Neighborhood Housing HOP “Grant” Program
AHFC Multi-Family Loan Purchase Program
AHFC Renovation Loans
FHA 203K Rehabilitation Loan Program
Realtor Awards – Recognition
1989 President’s Award – for Significant Achievement – GFBR
1989 Most Supportive Agent – Re/Max of Fairbanks
1990 Realtor of the Year - GFBR
1997 Affiliates Realtor of the Year – GFBR
1997 CRS Designation from Residential Sales Council
* GFBR is Greater Fairbanks Board of Realtors
* CRS is Certified Residential Specialist
Past Realtor Committees over the years;
1994 Vice President – GFBR
1995 Director – GFBR
19… Secretary - GFBR
Education – late 80s to early 90s
State Board of Governors, Education – 1 year
MLS – Multiple Years
Forms – Several Years 1997
Professional Standards and Ethics – Multiple Years
Revenue – Ongoing
Public Relations – 3 years – Chairman 2005
Many, many more committee positions.
Most Notable Involvements:
Education Chairman: During the recession years in the later half of the 80s, Realtors were leaving their careers in mass exodus which in turn left all the local Realtor Boards and the State Board in economic hardship. Education opportunities were not available as classes were costly and boards could not afford the loss but, there still was a need for the remaining and new agents in particular for GRI Classes. As Chairman of the Education Committee for the Fairbanks Board of Realtors, we sponsored and hosted all 3 GRI Segments (one per year) and the response was overwhelming as there was agent attendance from all over the state, every board. The Fairbanks Board and Alaska Board came out in the black. Fairbanks became the state’s hub of Realtor Education for a good decade as other, typically RS courses were held once per year in Fairbanks.
Public Relations Committee – 2005: The year of Chairmanship our committee job was to raise money and recruit volunteers to build a house for Habitat. Fund Raising dinners and/or feeds, raffle tickets….it was an all year long effort with the goal accomplished.
Golf Tournament - 2008: Initiated and Chaired the Greater Fairbanks Board of Realtors Charity Golf Tournament for 3 consecutive years before turning over to fresh organizers. Tournament had a 3 part mission of; Charity, Realtor PR, Get Together Picnic/Barbeque for Realtors, Affiliates, and Family Members whether golfing or not. Each year the tournament was a success monetarily and fun.
Mexican Real Estate – Winter of 2008 – 2009
When the latest recession was formally announced in the fall of 2008, went to Mexico for several reasons but primarily to investigate their real estate opportunities. Worked for 3 months in a small village 110 miles south of Puerta Vallarta located on the Pacific in the Bay of Tenacatita. They too were in recession and sales were sparse. Although their was no financial rewards, gained knowledge which was then compiled in an article about Mexican Real Estate for the Fairbanks Daily News Miner’s Annual Housing Publication.
Personalized Service: All of the many office tasks are on the Broker as it’s a one-person operation. Being accessible to clients, prospects, and affiliates is key. Other systems may work fine for other people but being hands-on is what works for me. No scripted presentations, no scripted responses.
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