Saturday, August 27, 2005

1031 Like Kind Exchanges and Investments in the Greater Asheville Area 


Dear Miz Lori,

I am sitting here in my condo on the Gulf Coast waitingto see if another hurricane will be coming my way, and wondering if investments in the mountains would be a wise choice for me. Can you give me a couple ideas about this, please?

Hello! Gulf Coast!

Here in the Greater Asheville area mountains, there are many, many attractive real estate investment opportunities. If you are interested in exchanging your condo at the beach for a mountain property not so vulnerable to hurricanes, you may choose to consider a 1031 Like Kind Exchange.

As you probably already kjnow, IF you decide to do this, you MUST identify 3 potential replacement properties within 45 days of the closing of your property... the funds will need to go directly into escrow with a Qualified Intermediary from closing...so that is something to consider...

IF your main objective is debt relief....
you will need to compare the tax advantages/ savings of the 1031 transaction vs.
just the total relief of getting out of debt and having $85,000 +/- available to buy
another property...

the BEST professional to help you with this decision
is a Qualified Intermediary (more on this below)

Possibly begin with the three (3) following considerations:

1) THE QUALIFIED INTERMEDIARY and professional team members for the 1031 transaction
(in case you decide to go that way)
2) link to the 1031 Manual (good fast facts that should bring you peace of mind)
3) properties (big and small) that may work for you

1)professional contacts who can assist you as part of your 1031 team
(if you decide to go the 1031 route)

You may NOT choose to do a 1031...but if you do my BEST advice is for you to get a QUALIFIED INTERMEDIARY pronto!!!! (Your funds will need to go to the QI at the sale.)
AND...s/he will be able to tell you exactly how this looks for you financially so will be able to answer the questions you asked (below). It is IMPERATIVE that you work through the Federation of Exchange Accomodators to make sure you have a QI who is the kind of professional you need for this transaction!!!! See:

Here is the member locator:

Here is the list for North Carolina:

MATT LINVILLE....I will send him a note to let him know about you, if you choose....

2) Here is a link to the 1031 Manual....
It is a fast read and can help you decide if you want to go this route or not...

AN EXAMPLE: a 2 BR apartment in a separate building and is already set up as a PUD (means you can sell part of the acreage to defray your costs) with a house...in great shape...with views that has been on the market for awhile (nothing wrong with the house, just a few weird deals that didn't fly)...If you put $85,000 down on this property and rented the guest house on the property for $800/ month...and sold off one or two of the building sites...

you would have income to defer your payments (this could be part of your 1031 transaction) AND your payments would be about equal to what they would be if you bought a property for "X" amount ...AND with the sale of two (2) of the lots...you would be able to do your 1031 Exchange with no problem...and reduce your debt....

ANOTHER EXAMPLE: ...let's say you want a nice little place (CONVENIENT) with no stress place / brand new and that you will probably be able to sell in 2 years and make a VERY good profit...you could buy 2...use one as your 1031 and rent it!!!


My friend Barb told me that her son, Connor came home from school the other day talking about “smart growth” and the advantages when people understand it. “I thought he was talking about how fast he was growing and that it might be a good idea to buy his shoes a size too big,” she confessed, “ but I was soon to discover that I was wrong!”

Connor explained that ”Smart Growth refers to a relatively compact pattern of development that accommodates a diversity of people, housing types and jobs, and makes efficient use of public investments.”

He was quick to point out the advantages:
~ cost-efficient regional transportation systems;
~ efficient and sustainable use of land, natural resources and energy;
~ walkable and bikable neighborhoods;
~ centrally situated public facilities;
~ no abandonment of existing neighborhoods and urban centers;
~ preservation of a built heritage for future generations, and;
~ broad-based citizen participation in the process.

In the Greater Asheville area the concept of Smart Growth has caught on...

as per: http://www.ci.asheville.nc.us/business/smart.htm

Asheville is a city of approximately 70,000 residents in a metropolitan area experiencing moderate growth. It is the largest city in Western North Carolina and serves as a regional hub for commercial, medical, industrial and tourist employment. It is a community with a nationally recognized high quality of life due to its revitalized Downtown, diversity of population and housing opportunities, status as a regional center, strong neighborhoods, mild climate, and outstanding physical beauty.

Asheville faces several threats to its character and quality of life. These threats include:

Air quality issues from local, regional and interstate sources.

A shortage of developable land.

An affordable housing problem that rates us as the least affordable large city in North Carolina.

Outdated infrastructure, including street pavement conditions and needed water system improvements.

A trend towards sprawl development that creates a ubiquitous "this could be anywhere" appearance which is expensive to provide urban services and infrastructure.

A tax base that relies heavily on the residential sector.

A regional setting that includes a profound lack of growth management controls (Buncombe County is the most populous county in North Carolina without countywide zoning).

A roadway pattern that relies on the interstate system to handle large amounts of local traffic.

Any definition of Smart Growth must incorporate this context.

SO...in Asheville the Definition of Smart Growth
is a proposed City of Asheville development pattern that makes efficient use of our limited land, fully utilizes our urban services and infrastructure, promotes a wide variety of transportation and housing options, absorbs and effectively serves a significant portion of the future population growth of Buncombe County and Western North Carolina, protects the architectural and environmental character of the City through compatible, high quality, and environmentally-sensitive development practices, and recognizes the City’s role as a regional hub of commerce and employment. Inherent to this definition is the need to implement Smart Growth through comprehensive, consistent and effective policies, regulations, capital projects and incentives.

Thursday, August 25, 2005

reality bit

Life cannot be classified in terms of a simple neurological ladder, with human beings at the top; it is more accurate to talk of different forms of intelligence, each with its strengths and weaknesses.
This point was well demonstrated in the minutes before last December's tsunami, when tourists grabbed their digital cameras and ran after the ebbing surf, and all the'dumb' animals made for the hills.

-B.R. Myers, author (1963- )

Tuesday, August 23, 2005


The enormous beauty of mountain landscapes in the Greater Asheville, North Carolina is captivating. Many potential investors in the Western North Carolina area long for an escape from the heat or a respite from the hectic pace of life where peaceful tranquility, scenic beauty and fresh mountain air welcome them home.

With all the beauty that surrounds you, you could jump into buying property without taking into account various factors that could influence your decision. So here’s a word of caution to buyers of small acreages and building lots— think about the following:

Taxes: May or may not be assessed. While they may be minimal if the property is not developed, in a few years, you will need to plan for this.

Home Owners’ Associations and Dues: These could be minimal or nonexistent…but you need to ask about this.

Water and Sewage: If you are NOT in the city or on a private municipal system, please do be aware that you will need or must install an individual well and septic... If you are looking in a development, it might be wise to ask if underground utilities are in or are planned. Underground utilities help keep the scenic beauty of your property alive.

Septic System: If you are NOT in the city, it is most likely that you will need to install a septic system. You will need to know if the land you are interested in has percolated…has passed the perc test... NOTE: In terms of investing in property, make your Offer to Purchase and Contract contingent on passing perc tests.

Process: You would have to obtain IMPROVEMENT PERMITS (see below the following general information)

You must get a septic permit prior to obtaining any building permits or initiating construction. Sites proposed for development are evaluated for suitability of septic systems in accordance with North Carolina sewage disposal laws and rules under the authority of the Department of Environment and Natural Resources (DENR). Roughly half of the population in Buncombe County depends on septic tank systems for sewage disposal generating an estimated 10 million gallons of wastewater per day to be treated by ground absorption septic tank systems.

Effective January 1, 2005, the "Groundwater Protection Rules" adopted by the Buncombe County Local Board of Health will require that a well permit be obtained prior to drilling a well in the County. Wells will be inspected by environmental health staff to ensure compliance with existing State well construction standards. Properly constructed wells reduce the chances of groundwater contamination from surface contaminants. An application for a well permit must be submitted in conjunction with all septic permit applications except where municipal, community, shared, or other water supplies are available to serve the intended project.

Applications for septic and well permits and required fees can be submitted at the Environmental Health Division located on the second floor of the Health Center.

Improvement Permits:
If you are planning to purchase a building lot or property for future development and public sewer is not available you may obtain an IMPROVEMENT PERMIT before you invest. An Improvement Permit indicates that a septic tank system may be installed for your specified project provided that the property is not altered or modified in a manner that may render the site unsuitable. Improvement Permits are valid for at least five years. If the application includes an engineered plat detailing the exact location of the structure and the septic tank system, in addition to a detailed site plan, an Improvement Permit with no expiration date may be issued. An IMPROVEMENT PERMIT will include:

A description of the facility the proposed site is to serve.
The proposed wastewater system and its location
The design wastewater flow and characteristics
The conditions for any site modifications
Any other information required by the rules pertinent to the specific site

Improvement permits are not affected by change in ownership of the site for the wastewater system provided both the site for the wastewater system and the facility the system serves are not changed and remain under the ownership or control of the person owning the facility.

Sample Application:
Cost of Septic System: $1,000- 10,000+/-
Cost of Perc Test...$500 (as I recall)

Private Well: Depending on how deep you need to go this could cost in the thousands of dollars...

Access: Roads…are they in place?.. are they gravel, dirt, paved?... and/or are they still under construction ? What costs are involved here, and what shared right -0f-way?

Lot size: Find out if the lot/acreage you are interested in has been surveyed. If your parcel is 10 acres, it can be subdivides…but you will need to check on the deed restrictions to see what they allow.

Deed Restrictions: Deed restrictions can be gentle or strict. Be sure to get a copy of the deed restrictions prior to investing in property.

Building/Inspections Fees:

Flooding: At what elevation is the property and is it in a flood plain?

Prior Use: Had there been prior use which could affect the quality of the land .was it a farm? Were toxic chemicals used here?

Bottom line:
1. Talk with a knowledgeable person before you invest...such as a member of the FOR^TERRA TEAM at Asheville 1031/Eco-STEWARD REALTY, Inc.

2. When looking at acreages and building lots...be sure to add in at least $20,000 to $50,000 to the cost if well and septic are required and are not in place....

Please let me know what you think...

Monday, August 15, 2005

Horse Farms and Equine Properties in the Asheville Area

This is the time of year that folks from down south of us head for the mountains and the fresh COOL air! For those of you who have discovered the lands I love and where I am active in equine property transactions, this information may be of interest.

Madison County, located in the Blue Ridge Mountains of Western North Carolina, is a rural county with steep terrain and large rolling pasturelands. Only half an hour or so from Asheville, it is home to approximately 3,500 small family farms. Agriculture is the largest industry in the county.

In fact, agriculture accounts for half of the gross income in the county. Here in Madison County, where streams and pastures and hollers and coves abound, you may look out your window as you drive the scenic (excellently maintained) country roads and notice, out one window, horses grazing happily on the best grass you can imagine, and out another window, the neat rows of tobacco crops. (Madison County is the largest burley tobacco producing county in North Carolina.)

There are approximately 2,350 farms with burley tobacco quotas. A decade ago, burley tobacco accounted for $10 to $12 million for agriculture income annually. But recently, the demand for tobacco has been on the decline, and so our local crops are changing. Farmers are diversifying! If you are a nonsmoker or a smoker, you still will be able to enjoy the new crops, because with the recent decline in burley tobacco, farmers have been cultivating the most amazing ORGANIC crops. Vegetable, organic and nursery crops have increased dramatically since 1998. Stop by the family-run vegetable, fruit and flower market just as you come in to Mars Hill, and you will see what I mean.

The small family horse farm is popular here.

In fact, Western North Carolina horse farms in the greater Asheville area offer equestrian living at its best. All across the rolling land here you will discover wonderful horse property, equestrian communities, and exceptional estate properties such as THIS one:

Horse Farms and Equine Properties For Sale Around Asheville Are Magnetic!

Here in the Asheville area there are many excellent properties for horses that are on the market, and if you start looking, you will not be able to stop until you find the one for you. These beauties have rolling pastures and bubbling streams and barns with electricity and water.

Caring for the land and love of Appalachian farmland has inspired me.I have been thinking about horses a lot lately. I have been wondering what happens to old horses.I started doing some research online and I found this:

“ When you have a horse that you want to have a good life and you can't guarantee that you can provide it for the horse's entire life, train it well! Give it an all-purpose base of knowledge, not just training in a certain field. Teach it to calmly accept screaming children and barking dogs and fluttering plastic and all other manner of scary things so that it will not hurt people by accident and get a bad reputation."

As I read the above, I could see my grandkids riding at the riding ring at the little horse farm I have for sale just north of Asheville. If someone doesn’t come along pretty soon to buy it, I am getting more and more inclined to do so myself! Here are a few details:
HorseLady@janeAnne.com Your Equestrian Properties Connection in the Greater Asheville Area: 21 acres w/riding ring, round ring, barn, trails, fruit trees, stream BUILDING SITES, mountain views. Daylight basement SPA with whirlpool, 2 bonus rooms. 20-25 min to Asheville

Thursday, August 11, 2005

investment bit~

Thanks to the tax relief legislation of 2001, one-person business owners have the opportunity to contribute more money to their retirement plan through a Single-Participant 401(k). Click here to find out more information.

Investing in Real Estate with a Retirement Account through custodial services for IRAs purchasing and holding real estate. Companies such as ENTRUST and FISERV can mediate the process to make real estate transactions a reality in a self-directed IRA.

There a a number of Real Estate Investment Options that include, but are not limited to:

Improved and Unimproved Land,Single Family Homes,Apartment Buildings and Multi-Unit Homes, Commercial Property, Real Estate Notes, Mortgage Notes/Deeds of Trust, Tax Lien Certificates...

Please contact investIRA@asheville1031realty.com
for more information

Monday, August 08, 2005

HORSE FARM FOR SALE near Asheville 

Small Family Horse Farm For Sale Near Asheville
Offers the Possibility of BIG Dreams Come True


21+ AC/3/2/Barn w elec and Water/Riding Ring/Stream and Building sites..
and you won't believe the price! Go Ahead and GUESS! Here's a picture:

As I look into approaching folks about investing in the little horse farm with its barn with electricity and water, riding ring and fenced pastures, the idea that this place would make a perfect stop-off point for horses traveling with their human companions between Florida and parts north a rises…What a good investment opportunity…sort of like:

HORSE CAMPING: Where owners offer: “Bring your own horse to ride our trails ... just have 'em camp with you…”

Expanding on that theme …this horse farm really DOES have all a human and horse companion- traveler could ask for…a fabulous WHIRLPOOL SPA within 100 yards of the barn and resting place for humans…and plenty of room for horses to stretch their legs and overnight. PLUS, it’s only one mile to I-26, and the Appalachian Trail is close by for trail riding…and FANTASTIC VIEWS!

HORSE-FRIENDS B&B!: Perfect!But here’s another idea!

EQUINE RETIREMENT FACILITY: What if this were a facility for retired horses with a couple of retired horse people running it~??!!.. Someone else in Georgia must have had this idea, too. Here is what she wrote:

“ A retirement barn is the restful, country environment, in a moderate climate, that your horse deserves for his later years. He has run, jumped, and danced for fun and to earn your praise. He has worked for you in the show ring and out, countless hours of practice, trials, successes, and aches and pains. Now that those aches and pains, and the years, are taking their toll, your horse deserves to live in peaceful surroundings, where he will have specialized care and a different kind of fun and companionship. "

I can see this happening here:

"The fun and companionship that you have provided your horse must be replaced in order for him to prosper in his retirement. A retirement barn matches your horse with a suitable partner, developing friendships that provide companionship and playmates. The location of the barn in a moderate climate lets your horse be turned out with his 'buddies' regularly. This bonding helps a retired horse adjust to his new life, and keeps an older horse positive and active.

A retirement barn should provide your horse with a comfortable large stall, wooden fenced pastures and paddocks, and special care tailored for the older horse. The barn should provide excellent nutrition with feeds and hay suited to his digestive needs, along with any supplements that you request. Regular worming, foot care and vaccinations are a must. Blanketing in inclement weather and fly masks in summer should be done regularly. The caretakers at a retirement farm should be wholly responsible in administering medications, if any are prescribed by your veterinarian.

Most importantly, the barn routine should be tailored to the needs and abilities of each retired horse, providing plenty of attention and tender loving care every day. The caretaker should have experience and patience with the older horse, who may not be as adaptable as he once was. Some days the older horse is grumpy and impatient, and the caretaker must recognize if this is a sign of possible ill health that needs to be taken seriously and investigated carefully. You and your guests should always be welcome, helping to provide the love and attention that each horse needs.” The author, Jill Gray, runs Cane Creek Retirement Barn in Dahlonega, Georgia.

I love this gift to the world as seen at:

And there are so many ways to envision how the small family horse farm could support any number of activities, such as:

1) Women's Retreats
2) Educational and Recreational Family Retreats

3) Professional Workshops
3) Appalachian Trail Expeditions

4) Learning Programs and Day Camps

I am open to your suggestions and ideas. Let me know if you get a good one. If you want to see a picture of the horse farm, just click on this link:

This amazing property…21+ Ac /Pristine Views…stream…comfortable farm home/riding ring/barn w/ water and electricity…EZ access (just about 20 minutes straight shot) to Asheville…and various good building sites is available today for the amazing price of just $239,000

Please contact me ASAP if you see the possibilities for you/your family…


Saturday, August 06, 2005

Act for Air Quality & Quality of Life in the Asheville Mountains 

Air quality is vital to the health of everyone.
We all share the air. It has no boundaries.

The notion that any of us single-handedly can claim ownership
of the entire challenge of making sure our kids and grandkids (at least)
breathe easy is outlandish! But we CAN get together at a local level ..
to educate ourselves and act for the well-being of all of us.

Let me know what you think!


on our air quality is provided at my Real Estate home pages
and at the Western North Carolina Regional Air Quality site
Go here

an essay:

Here in Western North Carolina , we have a significantly high rate of thermal inversion. Much of this air pollution is imported from our neighboring states. Our region must take the greatest care to protect its air quality: Incineration of any kind is especially inappropriate for Western North Carolina. So with the growing problem with air quality before us, just this past June our Attorney General, Roy Cooper announced an intent to sue the Tennessee Valley Authority under the failure to comply with provisions of the Clean Air Act. We are not an angry bunch here, but anyone in North Carolina looking at the sky on a cloudless day will see a gray(and life-threatening) haze in the distance. That haze is caused by emissions from everything from industry and automobiles, and it calls us to action!

Recently, Dr. Tom Linden from UNC-Chapel Hill reported on causes and effects of air pollution in three different regions of North Carolina.

In Western North Carolina, whose residents are facing more possibilities of respiratory illness because of the air quality here, Linden treks the Blue Ridge Parkway, whose beautiful scenery is now obscured by a brown fog, caused by pollution from coal-fired plants in Western Carolina and the Tennessee Valley Authority.

Because coal-fired plants are not governed by the same regulations as some of the more updated industries, they release more sulfates and other toxins into the air, causing increases in incidents of asthma and bronchitis.

Why then would the proposed "Clear Skies" Act" eviscerate the two key Clean Air Act provisions that state attorneys general employ to sue polluting power plants?
Why would it gut the Clean Air Act's New Source Review (NSR) program?

NSR requires power plants to add new pollution controls when they expand their capacity.
But the proposed new plan would reduce the number of situations in which power plants would have to install new pollution control technology! "The approach taken in [Clear Skies] would allow power plant operators to keep plants operating for 100 years without applying modern emission controls," Conrad Schneider of the Clean Air Task Force told a Senate Committee last week.

If NSR is crippled, dirty plants can run indefinitely without reducing their pollution emissions. The AGs trying to protect the public will be able to do nothing about it. Today in North Carolina, where we experience the effects of interstate air pollution, we do have a remedy for our air quality problems. A process (known as Section 126 petitions) allows our Attorney General to file a petition if a neighboring state is out of compliance with Clean Air Act standards. This Section 126 petition asks the EPA to take action against out-of-state sources that are fouling its air. In fact, this is the petition that Attorney General Cooper filed against plants in 13 states last March. (Northeastern state AGs filed similar petitions in the 1990s against Midwestern and Southeastern power generators.)

Here's what concerns us: When the EPA acts on a Section 126 petition, it usually gives the targeted power plants about three (3) years to clean up their stacks. But Clear Skies would block any Section 126 fixes until 2014, giving polluters a nine ( 9) year pass. Even after 2014, states asking for EPA's help to crack down on out-of-state plants would have to show they have applied every single more cost-effective measure at cutting pollution. The Clean Air Task Force's Schneider calls this "an impossible showing."

I asked reliable sources about the possibility of this action having to do with partisan politics.
hey informed me that, " Republicans and Democrats alike support a strong role for the states in protecting the environment, a principle known as cooperative federalism." As an example, GOP governors George Pataki of New York and Arnold Schwarzenegger of California last month reminded the Senate that "states do the majority of the work to carry out [the Clean Air Act's] mandates." The governors asked the Senate to "protect the cornerstones" of the Clean Air Act, specifically the strong role of the states.

INFORMATION on our air quality is provided at my Real Estate home pages
www.janeAnne.com and at the Western North Carolina Regional Air Quality site http://www.wncair.org/

Go here

Friday, August 05, 2005

Keeping a Current Home as a Rental Property
Could Turn Out to be A Valuable Investment Opportunity

Consider the possibility of keeping your current home as an investment property. Consider renting to someone else after you move. And think about how it will appreciate over the years; become a “savings account” for the future.

Most people must sell their current home in order to buy the next one because they will tell you that “two mortgages at once just is too much”... However, as you investigate the possibilities with your mortgage originator, you may discover that you can qualify for a new mortgage while keeping the previous mortgage.

Consider this:
1. It IS possible to count a large portion (perhaps 75 percent) of the rental income from your current home toward your qualifying income for the mortgage on the new house. You will need to have a year’s lease signed, and show a written accounting of income and expenses related to the house. Talk to your mortgage originator about the requirements, as these rules vary by lender. We are happy to supply you with the contact information for several excellent professionals if you are interested in this avenue of real estate investing. Just let us know at

2. You may be able to refinance your current house in order to free up accumulated equity to roll into the new house. Again, talk to several mortgage originators to explore the possibilities...

3, Many of your expenses (including losses) connected to your rental may be tax deductible. It is important for you to consult a knowledgeable accountant to make sure you understand all the tax implications of having a rental. We are happy to supply you with the contact information for several excellent accounting professionals. Just let us know at

Collect all the financial facts, and then figure out what the projected return on your investment would be if you kept your house as a rental. Don’t forget to take into consideration as a cost what you could make on the money in other ways (known as the “opportunity cost”). For example, you could put the money into a Self-directed IRA or into your new house instead. If you need help with this, a financial consultant or a CPA can help you. Carolina Real Estate Investors Association (CREIA) is a local educational and networking group that may be a valuable resource to you. We have had positive experiences with this group and associated advisors. We are happy to supply you with contact information here, as well. Just let us know at 1031@janeAnne.com

Many investors are happy to break even or take a slight loss on their rentals in the early years, understanding that the profit comes later when rents can be raised, and at the end when the mortgage has been paid off and/or the property is sold. During those years, the property has (we hope!) been appreciating. As a real estate investor your baseof paid up rental properties can be a lucrative retirement plan.

Before you take the step of becoming a landlord, investigate the rules in North Carolina and your city, if applicable. There are a lot of rules, such as how to advertise, write leases, and maintain a special checking account to hold security deposits. You will want to know Housing Certificate rules that apply inside some cities including Asheville and Black Mountain, and about eviction processes.

Best advice: Ask yourself if you really want to do this.
1) Do you have the time and the interest to deal with the day-to-day issues that will arise?
2) Will you manage the property or pay someone to manage this for you?
3) Do you have good fix-it skills or contact with folks who do?
4) Are you a person with the patience to learn new skills and responsibilities and take on an investment that will yield only long-term returns?

If so, join the large group of folks who know that property rentals can be a great investment and let us be your guide to excellent properties for today and tomorrow.

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