December 26, 2006

Time for my new kitchen!

I added a screened-in lanai to my house last year and had it fully wired and plumbed so I could move my washer and dryer out of the kitchen. The plan was to create additional space inside before starting a kitchen remodel. I hired local contractors and used cash I had saved for the new room, a new lanai on two sides of the house and a new roof for my old fixer upper. I thought I was being smart by using cash instead of taking on additional debt, but it turns out I was wrong. Since I’m now ready to do my kitchen remodel, I’ve been researching the best way to finance the work. I wish I had understood better about home equity loans before I used up all of my savings. Since the equity in my house has built to about four times what I still owe I can borrow what I need for the work, and maybe a little to pay the few bills that I carry a balance on from month to month. My payments will be low enough that I can begin rebuilding my savings (I used their mortgage calculators to figure out how to structure the best deal for myself.) I wish I’d known that before I had the previous work done, but it’s never too late to educate yourself about your own finances, is it?

There’s still time for you to educate yourself at PersonalHomeLoanMortgages.Com. I’ve been visiting their site for about a month, learning what I need to know. It’s embarrassing to admit how ignorant I was when I started, but their Mortgages 101 and other educational features have made it painless for me to bring myself up to speed.

November 26, 2006

Buying a home

One of the things I love about my job is that I know that the structural information I provide helps homebuyers make informed decisions. Perhaps it sounds cliche’ but a home is the largest expense most of us will ever have. It only makes sense to do some homework first, and to find professional advisors who understand all aspects of home buying.

Securing a mortgage is perhaps the most intimidating part of the process to most people. We’ve all heard scary stories about mortgage fraud and hidden fees, and shopping for the best rates can be its own nightmare. Finding the right mortgage broker is the key. Here’s a site that can take you through the entire process of obtaining a home loan. You’ll find educational features that will give you the information needed to make intelligent decisions. Current rates are posted, as well as recent headline news about mortgage lending and the housing market. When you’re ready to start the process, you’ll be working on a secure site, with customer data protected through SecureTrust, which guarantees compliance with FTC, DoNotCall & Can Spam regulations. If you find yourself stumped, check out the forums for feedback and answers to your questions.

November 24, 2006

Skeet, Inc?

If you’re a small-business owner like me, did you know that you can give yourself a raise when you Incorporate your business?

My accountant is not happy with me. He’s been telling me for years that I need to turn my business into a Nevada corporation. I have looked into it, but it seemed complicated and can be quite expensive, so I’ve continued to procrastinate.

Why does he want me to incorporate? Because, by operating a sole proprietorship, I have all of my eggs in one basket. I pay state and federal income taxes on every penny that my business earns. Those taxes come at a steeper rate than corporate taxes, so I’m literally robbing myself.

That should be enough reason, but there’s another that is equally important. If my business should fail, everything I own could be seized to satisfy debts. Not a pleasant thought, to lose my home, my car and anything else of value that I own. That’s a seriously stupid business decision, to put myself at such risk.

My two reasons for delaying have lost their validity. The entire task has been simplified and I can do it for less than a third of the price quoted by my lawyer! I like what I do, but let’s face it: the reason I do it is to make money. Shouldn’t I be keeping as much of it as possible?

Whether you are starting a new business or already in operation, give yourself the nicest Christmas present of all: Incorporate your business.