The LMC Group Blog

The LMC Group continues to uncover many opportunities in the Greater Wilmington area for solid real estate investment. By learning how to use your retirement plan – IRA, 401K, etc to diversify your plan into real property assets – real estate, you can buy now while the world is on sale with money you already have!! Your number one source, The LMC Group is here to help. Give us a call today to learn more!!

State earns high marks as tax haven for retirees

North Carolina is closer to heaven than the other place when it comes to taxing retirees, says Kiplinger.com.

The magazine has an interactive map – www.kiplinger.com/tools/retiree_map – that shows which states tax Social Security benefits, for example, or exempt some or all of retiree income from state taxes.

It lists, by state, sales tax rates, income taxes, property taxes and estate taxes, among others.

“The Tar Heel State is a favorite destination for retirees,” Kiplinger’s Web site says. “Social Security benefits are exempt from state income taxes, and retirement income from federal, state and local government pensions may be excluded, up to $4,000.”

Most states in the Southeast are retiree-friendly, Kiplinger said.

Among the “nightmare” states for retirees is California.

WHO LOVES RIVERFEST????

Everyone!!!!

A fine Wilmington tradition is coming again soon!!

This October 3rd-4th, 2009, Wilmington will again put on one of it’s two signature annual events – The Wilmington Riverfest.

A tradition for our town, the festival is charitable in nature, fun and educational by design and The LMC Group has attended this event for many years.

The number one source for Wilmington Real Estate, we support all of the local events we possibly can. We believe in community involvement and support. Our involvement in many local events, charities and organizations such as The Cape Fear Literacy Council, signify our commitment to the local population.

If you are one of the many who are considering a fall visit to our area, we strongly urge you to choose this weekend as many local attractions are providing great opportunities to visit them at a discount. From the USS North Carolina to the Fort Fisher Aquarium, there are many things to see in our area.

This time of year offers less crowded beaches and venues and festivals such as Riverfest.

If you have never been to Wilmington, North Carolina – come see us!! You don’t know what you are missing………….

Exciting times in Wilmington, North Carolina!!

Summer is flying by here at the Cape Fear Coast. We have enjoyed fantastic days at the beach, sunset cruises on the water and tremendous nightlife in downtown Wilmington.

Many summer activities in our area make this a great place to live. From fishing to golf, from sunbathing to walks on our pristine beaches, you never run out of things to do.

The LMC Group continues to educate people on how to diversify their Retirement Plan, be it an IRA, 401K or other out of this volatile Stock Market and into real property assets.

Real Estate investment is an extremely good way to recover the losses that your Retirement Plan may have suffered over these past 16-18 months and the Greater Wilmington, North Carolina area continues to pace our State for growth in Real Estate.

Opportunities exist now in what many call the best buyers market in the past 36 years!!

Don’t wait to buy real estate – buy real estate and wait!!

We are the number one source – #1 – in this area for prime waterfront communities. From the mighty Cape Fear River to The Atlantic Ocean and points in between, we have an amazing variety of properties available.

If you are tired of not being able to work with the banks for lending, look to your own funding source – your Retirement Plan. Many people don’t realize that you can purchase and own real estate with an IRA, but the fact is……… YOU CAN.

Call us today to learn more about this avenue and the many specific opportunities we have for real estate investment.

SCOTTSDALE, Ariz. – (Business Wire) The stock market continues to decline, leaving hundreds of thousands in the lurch, questioning the very integrity of the institution. Is the stock market a viable investment option in today’s economy? Or, is there a better, more stable, way to provide for one’s retirement? Many are answering “Yes” as they discover how to use their IRA funds to purchase investment-oriented real estate.

It is a little-known fact that, in 1974, Americans were given the freedom to invest tax-deferred and tax-free retirement funds in real property. The Internal Revenue Code specifies only that you can not invest retirement assets in life insurance and collectibles. This leaves the door wide open to alternate opportunities, including real estate, one of the most secure long-term investments in our financial marketplace. Troy Bohlke, of Westward Fund, states, “Since real estate is a tangible asset, many people are looking to move their money out of the volatile stock market and into tangibles like gold and real estate, at least until the market stabilizes.”

We’ve heard for years that Social Security may not adequately cover the retirement of many who have been paying into it. With many other challenges facing a receding U.S. economy, visiting non-traditional investment options now makes sense. “For some investors, stocks and bonds don’t make sense, and they’re just more comfortable in other assets,” says Paul Maxwell, Chief Operations Officer of Trust Administration Services, a custodial firm that handles the paperwork for non-traditional accounts.

The benefits of this new-old investment concept seem to be: 1) that the returns from an IRA real estate investment are tax-deferred, and 2) that unlike stocks and bonds, real estate is a tangible investment, whereby the investor can have a direct affect on its appreciative value.

According to the Investment Company Institute, there are approximately $3.7 trillion invested in IRA’s. Traditional IRA’s are controlled by financial institutions such as banks and financial service companies and contain investments such as stocks and bonds. Mutual funds control about 98% of the retirement industry.

Baby boomers and the wealthier segment of society own the largest portion of this money. A recent national publication, however, suggests that every American should have at least 25% of their retirement invested in real estate. This alone would represent a phenomenal growth rate of 1,150% above the 3.7 trillion dollar’s 2% that is currently invested in real estate.

How do re-directed IRA’s work?

There are three ways to accomplish an IRA purchase of real estate:

1) The real estate can be purchased and owned by the IRA itself. This requires changing the structure of the IRA to a self-directed IRA, where the real property is administered by a custodian or third party.

Self-directed IRA’s are similar to traditional IRA’s, with one fundamental difference. They provide the owner with the freedom to make non-traditional investment choices, such as real estate. Like their more traditional sister IRA’s, funds and investments placed in self-directed IRA’s remain tax-deferred as long as they are not withdrawn.

2) Real estate can be purchased outside of the IRA and owned outright. With this method, the IRA funds the real estate purchase, allowing the owner to take full advantage of the financial and economic benefits of real estate ownership.

3) Shared ownership can be accomplished by purchasing real estate through an LLC. The LLC can purchase land, a commercial building, second residence, condominium, office building, rental property, ranch, etc. If you are leasing an office, the LLC can purchase the building and recover the lease payments.

“The reason only 2% of Americans are taking advantage of the real-estate IRA is a general lack of knowledge that it can be done,” says Bohlke. “This is a little-known venue for building security in a retirement fund. The bottom line to buying properties with an IRA is that the investor maintains a level of control over a tangible asset—something not possible by owning company stocks or mutual funds in a volatile market.”

This information is really good and we are finally glad that the word is getting out. You need help with getting your IRA / 401K in shape, Contact The LMC Group for assistance. We do not charge the consumer for this information so call or email us today. www.thelmc.com or 910-383-1540

Investors can use retirement money to buy investments
24 June, 2009 02:33:00 Mark-A.-Cline

In the past several months, I have discussed alternative investments, which is any type of investment outside the typical investment in the stock market. In this economy many people are out of work and do not have extra money to invest, or they may hold money aside for reserves. This is obviously smart money management and planning.

There is an option for those with a retirement account or multiple retirement accounts such as an IRA, Roth IRA, SEP, Simple IRA, 401K or 403B. These tax-qualified plans can be converted into a Self-Directed IRA account, which is a form of a trust.

To tap into these retirement accounts early would typically result in an early withdraw penalty of 10 percent and tax consequences from the IRS. This would not be recommended unless absolutely necessary.

You can, however, transfer these funds to a Self-Directed IRA without penalty. If you were to examine your current statements or the original paperwork you signed you will notice that a trust company actually holds the money. A good example would be if your retirement investment was with Van Kampen Mutual Funds, your account is held in the name of State Street Bank as custodian.

There are additional fees that are charged by the custodian above and beyond the fees of the investment company. This is not unusual as there is IRS-required reporting that the company must do on your behalf. These trust companies already have agreements with the investment companies and the paperwork is already integrated so you typically don’t even realize that you are dealing with two different companies.

The Self-Directed IRA is a trust company that does the same thing but has no affiliation with any investments or investment companies. It is a stand-alone trust. The benefit to this approach is that you are not limited to investing with just one investment company, and you can have one account to simplify the management of all your retirement investments. As the name says, you can direct your money to whatever investment you choose all by yourself.

A common use for a Self-Directed IRA that many people use is to purchase real estate and not have the income and capital gains issue to address. This is typically done for people that are savvy in the real estate industry and are looking to build their retirement account this way.

There are many independent investment options that can be used in a Self-Directed IRA. Some of these are oil and gas limited partnerships, structured notes, stocks, bonds, REITs (real estate investment trusts), TICs (tenants in common), green energy investments, movies and much more. Just about anything that can create a gain that you would have to pay taxes on you can put into your Self-Directed IRA to defer those taxes.

Self Directed IRA accounts typically have a couple of options as far as a fee schedule. Consult with your financial adviser when considering this to figure out which options may be less expensive for you.

Unlike the trust companies used by mutual fund families, Self-Directed IRAs charge by transactions and by asset values in the trust. Transaction fees would be a set up charge to set up the investment, and a charge to write a check to the investment if you make multiple investments throughout the year. Fees for asset values typically have a break point schedule. In other words, the more money you have in the account, the smaller percentage in fees you pay. When setting up an account, plan out the most economical way of choosing the fees that fit your investment choices.

Each trust company will be different so if this is something you want to do, shop around and ask a lot of questions. If you are working through an adviser, they probably have already done the shopping so it would be a matter of planning out your diversification and how to structure your investments to keep fees to a minimum.

The key to using a Self-Directed IRA is to blend your investments to meet financial objectives. As with any investment planning, do your homework and ask questions. Then ask more questions. Information in this column is not intended to be specific advice for anyone. You should use the information to help you work with a professional regarding your specific financial goals.

Capt. Mark A. Cline is a chartered senior financial planner

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

April 24-26 Weekend

Congrats to Wilmington’s own home town girl, Kristen Dalton for winning the Miss USA Pageant this past weekend!

Hello all, it is definitely Beach, Golf, and Outdoor Weather this weekend! Temps will be in the 75-78 degree range! What’s going on this weekend? Plenty!
37th Annual Antique Automobile Show

This show is presented by The Cape Fear Chapter Antique Automobile Club of America. The Antique Automobile Club of America (AACA) is the oldest and largest national club.
Street Festival by the Beach

Celebrate Kure Beach with the 3rd Annual Street Festival in front of the Kure Beach Pier. Enjoy over 20 arts and crafts booths, various food and beverage vendors and lots of music. There will be groups performing renditions of blue grass, beach and contemporary tunes. Put a nice close to the day with fireworks at the end of the festival.

Orton Plantation
With the 100th anniversary of the gardens approaching in 2010, extensive renovations have been made in the gardens to open up the views to the Cape Fear River and preserve the colonial rice fields. Open this weekend!

Cameron Art Museum
The Cameron Art Museum was formerly named St. John’s Museum of Art, operating 1964-2001 in a cluster of historic buildings located in downtown Wilmington. Numerous art exhibits this weekend!

This is a just a sampling of entertainment in the area this weekend. Spring is here, where are you? Call to book your visit!

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

See you soon!

Click HERE for directions from the Wilmington Hilton Riverside……..

HAWKESWATER at the RIVER
www.Hawkeswater.com

The LMC Group
www.TheLMC.com
1550 Point Harbor Road
Wilmington, NC 28401

910-383-1540

I think everyone has gotten over the winter funk! The LMC group has been rocking and rolling up and down the coast this year.  Our hard work is paying off with record numbers coming in this spring for us and our clients. Feel free to call us anytime!

Thanks LMC