Real Estate - The Brothers Bloom

3 Reasons Why You Should Consider Starting a Business in Oregon

Oregon is known for its lush forests, rainy climate, artisan breweries, and quirky Portland hipsters. But what most people don’t know is the state is booming with entrepreneurship. With a thriving start-up scene, more than 320,000 small businesses, and big-name brands like Adidas and Nike, Oregon is the nation’s best-kept commercial secret.

So what makes Oregon so desirable for businesses? The reasons abound as to what makes the Beaver State a business-friendly capital. From a highly educated workforce to low operating costs, the state gives you access to a talented network of potential employees and inexpensive means to set up shop. Oregon also has an impressive business climate that welcomes and rewards small businesses and motivates investors. The state’s largest city — Portland — cracked the Top Ten in Inc.’s recent list of the 50 best places in America for starting a business. Beaming with a range of industries, Oregon will make any business feel like home. Portland’s foodie scene is brimming with possibilities for potential bars, restaurants, and cafes. Outdoor and athletic apparel will certainly attract attention to Oregon’s outdoor enthusiasts. With cannabis legal for medicinal and recreational use, businesses focused on the plant are sure to be popular. Tech and software companies are growing in the state’s budding start-up community. And health care and electronics and computer manufacturing companies are expected to prosper in the coming decade in Portland.

So if you are an entrepreneur thinking about starting a new company, but are not sure where would be the ideal location for economic growth, look no further than Oregon for your business venture.

Flourishing start-up community

Oregon is fast becoming the quintessential home for start-ups. And Portland, specifically, is on the rise to rival the pricier areas of Seattle and Silicon Valley in terms of an impactful start-up scene. With a variety of industries from bio diesel recycling to commercial roofing in Oregon, any entrepreneur can find success in Oregon. Both Portland, and the state as a whole, boasts numerous resources, groups, pages, events, and training programs for new business owners. Oregon’s culture encourages business independence, collaboration, and a do-it-yourself attitude that speaks to start-ups.

Business-friendly tax system

Oregon’s tax system is not just friendly to consumers, but to businesses, as well. Known for not having a sales tax on its products, the Beaver State provides retailers with copious profits. The no sales tax policy makes stores the biggest recipients of Oregon’s generous tax system.

So whether you are selling expensive outdoor power equipment in Gresham, OR or a small cup of coffee in Portland, you will be reaping the full profit.

Big incentives for small businesses

Oregon offers several opportunities for emerging businesses to take advantage of. The state’s Emerging Small Business certification program gives priority to new businesses with various government contracts, including municipal and city contracts.

The state also offers the Oregon Investment Advantage, a program that helps businesses start or locate operations in counties across the state. If your company creates at least five full-time jobs in the county and sets up new facility operations that are the first of their kind in the state, you could deduct or completely erase your state business income tax liability for up to ten years.

Oregon might be a skeptical choice for some entrepreneurs who assume California would be better suited to their needs. But don’t judge a book by its cover because with Oregon’s favorable business atmosphere, variety of industry markets, and a cheap office space surrounded by redwood trees and water, the more business savvy decision could be where you least expect it.

What Is a Mortgage Offset Account?

Whether you’re a first-time homeowner or looking for an upgrade, understanding the differences between types of home loans is imperative. There are numerous types of home loans, with each varying in interest rates and monthly payments.

A mortgage offset account can help homebuyers reduce the interest charged on their home loan and allows account holders to access money when needed. So, what exactly is a mortgage offset account, and how do they work?

What is an offset account?

An offset mortgage account is a transaction account connected to a home loan. Like a traditional transaction account, offset account holders can deposit or withdraw cash at any time.

The main difference between an offset account and a traditional transaction account is that an offset account can reduce the amount of interest charged on your home loan. Holding money in an offset account can help you pay off your home loan sooner and accrue less interest. The higher the balance in your account and the longer you keep the money in the account, the less interest you’ll be charged on your home loan.

In most cases, offset accounts are only available for home loans with variable interest rates. However, some lenders allow homeowners to open an offset account for fixed-rate home loans.

How do offset accounts work?

When a homeowner opens a mortgage offset account, they’re only charged interest on the net balance of their home loan. The net balance of a home loan equates to the loan balance subtracted from the amount in the redraw offset facility or offset account.

For example, if you have $10,000 in an offset account and owe $200,000 in your mortgage, the interest on the home loan will be calculated on $190,000. Essentially, in the case of 100% offset accounts, the balance in your offset account is deducted from the balance of your home loan.

Opening a mortgage offset account does not change your monthly repayments. However, more of your repayments will go toward paying the principal balance of your home loan, rather than the interest accrued. Mortgage offset accounts help homeowners pay off their mortgage faster while accruing less interest and allow homeowners to access the money in their offset account at any time.

What are the benefits of an offset account?

Holding money in your offset mortgage account can save you thousands of dollars and can shorten your home loan repayment period by years. For example, if you take out a home loan at $400,000 with a 5 percent interest rate and a loan period of 30 years, storing $10,000 in your offset account for 30 years can save you more than $30,000 in accrued interest. Along with saving money, you’ll reduce your repayment period by a year.

Is an offset account right for you?

Although there are many benefits of an offset account, homeowners should review their current financial situation before opening an account. If you plan to regularly deposit and withdraw money, an offset account can give you immediate access to your cash. However, many lenders charge to open an offset account.

In some cases, homeowners are charged a monthly fee, while other lenders charge an annual package fee. Consequently, homeowners should consider whether saving interest will be more beneficial than paying account fees.

If you own a home and you’re planning to move soon, an offset account may not be for you. Instead, a simple google search like “Sell My House Fast California” can connect you to companies that make the process of buying and selling a home easy. Because selling your home “as is” can provide you with immediate cash to use toward your next home loan, you’ll start with a lower loan balance and you won’t be charged as much interest.

Opening a mortgage offset account can reduce the amount of interest accrued on your home loan and help shorten your repayment period. Ultimately, whether opening an offset account is the right choice for you depends on your financial situation.

Financing Home Improvements 101: Here’s How to Upgrade on a Budget

Unless you have a lot of money saved up for home improvements, you’ll need to find a way to finance them. Being on a budget makes doing all the home improvements you need a little difficult, but they still can be done.

It is estimated that the average home improvement project could run you anywhere from $40,000 and can go as high as $130,000. The problem is, most people don’t have that kind of money just lying around to spend on remodeling costs. The following guide will examine a few of the smart ways you can finance your home improvement projects on a budget.

Save money in other ways

There are a few things around your house that you can do to cut costs while you’re financing your remodel. Checking into the smart lighting solutions such as Lutron lighting in Austin is a good place to start. A whole-home installation of smart lighting can be done without retrofitting or rewiring your home. Whether it’s automated shades, dimmers, timers, or sensors, you can take control of the lighting in your home and save money for your home improvements at the same time.

You can also pick up a few other smart devices that will help lower your bills as well and leave more for your remodel.

Sit down with a contractor

The very first thing you should do is sit down with a contractor so you know exactly what your home improvement project is going to cost. Plan the project out in full together, including every aspect and even a few emergencies that might crop up along the way. Once you know about how much the home improvement project is going to cost, you can check into the options for financing.

Apply for a home improvement loan

Another option you could consider is consulting with one of the private money lenders in Texas to see about securing a home improvement loan. Most of these companies have a fast and easy process, and the loans are offered with no hidden fees that will come back to haunt you later down the line. The fact that the rates are competitive makes these loans a great option for homeowners on a budget who need home improvement options.

Credit cards

It is possible to cover small renovations or even part of your larger renovations with a credit card. However, it’s important that you can cover the full amount that you charged at the end of the month to avoid interest fees piling up. When you’re on a budget, the last thing you want to do is add more bills to the list of monthly payments.

Cash

Of course, when it comes right down to it, cash is still the best way to go to cover any home improvement project, especially if it is a small one. It may take longer, but if your project isn’t something that needs to be completed right away, it’s better to save the money to finance it.

Saving for a remodel isn’t easy, especially with so many other things to save for, as well. The best thing to do is to take things one step at a time. Determine which improvement is most important, figure out how much it will cost, and make that your goal. It’s the best way to finance a remodel if you don’t want payments and interest fees.

These are just a few of the top ways to finance your home improvements on a budget that you could check into. One of them is sure to be the right option for your needs.

How to Maintain a Real Estate Investment Property

Investing in real estate can have a big payoff if it’s done right. But after finding the right property, making the necessary changes, and finding the perfect tenants, the work isn’t done—many investors forget to maintain their properties properly, which can mean bad news. A poorly maintained property can make it difficult to find good tenants and can result in lowered property value. So how can real estate investors effectively maintain their property?

Deep Clean Between Tenants

While tenants are responsible for cleaning while they’re living at the property, it’s up to property owners to clean in between tenants—before a new tenant moves in, property owners should do some deep cleaning.

All of the floors should be cleaned and replaced as needed, countertops and other surfaces should be cleaned, and hard-to-reach areas, like behind furniture, should be given attention, too. This deep cleaning will help keep the house in good shape and ensure new tenants are happy when they move in.

Invest In Landscaping

Curb appeal plays a big role in both attracting new tenants and property value. This is why landscaping is so important. Simple landscaping tasks like mowing the lawn, trimming overgrown trees and bushes, and even planting some flowers can make a big difference. A major backyard renovation isn’t necessary, but basic upkeep is essential to keeping the property looking nice and maintained.

There may also be some bigger landscaping projects. For example, if there are dead or damaged trees in the yard, property owners shouldn’t let them stay—these trees are not only an eyesore, but they could fall and cause property damage or even injuries.

With that in mind, property owners should conduct a search for “tree removal company near me” and find a reputable and experienced business to work with. Sometimes, outsourcing tasks, like tree removal, to professionals is the best option.

Make Necessary Repairs

Keeping up with repairs as needed is perhaps one of the most important tasks when it comes to maintaining a property. If repairs go left undone, bigger problems can arise. Repairs can be small tasks, like fixing a leaking pipe or patching a hole in a wall. But repairs can also be bigger tasks, like fixing a broken HVAC unit or repairing a roof. Either way, repairs should be completed as soon as the problem is noticed.

If something like a leaking pipe isn’t taken care of, it can result in major problems—a leak can lead to pooling water or even flooding. This can result in water damage and even mold, which can cause serious health problems for tenants living in the house. This is why it’s so important that property owners take care of repairs right away, which will save them more money and time down the line.

If a property owner is good about managing one property, they may be wondering how to buy multiple investment properties. There are a few important steps to take before investing in multiple properties—property owners should make sure they have the tools and resources they need to properly maintain each of their properties so they can continue getting good tenants and a steady income.

Additionally, property owners may want to consider hiring a property manager to help with certain tasks, like repairs and renovations. And lastly, property investors will need to secure a good loan. Getting a good home loan is crucial because, with a large enough loan amount and a low-interest rate, property owners can invest in high-quality properties. This will allow them to put minimal work into the property before looking for tenants, ultimately increasing their income.

Real estate investments can be a lot of work, but they can be rewarding, too. So if property owners keep these tips in mind to help maintain their properties, they should have minimal complaints from tenants and continue with good property values.