LMC Group and Affiliates purchases Ruffins River Landing in Brunswick County

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The LMC Group announced today the acquisition and purchase of a beautiful new community located in Brunswick County near Holden Beach.  The community was previously owned by High Point Bank after developers were foreclosed on.  LMC Group plans include a revitalization of the community and new residential construction. The LMC Group has been busy revitalizing stalled communities since the downturn of the real estate market.  Other communities reset have been Dogwood Lakes in Surf City, Pine Ridge Townes in Holly Ridge and Saltwater Landing in Surf City.    All three of these communities have seen an explosion of activity since LMC restored them to active status with most completely sold out with only a few sites left available.  LMC was also involved in the highly successful neighborhood known as Neighborhoods at Holly Ridge by creating new jobs and tax basis for the area with over 100 new construction homes built or in the process of being completed.

LMC Group also has 2 new communities in development and one completed new development,  Poplar Branch,  with homes almost completed and ready for occupancy.

 

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LMC Group Announces Deal with the City of Wilmington

IT’S OFFICIAL !

Contracts were inked today between Patrick “PJ” Doherty of The LMC Group and the City of Wilmington for brokerage services for the city’s endeavors and real estate holdings.  The agreement makes Mr. Doherty and The LMC Group one of two exclusive Brokers for city property and acquisitions.  Should any City of Wilmington real estate matters arise with regards to property or acquiring property, real estate inquiries and property evaluations, Mr. Doherty with The LMC Group will be your contact.

“The city had very strict requirements for potential brokers” stated Mr. Doherty.  “I am extremely pleased that the city recognized my credentials along with the passion and focus The LMC Group has in the area, and I look forward to working with the city to promote city business and harmony with its citizens.”

One of the city’s requirements was that the candidate selected for this position must contain exclusive knowledge and understanding of discounted cash flow models.  Additional requirements were specific to commercial brokers, and applied experience in the field of commercial real estate and finance.  Mr. Doherty began in the real estate business in 1997 from the banking side, then moved into multi-family development, land sales, and earned CCIM designation in 2010 with concentration on office and industrial leasing.  Mr. Doherty joined The LMC Group in January 2011 because of its deep roots in the area and its passion for creating new jobs in the construction industry, that has been hit so hard by the recession.

The LMC Group is an out of the box finance and real estate group dedicated to serving the area’s stalled construction, development industries as well as office, industrial and multifamily real estate sectors.  At last count, this group has put in place over 500 transactions involving bank asset sales, retail sales, note purchases, investment deals, tenant leases, special assets sales, leasing & management, along with consulting on loan modifications for the government’s Making Home Affordable Assistance Program.

Congratulations to “PJ” Doherty and The LMC Group for earning this trusted relationship.  If you desire to sell property to the city, or desire to buy property from the city, or simply have questions, Mr. Doherty’s direct line is 910-297-9572 and his email address is PJDoherty@TheLMC.com

Bases Will Remain Constant for Our Area for Years to come – Great News!

Marine Corps general: Bases will remain economic rock on East Coast

via The Associated Press 

COLUMBIA — The Marine Corps may face tight budgets and manpower cuts, but its installations will continue to be centers of economic activity in surrounding communities, the outgoing commander of seven East Coast Marine Corps bases said Tuesday.

“We will continue to be an economic engine for this area, and the areas where we have a presence,” Maj. Gen. Carl Jensen said in a farewell interview Tuesday from his center of operations at Camp Lejeune, N.C.

Jensen, 57, is retiring as commander of Marine Corps Installations East after 35 years in uniform. He passes command of units in Virginia, North Carolina, South Carolina, Georgia and Florida to Col. Thomas Gorry on Friday.

 The Marine Corps may face tight budgets and manpower cuts, but its installations will continue to be centers of economic activity in surrounding communities, the outgoing commander of seven East Coast Marine Corps bases said Tuesday.

Asked about the potential for cuts to military budgets and personnel, Jensen said the Marine Corps has weathered economic stresses and military drawdowns in the past and will continue to do so in the future.

While the Marine Corps overall has grown by tens of thousands in recent years, the area around Camp Lejeune has also boomed with new military construction, Jensen said. He said his command in eastern North Carolina alone has been undergoing so much construction that expenditures have amounted to about $2 million daily.

However, the current fiscal year may well be the last such boom time for military construction budgets, the two-star general said.

Jensen said Marine Corps Commandant Gen. James Amos has said the Corps could cut its forces about 20,000 to about 186,000 men and women in uniform, depending upon conditions such as the conflict in Afghanistan, where a drawdown is set to begin.

“It’s not so dramatic that we would have to take extraordinary measures,” Jensen said, adding that cuts could be made through attrition and by bringing fewer recruits into the Corps.

Jensen said it is clear that in the nation’s current economic times, “we will have to find some innovative ways to keep the level of excellence we have here” as they manage budgets and personnel.

“We’ve been through this before,” he said of the economic expansion and contraction. “The Marine Corps will survive very well.”

Communities around military installations, he predicted, will be able to “count on that as a rock to lean upon.”

LMC Group Real Estate CommunityJensen, of Wilmette, Ill., has overseen Marine Corps installations in Quantico, Va., Camp Lejeune, Cherry Point, and New River, N.C., Beaufort, S.C, Albany, Ga., and Jacksonville, Fla., since July of 2008.

IN SUMMARY:  The military is driving economic boom surround its bases with house starts and business expansions.  While the new recruits may dwindle with the budget cuts, personnel and officers coming home will continue to drive the need for off-base housing.  The LMC Group has been fueling that economic stimulus since 2009 and refiring stalled subdivisions to be able to deliver affordable housing for our troops.  For more information, please contact us at www.lmcrealestate.com .

Wake Up Washington, It’s about Jobs

lmc developers

Later this week, the Treasury Department will issue a report recommending changes to the structure of Fannie Mae and Freddie Mac.  This is the latest development in a years-long debate over what the government’s role in housing should be.

We all know better than anyone else just how vital housing is to families and to our nation.

Fact:  For every additional 1,000 home sales, about 500 jobs are added to the economy.  Those are real jobs that give our families, friends and neighbors a chance to work.

Fact:  Every home purchase pumps $60,000 into the economy.

Fact:  Housing accounts for more than 15 percent of the national gross domestic product.

Fact:  Home owners pay 80 to 90 percent of ALL federal income taxes.

We need to change the dialog.   Critics say housing is a drain on federal resources.  We know better.  Housing is the engine that drives our national economy. Eight of the last ten recessions have ended as a result of robust housing markets.  The other two ended as a result of war spending.  The choice is easy.  America needs a healthy housing market to thrive. 

In the days ahead, NAR will be reaching out to Congress and the White House to emphasize the clear connection between housing, jobs and the economy.  Rather than limit support for housing, and the availability of credit, NAR is calling on Congress and the White House to advance policies that will move the housing market back to a healthy 5.5 million sales, where it SHOULD be. 

We will be asking lawmakers to:

  • Preserve the mortgage interest deduction at current levels.
  • Move the credit pendulum to equilibrium, defined by a median credit score of 720.
  • Maintain government backing in the mortgage market as part of GSE Reform.

These three steps would help bring the housing market back to a normal level, possibly generating an additional 1 million home sales and 500,000 jobs.   

As the voice for real estate, we hope that Congress and White House gets the message:  real estate is all about jobs.

 Ron Phipps, 2011 NAR President

The LMC Group Announces Final Transfer of 147 Properties – $36 Million Impact

New Construction Dogwood LakesThe LMC Group today announced the successful revitalization and transfer of all properties within the community of Dogwood Lakes to its new owners.  Dogwood Lakes was a stalled development community hit hard by the decline of the housing market and recession.  Located in Surf City NC in Pender County, the community was started back in 2005 and came out for retail sales in 2007 at the beginning of the fall of the housing market.  In years 2007 through late 2009, like most real estate communities for retiring baby boomers, sales ceased and not one sale was made after its initial opening in Spring 2007.

The owner and developer had obtained The LMC Group’s information through a shared contact that knew that LMC was having success at re-establishing sales in stalled developments.  Based on her recommendation, contact was made with The LMC Group.  The LMC Group was hired in late 2009 to begin moving the owner/developer into a position to get out of the community and bring Dogwood Lakes back from the brink.  The LMC Group went to work on Dogwood Lakes creating a web presence and other key marketing studies, identified the marketplace for the product, and negotiated some slightly different pricing attributes involving the developer and the lender.  Once these vital studies were completed, everyone involved had some basis and options at their disposal now, and The LMC Group and Developer decided to move forward with the project.  Immediately in 2010, LMC placed 60 of the 147 lots under contract with a local builder that could deliver the product The LMC Group studies proposed.  Upon closing out these 60 sites, construction began again in Dogwood Lakes.  Construction is ongoing and vibrant today.  In December of 2010, The LMC Group closed out the remaining balance of Dogwood Lakes.  Construction is expected to be completed by year end 2011 creating a true success story in one of America’s worst recession time eras.  According to the original developer, “if it had not been for the contact and the implementation of The LMC Group and its programs, we would probably still be holding all inventory wondering what to do next. “

While this sounds like a great success story in terrible economic times, the unique underlying story is even better:  The LMC Group is directly responsible for creating over 100 new jobs in this area.  Subcontractors are back to work, HVAC contractors are back to work…. electricians, plumbers, landscapers, surveyors.  Nails are being purchased, roofing materials, lumber, garage doors, refrigerators, washing machines, fireplaces.  The economic impact of one failed community being brought back from the brink is astounding.  The statistics are overwhelming.  The lumber companies are working again, the cabinet makers, the carpet factories and distributers, the flooring companies, the cement companies, the Realtors.  Tax revenue is being collected to sustain infrastructure and services when once there was no revenue.  Without being exact, the estimated economic impact of just Dogwood Lakes is estimated at $36 million.  Wow, one deal, one revived community, heck of an impact.

According to The LMC Group CEO, Roy Holdford, “The LMC Group took our lumps in the downturn in the economy also, however, we vowed to make a difference, and if we can make even a small difference in helping to bring back our economy then we will have succeeded.”  Holdford also states LMC has big plans for 2011, “we have been highly involved in numerous deals on the table that should be coming to fruition soon, and one particular in mind may bring as much as $50 million in local impact dollars.  It is mentioned that LMC is currently working in Saltwater Landing in Surf City, Doe Creek Plantation in Holden Beach, along with 4 others that were not mentioned by name yet.  Asked if LMC was prepared for every failed project beating their doors down, Holdford stated, “The LMC Group will continue to add additional experienced professionals as needed to bring our economic situation into a better light.”

The LMC Group does have a void to fill.  “We have parties lined up for commercial sites and struggling office, retail and strip centers.  Sometimes people don’t realize we can help commercial owners as well, complete with leasing and financial analysis and getting your center back up and running”.  LMC’s recent additions of Dennis Musser and PJ Doherty echo these sentiments.  “We are out there spreading the news,” Musser stated.

For more information on The LMC Group, google “The LMC Group” or go direct to their site here: www.lmcrealestate.com

Real Estate Sales Vibrant – What? – Yes, The LMC Group “refires” Stalled Communities

The LMC Group continues to make headway in finding solutions for the real estate market.  While not an immediate fix, finding solutions that work has to be done.  While developers and banks are at each other for performance of each of their duties, The LMC Group has brought solutions to possibly wrestle away the blame and move into a new era of doing business in the construction and development industry.  Part of what we do was recently featured in the business section of the local paper.  See excerpt here:  LMC Group works with key players to “refire” subdivisions.   Or see below a reprint.

The LMC Group of Wilmington NC, Real Estate Solutions

Published: Friday, October 22, 2010 at 5:33 p.m.
Last Modified: Friday, October 22, 2010 at 5:33 p.m.

The LMC Group of Wilmington is using a unique technique to “refire” stalled subdivisions, bringing together developer, lender and builders in a way the company hopes will also refire the area’s construction industry.

The problem: With the construction industry’s collapse, developers were left with finished lots whose value plummeted. Lots originally priced at, say, $150,000, skidded to perhaps a quarter to a third of the original price tag.

The lots are the collateral for banks’ loans, and when the value of their collateral fell, the lenders told developers to ante up cash to make up the difference. Many developers now have run out of cash to satisfy the banks, so they face foreclosure.

The solution from LMC: Act as a facilitator between the developer and the lender to arrive at a current price for the lots that allows houses to be built for today’s market – in the low to mid-$200,000s, said Roy R. Holdford III, owner, president and CEO of LMC, and Senior Vice President Charles Poindexter.

“Like many people, we found ourselves being squeezed by the financial meltdown, the subsequent credit freeze and the housing market collapse,” Chastiny Sizemore, development coordinator for Dogwood Lakes LLC, said in a statement.

“We were able to partner with The LMC Group for a workable solution. They have put together a winning formula by being able to successfully negotiate the correct fair market lot pricing that can sustain builder activity.”

Though the lender takes a loss, the reasoning is that the bank will get a higher payback this way than if it foreclosed and had to dump the property.

This satisfies the note and the developer retains title, Holdford and Poindexter said.

LMC acts as the developer’s broker for the lots, which are bought by builders because they can get financing for finished lots as opposed to raw land.

The builders start building, hiring tradespeople and subcontractors who might themselves be struggling to stay afloat.

LMC gets fees for its services, and the developer gets out of the project.

Holdford and Poindexter, however, foresee the process as building a fire under the local market that will spread, creating more construction, jobs, profit for all involved and tax revenue for counties and municipalities.

Think of it, Holdford said, as an economic stimulus.

Holdford and Poindexter are at work at two Surf City subdivisions – Dogwood Lakes, on U.S. 17 just south of Route 210, and the higher-end Saltwater Landing, on Route 210 east of U.S. 17.

Builders H&H of Fayetteville and Savvy of Raleigh have bought lots and are either building or planning to do so. The demand is sparked, in part, because of their proximity to Camp Lejeune.

Holdford and Poindexter said LMC has other deals in the works, in Pender and Brunswick counties.

In Dogwood Lakes, Wilmington’s Stevens Fine Homes has bought 60 lots and is building homes. He’s sold 16 so far.

“We try to save the developer, the bank, the community, the real estate agent on the street,” said Poindexter. “What we want people to know is we are creating revenue so everybody can stomach this recession.”

Among the subcontractors and suppliers employed at Dogwood Lakes are Markraft Cabinets, Provil Framing, Enhanced Heating and Air and Risley Padula Co. (carpentry), Holdford said.

The men are not new to real estate or finance.

Holdford worked for Bobby Harrelson and his son-in-law, Bert Exum, who developed Leland’s Magnolia Greens and Waterford, among other communities. “When Waterford was finished for the most part, Bert formed Land Marketing Co. (LMC) and placed me in the center of it to help other developers market their product until he had Compass Pointe ready for the marketplace. When Compass Pointe was ready for the marketplace, I chose to stick with Land Marketing.”

LMC’s efforts have stirred interest in Wilmington real estate circles, even though Holdford and Poindexter have until now pushed their business through word of mouth.

“I think it’s a win-win situation for the lender as well as the developer/builder,” said Grover Cauthen, founder of Eastern Mortgage in Wilmington. “It provides an opportunity for the bank to get rid of distressed assets and builders to pick up some lots – and there is financing.”

Hansen Matthews, partner in the Wilmington commercial real estate firm Maus Warwick Matthews was positive about LMC’s efforts.

“Anything that people are doing, that they are doing on these loans, that is thawing the market and moving the log jam of inventory” is welcomed, he said.

Matthews cautioned, however, that “no one thing is going to do it. It will be a lot of small movements that make it happen.”

Some firms are helping developers and builders restructure their debt, Poindexter said, but “that doesn’t help get (the developer) out of the project. We are providing the solutions. A full-blown exit strategy.”

Wayne Faulkner: 343-2329

    LMC Group Success Continues – Analogy Football Style

    Vince Lombardi

    Once overgrown and weed filled communities following the credit collapse, both Dogwood Lakes and Saltwater Landing have sprung alive with New Home construction and home buyers are reaping the rewards of reduced costs for homes now.  Dogwood Lakes and Saltwater Landing are here, alive, and competitive.  34 homes have now been sold in these two developments with another 60 on the way.  Savvy Homes has just closed on 4 more lots and H&H Homes will begin its final takedown of the remaining lots they have allotted by the end of October.  There are several other parties circling the wagons, more details as they come in…….. We also have new communities in the works…….stand by and call us for those before they go public……

    The local newspaper, The Wilmington Star News, just did an article on these projects and how successful they are in these economic times.  While focusing on the builders and buyers, it was not mentioned how these communities were able to accomplish these feats.  What exactly set the groundwork for this to happen?  How does a community overridden with debt suddenly revive itself?  How does a community or developer begin selling properties for a fraction of what they were selling for and still survive?  What things had to take place in order for this to happen?  I have not seen anyone win the lottery around here, have you?  What the Wilmington Star News forgot to report on was while it is terrific that this magically happened, it did not magically happen.  The LMC Group had been working with the sellers, developers, investors, banks, attorneys, accountants, the city and county governmental offices, and many others, to effectively bring these communities back from the brink.  I have spoken with the author of the Star News article, and I think he agrees there is a bigger story to tell for this area.  Stay tuned for more coming on that one………

    Now since it is Football season, I want to use an analogy for everyone looking at this post: 

    It’s the game of the century, a game of challenges in life and in your real estate financial world, all broken down into an analogy of a football game.  You are down for the count, beat up, battered, and bruised……… The score is Economy 14, Business 10, with 1 minute to go.  If you lose this game, it’s over.  You must score a touchdown to win, and a field goal means “almost” which means “great try but tough luck”.  It is fourth down and 99 yards to go for a touchdown.  It seems a daunting challenge since you only have 1 minute to get there.  You know you contain a great quarterback and running back, great receivers and a great defense.  However, one thing is overlooked……. The quarterback, running back, wide receivers, and defense are absolutely no good without the OFFENSIVE LINE.  If there are No Blockers, what happens?  The QB gets sacked, the running back is stuffed, there is no use for the receivers if the QB is on his butt, and the defense is not even on the field.  How are you planning on making it into that end zone for the win?  Everyone seems to forget the offensive line because there is no glory there…….. No spiking the ball, no celebration dances.  The crowd cheers for the QB to RB pass and the touchdown dance, everyone forgets how they got there with one exception………. the true champion QB’s, RB’s and Receivers,  they are the true ones that realize that they can’t get anywhere without that offensive line leading the way.  The offensive line has to lead and clear a path to the end zone….. Am I right here?  Think about it………. 

    The LMC Group is your offensive line.  Without offense, and without someone leading the way, it is hard and sometimes impossible to score that last touchdown that may save your business and investments.   Without an offensive line, what good is defense?  In any game whether football, business, life, defenses can wear down.  The LMC Group is dedicated to securing and structuring out of the box solutions for today’s real estate problems.  Our successes continue to prove over and over that The LMC Group has what it takes to lead any land owner, bank, developer, and builder to solutions in today’s market.  If you are the Quarterback, if you are the Running Back, how is YOUR offensive line doing for you?  If you need some help or assistance with your real estate needs, we would love to talk.

    How’d the game analogy end up?  The LMC Group was picked up in free agency……..

    Economy 14, Business 17 , let’s move on to the next game……….

    Answers and Insight to Getting Your Mortgage Principal Reduced – Follow Up Post

    Making Home Affordable

    Continued Post on the SHORT REFINANCE program:

    New Program May Reduce Mortgage Principal for Underwater Homeowners

    Posted on October 1, 2010 by The LMC Group | Edit

    We’ve all watched as program after program rolls out of Washington for those hapless homeowners who can’t make their mortgage payments. And we’ve all seen or heard stories about people who simply stop paying their mortgage and walk away from their obligations. Where’s the help for the myriad homeowners who continue making payments on a mortgage that exceeds their home’s value? It’s finally here – if you qualify.

    Who Qualifies?

    You might qualify if:

    1. You’re underwater: you have negative equity;
    2. You’re current on the mortgage to be refinanced;
    3. You occupy the home as your primary residence – although if it’s a rental property, it could be up to four units;
    4. You can qualify for the new loan under standard FHA underwriting requirements and have a FICO credit score of at least 500;
    5. The existing loan to be refinanced isn’t an FHA-insured loan.

    As I mentioned above, however, even if you meet all these criteria, both the bank that owns the mortgage and the company that services it will have to agree to reduce the loan until it’s no more than 97.75 percent of the home’s value. They also have to reduce it by at least 10 percent.

    What you should do…

    If you think you’re eligible, first read a more complete description of the qualifying criteria in the HUD document that explains the program in more detail. Then contact the company you make your mortgage payments to monthly (your mortgage servicing company) and ask them about the Short Refinance Program. If they’re participating, and say you’re potentially eligible, they should be able to guide you to the proper paperwork. If they haven’t heard of the program, refer them to this document, issued by HUD to explain the program to lenders.

    How much you’ll pay

    Refinancing through this program will entail the same closing costs, etc. as you’d pay to take out any FHA mortgage – keep in mind that FHA mortgages require paying mortgage insurance.

    Beware your credit

    Anytime a lender forgives a loan or part of a loan, that could show up as a negative on your credit history.

    If you have a second mortgage

    You can still qualify for the program with a first and second mortgage, the lender on the second mortgage must also agree to the refinance, and when it’s complete the combined mortgage debt can’t be greater than 115% of the property’s current value. The government will make some incentive payments for second mortgage lenders that might encourage them to reduce principal.

    What about Fannie Mae and Freddie Mac loans?

    It is noted that loans owned by Fannie Mae or Freddie Mac wouldn’t qualify for this program at this time. That’s because these two quasi-governmental agencies have thus far had policies in place that precluded them for forgiving principal. However, it now seems they’re at least considering it – check out this very recent article from the Wall Street Journal.

    Bottom line? It’s nice the know the government is finally tossing a line to people who’ve kept paying their mortgages in trying times, even while underwater. The fact that it’s voluntary for lenders may keep some otherwise deserving homeowners from being brought back to the surface, but with every rescue, the water gets a little nicer for all of us.

    Questions?  Subscribe to our feed, all information distributed is well worth the read………….

    The LMC Group

    New Program May Reduce Mortgage Principal for Underwater Homeowners

    We’ve all watched as program after program rolls out of Washington for those hapless homeowners who can’t make their mortgage payments. And we’ve all seen or heard stories about people who simply stop paying their mortgage and walk away from their obligations. Where’s the help for the myriad homeowners who continue making payments on a mortgage that exceeds their home’s value? It’s finally here – if you qualify.

    According to HUD’s recent press release, The FHA Short Refinance option is targeted to help people who owe more on their mortgage than their home is worth – or ‘underwater’ – because their local markets saw large declines in home values. The program – originally announced in March – is designed to help homeowners with negative equity refinance into a new FHA mortgage – one that would be less than the current value of their home.

    Unlike previous programs that modify loans by doing things like lowering interest rates and extending mortgages, this one is designed to reduce mortgage balances. In short, qualifying underwater homeowners could once again resurface.

    “We’re throwing a life line out to those families who are current on their mortgage and are experiencing financial hardships because property values in their community have declined,” said FHA Commissioner David H. Stevens. “This is another tool to help overcome the negative equity problem facing many responsible homeowners who are looking to refinance into a safer, more secure mortgage product.”

    According to research firm CoreLogic, as of June 30, about 23 percent of mortgage borrowers nationwide owe more on their homes than they’re worth. And in some parts of the country, it’s much worse: In Nevada, 68 percent are underwater, in Arizona, 50 percent, in Florida, 46 percent, and in Michigan, 38 percent.

    The main problem with the program – one that will prevent many homeowners from making it work – is that bank participation is entirely voluntary.  

    Want to know if you qualify?  Subscribe to the blog, the answers as to who qualifies and the steps to seek assistance are coming next………..