All Forum Posts by: Lee S.

thoughts on making “employee” a % partner in the company but partnership is cancellable by me at my discretion?  Brain storming here 

I’ll look into the details, sounds like I might not be able to do it this way.  I don’t want to commit to a regular salary just yet but will be much cheaper in the long one to pay a salary instead of commission.

I don’t believe there are legal issues, consider them an independent contractor or a partner paid on profit split only.  Many investors do this, just looking for details/experience on how they set it up.

I’m considering hiring a comission only employee and wanted feedback from anyone else who has done this?  What type of pay structure did you set up?  How difficult was it to find someone?  Any other details would be great, thanks.

Time to get rid of the bleeding heart mentality.  I haven't had to evict yet but did have a current tenant late for the first time and I told them that if rent wasn't paid by the 5th we would have a problem, they got the point.  There is no hesitation on my part, as another local investor said to me recently, I like to pick my charities.  I couldn't care less if the tenants hate me for evicting them, why do I care what a dead beats opinion of me is?  This is the real issue, look in the mirror.

Rarely if ever are the people making this comment “professional gamblers” or anywhere near it, they have no clue what pot odds are.  

Don’t play, but not against doing it for fun like going to a casino.  However, and I don’t have the data to back this up, I think it is overwhelmingly the poor that play lottery and visit casinos (outside of tourist destinations like Vegas).

What I don’t get is why people say they only play the big jackpots?  As if 10 million wouldn’t change your life?  Always seemed silly to me saying “no way I’ll risk $5 to make 10 million but hell yeah for 1.5 billion!”  Head scratcher.

Try to find an agent that understands what you’re trying to do, however, not many do.  They need to at least be willing to listen and accept the fact that investing is different than being an agent.  I think it’s better all the way around, at least in California where everything I do as an investor isn’t legal for a licensed agent, to have my license.  I don’t like dealing with the delay, I like having access and I can cut out commissions.   Check all the laws in your state to make sure what is legal as an agent.  We can do net listings in california so wholesaling/wholetailing is perfectly legal.  I do disclose in my contract and discussions that I’m an agent, but not in my advertising, legal in California as I mentioned above. 

I vote both. I invest in individuals stocks and my wife has a 403b and we invest in RE also. I'm not really interested in waiting 20 years to retire though, I feel I can make it happen much faster with REI. I've put 100's if not 1000's of hours in educating myself in both the market and REI.

If both took equal effort and had identical returns I would choose the stock market, I find it more intellectually stimulating (when investing in single stocks) and I don’t have to deal with people, tire kickers can be exhausting!

You can't directly compare the two due to effort involved, but I feel I can control short term gains much easier in REI (buying under market, value add) vs trying to time the stock market consistently (good luck with that). Yes, occasionally you can buy a stock at the right time that skyrockets but good luck doing that year after year. I love the BRRRR strategy, the thought of "putting a down payment down" and waiting 10 years to make that back in cash flow doesn't interest me.

My wife and I are in a good position in that she works a 9-5 that makes more than enough to cover our nice life style.  I do the investing full time and take every penny I make plus my wife’s extra income and put it right back into investments.  I dont use cash flow for life style, it goes in the bank as reserves or into the next investment.

I did talk to the state real estate commission attorneys about everything I may possibly do, no problems.  Net listings are legal in California.  I’m not a wholesaler but I like to know all possible exit strategies, I prefer to buy and rehab for rent or sell if necessary.