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Updated almost 7 years ago,

User Stats

27
Posts
8
Votes
Mike Hoherchak
  • Bethlehem, PA
8
Votes |
27
Posts

How to Pay Yourself as an Investor?

Mike Hoherchak
  • Bethlehem, PA
Posted

Imagining the beginning of a R/E investors career, what does it look like to pay yourself as an investor? To add more context, let say you're a hustler and within the first year completed 2 flips, gaining $40k profit each, and purchased 3 rental properties netting you $3000 a month in total. At the end of the year, you've made a total of $116,000, net. 

I understand there may be different ways to pay yourself through this depending on how you've structured your business. However, would most consider the $116k personal income and have a bank account where it all flows into for spending however you see fit, be it reinvesting, personal travel, etc... or would you consider it business revenue and take a salary? (keep in mind the $116k is all net...so after you allot for all expenses and portion for cash reserves, etc...this is strictly profit)

If you take a salary, then, breaking each property's profit up individually, would you take a percentage across the board or a flat dollar amount per strategy?

Or is there something else entirely on how you pay yourself?

Thanks in advance for your responses!

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