Still in SchoolMember@still-in-schoolJoin Date: 2003Post Count: 1,844
Just spoke to my mate this morning, anyway he bought a very small business for $1600 (50/50) only for $800 his share was.
This is how the deal looks like.
Cleaning Business $1600
No Set up $ 0
Expenses $ 0
How it works is, he bought the business for $800 share, the business is contracted to a large office builing. All cleaning expenses are covered by the firm the business is contracted too.
They are paying the business $300 per the night. His Share $150. Instead of him working, he is paying someone $15 a hour for 6 hours work.
His cleaning business only operates 2 days a week(6 hours a night) as well.
$15 an hour x 6 hours = $ 90
Firm is paying business $150
Passive Income of $ 60
For himself he’s making $ 120 passive income a week, while someone else does the job.
Not bad for an $800 investment. and even better the firm is paying him cash in hand and he is paying his employee cash i hand.
Save on a regular basis
“People forget that by saving just $3 per day and investing it sensibly over a working life, you’ll end up with around $1 million.”
http://www.theenlightenedway.com/tools/mil_calc.shtmlredwingParticipant@redwingJoin Date: 2003Post Count: 2,733
work smarter not harder hmmm..
“The man that thinks at 5o as he did when he was 20 has wasted 30 years of his life”PropertyGuruMember@propertyguruJoin Date: 2003Post Count: 1,501
I want only 5-6 contract like that and I am happy! .
Find that type of contract for us also.
PropertyGuRuToolsParticipant@toolsJoin Date: 2003Post Count: 363
That sounds great until the tax man catches up with him,and he is liable far tax,gst,superannuation etc…..or worse still if the employee injures himself at work and your friend has no workcover,he will lose his profits,and more,and get taken to the cleaners (no pun intended!) for not having a workcover policy in the first place.It just isn’t worth the risk.xyzzyParticipant@xyzzyJoin Date: 2003Post Count: 178
Why would the firm pay cash in the hand when cleaning is a legitimate business deduction. Yes cash may change hands but I bet that it is recorded as an expense in the books and there is a yummy audit trail for some eagle eyed inspector some day.
The risk reward ratio is scary!
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