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All Forum Posts by: Rob Hayes

Rob Hayes has started 1 posts and replied 7 times.

Post: Contractor labor costs

Rob HayesPosted
  • Investor
  • Union, NJ
  • Posts 7
  • Votes 1

The fact the you are asking this question for your friend is exactly why so many blue collar trade owners go out of business or struggle for ever. Your friend needs to know what his true cost of business is (Breakeven) and no two companies are the same. So the question you are asking is impossible for anyone in this forum to answer unless we knew exactly what his overhead was (truck costs, tool expenses, auto, worker comp, health insurances, rents, advertising, cell phone, marketing collateral, vacation time, credit card fees, accounting, software, office supplies, computer expenses, etc...) to name a few. This question is much like asking someone what is the cost  of 2 bags of groceries? The answer would be "it depends on whats in the bag"  you know what I mean! I am a previous HVAC business owner (sold business) and this is a HUGE issue in our trade as well. Many contractors worked for someone else and are excellent tradesmen but have no business education. They then go off on their own starting thier own business, what Michael Gerber the author of the EMYTH book call the "entrepreneur seizure". My suggestion is your friend seeks some buisness training ASAP before he gets himself in a world of financial hurt! Best of luck to your friend! 

Post: Contractor rate fair?

Rob HayesPosted
  • Investor
  • Union, NJ
  • Posts 7
  • Votes 1

Jeff V I find it almost comical that someone that is skilled in his craft would be willing to give an honest day's labor along with 3 other grown men and only charge $400.00. There is NO possible way that he carries any insurance or makes any kind of profit to sustain a profitable business. I would not count on him being in business to long! As mentioned in another reply there is always an overhead burden attached to a persons wage. In my area NJ that can range from $30 to 60 an hour alone (for the HVAC trade) depending on the of company! I can't imagine that carpenters or laboreres are that much cheaper! It is amazing the regional differences! 

Post: Tax Downsides to Paying Off a Mortgage

Rob HayesPosted
  • Investor
  • Union, NJ
  • Posts 7
  • Votes 1

I have a question regarding all these answers. Why has no one mentioned a Home Equity line of credit or loan if this person decided to pay down the debt aggressively. I have a similar situation. I have about 100k liquid and 65k owed on a rental property valued at approx 270k. I am considering paying it off which will increase monthly cash flow significantly which I will save for future investing or use it to pay down my primary residence, however if I need a large some of cash I will use a home equity line of credit of my rental property. What is the problem with this strategy? FYI- there is 9 years left on this 65k at 4.75% 

Post: Professional Graphic Design Work Needed

Rob HayesPosted
  • Investor
  • Union, NJ
  • Posts 7
  • Votes 1

The best graphic designer, logo and branding guy I know is Dan Antonelli owner of Graphic-D- signs in NJ. Has a great company he has also written several books, Google him and you should get his website for his contact info. Tell him I sent you! Good luck. 

Post: Nj taxes are very high and #1 state for people leaving

Rob HayesPosted
  • Investor
  • Union, NJ
  • Posts 7
  • Votes 1

All appear to be valid points I too am a NJ resident and looking to grow my buy and hold investments. This state is very challenging with the high cost of real estate as well as CRAZY taxes. Cash flowing properties is a challenge for sure. Anyone have any insight or ideas regarding NJ buy and holds. I don't fully understand why I would buy a property in NJ for say 140-180k or more with taxes of 6-8k or more and only cash flow a 200-300 bucks when I can buy out of state for 40-70 k and 1/4 to 1/2 the taxes and still cash flow 200-300. Seems like much less risk? I'm I wrong? Can someone with more knowledge help me with the pro and con of these scenarios. Thanks 

Post: I need to sell this house. . . 40K+ Instant Equity for You.

Rob HayesPosted
  • Investor
  • Union, NJ
  • Posts 7
  • Votes 1

Has this property been sold? 

Post: First visit to commercial property

Rob HayesPosted
  • Investor
  • Union, NJ
  • Posts 7
  • Votes 1

I know this is such a broad topic, but I will throw this out anyway to the Bigger Pockets Community. Tommorow I am going to visit my first commercial property 4 apartments, 1 retail space and additional revenue from billboards and a future cell tower (I need to get details on this) I am not sure I want a cell tower on my building from a safety and health standpoint? I do like potential revenue though

I am looking for some ideas on what to look for as I visit the site. I have spend 30 years in the construction field (mostly on the mechanical side HVAC) but have a pretty good sense of building structures. Any advice will be appreciated. Thanks