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Updated over 3 years ago,
How do you quantify your added value?
I'm currently holding a W-2 job to have access to cheap, easy loans. However, I've recently bought a property which will likely be my last acquisition for the foreseeable future (i may be lying to myself about this, of course), so the access to loans is not a huge benefit at the moment.
The job doesn't pay very well. Only about $3k/month(net), but it is a very low stress, easy job with good bens. My wife also works, so she has health ins. that I could get on if I quit though. The $3k/month is a nice to have, but having to allocate 40hrs/wk takes away a lot of my time to contribute to my RE business. So that's the crux of the matter...
If I can convince myself that I can sustainably add $3k of value every month to my RE business, then I could see myself stepping away and focusing on that full-time.
How do you folks quantitatively assess the value that you add to your business? I mean, my RE portfolio does pretty well on it's own (depreciation, cash flow, inflation, appreciation).
I enjoy doing most of my remodeling on my own. I know that it's not scalable, but that's one of the areas I have trouble giving up control of my business. Also, my current W-2 is earning an hourly rate <$30/hr which is less than the going rate for skilled labor in my town, so I feel like I'm able to add value just by doing my own remodels.
I'm very interested to hear what all of you have to say on this matter! Looking for ways to quantify added value of your time in your businesses! Thanks!