Do what you do best Outsource the rest!

General Real Estate Investing
1

Here is the funny thing about REI so many are worried about how to do this and that! Let me let you all in on how I do this!

Lets start at the beginning of a deal and work to the end!

Find a deal- I don’t find deals yes I market and stuff but hey I don’t even do my own mailings.

Look at houses- I don’t look at houses the bank never calls me to see what I think so I let my appraiser and inspector look at them. There is no need to look as long as the numbers work!

Get comps- Why not just have the appraiser get the comps before he goes to appraise it his comps are better anyway… Little lesson your comps do not count his do so let him do it!

Get Loans- Call my Loan officer that charges me 1 point 1/2 front and 1/2 back! They already have the paperwork anyway!

Title work- title company

Go to closing- I got cookies at my house no need to leave! Wire the money and courier the paperwork.

Rent out property- call property manager

fix property- have property manager call repairman

sell property- Sell to tenant if not put ad on web site with address when they get there have them call Property manager to get lock box.

Set up LLC or S-Corp.- call Attorney!

Everyone tells me you could save $$ by doing this all yourself… WRONG you lose money! If I were to sit there and look at every house and run comps and start LLC’s for the trust and do this and that I would not have time to find deals DEALS are what make money. NOT LOOKING… I do not know about all of you I MAKE MY $$ at the closing…

Change your goal spend less time looking and more time closing!

2

well said!

as Ron Le Grand famously said, “the less I do, the more I make!”.

3

REO,

I like your plan - do nothing but eat cookies and make a bunch of money! Unfortunately, that will only work if you already have a BUNCH of income either from real estate or another source. In my opinion, if a newbie or even someone with a few dozen properties were to try to follow this system - they’d soon be broke.

Imagine a newbie who pays someone else to do their marketing; who pays an appraiser to look at properties for them; who pays a property manager to manage their properties; who pays a lawyer to set up their LLCs; and who pays a repairman everytime something breaks. GOOD LUCK!

First of all, at $250 per appraisal, I’m not paying an appraiser to do something that I can do for free. By investing a few days at the beginning of my real estate career, I now KNOW my market. I don’t need to pay anyone to tell me what a house is worth.

Next, it takes about 30 minutes to set up an LLC (if you have to read the instructions from the secretary of state’s website). I certainly wouldn’t pay an attorney several hundred bucks to do this for me - more money thrown away!

If you hire a propertymanager at 10% of gross rents (typical for someone with a few properties), you’re losing about 30% of your positive cash flow to the property manager (if you have EXCELLENT cash flow to start with). If you don’t have excellent cash flow, then a propertymanager can end up with the majority or even all of your cash flow. So even this one item is costing you at least 1/3 of your profit. In addition, managing properties once the property is up and running is almost effortless. So, you’re paying the manager 1/3 or more of your profit for doing almost nothing.

Calling a repairman to do repairs that you could do yourself is another great way to hemorrhage money. If you look at what I did a couple of days ago (and do many days), I made an extra $700 by NOT using a propertymanager and not using a plumber. If I had used a paid propertymanager, the propertymanager’s cut of my profit for the day would have been about $100 and the plumber’s labor would have been about $600. So, instead of paying someone else to do something I can do myself, I pocketed the $700 plus my remaining 70% of the profit (positive cash flow). Do that every day of the month and it adds up to real money.

How much longer will it take someone to reach their goals if they’re throwing away $700 per day or throwing away 30% (or more) of the profit each month? If you actually crunch the numbers, it doesn’t make sense and I’m convinced this is one reason that many newbies fail.

Finally, my goal is not to sit at home and eat cookies, nor is it to sit by the pool all day long. That stuff sounds good on an infomercial, but is VERY boring. The truth of the matter is that I LIKE to have something to do. I can set my own schedule and take as much vacation as I like, but I still am involved in my real estate business most of the time.

Again, I’m not saying that REO’s system won’t work when you have hundred’s of properties, but I know that it will DRASTICALLY reduce your cash flow if you’re just starting or only have a few dozen properties.

Let’s say that you had 25 properties, each of which have a monthly gross rent of $600 per month and cash flow of $200 per month. You’d be making $5,000 per month with no vacancies. If you paid a property manager 10% of the gross rent, you’d be losing $1,500 per month. Now, say that you only need two days worth of repairs at $500 per day (plumbers around here get $600 per day). There’s another $1,000 of your profit gone! Now, pay someone else to do your marketing; pay an appraiser to look at houses for you; and pay your lawyer a few hundred bucks for something that you could have done. WHAT IS LEFT - not enough to even buy cookies!

Mike

4

Think about this for a minute or two even if you are starting as bird dog this is by far a better way to go. Let’s say for a minute that you are not as blind as Propertymanager and can see the picture here let’s break down his Post!

I like your plan - do nothing but eat cookies and make a bunch of money!

Where in my post did I say do nothing but eat cookies.

Unfortunately, that will only work if you already have a BUNCH of income either from real estate or another source. In my opinion, if a newbie or even someone with a few dozen properties were to try to follow this system - they’d soon be broke.

That’s because you are not finding enough deals to keep you busy! If you were to focus your time on finding investors and more deals and closing you could afford to give away more time.

Imagine a newbie who pays someone else to do their marketing; who pays an appraiser to look at properties for them; who pays a property manager to manage their properties; who pays a lawyer to set up their LLCs; and who pays a repairman every time something breaks. GOOD LUCK!
First of all, at $250 per appraisal, I’m not paying an appraiser to do something that I can do for free. By investing a few days at the beginning of my real estate career, I now KNOW my market. I don’t need to pay anyone to tell me what a house is worth.

Imagine laying under a sink replacing a garbage disposal and wham you miss out on a great deal and lose out on 30k. And by the way I do not pay an appraiser to look at every house before I know that the deal is going to go through they pull comps for free for me…

Next, it takes about 30 minutes to set up an LLC (if you have to read the instructions from the secretary of state’s website). I certainly wouldn’t pay an attorney several hundred bucks to do this for me - more money thrown away!

Yeah its a $50.00 charge I guess if I were only worth $5.00 per hour I would set it up myself as well. Why not pay the pro to be a pro!

If you hire a propertymanager at 10% of gross rents (typical for someone with a few properties), you’re losing about 30% of your positive cash flow to the property manager (if you have EXCELLENT cash flow to start with). If you don’t have excellent cash flow, then a propertymanager can end up with the majority or even all of your cash flow. So even this one item is costing you at least 1/3 of your profit. In addition, managing properties once the property is up and running is almost effortless. So, you’re paying the manager 1/3 or more of your profit for doing almost nothing.

If you took your real estate more serious Pay the property manager it would free up your time to find more lenders and in turn more deals… Which would mean make more money! TIME is your most valuable assets!

Calling a repairman to do repairs that you could do yourself is another great way to hemorrhage money. If you look at what I did a couple of days ago (and do many days), I made an extra $700 by NOT using a propertymanager and not using a plumber. If I had used a paid propertymanager, the propertymanager’s cut of my profit for the day would have been about $100 and the plumber’s labor would have been about $600. So, instead of paying someone else to do something I can do myself, I pocketed the $700 plus my remaining 70% of the profit (positive cash flow). Do that every day of the month and it adds up to real money.

Look how ignorant that statement is If you I made an extra $700.00 by doing it myself why not just admit that while you were playing plumber you were not doing REI and might have lost a few deals that others are now doing in your area so it in turn cost you 15-20k to do it yourself!

How much longer will it take someone to reach their goals if they’re throwing away $700 per day or throwing away 30% (or more) of the profit each month? If you actually crunch the numbers, it doesn’t make sense and I’m convinced this is one reason that many newbies fail.

How long will it take you to get to where you can afford to retire and do what ever your heart desires if you are a part time investor and a part time plumber?

Finally, my goal is not to sit at home and eat cookies, nor is it to sit by the pool all day long. That stuff sounds good on an infomercial, but is VERY boring. The truth of the matter is that I LIKE to have something to do. I can set my own schedule and take as much vacation as I like, but I still am involved in my real estate business most of the time.

And your plumbing business the rest of the time right? You know this is not the only business I do if you free up your time let others do more for you, you to can do other things free up your time. When was the last time you ran off with the family on a whim and went to Vegas on a last minute trip or just took off to go Ski for the day or watch a ball game or the zoo? When I have not done that in a long time oh yeah like YESTERDAY and I wont be doing it again until TODAY!!!

Again, I’m not saying that REO’s system won’t work when you have hundred’s of properties, but I know that it will DRASTICALLY reduce your cash flow if you’re just starting or only have a few dozen properties.

And again I will not say your way does not work I will just say this. There is a big difference between making a living and making a life!

Let’s say that you had 25 properties, each of which have a monthly gross rent of $600 per month and cash flow of $200 per month. You’d be making $5,000 per month with no vacancies. If you paid a property manager 10% of the gross rent, you’d be losing $1,500 per month. Now, say that you only need two days worth of repairs at $500 per day (plumbers around here get $600 per day). There’s another $1,000 of your profit gone! Now, pay someone else to do your marketing; pay an appraiser to look at houses for you; and pay your lawyer a few hundred bucks for something that you could have done.

Let’s say that you were able to pass 20 other deals to other investors per month and you made 2-3k per deal so that is 40-60k per month would you really worry about that 1,500.00 per month NO

WHAT IS LEFT - not enough to even buy cookies!

Well if you went to the title company more you could get free cookies you don’t even need to buy them!!

HEY MIKE WAKE UP THE COFFEE IS BREWING!!

And like I said do what you do best!! That is why you are the propertymanager!<—Living

and I am a investor!!<— LIFE

5

I have to agree with Robb here, I would rather be a investor instead of a plumber/property manager.

WAY MORE $$$$$$$$$$$$$$$$$$$$$$$$

to buy cookies with :wink:

6

John,

Soooo, are you following the “do less, make more” plan? How many properties have you done this month? this year? What percentage do you pay your property manager? Do you pay an appraiser to do your comps? Do you pay someone to do your marketing?

My point is that is doesn’t make financial sense to do this when you are a new or even an intermediate investor. The numbers don’t work and it will take you MUCH longer to become a full time investor if you’re giving all of your profit away.

The main point of the “less I do” method is that you have more time to spend finding deals and investors if you aren’t working in your business. However, the other side of the issue is that you must have a LOT more properties to make the same amount of money. In addition, I am not losing a SINGLE deal by working in my business. My business phone is my cell phone, so I don’t miss even a single call. In fact, I’m probably getting more deals because I’m actually out there pounding the streets and often find deals while I’m talking to people.

The only difference between working in my business and paying someone else to do everything, is that I keep an additional $700+ per day. $700 per day might not be much money to you, but it’s not bad for EXTRA cash in my opinion!!!

“The less I do, the more I make” - RIDICULOUS! If that were true, then a really smart person would do NOTHING and really make a killing! Rich people are the busiest people on the planet. Hard work is the key to building ANY business!

Mike

7

Both of you have very valid points depending on what your starting with and where you want to go and how you want to get there.

8

Thank you eve_32…

What is so funny is Mike does have valid points. And if I was doing 35k deals and only owned 15-20 properties and did not want to expand. I would be the same way… On the other hand if I really wanted to do more deals I would micromanage my business and make more money I would do it totally different. And if he was not such a hands on guy he might see that there is another way of doing it! Even if I lost 100% of my properties I would honestly start over and do it the same way I do now Do what I do Best and Outsource the rest. On the other hand if you are happy owning 10-20 properties then by all means go to Home Depot and get a credit card and get all the tools you can then finance a trailer to put them in and go to work! I am not that type of guy! I close deals that is what I do I close deals. Propertymanager does just that he manages properties but he doesn’t even really do just that he is also Jack of all trades!! And here is the funny thing him and I see eye to eye on very few topics and yet I admire his thoughts and posts. See he is a great person to talk to if you want to be a hands on landlord where as I am a more of a wholesaler micro manager. Could I do everything that propertymanager does? Well yeah I did for the first few months then it dawned on me I was better at finding deals and there was more money in that. FOR MY SITUATION! So I decided to go this route. Is he wrong or am I wrong well this is not really a debate we both are successful we just do things way different and it works!

Kinda like one of my other posts

If you are doing things his way and you are happy and it works keep doing it!

If you are doing things my way and it works keep doing it…

If you are doing things my way and it doesnt work try it his way…

If you are doing things his way and it doesnt work try it my way…

WHAT WORKS BEST FOR YOU?

9

Mike,

How many properties have you done this month? this year?

I have done two properties this month, had one deeded straight to me and the other I bought 50% below market (needs about 5k in rehab). I’ve done three this year, just started investing, I bought my first property on Aug. 30 with no money (went under contract 11-15, 30k profit). I just moved here to New Mexico in June with just the clothes on my back and a little over 100.00 bucks in my pocket!! In my opinion I’m not doing to bad.

What percentage do you pay your property manager? Do you pay an appraiser to do your comps? Do you pay someone to do your marketing?

I don’t have a property manager and don’t want one. I WILL NOT rent I DO NOT want the headache of being a plumber or whatever else comes along with being a landlord. I will do a L/O and have in the contract that the buyers will handle any repairs.
I have two real estate agents pull my comps for me, one of them sales about 15-20 mill. a year in real estate. The other 8-10 mill. a year. They know the market just as good as any appraiser does.
I have an ad in my local paper, I’m starting to do mailings, and I do cold calls out of the paper.

In my opinion it will be hard financially for any new investor to do what Robb does, but it can be done. I’m new and I don’t waste my time doing the repairs myself. All I’m saying is that it would be cheaper for investors to use a plumber instead of doing it himself. When you get tons of leads a day you can’t follow up on them if you’re being a plumber/repairman. I just had new carpet installed and a 3 Ton A/C unit installed on my rehab project, I don’t have the money to pay them. I straight told them that I can’t pay them until I sale the house and it closes, they agreed. So as a new investor you don’t have to have a bunch of money to get repairs done, just negotiate. Remember, Do what you do best outsource the rest!! Let repairmen be repairmen.

One of the properties I bought last week needs paint, carpet and a little repair. Am I gonna do all that NO, If I’m working there how can I find more deals. I’m gonna pay one of my hands to do it, I have started a construction company and the same goes for that company as well. How can I generate more work and find more deals if I’m painting walls, being a plumber and installing carpet. Let the painter paint, the plumber plumb and the carpet guy do the carpet. And let me (investor) find more deals so they can keep painting, plumbing and installing carpet. You see Mike if I keep finding more deals and more work for these guys I keep feeding their families and help their finances and in return I make money as well.
Soooooo Mike the less plumbing, painting and carpet I do and the more leads I follow and deals I make and close on, the more money I make!!!

So you say as a plumber/repairman you can make $600.00 a day X 30 days = $18,000. I must agree that’s pretty good money. But that’s not an average monthly income for any plumber/repairman. They can and do make that much money some days but, not everyday of the month.

As an investor you can make 5-20k each deal, right??? Let’s use the two deals I did last week. On the first deal I’ll make 8-15k, I’ll use the lower figure of 8k. The second deal I’ll make 28-31k, plus a free boat. That’s right I had them throw in a boat to seal the deal. Just on these two deals alone so far this month I’ll make $28+8k=$36k (Plus Boat). How do I know this, because you make your money when you buy, right??? 36k so far this month and I got 27 more days to go and I allready doubled your plumber/repairman salary. Hmmmmmmmmmmm should I be a plumber/repairman or a investor???

Soooooooo who makes more money here, the plumber/repairman or the investor. I don’t know about you but I’m gonna let the plumber be a plumber and I’ll stick to being a investor.

Also I had a lady call me this morning from my ad and she has 4 rentals she doesn’t want anymore that’s fully rented, she wants me to take them over. She’s old and tired of messing with them. Who knows maybe four more deals coming and we are not through the first week yet.

Mike I’m not even suggesting that your way of investing won’t make you successful, I know you’re successful. I think it does matter how a person utilizes his time though. Time is money!!!

“The less I do, the more I make” - RIDICULOUS!

“The less I do, the more I make”= Investor

“The more repairs you do the less you make”= Plumber/repairman

Rich people are the busiest people on the planet

I agree

Hard work is the key to building ANY business!

I agree, but smarter not harder

Have a good day plumbing/repairing Mike, I got to go see 4 more possible properties that I might buy, an average of a possible profit of 10k each = another possible 40k profit this week. I have to ask anyone who is reading this, Do you want to be a plumber/repairman or a investor?

Do what you do best outsource the rest!! Are you a better plumber than investor?

John

10

I want to start developing because I have been buying a lot of vacant land but as far as the properties I have purchased, out of the ones I keep, I have to have a property manager because I can’t deal with tenants so I would rather pay someone but I do keep a watchful eye on my money and inspect the books on a regular basis.

I don’t do repairs, I would rather call a repairman.

My appraiser gives me the comps for free, I started in real estate as a sales rep. and can do my own comps if I like, my appraiser upstate goes and looks at the property and then comps for free but I still look at the properties myself it gives me an idea of what I am going to do with it; rehab or wholesale. I don’t really care for being anyone’s landlord unless it’s a big property but 1-4 units don’t make much sense to me (from a landlording perspective).

When I am out for whatever reason I am always looking to find the next potential property, sometimes my son gets annoyed but my husband or friends don’t mind.

LLC or S Corp I would definitely let my atty handle and working with the same loan officer is very beneficial because he/she already has your paperwork.

I am no where near as rich as Robb but I prefer spending the money to have other’s do the job that I don’t care to do. I still think Mike’s ideas are fine but I just choose to go a different route.
The idea is to work smarter not harder, there is a difference. I could just as easily manage my own property like he suggests, it’s not hard it would just be irritating for me. Like I wrote earlier both plans are good depending on YOU.

And just for clarification I don’t sit around and do nothing all day, I do real estate in my free time and I am in the lab the rest of the time (when I am not sleeping of course).

11
I have done two properties this month, had one deeded straight to me and the other I bought 50% below market (needs about 5k in rehab). I've done three this year, just started investing, I bought my first property on Aug. 30 with no money (went under contract 11-15, 30k profit). I just moved here to New Mexico in June with just the clothes on my back and a little over 100.00 bucks in my pocket!! In my opinion I'm not doing to bad.

When you get tons of leads a day you can’t follow up on them if you’re being a plumber/repairman. I just had new carpet installed and a 3 Ton A/C unit installed on my rehab project, I don’t have the money to pay them. I straight told them that I can’t pay them until I sale the house and it closes, they agreed.

John,

You’re making my point exactly! Someone just starting out can’t afford to pay someone else to do everything for them. Even Robb said that he started out doing it himself. You’ve only done 3 deals since Aug. I did 10 deals my first year AND did all the rehab, maintenance, marketing, maintenance, and property management. So far this year, I’ve done 21 rentals plus 4 flips, all while being the plumber, rehabber, and maintenance man. As my company has grown, I am now using some painters and other workers to help with the tasks. Not that I am doing less, but that there is more than I can do alone. The difference is that because of the work I do and have done, I can afford to pay my workers as soon as the work is done!

See the difference?

I agree with Robb that neither system is right or wrong. However, my point was that “making more money while doing less work” is much easier once you’re successful than when you’re just beginning.

Mike

12

Mike,

I’m not saying have someone else do everything for you.
What I’m saying is why spend your day fixing a plumbing problem when you should be networking, looking, calling for deals. Besides how is a plumbing problem costing you 600.00 bucks? I can have a new water heater installed for around 300.00 in less than two hours. I can have a leak under the sink in the kitchen fixed for $75. Plumbers up there must charge around 300.00 an hour or you must have alot of plumbing leaks or keep fixing the same problem over & over. You need to have a plumber fix your plumbing problems your costing yourself to much money!!!

I’ve done 3 deals in 3 months, looks to me I’m on track to beat your little ol 10 count for my first year!!! I dont have a mentor or all kinds of courses that I’m taking. I’m just getting creative and wheeling & dealing and then I figure out what to do after I get the owner to accept my offer.
I’m not doing to bad for a newbi!!

You’re right, I couldn’t pay the contractors because I didnt have the money at the time. But For the whole rehab I used OPM, isnt that what were supposed to do??? Looks to me I’m doing the right thing here. No risk on my part. Do you see the difference?? Smarter not harder!!!
As of now I can pay the contractors but Like I told them I will pay them at closing. But I like to use OPM and that’s what I’m gonna continue to do even if I got tons in the bank.
But all things considered I’ve only been in town less than 6 months. I moved here in June. I’ve allready started a construction company and I’ve got a job starting tomorrow for $38,741.00. I’ve done other jobs for a total of $9654.00 and bought 3 houses. And I’m looking at 4 more houses tomorrow. All in less than 6 months.
And yes I’m gonna hire more people to do the work for me. I would rather look for more work and deals than be on the job working and losing deals. Let me see my total for the year so far and it’s in less than 6 months.
CONSTRUCTION
$38,741.00
$ 9,654.00
$48,395.00

REAL ESTATE
$30,000.00
$28,000.00 (MAYBE MORE)
$ 8,000.00 (MAYBE MORE)
$66,000.00

$66,000.00
$48,395.00
$114,395.00 OVER ALL TOTAL

Not to bad for someone who had less than 150.00 dollars in his pocket June 2, 2005.

However, my point was that “making more money while doing less work” is much easier once you’re successful than when you’re just beginning

It might be a little easier but my point is that you do not have to wait until you own 50-100 properties to do this. I’m just starting out with not alot of money and I’m letting the plumbers be plumbers, etc. etc.

Looks to me Mike that we both will be successful in different ways. But take my advice and stop plumbing if it’s costing you 600.00 at a whack!!!
Just kidding!!!

You’re doing great at what you’re doing, keep it up!!! But my 2 cents is let the professionals be professionals. I’m not trying to degrade you or think that I’m better than you, I know I got a long way to go and alot to learn. I just don’t think that a beginner or a seasoned investor should do all the work them selves. I firmly believe in delegating to get the work done not stressing to much and trying to run yourself ragged.

Have a good night

JOhn

John

13

This has turned out to be a very interesting topic!

Here is the cool thing like John_nm was talking about his deals granted he could make more on them if the work was done on the other hand would you rather have 7-8k now and walk or pay to do the rehab and put it on the market and wait for it so sell to clear 9-10k I would rather take the 7-8k now and move along on that deal now when deals come up that either I want to rehab and or hold I buy them on the other hand I go strait off of my appraisers and inspectors report and what style of home it is. (Ranches here sell faster and for more $$) But like I said even if I lost it all tomorrow I would honestly still never go look and/or fix anything myself…

14

Alot of this has to do with your business plan.

Wal-Mart doesn’t look to make the highest margins - they look to have the highest volume. Wal-Mart doesn’t make it’s own goods, it sells other people’s goods. Wal-Mart is the middle man. This is similar to how REO is designing his business.

Rolex doesn’t seek to sell more watches than anyone. Rolex doesn’t outsource it’s watch design/construction to China. Rolex produces watches handcrafted in house and makes a MUCH higher margin. This is similar to Propertymanager’s business plan.

BOTH companies are very successfull. There are many examples of each. Both have their risks and rewards. It’s personal preference. There are companies that are in the middle (Honda makes money on high volume, but doesn’t outsource everything, and makes better cars than say Yugo). It’s about what YOUR idea is and what you think works best for you.

That being said, most Real Estate investment professionals suggest that in the beginning you get fewer deals with higher margin as these are SAFER than more deals with Lower margin. Their built in margin helps safeguard against the unforseen expense or longer holding costs than a slimmer deal does. But, that doesn’t mean that you can’t make the slimmer deals work with volume.

Personally, my opinion is go with property manqager’s ideas early, and REO’s later (much like Propertymanager said in his post).

15

Actually, I think that you’re both right and both wrong (figure that!).

In short, both are at extreme opposite ends (at least in your posts).

In both scenerios, you can lose money, taken to the extreme.

It’s crazy to think that you can outsource everything (which I do not believe that Reo does) and not lose some $$$ in doing so. Some things simply aren’t worth paying someone else to do because they don’t eat up enough of your time, or it’s simply less profitable to hire it than to do it yourself.

On the flipside, it’s also NOT reasonable to expect even a newbie investor to do EVERYTHING themselves. You lose money by doing so. Doing a complete rehab by yourself may be great if you’re particularly good at it. However, if it’s not something that you do everyday, then it’s probably going to cost you time and money. How, you ask?

Take one of my first rehabs. I decided that I could do most of the work myself. It took me over three months to do a three week rehab and it looked crappy. If I’d hired it out, it would have been done in 3 weeks (or less) and it would have looked much better (because people who fix things for a living generally do it better). I lost over 2 months of resale time and I lost money because the repair work didn’t look as good as it should have which resulted in a lower selling price.

There are also things that are worth paying for at least once. For example, your LLC. Yes, in most states, you can file yourself much cheaper than hiring an attorney. However, when I started my first LLC, I chose an attorney instead of DYI, even though it cost 3 times as much. Why? Because a) the attorney knew what he was doing, I didn’t (read above on rehab), b) if it’s done incorrectly, the attorney is responsible, not me, and c) when I was ready to start another LLC, I had all of the necessary paperwork and learned the steps and procedures needed to get the LLC up and running properly (education). Did you know, for instance, that the majority of DYI LLC’s are NOT, or will not, be a valid business structure, should they be forced into court. Why? because they did not know the proper procedure for setting up, and maintaining the LLC to keep the corporate veil in place.

What this really all boils down to is the time value of money, which is different for everybody. Some people think that it’s always best if they do everything that they can, so that they can “save a buck.” On the other side, some feel that if they’ve got the money, it’s better to hire it out, regardless of the cost.

Personally, I have a dollar figure placed on my time, based on what I make and my status in my company (very important to the company!). I can easily figure out my time value of money because all I have to do is compare what someone is charging to what I’d have to charge me.

Raj

16

Great point there I do some of my own things on the other hand it has to be what I want to do. If I did not at least do somethings I would get really old really quick! I mostly talk to other investors… And create my own marketing campaigns. Other then that most of my time is spent micro managing my business!

17

I guess I really do not do that much today I even ordered my groceries online! It was cool they deliver out here!!!