Skip navigation

Does anyone here

or Register to post new content in the forum

51 RepliesJump to last post

 

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Apr 15, 2007 7:02 am


Children... Enjoy the hors d'oevers and chill.
Apr 15, 2007 8:41 am

[quote=joedabrkr]

No way the banks would have let him get
financing with only 30k of his own money and the rest in "gift loans"
from friends.  Banks want to know the source of funds for a
downpayment.
[/quote]



And how do we explain the subprime mortgage mess?



More to the point, being a stockbroker has a huge opportunity cost
associated with it, even if the fixed capital outlay is not all that
much, and variable expenses are reasonable.



As for only putting in 10min a week at 7 different MCD’s stores. I
really doubt it.  There is a huge amount of fixed capital tied up
in those stores.



As for passive income, the best is a royalty on the work of others (i.e
rent).  They have these nifty things called REITs which are little
bundles of rents. AllREIT in my book. 



As for Bobby Hull, when are people going to realise that he is just a hostile troll? He’s not creative enough to post troll thread topics so instead he just insults people.




Apr 15, 2007 8:51 am

As for Bobby Hull, when are people going to realise that he is just a hostile troll? He's not creative enough to post troll thread topics so instead he just insults people.

 Nice observation.

Apr 15, 2007 4:11 pm

And how do we explain the subprime mortgage mess

Banks don't make subprime mortgages.

Apr 15, 2007 5:13 pm

[quote=babbling looney]

And how do we explain the subprime mortgage mess

Banks don't make subprime mortgages.

[/quote]

Really?

You realise that WFC is the biggest subprime lender in the country, HSBC took a big write down on thier subprime book, CFC/NDE/WM/C all had subprime divisions.

Kind of like Asbestos, there is alot more exposure than commonly thought.
Apr 15, 2007 5:30 pm

"...His best store makes 120K, worst store makes 60K."

That's astounding! His BEST McDonalds makes 120,000 profit per year? (I assume that you mean by this that the guy takes no salary but only pockets the net profits per year from each store.

What about retained earnings? What about upgrades? What about corporate margin expansion (when MCD needs to charge more so that their stockholders can see some love?).

When I was a little one man shop I was out earning his BEST McDonald's. Triple net. I can't imagine going through all the work needed to keep a McDonald's up and running (you constantly need to hire new zit farms to run the food factory) There is an unendling supply of disasters happening when you have employees that are run by their hormones (or gummers who are run by their pharmacology) who couldn't care less about the "quality" of product that you are putting out. 1 store is a 60 hour/week job. 120M wouldn't be enough for me.

10 minutes per store? You've obviously never run a business. It's like the scene in  Easy Money where Rodney starts telling the prof what it's really like to be in business and negotiating with the garbage haulers!

Meanwhile, if you weren't the absolute bottom of the hill at a wirehose (not you personally, all brokers are) and you could actually make enough money there so that you could hire brokers to work for you... Then you'd be able to work towards the situation you think your client is in. Me? Being independent and hiring others to work under me. I'm on the way. I'll have it MY way, as the Big Mac daddy of my own firm.

So, to answer your question, I used to have those thoughts, but then I did something about it, and now I have other thoughts.

Apr 15, 2007 7:13 pm

[quote=Ashland]



Children… Enjoy the hors d’oevers and chill.[/quote]

Latex covered shrimp?

WTF?

Apr 15, 2007 7:33 pm

[quote=joedabrkr] [quote=Ashland]

Children... Enjoy the hors d'oevers and chill.[/quote]

Latex covered shrimp?

WTF?
[/quote]

I'm definitely not taking a run at THIS one.

Apr 15, 2007 7:40 pm

Getting back to the original spirit of the post, I have some clients who make a hell of a lot of money who don’t work all that hard.  Right of the top of my head, I have a fairly young lasik surgeon that works about 20-24 hours per week and nets well over $1 million per year.  I have a guy that owns a junk mail business who pulls down $500-600K and is a scratch golfer.  (You don’t get your handicap to zero logging lots of hours at the office.)  I have a client that owns part of a local title company that has strung together a pretty incredible run. (Probably does not have to work anymore if he chooses.)  And finally, I have a client who owns a “not for profit” debt counseling/consolidation business where he pays himself and his wife almost seven figures per year working 5-6 hours per day, 4 days per week. 

Apr 15, 2007 8:16 pm

[quote=Soothsayer]Getting back to the original spirit of the post, I have some clients who make a hell of a lot of money who don’t work all that hard.  Right of the top of my head, I have a fairly young lasik surgeon that works about 20-24 hours per week and nets well over $1 million per year.  I have a guy that owns a junk mail business who pulls down $500-600K and is a scratch golfer.  (You don’t get your handicap to zero logging lots of hours at the office.)  I have a client that owns part of a local title company that has strung together a pretty incredible run. (Probably does not have to work anymore if he chooses.)  And finally, I have a client who owns a “not for profit” debt counseling/consolidation business where he pays himself and his wife almost seven figures per year working 5-6 hours per day, 4 days per week.  [/quote]

Sounds like some good clients!!

I have no reason to disbelieve you.  But the story about the McD’s guy is supicious to me.

I wonder how the title guy is doing now?  We’ve had a few local title co’s go chap 11.  It’s a low margin business with a lot of fixed costs.

Apr 15, 2007 10:38 pm

I don’t think anyone answered the original question.  The business is no fun anymore…

Apr 15, 2007 10:42 pm

10 minutes per store? You've obviously never run a business. It's like the scene in  Easy Money where Rodney starts telling the prof what it's really like to be in business and negotiating with the garbage haulers!

Wasn't that in Back to School?

What's a widget?

Professor Turgeson

Apr 15, 2007 11:26 pm

Mucho righto you are, Mucho.

My bad.

Apr 16, 2007 1:39 am

Sock puppetry abounds in this forum. Barf.  How stupid do you think we are..l...I guess really.

Apr 16, 2007 4:29 am

[quote=babbling looney]

Sock puppetry abounds in this forum. Barf.  How stupid do you think we are…l…I guess really.

[/quote]

ROFLMFAO at “sock puppetry”.   It took a split second for the metaphor to register…
Apr 16, 2007 12:24 pm

[quote=joedabrkr] [quote=babbling looney]

Sock puppetry abounds in this forum. Barf.  How stupid do you think we are..l...I guess really.

[/quote]

ROFLMFAO at "sock puppetry".   It took a split second for the metaphor to register.....
[/quote]

She's got a dirty streak in her. That's why I keep her around.

Apr 16, 2007 4:52 pm

We all know there are many other carers out there that offer more money and better quality of life. Problem is this is the one we chose. You made your bed now lie in it. Do you have the guts to change your career? You willing to take the risk? If not, you're stuck working all day everyday 5 days a week until about age 60. That is your destiny.

Or just annuitize $100million and you could have his life!

Apr 16, 2007 10:48 pm

[quote=Bobby Hull]

[quote=fritz]Borrowed some Dough from 3 friends for the first store (repayed back within one year)...Then McDonalds financed the other locations..His best store makes 120K, worst store makes 60K.  I have known the guy since college and it is all very clear..I have been a witness to every step along the way.  In the beginning he worked to learn the business, but last 5 years time is spent on other things..He does not put in more than 2 hours per week into this restuarant stuff.  He had the iniative and made it happen.  My point is there are easier ways to make a buck than being a "finacial advisor" unless you have a lot of connections or family money.  The fact that most split 60/40 with the house, then taxes, makes me wonder about my decision.  My view is most successful people would say the house does not deserve 60%.  Also he makes money when is not working, which Buffet says is the key to making $$.

[/quote]

Now I know that your story is bogus...Corporate McD's does NOT allow a franchisee to fund the initial store with borrowed funds. In fact the regional controller will verify the source of funds are coming from your own means and are not borrowed. Secondly, if his BEST store nets ONLY 120k he is a piss poor owner who would have never got that many stores by age 35.

Apr 17, 2007 12:50 am

[quote=Broker Fee][quote=Bobby Hull]

[quote=fritz]Borrowed some Dough from 3 friends for the first store (repayed back within one year)...Then McDonalds financed the other locations..His best store makes 120K, worst store makes 60K.  I have known the guy since college and it is all very clear..I have been a witness to every step along the way.  In the beginning he worked to learn the business, but last 5 years time is spent on other things..He does not put in more than 2 hours per week into this restuarant stuff.  He had the iniative and made it happen.  My point is there are easier ways to make a buck than being a "finacial advisor" unless you have a lot of connections or family money.  The fact that most split 60/40 with the house, then taxes, makes me wonder about my decision.  My view is most successful people would say the house does not deserve 60%.  Also he makes money when is not working, which Buffet says is the key to making $$.

[/quote]

Now I know that your story is bogus...Corporate McD's does NOT allow a franchisee to fund the initial store with borrowed funds. In fact the regional controller will verify the source of funds are coming from your own means and are not borrowed. Secondly, if his BEST store nets ONLY 120k he is a piss poor owner who would have never got that many stores by age 35.

[/quote]

Actually, I believe the best store does $120m. $100m is pretty typical from what I've heard. The rest is a pack of lies. Starting with the fact that this guy is a client of this piker.

Apr 17, 2007 1:36 am

Actually, this is possible.  My background is in corporate finance in the restaurant and hotel industry.  My experience is that with these smaller deals (restaurants, low-end hotels/motels), some pretty unique deals are put together from a funding perspective.  Once you get into the multi-million dollar deals with heavy real estate involved, the deals are pretty boiler-plate (requiring guarantees, source of funds, etc.).  It's even easier when just the business operation changes hands (he may be renting/leasing the real estate, so no financing required).

And I personally knew MANY hands-off owners that just hired the right managers or management company.  They would go to monthly operations reviews and quarterly or monthly financial reviews.  Your margins are lower under this scenario because of management overhead, but you remove the operational headaches involved in this business.

Most of you are probably more familiar with the "hands-on" owner/manager, which is also very common, but not exclusive to the industry.