All Forum Posts by: Noah Condon

@Noah Condon Absolutely do not use your own employees. By the time you pay them a fair wage, and the labor burden (payroll taxes, etc) and the Workers Comp, you will have a huge weekly payroll nut to crack. Every Friday they'll have their hands out, even if there were down days or injuries.

Better to let a real Contractor handle this, they'll have multiple jobs and a lot more profit margin to dip into to cover their overhead....you should be handling the overall project decisions and going out and finding the next project, not running a kindergarden (as I used to call it :-)

Using other peoples money is a great way to keep you honest on the project as well keep the project out of your pocket.

I thought funding my own would give me control but what it really did was hogtie my leverage and made me emotional in my decisions.

There may come a time when funding everything makes sense, but even if you do a few flips with HML, you will understand the process, have a foot in the door and be positioned to act on ANY opportunity when it comes along.

And having a bunch of your own employees just means that they are looking to you or leaving you if the work slows down.  Their issues are now your issues and you gotta pay them and Uncle Sam for that opportunity. You could have a couple of kids and get that same level of satisfaction.

@Noah Condon I would suggest you learn about hard money financing, unless you have unlimited cash. Have you opened an LLC yet? If not, it should probably be in your state and be taxed as an S-Corp, to save you some money. The people you hire should be contractors who will fix your properties. These are independent contractors and should not be employees (very expensive if they are.)

Please consult with a licensed CPA and Attorney in your state.

Good Investing...