Pat Wattam receiving award from Marti Dittier

Pat Wattam was named REALTOR of the year by the Greater Baton  Rouge Association of Realtors at their annual installation and awards Ceremony!  "I am thrilled to receive this wonderful honor from my peers!" Pat said after the ceremony.    The award is given to the REALTOR who not only is good in sales but also contributes to the board by serving at the local, state, and national levels as well as giving back to the community.

In this age of a stimulus spending and bailouts, 'debt' and 'deficit' are often used to describe the federal government's financial situation.  Many people use these words interchangeably, yet they have significantly different meanings.  

Budget deficit:  When the federal government spends more money in a fiscal year than it collects in tax revenue, it creates a budget 'deficit'.  In the rare instances when the government expenditures are less than tax revenues, the result is a budget 'surplus'.  Budget deficits have been the norm in recent decades.  For example, in the past 28 friscal years (1982 - 2010) , there were only 4 years in which the federal government ran budget surpluses.

National debt:  How can the government spend more than it collects?  By borrowing money.  The total amount owed by the federal government is called the 'national debt'.  Because the federal government guarantees the timely payment of principal and interest, many individuals, corporations, state, and local governments, foreign governments, and others are willing to lend their money.  Although Treasure Securities pay relatively low interest rates, they tend to appeal to investors seeking lower risk.  There's also quite a big of borrowing between federal agencies.  For example, Congress has long been in the habit of borrowing excess Social Security revenues.  As a result, the national debt is divided into two categories:  debt held by the public and intergovernmental holdings. As you can imagine, there's considerable debate over how long the government can keep borrowing to financing spending.  Regardless of how you feel about government spending, you might benefit from understanding the terminology.

Thanks Wally for that enlightenment!

Reading this just makes me think of all our home buyers qualifying for a home loan.  Our federal government couldn't qualify for a home with all the deficit the country has!!  I also equate deficit with debt - you spend more than you make, it's a deficit.  You create debt by owing money.  The less you owe, the more of your income you keep, the wealthier you are!!  It's something to think about as we watch the politicians jockeying for their position before tomorrow!!  Pat

Common Fears:

1.  Don't want to get calls all hours of the night with repair problems, or, don't have any repair skills and the cost to maintain will eat away all profit.  SOLUTION:  place an Old Republic Home Warranty, or other warranty such as AHS, on the property.  If the rent is high enough, have the tenant pay the deductible unless it is a major repair - such as air or heat.

2.  Finding Tenants.  SOLUTION:  We'll help you write you ad and show you how we prospect for tenants for our personal rentals

3.  Property stays vacant too long.  SOLUTION:  Price it competively and make it the prettiest property for the price.

4.  How to price.  SOLUTION:  look in the newspaper and Craig's List to see what your competitors are charging

5.  Where to find a good buy.  SOLUTION:  Let us help you find it.  We ask you questions, find out what your goal is, then help you find the right property!!

Don't be afraid!  You can create financial freedom through the ownership of rental property.  Let us help you make a plan that works for you.  

Call today for a private consultation!  225-298-6900

Baby Boomers and Retirement

Procrastination, timing (bad), and poor financial decisions have caused many 'boomers' to face financial disaster just as they are ready to retire.  The situation is serious because 'boomers' have not saved enough for retirement but still want to retire early.  A recent business report form the Associated Press explains the reasons for concern among 'boomers".

REASONS FOR CONCERN

1.  Pension plans are a thing of the past.  In 1980, 39% of workers had a guaranteed pension payout during retirement.  Today, that number has been drastically reduced to 15%.  pension plans have been replaced by 401 (k) plans. which require the employee to save more for his retirement and do not guarantee a fixed payout during retirement.  Today, 42% of workers have 401(k)s.

2.  "Boomers" relied on their homes for part of their retirement income.  The idea was to downsize before retirement and use the profit to subsidize retirement  income.  In some parts of the country, the crash in housing prices has slashed home values by a third. Locally, however, real estate has only dipped about 11% in 2010 compared to 2009.  We are still 38th in the nation in foreclosures - and this is the one time we like being on the bottom of a list!

3.  Mortgage debt for'boomers' is another problem.  Twothirds of boomers between ages 55-64 have a median mortgage debt of nearly $100,000.

4.  Too many boomers are relying on social security to fund their retirement income - no explanation required.

5.  Health care costs in retirement eat up a higher percentage of income.

6.  The unemployment rate is near 10% and many boomers both WANT and NEED to work longer than pervious generations.

Wally told me that it is never to late for many boomers to start planning.  Here are five areas he suggested to think about and act upon NOW:

1.  Create a plan

2.  SAVE MORE NOW!

3.  Retire later.

4.  Scale back your lifestyle

5.  Delay your social Security Income.

Call Wally if you want to discuss any of these ideas.  He has done a great job for us personally.  225-926-9585

wally.mcmakin@smhgroup.com

1.  Don't Splurge!  It's tempting to buy all kinds of new stuff for the house, but only spend what you have budgeted for it.  Make a list of what you want to do, then as you rebuild your savings, you know what you will want to purchase next!

2.  Rebuild your emergency savings!  This is more important than redecorating!  This should be your first priority.  If you dipped into your reserves to buy the house, then you need to build it back up as quickly as possible to offset any unexpected expenses.

3.  Automate your payments.  Late payments are now even more damaging than ever before.  Automating them insures that your payments are timely and that helps your credit score!

4.  Keep good records.  You'll need receipts and other documents at tax time.

5.  If you home value drops, don't forget to appeal your tax rate.  You can sign up for automated monthly updates on your general location with Market Snapshot.

Using these steps will help get your homeownership off on the right foot.

 However, another part of my financial plan is owning rental property!!  So, if the value of home ownership is over, then ownership of rental property must be high on everyone's list.  People need a place to live, and if they can't own a house, then they have to rent someplace - and why not rent from me......or you!!

Rental property, property owned and managed, is a great way to create financial freedom or a nice retirement income.  Call me today and I will show you how to do this.  We will help find you a home that cash flows in the Greater Baton Rouge Real Estate Market, give you the forms you need to interview prospective tenants, and in general, just show you the way.  We love helping the first time investor learn the ropes.  Don't delay!  Call us today at 225-298-6900!!

In Baton Rouge, you can find good real estate buys that will create cash flow for you on a 30 year payout.  But, if your goal is to have it paid off in 15 years, then concentrate on paying it off, not on cash flow.  Most people are afraid to own rental property.  What if the house doesn't rent?  How do I mange it?  How do I find tenants?  Well, as a Certified Investment Agent Specialists, I have all the tips and forms you need to make this easy for you.  Call me today and I'll show you how easy this is to do.  We'll help you make a plan, and then we will search out the best properties for you, based on your needs.  Talk to you soon!!!!

If your home is currently on the market, you may be considering whether or not to work with your real estate agent to host an open house. You may have heard that open houses are ineffective or "old-fashioned" in today's world of online marketing.  Open houses do not work on every house, in fact, we know statistically that very few home actually sell from having an open house. BUT, an open house can create some buzz for your house - if you do it right!

As a Member of the Top 5 in Real Estate Network®, however, I, along with my team, know first-hand that it takes a combination of different marketing strategies to sell your home quickly and for the best possible price. While online marketing and mobile technology are certainly critical parts of the equation, an open house can have a tremendous impact on a successful sale -- when done correctly, that is. Here are our Top 5 tactics for a successful open house. Make sure your agent is incorporating all — or at least some — of these strategies for your home's open house:

1. Staging well in advance - Don't bother having an open house if your home is not properly staged both inside and outside. Now is the time to work with a professional landscaper because curb appeal will never be more important -- prospective buyers won't bother coming in if they don't like what they see from the outside.
2. Proper advertising - These days, people are so inundated by life and media that unless your open house is promoted far and wide — and frequently — they will never even know about. Your agent should be: advertising in newspapers; using social media to promote your open house; networking with other agents in the area to make them aware; circulating direct mail to neighbors and nearby communities; and personally inviting key prospects.
3. Enlist the neighbors - Start polling your neighbors on what they like best about your neighborhood: the schools, the convenience, the community services, the people, etc. Compile this into a handout for your agent to distribute at your open house. After all, what better testimonial could you ask for than the next-door neighbor?
4. Consider a theme - Some of our fellow members in the Top 5 Network have hosted some unbelievably creative open houses. Consider inviting local restaurants to set up food stations so visitors can experience a "taste" of the community; ask a local antiques shop to stage the home with their showcase items; invite a local gallery to create an art exhibit throughout the home; or highlight something of interest about your home. One Top 5 member, for example, listed the home of an antique car collector and put all the owner’s cars on display and invited car enthusiasts.
5. Have the right materials on hand - Your open house will be for naught if you don't have the proper materials on hand, such as: a guest directory that asks for names and e-mails (find a creative incentive for guests to leave their e-mail addresses, such as entry into a drawing for a local restaurant gift certificate); professionally done photo brochures of your home or even a DVD of a video tour; payment and financing information.

Be sure to ask your agent how he or she intends to follow up with open house visitors -- this is the most important factor of all. Without a quick and effective follow-up system in place, you could very well pass over a potential buyer.

Chad Landry at NOLA lending. 

225-226- 8248  cel@nolalending.com

Tips Gleaned From the Best Credit Repair Services

The good news is that although our home prices peaked in 2008, and then we had the economic disaster which slowed home sales, our prices have only dropped to an average sales price of $193,000 YTD - which is up a little from last year.  Sure, fewer homes are being sold and there is plenty of inventory, but the fact that the days on market have only gone up about 15 days (the length of time on average it takes to sell a property) since 2004 and the fact that the average sales price is STILL significantly higher than 2004, leads me to believe that our real estate market is still healthy.

At the Pat Wattam Team, we have experienced multiple offers on properties that were well priced and in tip top condition, and the homes that meet that criteria, even though they may not have multiple offers, will generally sell in the first 30 days.  Homes that need some updating or repairs, even when priced well, tend to take a while to sell. 

Here's hoping for no more hurricanes, for our industry to continue to lead the country out of recession, and for our own market to remain stable so that all my clients can take advantage of these fabulous interest rates!!

Year  Ave Sales Price   # Sold

Taking time to listen to potential clients primary requirement allows me to give them their options on loan programs that will fulfill his or her requests. This will be one of the finest investments made and as their Loan consultant, I want them to benefit not only now, but for their future also.

WAYS TO IMPROVE CREDIT SCORES

1. Pay down your credit cards.  Paying off your installment loans can hel your scores, but typically not as dramatically as paying down or paying off revolving accounts such as credit cards.  lenders like to see a big gap between the amount of credit you owe and your available credit limits.  Getting your balances below 30% of the credit limit is ideal
2. Use your cards lightly.  Big balances can hurt your scores, even if you pay your bills in full each month.
3. Check your limits.  Your scores might be lower if your lender is showing a lower limit than you actually have.  Most credit card companies will quickly update this information if you ask.
4. Use an old card.  The older your credit history, the better.  if you stop using your oldest cards, issuers may stop updating them at the credit bureaus and although the accounts will still appear, they won't be given as much weight in the scoring formula.
5. Get some goodwill.  if you have been a good customer, a lender might agree to simply erase that one late payment from your history.  usually the lender requires a request in writing.  There is no guarantee that the lender will adjust your history, but it can't hurt to ask.
6. Correct significant errors.  Your credit scores are calculated based on the information in your credit report file, so errors can really cost you.  not all that's reported in your file matters to your scores.  Here are some items that's usually worth correcting with the bureaus:  late payments, charge-offs, collections or other negative items that are not yours, credit limits reported lower than they actually are, accounts listed as unpaid that were included in bankrupcy and accounts listed as derogatory if you paid htem on time and in full.  Some items that you typically shouldn't worry about are misspelling of your name, outdated or incorrect address information, most inquiries, accounts closed listed as being open and accounts closed that don't say 'closed by consumer".

Keep in Mind that asking a creditor to lower your credit limits, making a late payment, consolidating your accounts and applying for new credit if you already have plenty, can lower your credit scores.

Call Peggy Bain today to help you decide which loan product fits your needs, and to get suggestions on raising your credit score!

Peggy Bain

Senior Loan Consultant

Nationwide Home Lending

225-248-4002 Direct Line

225-335-7908  Cell

4212 American Way, Ste. C

Baton Rouge, LA  70816

Of course, home mortgages are credit score driven and the higher your credit score the more options you have open to you.  The 15 year interest rate is the one that got me really excited....it's at 3.75% which is terribly exciting when you think only 7 years ago the 15 year rate was 5.25%.

Not sure where to start? Give the Pat Wattam Team a call and we'll help you sort out how to take advantate of this market.  With more homes to choose from, we know you can find something that will make you want to take advantage of this great real estate market!

Protect Your Home Seller

Some Tips to Help You Get Prepared

1. Pick one person to be the single point of contact, preferably someone out of your area in case of busy phone lines in your area.
2. Get Cash
3. Fill up the gas tank
4. Get enough food and water for 3 - 7 days for each family member
5. Evacuate when told to do so.
6. Plan ahead for the evacuation – hotels book up quickly so have a plan
7. If you have pets, make sure you have a plan that includes them
8. Fill all the family medications
9. Batteries, batteries, batteries!!
10. Charge up all your computers, extra batteries, phones, etc.
11. Get gas for your generator (remember, not high octane gas!)
12. Make sure your flash light is working
13. Get UNSCENTED candles or, preferable, light sticks
14.  Hand cranked flashlight
15. Battery powered radio
16. Take photos of your property before the storm so you have proof of it’s condition if necessary
17. Fill containers of water in your freezer to help keep it cool longer.  Also, a full refrigerator stays cool longer than one sparsely filled. 
18. Fill bathtubs with water in case
19. Turn your refrigerator and freezer down as cold as possible and don’t open
20. Turn your AC down as cold as possible before the storm.  Don’t keep going in and out. 
21. Make sure your pet has on an identification collar
22. Make sure you know how to turn off your water, electricity, and gas, just in case!
23. Get First Aid supplies
24. Take down any outside objects that could be projectiles – such as wind chimes
25. Cut down any tree that is not healthy that could damage your house
26. During the storm, stay in an interior room and away from windows.
27. Don’t go outside during the storm to take videos and photos because of flying debris
28. Battery operated cell phone charger
29. Entertainment items – games, books, magazines
30. Battery operated fans

Shopping List for Food:

1. Water – 1 gallon a day per person (enough for 3-7 days)
2. Food for 3-7 Days
3. Non-perishable of canned food/juices
4. Bread in moisture proof container
5. Canned vegetables
6. Raisins, and other dried fruit,
7. Canned soups, stew, chili
8. Dry mild
9. Instant coffee, tea, and cocoa
10. Unsalted nuts
11. Powdered drink mixes
12. Bouillon cubes
13. Canned pet food
14. Packaged condiments
15. Cookies, crackers, or chips
16. Cereal bars
17. Baby food
18. Peanut butter and jelly
19. Small boxes of dried cereal
20. Nonperishable pudding and gelatin
21. Ice and Ice chest

Other Items:

1. Mosquito spray
2. Sun Screen
3. Waterproof matches or butane lighter
4. Light Sticks
5. Tarps, canvas or anything to make temporary roof repairs
6. Lantern with extra fuel
7. Electric drill with screwdriver bits
8. Hand tools such as hammer, nails, axe, knife, wrench, etc
9. One flashlight or hot light per person
10. Lots of spare batteries of all sizes
11. Duct Tape
12. Fire Extinguisher
13. Clean containers to store water (fill before the storm)
14. Manual can opener
15. Disposable utensils and plates
16. Paper towels and napkins
17. Moisture towelettes
18. Antibacterial hand moisturizer
19. Garbage bags
20. Propane for grill