June 11, 2009 – 9:44 AM
William L. Martin III
Property values are down — even the very desirable properties along the 30A corridor in South Walton are distressed. For many investors in those properties, who don’t have the wherewithal to wait for the inevitable recovery, these are painful times. But for others, the declining values represent one word: Opportunity. Now may be a good time to buy, but what if you don’t qualify to invest in one of these dream properties at distressed prices? Some people are using their IRAs as vehicles to purchase a future retirement home or just to make an investment in what they consider to be distressed properties.
You can invest IRA money in a wide range of investments, including stocks, bonds, mutual funds, money market funds, saving certificates, U.S. Treasury securities, promissory notes secured by mortgages or deeds of trust, limited partnerships and real estate. That includes houses, condos and office buildings.
IRA money is limited to “investment” property. It cannot be used to buy your own residence, or any other property in which you live. But when you retire, you can direct your IRA to turn it over to you as a distribution, at the current market value.
For example, Joe Investor has all of his money in an IRA worth nearly $550,000. The money is invested in stocks and bonds. Joe currently owns his own house outright, but eventually wants to retire and live in South Walton. Joe finds a beautiful short-sale home in Blue Mountain Beach for $300,000. The home had previously been listed for $1.0 million and the deal is too good for Joe to resist, but Joe can’t qualify for a mortgage on an investment property.
Joe’s solution is to convert his IRA into a real estate IRA. Joe opens a self-directed IRA, rolls over the entire amount of his old IRA into it.
Joe then directs his IRA trustee to make the purchase of the Blue Mountain Beach home with the IRA becoming owner.
Joe’s IRA can rent out the Blue Mountain Beach home for tax-deferred income. Joe will eventually sell his current home as he approaches retirement. And now Joe is excited about retirement because he knows that the IRA will turn the Blue Mountain Beach house over to him as a distribution once he reaches his golden years.
The rules governing real estate IRAs are strict: The house or property must remain in the trust until distribution at retirement. It must be treated like any other investment. You cannot manage the property. But a third party such as a real estate broker or property management company can be hired by the IRA trustee to manage the property.

Bill Martin is an attorney whose practice focuses in bankruptcy, real estate, construction, uniform commercial code, contract, and commercial litigation, including breach of contract, employment law and securities fraud.

Memorial Day Weekend

Traveling this weekend?  It’s going to be another LOVELY weekend down here on the coast.  Temps in the low 80’s, lots of sun and fun!

What’s on this weekend?  Lots of festivities, BBQ’s, Family Outings, Boating, Fishing, Tennis, Golf, Tours!

Here’s the rundown!

2009 Downtown Sundown Concert Series

Summertime is here and with it comes the 4th Annual Downtown Sundown Concert Series on the riverfront!  Join us downtown on Friday nights for 13 weeks of live music, spectacular sunset views, ice cold beverages, and lots of fun!

Visit our Concert Series section of the website for all of the up-to-date information, including the series schedule of bands, links to the bands websites, directions & parking information, and more!  This year’s series is set to be the best one yet! Don’t miss out on the summer fun downtown and meet us at the Riverfront!  Remember, all shows are free to the public, so come out and join us!

Wilmington Downtown Nautical Celebration

Additional Time Info: All Weekend

The cannons will roar when The Pride of Baltimore II calls on downtown Wilmington in time to Kick-Off the Summer of 2009.   The ship will arrive up the Cape Fear River with cannons blazing Friday afternoon before the start of the Downtown Sundown Concert Series. Friday night’s concert will go on as scheduled with the Breakfast Club playing classic 80’s hits. The ship will open for tours Friday night during the concert.  Saturday morning, the ship will be open for tours during the Farmer’s Market. After the market closes at 1:00pm, acoustic music will start around 3:00pm with a regional reggae band playing at 8:00pm. Beer and wine will be available, so no coolers please. The Pride II will be open for tours Sunday morning. At 1:00pm, when the downtown churches dismiss, the parishes will meet at Riverfront Park for “Shall We Gather at the River.” The singing of spiritual songs will celebrate the river. The ship is expected to leave downtown at 3:00 with a large Parade of Sail as the ship heads down the river.

NC Symphony in the Park. 7:30pm. Free concert. Over two dozen artists perform with the NC Symphony in BB&T’s ‘Blue Skies and Golden Sands’, a celebration of the coastal Carolinas. All-star cast includes Legends of Beach. Water taxi from downtown requires admission charge. Bring chairs/blankets. 910-251-5797; Battleship Park, #1 Battleship Rd, Wilmington. www.battleshipnc.com

Special Memorial Day Celebration Concert at Mayfaire

The Mayfaire Town Center has added a Free concert on Saturday May 26th to honor the memory of those who fought for our freedom, Come out and enjoy the Rockin’ Blues sound sounds of the fabulous Tommy B and the Stingers. Saturday May 26th from 1-4pm

From historic downtown Wilmington and the Battleship North Carolina on the Cape Fear River to the popular nearby beach areas, the Cape Fear Coast is a good choice for a Memorial Day Weekend getaway or day-trip. The area is generally budget travel friendly with several nice family oriented beaches, nature areas, museums and historic sites. Many scheduled Memorial Day weekend events offer free or low-cost family fun for all ages.

Call us at 910-383-1540 OR BookYourVisit@gmail.com

Click HERE for directions from Downtown

HAWKESWATER at the RIVER

www.Hawkeswater.com

The LMC Group

www.theLMC.com

910-383-1540

WILMINGTON, NC (WECT) – Lucky number 13 – for Wilmington, at least.

Forbes Magazine has ranked Wilmington the 13th best places in the nation for business and careers.

The rankings were based on the research from data on job growth over the past five years and projections through 2011.

Business and living cost data were also taken into account, in addition to income growth and migration trends.

North Carolina had several cities in the top ten including: Asheville at 6th, Durham in 3rd, and Raleigh took the number one spot for the third straight year.

Forbes reports that employment is expected to fall during 2009 in Raleigh after jobs were added at a 4% annual clip the past five years.

They say the job picture is expected to brighten in 2010 and 2011, and the three-year projected annual employment gain is 1.4%. according to Moody’s Economy.com, 15th best in the country.

A great article for homes in the area and the State! Enjoy

http://www.builderonline.com/local-markets/the-healthiest-housing-markets-for-2009.aspx?printerfriendly=true

A bill just passed the senate that will be a great way for you to entice your buyers to BUY NOW! We will be waiting as this legislation is sent to Congress and finally the President’s desk for the final signature.

Here are some of the things that this bill would do:

• Provide a direct tax credit to any one who purchases any home!
• Amount of the tax credit would equal 10% of the purchase price or $15,000, whichever is less
• Purchases must be made within one year of this legislation being enacted
• This tax credit would not to be repaid
• Taxpayers would be able to claim the credit on their 2008 income tax return
• This will only apply to the purchase of a principal residence
• The Credit would be recaptured if the home sold within two years of purchase
• This would sunset the current $7,500 housing tax credit on the date of enactment

Check with your preferred mortgage specialist to find out what information they have on this exciting possibility.

 

World News

Retirement Accounts Could Affect US Economic Recovery

Private Retirement Accounts Could Play Leading Role in U.S. Economic Recovery

02.02.2009 18:47:01 Private Retirement Accounts — IRAs, 401Ks — Could Play Leading Role in U.S. Economic Recovery

(live-PR.com) – LAKE MARY, Fla. – Private retirement accounts such as IRAs, Roth accounts and 401K plans—the patient savings of a generation of workers—could pave the way to a quicker national economic recovery, says one of the nation’s leading fund administrators.

Glen Mather, president of Entrust Administrative Services, which provides IRA administrative services to over 2,000 account holders self-directed IRA funds in Florida

valued at hundreds of millions of dollars, said private equity investments could fill the lending void left as the nation’s banking system recovers.

Most tax-deferred retirement accounts—Traditional IRAs, Roth IRAs, Seff IRAs and Simple IRAs, the preferred choice of small businesses—can be reformatted as self-directed IRA accounts that open the door to a wide range of investment opportunities, from stock markets to private lending for commercial or resort properties.

That, says Mather, represents enormous opportunities for investors—and a big boost for the national economy.

“In the U.S., IRAs is where the money is,” Mather said.

Bank startups, new companies seeking startup capital—they’re all looking at self-directed IRAs as potential funding sources,” he said.

Most IRA accounts are relatively small, Mather said. Entrust Administrative Services clients average about $100,000 per account, but many accounts total well into the millions of dollars.

“Cumulatively, IRAs represent enormous equity that has been traditionally undervalued by the financial markets,” Mather said. Younger account owners—Mather’s clients typically range from age 40 to age 65—are more astute about finance and the economy and tend to explore their options.

Retirement funds typically earn low but safe returns in the three-to-five-percent range, Mather said. But well-managed self-directed IRAs can earn tax-deferred returns in the 15-20 percent range when invested in real estate or similar vehicles.

“Real estate can be especially productive in this market,” Mather said.

“Smart investors who recognize that the real estate market is readjusting are lending about 50 percent of the new value in order to be on the safe side. If the worst happens and they foreclose, they own an asset at approximately half its current value that will produce substantial returns,” Mather said.

Mather said some self-directed IRAs are lending operating capital to businesses backed by accounts receivables.

“That has been a market traditionally dominated by banks and private equity lenders,” Mather said. “But more owners of self-directed IRAs are stepping in to fill the gap the banks have left,” he said.

Author: Rosie Nieto   • URL: http://www.nakedladyrealestate.com
January 28th, 2009   •  

Members of the LMC Group leadership team, Roy Holdford III, Charles Poindexter and Edward Wood , participated in the  Local Business Leaders Roundtable Economic Summit with  North Carolina 7th District Congressman , Mike McIntyre, today.  We are on the front lines, in direct communication with our elected officials, keeping abreast of all the activities related to the proposed  Federal Economic Stimulus package currently being  debated  in the Congress. Business leaders, economic developers, and local officials, met with Congressman McIntyre to get the lastest update on the massive stimlus bill, and to provide on the ground information and feedback to Rep. McIntyre.  The stimlus bill is designed to put people back to work, and help restore customer confidence in the markets. Rep. McIntyre is very optimistic about the entire plan. By attending and participating in this process, it aloows the LMC Group to better serve our clients and customers, with the most up to date information , at this most crucial time in our economy.

The Raleigh, N.C.-based Capital Bank is adding 15 mortgage officers — more than doubling its current staff — in anticipation of a resurgence in the housing market. The bank, which has 32 branches statewide, is also setting aside more than $20 million for mortgages for high-end homes. The loans will be available for homes costing more than $600,000 that were constructed by home builders and developers that are Capital Bank customers. CEO Grant Yarber said rates will be two percentage points below a standard 30-year super jumbo mortgage for borrowers who qualify. That program would help builders and developers who began building high-end speculative houses before the residential real estate market stumbled. “We believe, in 2009, there are going to be some great bargains on interest rates for home buyers,” Yarber said. “We believe that 30-year rates will be in the 4.5% to 5% range for conventional mortgages. We believe that will spur a lot of people to purchase a new home.” (www.newsobserver.com)
News & Observer (1/9/09); David Ranii