Team Freeman Blog

Charlotte, NC - Team Freeman Real Estate - Bank of America

Aimee Freeman (RE/MAX Executive Realty - Team Freeman) — Thu, 22 Jan 2009 09:41:03 -0600

Bank of America Corp., reports a fourth-quarter net loss of $2.39 billion, or 48 cents per diluted share. The news comes on the same day the Charlotte-based bank says it will slash its dividend to one cent per share from 32 cents and accept an additional $20 billion in bailout money.

The federal funds are in addition to the $25 billion BofA has already received under the Troubled Asset Relief Program, which is designed to unfreeze the credit markets and boost the economy.

BofA earned $215 million, or 5 cents per diluted share, in the fourth quarter of 2007.

The latest figures include results from Countrywide Financial Corp., which BofA purchased on July 1, but not Merrill Lynch & Co. Inc., which it purchased Jan. 1.

Net interest income rose to $13.1 billion in the latest quarter from nearly $9.17 billion in the fourth quarter of 2007. Total noninterest income fell to $2.57 billion from $3.64 billion in the same period.

BofA (NYSE:BAC) says fourth-quarter results were driven by escalating credit costs, including additions to reserves, and significant writedowns and trading losses in its capital-markets businesses.

"These actions reflect the deepening economic recession and extremely challenging financial environment, both of which significantly intensified in the last three months of 2008," BofA says.

BofA's provision for credit losses rose to $8.54 billion from $3.31 billion in the fourth quarter of 2007.

Global consumer and small-business banking and global wealth and investment management were profitable, boosted by BofA's expanding deposit business. However, BofA says negative results in capital markets and advisory services offset the bank's profitability in business lending and treasury services, which are part of BofA's global corporate- and investment-banking division.

Merrill Lynch's preliminary results indicate a fourth-quarter net loss of $15.31 billion, or $9.62 per diluted share, driven by severe dislocations in the capital markets.

As part of BofA's acquisition of Merrill Lynch, federal officials have given BofA an additional $20 billion in funds. The government also has agreed to provide protection against further losses on $118 billion in capital-markets exposure, primarily from the Merrill Lynch portfolio.

Under the agreement, BofA would cover the first $10 billion in losses and the government would cover 90 percent of any subsequent losses. BofA has agreed to pay a premium of 3.4 percent of those assets.

The latest assistance from the U.S. Treasury Department and the Federal Deposit Insurance Corp. come amid growing concerns about BofA's financial condition.

Federal officials announced the deal early this morning.

BofA's stock, which has traded between $7.35 and $45.08 over the last year, closed at $8.32 per share Thursday, down from Wednesday's closing price of $10.20. It dropped another 13.7 percent Friday, closing at $7.18 per share.

For the full year, BofA earned $2.56 billion, or 55 cents per diluted share, down from $14.8 billion, or $3.30 per diluted share.

Net interest income rose to $45.36 billion from $34.44 billion in 2007. Total noninterest income fell to $27.42 billion from $32.39 billion in the same period.

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Aimee & Team Freeman
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888-278-4935

Charlotte, NC - Team Freeman Real Estate - Bank of America

Aimee Freeman (RE/MAX Executive Realty - Team Freeman) — Thu, 22 Jan 2009 09:38:35 -0600

An Italian court has acquitted Bank of America Corp. of charges related to events before April 2002 in a trial of five banks, Dow Jones Newswires reports. The case revolves around the collapse of Parmalat Finanziaria SpA, the Italian dairy conglomerate that collapsed in December 2003 in one of Europe's biggest financial scandals.

An Italian judge ordered BofA to go to trial on allegations that it failed to prevent three former employees from market rigging in connection with Parmalat. The former employees faced charges for vetting a news release issued by Parmalat in 1999 that Italian regulators claim was misrepresentative.

The charges against Charlotte-based BofA (NYSE:BAC) were administrative. Italian law stipulates that a company can be charged for not having proper governance in place to prevent illegal actions.

The other banks ordered to go to trial by Judge Cesare Tacconi were Citigroup Inc. (NYSE:C), Morgan Stanley (NYSE:MWD), Deutsche Bank AG (NYSE:DB) and UBS AB (NYSE:UBS). The banks have denied any wrongdoing.

According to Dow Jones Newswires, the Milan court acquitted BofA of charges related to events before April 2002, because at the time the law that attributes administrative responsibilities to companies wasn't in place yet.

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Charlotte, NC - Team Freeman Real Estate - Charlotte Hotels Occupancy Falls

Aimee Freeman (RE/MAX Executive Realty - Team Freeman) — Thu, 22 Jan 2009 09:32:14 -0600

Occupancy at Charlotte-area hotel rooms fell to 49 percent in November, down 17 percent from a year earlier.

According to data from the Charlotte Regional Visitors Authority, local hotel occupancy fell 8.2 percent in the first 11 months of last year to 61.6 percent.

By comparison, in the first 11 months of 2008, hotel occupancy fell 4 percent in the United States and 6.6 percent in North Carolina.

The average room rate in the Charlotte area fell 1 percent to $81.40 in November.

For the first 11 months in 2008, the average daily rate was $87.36, up 4.9 percent from the same period in 2007.

That's more than the 3.7 percent increase in North Carolina and 2.8 percent increase nationwide.

Charlotte-market revenue per available room was $40.59 in November, down 17.7 percent from the same month in 2007.

In the first 11 months of the year, revenue per available room was $53.81 in the Charlotte area, down 3.7 percent from the same period in 2007.

It declined 1.3 percent in the United States and 3.1 percent in North Carolina in the same period.

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Charlotte, NC - Team Freeman Real Estate - Family Dollar Raises Dividend 8%

Aimee Freeman (RE/MAX Executive Realty - Team Freeman) — Thu, 22 Jan 2009 09:30:01 -0600

Family Dollar Stores Inc. has increased its quarterly dividend by 8 percent.

The Matthews-based discount chain has declared a quarterly cash dividend on its common stock of 13.5 cents per share, payable April 15 to shareholders of record on March 13.

The company's previous quarterly cash dividend was 12.5 cents per share.

"Increasing our dividend for the 33rd consecutive year reflects our confidence in the long-term growth opportunity for Family Dollar," says Howard Levine, chief executive.

Last week, the company reported a 14.1 percent increase in earnings for its first fiscal quarter ended Nov. 29.

Family Dollar earned $59.3 million, or 42 cents per diluted share, up from $51.9 million, or 37 cents per diluted share, a year earlier.

Revenue rose 4.2 percent to $1.75 billion, and comparable-store sales increased 2.1 percent.

Family Dollar (NYSE:FDO) operates more than 6,600 stores in 44 states.

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RE/MAX Executive Realty
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888-278-4935

Charlotte, NC - Team Freeman Real Estate - IKEA readies for Charlotte opening

Aimee Freeman (RE/MAX Executive Realty - Team Freeman) — Thu, 22 Jan 2009 09:27:18 -0600

Swedish home-furnishings giant Ikea is putting the final touches on its first Carolinas store, which opens in five weeks in the University area.

The 356,000-square-foot store will be one of the chain's largest. It will feature three model homes and 49 room vignettes, including 17 kitchens. Shoppers will be able to buy more than 10,000 exclusively designed products - from furniture to art, tableware and even food.

Ikea is known for low-priced furnishings that customers assemble at home.

But it has expanded its offerings and services in recent years. For example, complete kitchen setups can be purchased from about $1,800 to $3,800, including Ikea-branded appliances, cabinets and countertops.

Ikea now offers on-site designers to help shoppers create complete rooms, take measurements and recommend contractors to assemble the furniture. The store also can arrange home delivery.

And customers can rent vans at the store to take their purchases home.

"We've taken a product that is pretty good and made it fantastic," says Joseph Roth, Ikea spokesman.

Most of the store's 400 employees have been hired and are working to assemble the furniture and displays. The store is opening ahead of schedule on Feb. 18, anchoring a new Crescent Resources development off the newly created City Boulevard exit on Interstate 85.

Roth says it normally takes up to 13 months to open an Ikea store. The company broke ground for the Charlotte Ikea in April and expects to open within 10 months. Roth says the accessibility of the site and good weather contributed to the fast pace of construction.

Shoppers can start lining up 24 hours before the opening. Ikea openings can attract several thousand shoppers for a grand opening.

Ikea, founded in 1943, is a privately owned retailer based in Helsingborg, Sweden. Its U.S. sales in 2008 topped $3.2 billion. The chain has more than 280 stores around the world

Charlotte, NC - Team Freeman Real Estate - B of A Stocks Plummets

Aimee Freeman (RE/MAX Executive Realty - Team Freeman) — Thu, 22 Jan 2009 09:25:16 -0600

Bank of America Corp.'s stock, which had already dropped more than 27 percent this month, fell another 18 percent in Thursday trading.

BofA's stock, which has traded between $10.01 and $45.08 over the last year, closed at $8.32 per share Thursday, down from Wednesday's closing price of $10.20.

The drop in value follows a report from The Wall Street Journal late Wednesday that the federal government may commit billions more in aid to BofA as it acquires Merrill Lynch & Co. Inc.

According to the report, which cites individuals familiar with the situation, discussions over the funds began last month when BofA told the U.S. Treasury Department it might not acquire Merrill because of the securities firm's larger-than-expected losses in the fourth quarter.

The government agreed to a plan that includes new federal funds because it was concerned that a failed deal could affect the financial markets.

The report says details are slated to be released Tuesday when BofA announces its fourth-quarter earnings.

A possible arrangement might protect BofA from some losses on Merrill's bad assets, the newspaper says.

A BofA spokesman had no comment on the Journal 's report.

So far, BofA has received $25 billion through the federal bailout of the nation's financial system. Under the Troubled Asset Relief Program (TARP) program, the Treasury Department is purchasing up to $250 billion in preferred stock in U.S. banks. The program was designed to stabilize the ailing financial system and to encourage banks to increase lending and stimulate the economy.

The bank received $15 billion in late October. Another $10 million was originally intended for Merrill. Because BofA acquired the securities firm Jan. 1, the Charlotte-based bank (NYSE:BAC) got the $10 billion. Treasury forwarded the funds through the Troubled Asset Relief Program on Jan 9.

Concerns have grown about BofA's financial position in recent weeks. The $2.7-trillion-asset bank has enormous exposure to consumer loans, which are deteriorating along with the economy. It also is juggling two merger integrations in Countrywide Financial Corp. and Merrill, eliminating 42,500 jobs across the company tied to those two deals.

This week Citigroup Inc. (NYSE:C) analyst Keith Horowitz said he expected BofA to post a $3.6 billion loss in the fourth quarter, and he also believes the company will cut its dividend again, to 5 cents from 32 cents. In the third quarter the bank cut its dividend by 50 percent.

In a research note last night, Standard & Poor's analyst Stuart Plesser said that even with additional government funding, BofA's capital levels will still be low relative to peers. Banks are required to maintain a certain amount of capital to protect against loan losses, and Plesser expects BofA will likely have to raise additional equity capital in the coming months and cut its dividend again. A capital raise via a common stock offering would dilute existing shareholders' equity further; in October the bank raised $10 billion in new capital through a common stock offering. Plesser continues to rate BofA's shares a "sell."

Christoper Mutascio, an analyst with Stifel Nicolaus, says he is reserving judgment on the latest capital infusion from the government. In a note this morning, Mutascio says while "the initial take on this is negative," the devil will be in the details and terms of the capital infusion. If the government assistance is "punitive, then it is a bailout of (BofA), which is not good. If it is advantageous then it would appear that (BofA) earned some ‘goodwill' from the federal government and any initial negative reaction would be premature." Mutascio rates the shares a "buy."

BofA reported net income of $1.17 billion in the third quarter, down from $3.7 billion a year earlier. Analysts polled by Thomson Financial expect the company to report fourth-quarter earnings of $1.2 billion, or 8 cents per share.

For More information, go to http://www.teamfreemanproperties.com/ or find more related articles on: Active Rain Team Freeman Blog Trulia.com or HomeGain

Aimee & Team Freeman
RE/MAX Executive Realty
http://www.teamfreemanrealestate.com/
888-278-4935

Charlotte, NC - Team Freeman Real Estate - Charlotte DOT

Aimee Freeman (RE/MAX Executive Realty - Team Freeman) — Thu, 22 Jan 2009 09:21:53 -0600

Danny Pleasant has been named director of the Charlotte Department of Transportation.

Pleasant became interim director after the retirement of Jim Humphrey in late 2007. He has worked in executive positions at the department for seven years.

The department is responsible for Charlotte's road planning and operations.

"Danny has proven to be an effective leader during his tenure as interim director, helping to position Charlotte as a national model for land-use and transportation choices," says City Manager Curt Walton. "His strategic planning and urban design expertise will help guide the city as we prepare for the future in terms of managing growth, sustaining a high quality of life and accommodating more residents."

Pleasant says he will focus on enhancing services to developers, streamlining the development-review processes, improving the speediness of project delivery and finding a balance between transportation and economic-development objectives.

For More information, go to http://www.teamfreemanproperties.com/ or find more related articles on: Active Rain Team Freeman Blog Trulia.com or HomeGain

Aimee & Team Freeman
RE/MAX Executive Realty
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888-278-4935

Charlotte, NC - Team Freeman Real Estate - Corporate tax cut

Aimee Freeman (RE/MAX Executive Realty - Team Freeman) — Thu, 22 Jan 2009 09:19:31 -0600

N.C. General Assembly lawmakers have authorized the drafting of legislation that would cut the state's corporate income tax rate and make fundamental changes to the incentives the state uses to lure companies to North Carolina.

A 13-year-old system of tax credits - the William S. Lee program, which was revised into Article 3J in 2007 - essentially would be gutted. In its place, the state would pump more money into its largest cash-for-jobs grant program and shave the corporate income tax rate to 6.5 percent from 6.9 percent.

The bill will be offered by the Joint House/Senate Incentives Committee, which has been meeting over recent months to determine the efficacy of state incentives in corporate recruiting.

On Tuesday, committee members were briefed by consultants from the UNC Chapel Hill who were hired to study the performance of the state's incentives package since the early 2000s. The consultants concluded that the incentives failed to produce enough jobs.

"We've provided a lot of incentives over the past 10 years to firms that didn't grow much," says Brent Lane of UNC's Center for Competitive Economies.

In a sample of 1,213 companies, Lane found that firms receiving Lee credits added jobs at a faster clip than the overall rise in statewide employment between 1996 and early 2001. Over the ensuing five years, however, companies getting tax credits added jobs at, or more often below, the statewide rate.

Under the Lee and 3J programs, companies could claim tax credits on their state corporate or franchise tax bills for any of three reasons: adding jobs, investing in new machinery and spending funds on research and development.

Lane says the only credit program that consistently added jobs was the one for research and development. It is one of the few Lee/Article 3J incentives that Lane and his UNC colleagues recommend keeping as the state revamps its incentives arsenal.

One of the changes committee members will consider drafting into their bill would double the size of the state Jobs Development Industrial Grant, or JDIG, program, which pumps cash directly into firms for meeting hiring goals.

Between 2003 and 2007, the state spent about $380 million on JDIG awards. Lane says any expansion of the program should also include a provision calling for JDIG to target the state's poorest counties. To date, more than 80 percent of JDIG grants have gone to projects in North Carolina's wealthiest counties.

The corporate tax reduction would happen in phases. But moving in that direction, researchers say, would not only make the state more competitive in the region but also would benefit a greater number of North Carolina companies than the current mix of taxes and incentives does.

N.C. Sen. David Hoyle (D-Gaston) an incentives committee co-chair, gave the overall plan his endorsement.

"A bill that looks similar to that, I wouldn't be ashamed to put my name on something that looks like that," he says.

Other committee members pointed to the fact that 2009, with the promise of a budget shortfall approaching $2 billion, will be a difficult year to make any sort of significant tax changes.

Even so, the committee directed its staff to begin drafting legislation.

"And I think any decisions we make should be based on good research, not on what we might want to happen," says Rep. Jennifer Weiss (D-Wake), a committee co-chairwoman. Any bill the committee offers, she added, could be revised over what promises to be a long legislative session.

For More information, go to http://www.teamfreemanproperties.com/ or find more related articles on: Active Rain Team Freeman Blog Trulia.com or HomeGain

Aimee & Team Freeman
RE/MAX Executive Realty
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888-278-4935

Charlotte, NC - Team Freeman Real Estate - Inflation Rate at Lowest in 50 years

Aimee Freeman (RE/MAX Executive Realty - Team Freeman) — Tue, 20 Jan 2009 13:58:46 -0600

The United States posted its lowest rate of inflation in more than 50 years in 2008, mainly because of a record plunge in gasoline prices.

The U.S. Department of Labor says consumer prices dropped 0.7 percent in December, and rose just 0.1 percent for the year.

The small uptick last year was much lower than the 4.1 percent gain in 2007, and the smallest year-over-year change since 1954, when consumer prices fell 0.7 percent.

For December, gas prices fell 17.2 percent, the largest monthly decline in records that go back 71 years. Overall energy prices also dropped a record 8.3 percent as home heating oil and natural gas prices declined.

Energy prices fell 21.3 percent for 2008, with gas costs tumbling 43.1 percent. Food prices were flat in December, but were up 5.8 percent for the year.

December marked the third consecutive month consumer prices dropped. Excluding volatile food and energy prices, core inflation was unchanged in December. For the year, it was up a moderate 1.8 percent, compared with a 2.4 percent increase in 2007.

Price pressures have eased as the recession intensifies. According to the U.S. Federal Reserve, production at the nation's factories, mines and utilities plunged 2 percent in December, capping the worst year for manufacturers since 2001.

Industrial production declined 1.8 percent in 2008, a sharp reversal from the 1.7 percent increase logged in 2007 and the worst showing since a 3.4 percent decline during the 2001 recession.

Charlotte, NC - Team Freeman Real Estate - Mortgage Update

Aimee Freeman (RE/MAX Executive Realty - Team Freeman) — Tue, 20 Jan 2009 13:52:28 -0600

MMG Update + By The Numbers - Tuesday, January 20, 2009 10:19AM ET

Current Trend Direction: Sideways

Risks favor: Floating

Current Price of FNMA 4.0% Bond: $100.06, -12bp

Today marks the inauguration of Barack Obama, America's 44th president. President-Elect Obama has an arduous task ahead of him as he takes control of a nation that is in the midst of one of the worst economic downturns since the Great Depression.

There are no economic reports due for release today - but that hasn't meant much lately as Mortgage Bonds have traded in volatile fashion without the spark of economic news...and today is no different. Prices have already improved significantly from their worst levels earlier today.

The markets are waking up and realizing the cost of these rescue plans and stimulus packages will be to sell more Treasury Bonds. This additional Bond supply has to be absorbed by the market and when there is more supply than meets demand - prices drop. Treasuries, in particular, are under very heavy selling pressure this morning.

This morning's price action is causing a test of support at the 25-day Moving Average. Take a peek at the Bond Chart and you can see that prices are off the worst levels of the day, after touching support at the Rising Trend Line and improving. We'll float for now, as prices test this support.

But let's be mindful - and hopefully you are experiencing this as well - that investors are slammed with the uptick in volume during the past several weeks. This comes at a time when investors have both shrunk in number and have depleted head count, in an effort to slash costs. So while the increase in activity is certainly a good thing, it may be too much too soon for investors to handle, and the only way to slow down the volume is by an increase in pricing. And if you're an investor...why not do this, while being maxed out in capacity anyways? It helps increase profits while making the workload manageable. As an originator, this can be very frustrating as you watch the actual markets improve from time to time...but this improvement is not being reflected in some investors rate sheets. Let's remember, this is a temporary phenomenon - but during the interim, this is not a time to cut short your lock-in time frames. In other words, make sure you have ample or even excess lock-in periods to get your loans closed during this bottleneck. Be smart and take 60 day locks, rather than trying to squeeze in a shorter time frame.

BY THE NUMBER$

1. THE BEST AND THE WORST - In the last half-century (i.e., the 50-years from 1959-2008), the largest percentage gain day for the S&P 500 (up +11.6% on 10/13/08) and the 2nd largest percentage loss day (a drop of 9.0% on 10/15/08) occurred within 2 days of each other. The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the US stock market (source: BTN Research).

2. GOOD DAYS AND BAD DAYS - In spite of losing 37.0% in calendar year 2008, the worst total return performance for the S&P 500 in 77 years, 5 of the top 6 percentage gain days in the last 50 years for the index occurred in the last 3 months of 2008. The S&P 500 also suffered through 4 of its 6 worst percentage loss days from the last 50 years in 2008 (source: BTN Research).

3. FEW STOCKS, LARGE IMPACT - The 10 largest stocks in the S&P 500 made up 23% of the total stock market capitalization of the index as of 12/31/08. Thus, 2% of the stocks in the index (i.e., 10 out of 500) have 23% of the stock value of the index. The S&P 500 is a market-cap weighted index (source: S&P).

4. BIG FOR A LONG TIME - 5 of the 10 largest capitalized stocks in the S&P 500 as of 12/31/08 were also ranked on the list of the 10 largest capitalized stocks for the index a decade earlier (source: S&P).

5. MISSING THE BEST DAYS - The average total return for the S&P 500 over the last 25 years (i.e., 1984-2008) is +9.8% per year. If you missed the 25 best percentage gains days in those 25 years (i.e., 25 days in total, not 25 days each year), your average total return falls to +3.9% per year (source: BTN Research).

6. TIME IS ON YOUR SIDE - The split between "up" and "down" days for the S&P 500 over the last 50 years is 53% "up" and 47% "down." The split is 58%/42% if the time period analyzed is months over the last 50 years, 63%/37% if the time period is quarters, 72%/28% if the time period is years, 76%/24% if the time period is 5 rolling years, and 88%/12% if the time period is 10 rolling years. The calculation was based upon the raw index value of the S&P 500 and thus would not include the impact of any reinvested dividends (source: BTN Research).

7. THE NEXT YEAR - In the last 75 years (i.e., 1934-2008), the S&P 500 stock index has suffered total return losses of at least 20% in 4 different calendar years, the most recent was last year's 37.0% decline. In the year after the 3 previous 20%+ tumbles, the index gained an average of +32% (source: BTN Research).

8. THREE OPTIONS - US businesses have an estimated $758 billion of corporate debt maturing this year. The bonds may be paid off, rolled over to new debt or could default (source: S&P, Wall Street Journal).

9. LIVE AND LET DIE - If it takes you 4 minutes to read this issue of BTN, in that length of time 30 births and 20 deaths will have taken place in the USA (source: Census Bureau).

10. OUT-OF-POCKET - Households pay 31% of total health care expenditures (e.g., prescription drugs, hospital care, physicians' costs, clinical services, nursing home care). The remaining 69% is paid by businesses, insurance companies and governments (federal, state and local). The data is from calendar year 2007 (source: Centers for Medicare & Medicaid Services).

11. NOT THE FIRST - One of President-elect Obama's campaign pledges is to implement universal health care, an effort first undertaken by President Theodore Roosevelt more than 100 years ago (source: Newsweek).

12. GLOOMY FORECAST - The chief economist for a global economic forecasting company with offices in 14 countries worldwide believes the # 1 risk today facing the US is a timid response to the global financial crisis. Nariman Behravesh predicts the current US recession may potentially be the most severe America will experience since the end of World War II (source: HIS Global Insight).

13. TAX WORK - IRS audits of individuals and businesses resulted in the payment of $1.1 billion of additional taxes per week in fiscal year 2008. 33 out of every 34 individual taxpayers making at least $200,000 were not audited by the government (source: Internal Revenue Service).

14. BY THE NUMBERS - The top 3 jobs in the USA are # 1, mathematician; # 2, actuary; and # 3, statistician. The rankings were based upon work environment, income potential, employment outlook, physical demands of the job and work-related stress. The worst job in the nation: lumberjack (source: CareerCast.com).

15. WORKING IN WASHINGTON - Barack Obama becomes the 44th President of the United States tomorrow. His new administration is responsible for 7,840 appointees to fill government jobs. 85% of those appointees do not require Senate confirmation (source: Rocky Mountain News).

For More information, go to http://www.teamfreemanproperties.com/ or find more related articles on: Active Rain Team Freeman Blog Trulia.com or HomeGain

Aimee & Team Freeman
RE/MAX Executive Realty
http://www.teamfreemanrealestate.com/
888-278-4935

- Reproduction Prohibited without Express Permission -
Copyright © 2009 Michael A. Higley. All rights reserved. Email mick.higley@mahbtn.com for information.
Past performance may not be indicative of future results

Charlotte, NC - Team Freeman Real Estate - BBB Complaints up 5%

Aimee Freeman (RE/MAX Executive Realty - Team Freeman) — Mon, 19 Jan 2009 13:23:43 -0600

The Better Business Bureau of the Southern Piedmont says complaints against area businesses rose 5 percent last year to 14,972.

In 2007 the bureau received 14,180 complaints, up 25 percent over 2006.

"For the second year in a row, 85 percent of these complaints were closed satisfactorily, thanks to businesses and consumers who worked with the BBB to resolve their disputes," says Tom Bartholomy, chief executive of the BBB.

The average length of time it took the BBB to close a complaint in 2008 was 17 days from the date that the complaint was filed, up from 16 days in 2007 but down from 19 days in 2006.

The top five businesses with the most complaints are home improvement, new-car dealerships, Internet gaming, auto repair and service, and used-car dealerships.

Last year, the BBB provided consumers with 832,020 free reliability reports on area businesses. That's a 71 percent increase over 2007's total of 485,798, which was up 72 percent on the 2006 total of 282,000.

"In a down economy, consumers are making careful decisions and checking out businesses with the BBB first," Bartholomy says.

For More information, go to http://www.teamfreemanproperties.com/ or find more related articles on: Active Rain Team Freeman Blog Trulia.com or HomeGain

Aimee & Team Freeman
RE/MAX Executive Realty
http://www.teamfreemanrealestate.com/
888-278-4935

Charlotte, NC - Team Freeman Real Estate - Market Watch

Aimee Freeman (RE/MAX Executive Realty - Team Freeman) — Mon, 19 Jan 2009 13:20:09 -0600

The average interest rate for a 30-year fixed-rate mortgage fell below 5 percent last week, prompting many homeowners to investigate refinancing options, according to a report by real estate Web site Zillow.com.

For the week ended Jan. 11, the average 30-year rate in the United States was 4.92 percent, down from 5.10 percent the week before, according to the Zillow Mortgage Rate Monitor.

North Carolina experienced an almost identical drop, to 4.92 percent, from 5.09 percent.

Arizona had the lowest average rate last week at 4.80 percent, and Michigan had the highest, at 5.05 percent.

Seattle-based Zillow compiles rates quoted by 4,000 participating mortgage lenders to potential borrowers on its site.

If you are looking to sell or buy real estate, contact Team Freeman today!

For More information, go to http://www.teamfreemanproperties.com/ or find more related articles on: Active Rain Team Freeman Blog Trulia.com or HomeGain

Aimee & Team Freeman
RE/MAX Executive Realty
http://www.teamfreemanrealestate.com/
888-278-4935

Charlotte, NC - Team Freeman Real Estate - General Information

Aimee Freeman (RE/MAX Executive Realty - Team Freeman) — Mon, 19 Jan 2009 13:05:43 -0600

GMAC Financial Services' interest in locating its corporate headquarters here has taken a turn toward uptown, according to sources familiar with the search.

Former Bank of America Corp. Chairman Hugh McColl Jr. and others have taken an active role in pushing for the company to focus on center city as it considers a move of its headquarters here from Detroit.

The company had considered a Ballantyne location, where GMAC has a 200-employee back-office operation. Uptown sites now seem to have the upper hand for the auto-finance giant.

The early speculation about GMAC's plans were fueled, in part, by the fact that former BofA Chief Financial Officer Al de Molina, who became chief executive at GMAC in April, has maintained a residence here.

For More information, go to http://www.teamfreemanproperties.com/ or find more related articles on: Active Rain Team Freeman Blog Trulia.com or HomeGain

Aimee & Team Freeman
RE/MAX Executive Realty
http://www.teamfreemanrealestate.com/
888-278-4935

Charlotte, NC - Team Freeman Real Estate - Home Improvement Update

Aimee Freeman (RE/MAX Executive Realty - Team Freeman) — Tue, 13 Jan 2009 11:01:03 -0600

(ARA) - Increasing costs have become evident in every aspect of our lives. In addition to daily expenses like gas and groceries, home improvement costs are escalating across the nation as well.

The cost of construction materials has risen more than 10 percent during the past year, the Bureau of Labor Statistics reports. In addition, the American General Contractors (AGC) of America find that construction costs have increased more than twice the overall consumer price. As the summer months rolled by, construction prices kept increasing. By the end of July, the cost of steel, a material widely used in home construction, had increased more than 90 percent in the past year, according to the AGC.

Transportation expenses are a main contributing factor to increasing home improvement costs. Semis powered by diesel transport many building products and diesel has drastically increased in price. These increases have, in return, been passed to the consumer. When expanding, remodeling or repairing your residence, you can expect the cost of materials for your project to be affected by transportation costs.

Asphalt shingles, which cover nearly 85 percent of roofs in America, are a prime example of a building material with significant price increases. "The price of asphalt shingles has risen due to the dramatic rise in the cost of their main ingredient -- asphalt," says Stephen McNally, vice president of sales and marketing for TAMKO Building Products Inc. The cost of asphalt increased 40 percent within the first two weeks of July alone, according to the Bureau of Labor Statistics.

If you are planning a home improvement, don't be discouraged by rising costs. Consider purchasing higher-quality products that may cost more initially, but can save you money in the future. Many products are available, but one option that homeowners may not think of as a high-quality product is metal roofing. For example, MetalWorks Steel Shingles, which resemble slate, shake or tile roofing, are an aesthetically-appealing product. They offer energy efficiency and a 50-year limited warranty -- two features that may save you money in the long term.

Homeowners planning to delay repair projects in hopes that prices will drop, can expect to pay a higher price the longer they wait. "When the prices of construction materials rise, they don't fluctuate like gasoline," says McNally. "These are the kinds of prices that go up and stay up."

Within the next three years, the cost of cement is estimated to increase 20 percent -- iron and steel prices more than 120 percent and copper prices nearly 170 percent -- according to the U.S. Department of Labor Statistics Producer Price Index. The rising cost of these raw materials will, in turn, raise the costs for a variety of items used in home improvements.

Whether planning to fix your leaky roof, add a deck for enjoyment or increase your living space, the price of building materials continues to climb. Regardless of the home improvement projects you are considering, it's important to remember that the longer you delay, the more you're likely to pay.

Courtesy of ARAcontent

Aimee&Team Freeman
RE/MAX Executive Realty
http://www.teamfreemanrealestate.com/
888-278-4935

Charlotte, NC - Team Freeman Real Estate - Time Warner Cable to raise rates!

Aimee Freeman (RE/MAX Executive Realty - Team Freeman) — Tue, 13 Jan 2009 10:46:56 -0600

Time Warner Cable Inc. will raise its local cable rates next month.

Under the new plan basic rates will increase to $12 from $11 per month, while standard service will rise to $54.95 from $51.95.

The monthly cost of DigiPic 1000 will grow to $71.95 from $67.75. The company will raise the price of DigiPic 2000 to $89.95 from $85.75, with DigiPic 4000 going to $99.95 from $95.75.

Company spokeswoman Melissa Buscher says more than 60 percent of local subscribers won't face an immediate increase as they have discounted bundle packages or other promotions.

She says the price increases will offset high programming costs and infrastructure investments. Buscher says Time Warner invested $50 million to upgrade local service last year and expand its offerings.

And she says Time Warner Cable is not the only provider increasing rates.

For More information, go to http://www.teamfreemanproperties.com/ or find more related articles on: Active Rain Team Freeman Blog Trulia.com or HomeGain

Aimee & Team Freeman
RE/MAX Executive Realty
http://www.teamfreemanrealestate.com/
888-278-4935

Charlotte, NC - Team Freeman Real Estate - Mortgage Update

Aimee Freeman (RE/MAX Executive Realty - Team Freeman) — Tue, 13 Jan 2009 10:29:51 -0600

Weak economic data and strong demand for mortgage-backed securities (MBS) helped mortgage rates remain at historically low levels during the week. Refinancing activity has increased dramatically as borrowers have rushed to take advantage of low rates. As a result, backlogs have developed at almost every step in the origination process, extending the time necessary to close many loans.

On November 25, the Fed announced a plan to purchase as much as $500 billion in MBS. On Monday, the Fed revealed that it had begun to actually purchase securities. The Fed reported that it bought $10.2 billion of a wide range of MBS. Mortgage rates are affected by MBS prices, and this added demand for MBS helped support low rates.

Investors knew that the economy was in tough shape in December, so there was little reaction to Friday's ugly Employment report. The economy lost 524K jobs in December, and 2.6 million jobs were lost in 2008, mostly during the final four months of the year. The manufacturing and construction sectors remained weak, while there were small gains in education and health care. One bright spot was that wage growth increased at a faster than expected 3.7% annual rate. The current economic weakness also helps support these low mortgage rates.

The monthly inflation reports will highlight the economic calendar next week. The Consumer Price Index (CPI), the most closely watched monthly inflation report, will come out on Friday. CPI looks at the price change for those finished goods which are sold to consumers. The Producer Price Index (PPI) focuses on the increase in prices of "intermediate" goods used by companies to produce finished products and will come out on Thursday. In addition to the inflation data, Retail Sales will be released on Wednesday. The Retail Sales report is a major indicator of spending levels by consumers, who account for about 70% of economic activity. Industrial Production, another important indicator of economic activity, will be released on Friday. Consumer Sentiment and Import Prices will round out the schedule.

For More information, go to http://www.teamfreemanproperties.com/ or find more related articles on: Active Rain Team Freeman Blog Trulia.com or HomeGain

Sincerely,

Aimee & Team Freeman

Charlotte NC - Team Freeman Real Estate - U.S. loses 524,000 jobs in December

Aimee Freeman (RE/MAX Executive Realty - Team Freeman) — Sun, 11 Jan 2009 13:43:24 -0600

The United States lost more than half a million jobs last month and the unemployment rate soared to 7.2 percent.

Unemployment stood at 4.9 percent in December 2007.

The U.S. Bureau of Labor Statistics reports a loss of 524,000 jobs between November and December. That continued a four-month streak, which saw 1.93 million jobs vanish between August and December.

The national unemployment rate crossed the 7 percent mark in December, rising from 6.8 percent in November to 7.2 percent.

The biggest decline occurred in the manufacturing sector, which lost 149,000 jobs in December. A total of 791,000 manufacturing jobs disappeared in the 12 months of 2008, an average loss of 66,000 per month.

The nation also lost 101,000 construction jobs in December and 632,000 in the entire year.

Employment in the retail-trade sector declined on a seasonally-adjusted basis, despite the holiday season. There were 66,600 fewer retail trade jobs in December than in November. Retail losses for the year totaled 522,300 jobs.

The only sectors to register increases between November and December were health care, which picked up 31,600 jobs nationally; educational services, up 7,000 jobs; and government, which added a total of 7,000 jobs at the federal, state and local levels.

For More information, go to www.TeamFreemanProperties.com or find more related articles on: Active Rain Team Freeman Blog or Trulia.com

Charlotte NC - Team Freeman Real Estate - Charlotte Sales Pummet 47.2%

Aimee Freeman (RE/MAX Executive Realty - Team Freeman) — Sun, 11 Jan 2009 13:32:39 -0600

The number of houses sold in the Charlotte market fell 47.2 percent last month, and the average closing price declined 8.3 percent, according to the Charlotte Regional Realtor Association.

The number of closings dropped to 1,350 last month from 2,559 in December 2007.

The average sales price declined to $200,226 from $218,399 a year earlier.

The average number of days a home spent on the market before a sale was 147.5.

The figures are for homes sold in Mecklenburg, Union, Iredell, Lincoln, Cabarrus, Gaston and Stanly counties.

The Charlotte Regional Realtor Association operates the Carolina Multiple Listing Services Inc., which has more than 10,000 subscribers. The trade association provides resources and services to more than 9,000 Realtor members.

For More information, go to www.TeamFreemanProperties.com or find more related articles on: Active Rain Team Freeman Blog or Trulia.com

Charlotte NC - Team Freeman Real Estate - Home Improvement

Aimee Freeman (RE/MAX Executive Realty - Team Freeman) — Fri, 09 Jan 2009 11:48:35 -0600

(ARA) - A few years ago you finished your basement. You put in all the hard work to make it a perfect retreat and lounge. But you haven't done a thing with it since. So often, people finish their basements and then forget about any upkeep.

Though the basement is often viewed as a rugged recreational room, it still deserves the same decorative and functional attention as the rest of the home; and the winter months provide the perfect opportunity to tackle some of those projects.

These simple tips will help renew and rejuvenate your basement by making it more usable, durable and inviting for your family and friends. Plus, each project is affordable and won't require excessive work to accomplish. Most can be completed in one weekend, or a few evenings after work.

Paint in the Winter? Yes, You Can
One of the best ways to make your basement look brand new is to repaint. A fresh coat of paint will re-energize the room and provide a whole new feel. And, with newer paints having very low VOC (volatile organic compound) content, it's safe to paint even with the windows closed.

Additionally, many of today's low-VOC paints, like Pratt & Lambert's RedSeal Porcelain, are also extremely durable, which is essential in a basement. This green-certified latex interior paint is actually scrubbable. Tiny porcelain beads in the paint don't allow stains to penetrate the wall surface, making it simple to clean up. So whether your 2-year-old splashes his grape juice on the wall, or a Sunday football game ends in a celebration of flung nacho cheese, wall cleanup will be quick and easy.

Light it Up, or Down
Basement lighting can be tricky. Trying to balance the volume of light emitted from fixtures ranging from a single pull-chain bulb to fully-integrated recessed canister lights is no easy task. Simple dimmer switches are one of the easiest ways to make sure you can balance a basement lighting scheme at any point in the day.

Dimmer switches allow for a multitude of lighting options, whether you have a windowless basement that is completely lit by artificial lighting, or even if you have a fully finished walk-out basement with large windows and sliding glass doors. Dimmers can be purchased at any hardware store and are quickly and easily installed even by novice electricians and homeowners.

What's Under Foot
Generally, because basement flooring is set on top of concrete slabs, most people opt for heavily padded carpet so they won't feel the rigidity and hardness of the slab. The problem, however, is basement carpeting can become very dirty, worn and outdated rather quickly. The good news is that even if you already have carpet installed, you can update the flooring to a more modern, sophisticated pattern relatively simply and inexpensively.

Tarkett's FiberFloor resilient flooring offers what homeowners desire most in their basements: resistance to water and moisture, scratches, scuffs, stains and indentations. And, it's easy to clean - a basement must. Resilient sheet flooring offers an attractive option for a high-end appearance with the latest styles and patterns in a wide array of colors, designs and textures. Plus, after tearing up the existing carpet, all you need to do is roll out the sub-floor padding and then lay the floor.

The Good Kind of Mold-ing
Decorative architectural elements such as baseboards and crown molding can add dramatic effects to a basement, but many homeowners are concerned that using these molding pieces will shrink the appearance of the room. Though it is true that most basements have lower ceilings than the rest of the home, some simple, thin, crown molding creates a very polished look in a basement.

Accenting the crown molding with color-matched baseboards easily turns the basement from a modest recreational area to a coveted destination area for your family and guests.

Each of these basement remodeling options is easily accomplished, no matter how cold it might be outside. The basement is most often a multi-use room, and these simple projects will certainly improve the room's usability, quality and appearance.

For more information about Pratt & Lambert's RedSeal Porcelain visit www.prattandlambert.com. For more information about Tarkett flooring, visit www.tarkett.com.

Courtesy of ARAcontent

For more information on decorative ideas or staging to get your home sold quick and for top dollar, contact Team Freeman today!

For More information, go to www.TeamFreemanProperties.com or find more related articles on: Active Rain Team Freeman Blog or Trulia.com

Charlotte NC - Team Freeman Real Estate - Market Statistics

Aimee Freeman (RE/MAX Executive Realty - Team Freeman) — Fri, 09 Jan 2009 11:10:08 -0600

Hello Everyone!

I just received my new statistics from the MLS board this afternoon so I wanted to send them over. These will be for October and November 2008 to show you how much of a decline we have had, and we are expecting December to be even worse.

October:

Total homes sold = 1,848

Total homes on the market = 28,555

A total of 6.5% of homes listed actually sold.

Closed sales are down 31% from last year at this time.

Under $120k = 11.0% sold

$120k-150k = 8.9% sold

$150k-190k = 6.7% sold

$190k-250k = 5.7% sold

$250k-350k = 5.0% sold

$350k-500k = 3.9% sold

$500k-1 mill = 3.0% sold

1 mill + = 2.4% sold

The average days on market is 134.4 days.

November:

Total homes sold = 1,521

Total homes on the market = 27,515

A total of 5.5% of homes listed actually sold.

Closed sales are down 37.8% from last year at this time.

Under $120k = 9.7% sold

$120k-150k = 7.7% sold

$150k-190k = 6.5% sold

$190k-250k = 5.6% sold

$250k-350k = 3.7% sold

$350k-500k = 2.6% sold

$500k-1 mill = 1.9% sold

1 mill + = 1.2% sold

The average days on market is 134.7 days.

If you have any questions, please contact Team Freeman today at 888-278-4935.

For More information, go to www.TeamFreemanProperties.com or find more related articles on: Active Rain Team Freeman Blog or Trulia.com

Charlotte NC - Team Freeman Real Estate - HUD, FORECLOSURES, REO, AS IS

Aimee Freeman (RE/MAX Executive Realty - Team Freeman) — Fri, 09 Jan 2009 10:20:34 -0600

Someone asked two questions that I felt ALL buyers should be aware of when working with a Real Estate Agent. "Are foreclosures a good deal when presented by a real estate agent from the MLS and is it a hard process to buy???" Here is your answer to those questions:

First of all, I would caution you against thinking something is a good deal simply because it is in foreclosure. There are a lot of people making that mistake. A deal is a deal is a deal regardless if it is in foreclosure or a straight up seller sale or something in between. What makes it a deal is the price you can get it for in relation to how much you think it is worth or will be worth soon.

Bear in mind that if something is listed as a bank-owned property (foreclosure) for sale on the open market (MLS) then it has already been sifted through and passed over by a lot of savvy investors and buyers. The most savvy investors will find a deal long before it ever gets to foreclosure. Then once it goes up for sale at the courthouse there will be another level of investors looking over it then and snatching up any good deals there. If at that point no one else has bought it then the bank "buys" it and it goes for sale on MLS. Not to say it isn't a good deal at that point, but it isn't the "best" deal and my main point is that just because it is a foreclosure does not automatically make it a good deal.

Plus every neighborhood is so incredibly unique. Just because something is priced low doesn't mean anything without understanding the context of that specific neighborhood. It is SO important that you work with a good buyer's agent (particularly one that is experienced with investment properties) who can assess the value of the house in relation to the neighborhood for you and advise you on what truly is a good deal.

As for your question of buying a home in foreclosure being difficult. It is easy if you work with an agent who is experienced in these matters.

If you are in the market of buying or selling real estate, contact us today!

For More information, go to www.TeamFreemanProperties.com or find more related articles on: Active Rain Team Freeman Blog or Trulia.com

Sincerely,

Aimee & Team Freeman

Charlotte NC - Team Freeman Real Estate - RE/MAX - Finding the Right Agent

Aimee Freeman (RE/MAX Executive Realty - Team Freeman) — Thu, 08 Jan 2009 11:53:20 -0600

WHY MOST PEOPLE FAIL TO FIND THE RIGHT AGENT

Selecting an agent is just as important as selecting the right home to buy or price to sell for. An agent will bring to the table the tools you need to get the job done efficiently. The lack of a sufficient agent will only lead to losses and issues. With the growth in the housing market being steady, the industry has taken on a lot of lack luster agents, so be sure to read this article and find out how to avoid inefficient agents and instead learn how to find a top producer.

We have sought out real estate experts to prepare a special report called, "SELECTING AN AGENT" This report is a must if you think you are unable to afford a home. Open this report RIGHT NOW by simply clicking the link below and fill out the information, which will provide you with immediate access to this report and all our specially prepared reports.

Click HERE to retrieve your special report now.

For More information, go to www.TeamFreemanProperties.com or find more related articles on: Active Rain Team Freeman Blog or Trulia.com

Best Wishes,

Team Freeman

Charlotte, NC - Team Freeman Real Estate - Mortgage Today

Aimee Freeman (RE/MAX Executive Realty - Team Freeman) — Thu, 08 Jan 2009 10:09:24 -0600

MMG Update - Thursday, January 8, 2008 10:14am ET

Current Trend Direction: Higher

Risks favor: Floating

Current Price of FNMA 4.5% Bond: $102.69, +22bp

Mortgage Bonds are trading higher and at historic levels. The Fed was likely active in the markets continuing their purchase program this morning. The results from the Fed's purchases are expected to be released sometime today.

Initial Jobless Claims were 467,000, much better than the 550,000 expected and the lowest reading in 3 months. The news is being taken with a grain of salt as this report took place over a holiday week were people may have delayed filing for unemployment claims. So while on the surface this report is much better than expected, we don't see this as having much of an effect on tomorrow's Jobs Report...read on for our Jobs Report strategy.

In a historic move, the Bank of England lowered their benchmark interest rate by .50% to 1.5%. Now get this - the benchmark rate has NEVER been this low since King William III founded the central bank in 1694 to fund a war against Louis XIV's France. The rate began at 6% and fell no lower than 4% throughout the 18th century. It touched 2% several times in the second half of the 19th century. The central bank held it at that level throughout the Great Depression and World War II until 1951. These sure are historic times.

Stocks are under selling pressure thanks to a rash of earnings warnings from the nation's retailers. Wal-Mart said today that 4th quarter profits will miss expectations after one of the worst holiday shopping seasons on record. Macy's and Limited Brands cut their earnings forecast after the weak December sales readings and Macy's said they are closing 11 stores. The International Council of Shopping Centers estimates 148,000 retail stores closed in 2008 and that another 73,000 would do so in the first half of 2009. Should we see an accelerated pace of store closings, it could have a negative effect on commercial real estate and municipal tax revenue.

For More information, go to www.TeamFreemanProperties.com or find more related articles on: Active Rain Team Freeman Blog or Trulia.com

Aimee Freeman
TeamFreeman
RE/MAX Executive Realty
www.TeamFreemanRealEstate.com
888-278-4935

Charlotte NC - Team Freeman Real Estate - Taxes

Aimee Freeman (RE/MAX Executive Realty - Team Freeman) — Thu, 08 Jan 2009 09:32:42 -0600

Despite these difficult times in the economy how would you like to take home more money this year by paying less money in taxes? Of course you would. This is for everyone from the High-paid executive to the stay at home mom.

There are two tax laws in this country. Most people automatically chime in at this point and chant "one for the rich and one for the poor!" But in reality there is a tax law for business owners and a tax law for employees! Please read the following article to learn how joining iLearningGlobal could pay for itself over and over no matter how successful you are at building the business.

You should know that by joining iLearningGlobal as a customer or a marketer, you will get access to Sandy Botkin's complete tax savings program on the site. So sign up for iLearningGlobal today for only $79.95and view his entire tax course on the website. . Then spend some time on the website viewing hundreds of thousands of dollars worth of training on-demand!

You can't afford not to take advantage of this program. If nothing else, you should enroll in iLearningGlobal for one month before you decide not to be a regular subscriber. This tax training program alone would cost you hundreds of dollars to get anywhere else! We are confident you will want to remain a member, !

Tax-Planning Expert Sandy Botkin

Hire your children, write off your golf game and other legal tax deductions that you might not know about

By Laura Tiffany | February 25, 2003

So you think the government is out to rob you of all your hard-earned money? Every time you hear the word "tax," you recoil in fear? Cheer up! It's not that bad--especially if you're a business owner.

Tax expert Sandy Botkin, author of Lower Your Taxes Big Time! and a former IRS attorney, says there is hope for all us saps who just hand over our paychecks to Uncle Sam. Read on for Botkin's tips on taking advantage of tons of business tax deductions--all within the letter of the law.

You say that homebased business is one of the few legal tax shelters left. What does that mean?
Sandy Botkin: First of all, understand something: We have two tax systems in this country. [Many] times people think there's one for rich and one for poor. That is a huge myth. What the systems are is one for employees--people who don't know the rules, which are designed to take your wealth--and one for self-employed people, [the rules of] which are designed to create economic growth. The reason for that is, small business generates over 70 percent of the jobs in this country. So Congress passes good tax laws. And there are good tax laws--let me emphasize this--for small business.

Let's say your business generates a loss. If that loss exceeds the income from that business, you can use that loss against any form of income you have: interest, dividends, rents, wages, pensions, anything. Say you make $50,000 in salary and you have a small business that creates a $10,000 loss. You only pay tax on $40,000. Let's say the loss exceeds your whole income. You can carry back all business losses in 2002 five years and actually get a refund from the last five years' federal and state income tax you paid. In 2003, by the way, that number is going down to two years. Or you can carry forward all business losses 20 years and offset the next 20 years of earning. So you never lose a properly documented business deduction.

What if your homebased business is profitable? How can you still save on your taxes?
Botkin: By having a profitable homebased business, you can set up a host of fringe benefits, many of which I include in my book. You can set up a self-insured medical reimbursement plan and write off all your deductibles, eyeglasses, co-insurance, pre-existing conditions. Usually that stuff has to exceed a certain threshold [7.5 percent of your adjusted gross income] to deduct anything. With a self-insured medical reimbursement plan, you get a deduction regardless. It's dollar for dollar.

What other deductions do people not typically know about?
Botkin: As an employee, you have to pay [taxes on everything]. As a self-employed person, you don't pay tax until all your deductions are over. So [if you're an employee making] $60,000 a year, you've got to pay Social Security on 15.3 percent of $60,000. You've got to pay income tax on $60,000, regardless of your employee business expenses. [But] if you're self-employed--let's say you have $40,000 of expenses on that $60,000, you only pay tax on $20,000. You pay tax on your net. See the difference?

So what are some things you can do? If you have a child and you want to send them to college, that isn't deductible. And if you pay for their wedding, is that deductible? The answer is no. But if you were to hire your children in your business and pay them [the same] wage you'd pay an assistant, that's deductible. And if they use that money to pay for their own college or their own wedding or their own car, aren't you in essence getting a deduction for those things?

And by the way, children under 18--if you hire them in a sole proprietorship business--are exempt from Social Security and federal unemployment taxes, and the first $4,700 they made in 2002 is exempt from income tax. Result? You get a deduction, and they get that money tax-free.

So to protect yourself, you need to do the same paperwork as you would a normal employee?
Botkin: Good point. You want to have things like time sheets or a tax diary showing what your kid did. So for example, you might say Matthew, my son, sorted files and made 3-by-5 cards for four hours on February 3. That shows what he did, when he did it and how long he worked.

You also want to pay by check--none of this under-the-table nonsense, because [checks] establish a payment from you to your child to your child's bank account. You want to have the appropriate paperwork done. There are W-2s you have to file once a year and 940s and 941s for unemployment and Social Security. But I recommend using a payroll service, because people don't want to do all this paperwork. They will do all the payroll, all the forms, all the filings. You also want to have a contract for services showing you hired your kids and what you're paying them, a normal contract like any other employee.

Does all this apply when you hire your spouse as well?
Botkin: Yes, it's all the same. Now for hiring your spouse, you can set up a self-insured medical reimbursement plan. I can deduct all my medical expenses, dollar for dollar--not because I'm paying medical, but because I'm providing a medical reimbursement plan for my employee, who I happen to be married to. And the IRS has approved this, by the way. It's not some loophole I thought up.

What are some other techniques for taking deductions?
Botkin: A lot of people don't know that when you're in business, you can deduct your fun. IRS says in their regulations that you can deduct 50 percent of your fun and 50 percent of your [business associate's] fun if you talk business within the same 24-hour day as the fun. Say you invite a prospect over to go to a football game. You talk business over the phone and then pick them up two hours later. Is that talking business within the same 24-hour day? The answer is yes. Say we go to a restaurant and I talk to you in the car about our business or try to get referrals and then we go to a nice theater. Is that talking business within the same 24-hour day? The answer is yes.

You also don't need receipts for entertainment if it's under $75 per expense. Now when you do entertain, the IRS requires certain documentation. So with entertainment, you have to write down what I call the four Ws and an H:

Who: name and occupation

Where: We went to Greasy Lloyd's restaurant.

Why: Why did you take that person out?

And here's one of the biggest mistakes self-employed people make. You must be specific in the documentation. The word "prospect" isn't specific enough. "Good will" isn't specific enough. Specific would be "try to get a referral" or "talked with a reporter about my book." Don't be general.

What: What was the date, and was it for breakfast, lunch or dinner?

And finally, how much.

If you write down all five things, you'll never have to worry about an IRS audit again. If you leave out any one of the five, your deductions will be disallowed and the IRS will hit you with a 75 percent penalty, plus interest.

Why is it so important to make yourself aware of these things?
Botkin: What amazes me is, say you look at your credit card statement and there's a $200 charge you never saw before. Aren't you going to call the credit card company and find out what's going on? And you might spend an hour on the phone doing that. Yet taxes are the number-one expense in this country. They exceed what most people pay for food, clothing, lodging and transportation combined. [But] 99 [percent of people] give it a 10-minute thought. And the reason is, there's a huge myth in this country. "My accountant takes care of my taxes."

What are some audit red flags that people need to avoid?
Botkin: The number-one red flag is failing to report all your income. The IRS matches all those 1099s you get from your bank accounts, your stock brokerage companies, whatever. If there's a mismatch--suppose you made $30,000, but you only report $28,000--then you're calling attention to your tax return.

The second thing you want to do is do not use cents in figuring out your tax return. Always round. Mathematical errors cause some of the biggest scrutiny of your tax return because things don't match up. If you use cents, you're just increasing your chance of making an error.

If you do your own tax return, for the most part, you increase your chance of being selected for an audit. The IRS figures if you do your own return, you don't know what you're doing, unlike accountants who might do hundreds of returns. People tend to make more mathematical mistakes when they do their own returns than accountants make.

Third major tip to reducing your chance of audit: Always, always send in your tax return with a return receipt. And if there's a check, send it registered mail or FedEx. There [have even been] cases where if you do send it FedEx [and it is lost], the IRS will waive penalties.

I'll give you another nice tip. Many times people call the IRS for information, especially during this time of year. The problem is, the IRS isn't bound to anything they tell you. However, there is one situation where you can call IRS and if you get a bad answer, they'll waive penalties. But you've got to get six things when you call them: The person's name, their badge number, the date of the call, the time of the call, the nature of the question and the answer. If you write down all six things and you get a bad answer that IRS relied on, they'll waive penalties.

For More information, go to www.TeamFreemanProperties.com or find more related articles on: Active Rain Team Freeman Blog or Trulia.com

Charlotte NC - Team Freeman Real Estate - Property Info - Planters Walk

Aimee Freeman (RE/MAX Executive Realty - Team Freeman) — Wed, 07 Jan 2009 18:22:10 -0600

Team Freeman is one of the fastest growing real estate teams in the Charlotte area. With their top notch negotiation skills and their long list of raving fans, their professional team of licensed agents plan to take their business to new heights in 2009.

If you want to be represented by the best, you need to hire the best.

If you are in the market of buying or selling real estate, contact a Team Freeman agent to help you reach your goals. Call 888-278-4935 or go to www.TeamFreemanRealEstate.com

Welcome to Planters Walk!

Located on the southwest end of Charlotte, in Mecklenburg County, Planters Walk has developed into a friendly neighborhood of 728 homes. New home sites will soon be available in our Planters Walk Preserve, and previously built homes continue to re-sell very well. Three builders built the homes in Planters Walk; Westminster Homes, Mattamy Homes and Ryan Homes.

Planters Walk offers several amenities - a Jr. Olympic swimming pool with sheltered picnic area and restrooms, two children's playgrounds, a sand volleyball court and wooded walking trails.

The community has a nice mix of home styles, with many having brick exteriors. Heated living areas range from approximately 1,200 to 3,500 square feet with homes priced from $140,000 to over $250,000.

Planters Walk is a Crosland Land Company development.

Planters Walk is close to shopping, award-winning schools, major hospitals, Charlotte's international airport and only fifteen minutes from all the excitement of uptown. Planters Walk features quality living in a beautiful community.

Pool & Clubhouse - The Planters Walk poolhouse consists of an open breezeway pavilion with picnic tables and restrooms. The Poolhouse is typically open from Memorial Day weekend through Labor Day weekend each year. Vending machines are conveniently located.

Playgrounds - Planters Walk has two wonderful Playgrounds. The first is located behind the Pool House on Creekturn Dr. This playground has three slides and four swings. There numerous benches and tables for you to enjoy. The play grounds are open to the neighbors from 7am-9pm each day. Please help use keep these areas clean for our children.

Our second playground is located off of Griers Pasture Dr. in our Planters Walk Preserve Area.

Walking Trails - Planters Walk is a great place for walkers and joggers. Planters Walk has two wooded walking trails. There are wooden benches to sit down and relax on a warm day.

Volleyball Court - A sand volleyball court is located behind the swimming pool. The court is available on a first come basis to members of the Home Owners Association in good standing. When there are people waiting play time is limited to one hour.

For More information, go to www.TeamFreemanProperties.com or find more related articles on: Active Rain Team Freeman Blog or Trulia.com