if the Gubment and state would restrict their wastefull spending and lower taxes the laborers could pocket more of the money they earned then those low paying jobs become high paying jobs
One Florida McDonald’s offers $50 to anyone who interviews for a job
- Thread starter Dave Hess
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I don't think people really understand how a franchise works. While the cost of the franchise is about 1-2 million, you only need to come up with about 40% of that to own it, you can finance the rest of it. So that 1-2 million is really 400-800k. While it might not be good to just have one location, most franchises have multiple locations so that 150k profit per local adds up once they have 5-20 stores. Have multiple locations also somewhat insulates you from problem stores. You can one or two bad ones but still do well overall. It's like my landlording, I have 10+ units, and everyone here moans and groans about the terrors of the bad tenant and I've had my share of them, but you only get them once in a while and if you just have one unit, then that's 100% of your problems but spread out amount multiple units, there's actually less risk. Anyway a 150k return on a 400-800k investment is actually better than the stock market. S&P 500 only does about 10-15% on average in a 10 year period. I think with McDonalds, revenue per store is probably more constant regardless of how the economy is doing.
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Wolf,
The thing is that many are afraid of having so many financial liabilities and debt, not to mention the stress and aggravation.
Some people lose their life saving in things they should not be investing in like a business, restaurant, rental properties, etc...
I know a guy with a rental property and his renter was a police officer that was always late paying rent. The landlord finally had to tell cop he was filing an official complaint against him at police HQ to get his rent paid on time without any bull ____ excuses.
The thing is that many are afraid of having so many financial liabilities and debt, not to mention the stress and aggravation.
Some people lose their life saving in things they should not be investing in like a business, restaurant, rental properties, etc...
I know a guy with a rental property and his renter was a police officer that was always late paying rent. The landlord finally had to tell cop he was filing an official complaint against him at police HQ to get his rent paid on time without any bull ____ excuses.
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Being afraid holds people back.Wolf,
The thing is that many are afraid of having so many financial liabilities and debt, not to mention the stress and aggravation.
Some people lose their life saving in things they should not be investing in like a business, restaurant, rental properties, etc...
I know a guy with a rental property and his renter was a police officer that was always late paying rent. The landlord finally had to tell cop he was filing an official complaint against him at police HQ to get his rent paid on time without any bull ____ excuses.
Come to think of it, I don't know of too many people who have been unsuccessful renting property. I think I know of one that due to her personality, drove out good tenants and then had to do a short sale when the market was down. In terms of rents, yeah, I've had the bad one here and there, but you're not doing that badly if you get 85% of anticipated rents and I'm usually in the 95%+ range. I've had a couple units fully rented for 5-10 years with the same tenants.
The community college that taught me how to program, DeAnza College in Cupertino, has numerous apprentice programs. Electrician, Auto and Diesel Mechanics to name a couple. Every one is impacted; a year or more wait list.
The have a 2 year nursing program that is expanding to a 4 year degree.
Not everyone is gonna be a lowly programmer like me.
By the way, DeAnza has been called one of the top 5 community colleges in the nation. I love that place.
I did about 16 years doing Skyline J. C. continuing education auto classes when I lived in San Bruno. Lots of fun. My son says I should have a PhD in J.C.
Then you know the community colleges around here. I attended West Valley in Saratoga, DeAnza in Cupertino and finally made it to San Jose State. I got my 1st degree at 40. Things got better for me after I joined AA at 33. And no more jail... Imagine that?
Guys, when we are talking about market rate, please remember: It is a market rate when both sides agree it is the market rate.
You cannot just say if the businesses say this is how much we are paying and nobody show up, it is a market rate. You also cannot just say workers demand a certain pay but business just fire them all and call this a market rate. Both sides need to agree or else it is not market.
Nobody shows up to work at McD, then it is not a market rate, don't blame the teens, they have better things to do whether it is because their mom and dad tells them to take more classes and summer sessions to finish school faster, or internship for the real job, or work at Chipotle and Panera Bread for the same pay as McD. You also cannot blame retirees for quitting because the risk of all these virus risk / tantrum customer risk / violent robbery risk with no medical are not worth the pay to work there. Teens are working, just not at McD because there are more choices these days (maybe better pay, maybe more comfortable, maybe more flexible, maybe something that can grow into future career).
Just remember, it takes both sides to agree upon something to be a market. No agreement means no market.
I'll pay my future teenager to finish school faster instead of McD job, don't want them to waste their time there and then delay graduation, and don't want them to get bad influence from iffy coworkers. I already pay through the nose to insulate them from bad school district, why let them get bad influence from iffy coworkers in their age group? They can do volunteer work and work somewhere more meaningful and I wouldn't mind.
You cannot just say if the businesses say this is how much we are paying and nobody show up, it is a market rate. You also cannot just say workers demand a certain pay but business just fire them all and call this a market rate. Both sides need to agree or else it is not market.
Nobody shows up to work at McD, then it is not a market rate, don't blame the teens, they have better things to do whether it is because their mom and dad tells them to take more classes and summer sessions to finish school faster, or internship for the real job, or work at Chipotle and Panera Bread for the same pay as McD. You also cannot blame retirees for quitting because the risk of all these virus risk / tantrum customer risk / violent robbery risk with no medical are not worth the pay to work there. Teens are working, just not at McD because there are more choices these days (maybe better pay, maybe more comfortable, maybe more flexible, maybe something that can grow into future career).
Just remember, it takes both sides to agree upon something to be a market. No agreement means no market.
I'll pay my future teenager to finish school faster instead of McD job, don't want them to waste their time there and then delay graduation, and don't want them to get bad influence from iffy coworkers. I already pay through the nose to insulate them from bad school district, why let them get bad influence from iffy coworkers in their age group? They can do volunteer work and work somewhere more meaningful and I wouldn't mind.
This. A lot of people are not very good as business owners and it takes certain personality to do certain jobs well.
My father in law for example would be better suited for a military career (his dad was a drill sergeant in the air force), but he is a horrible landlord and a horrible investor with no financial discipline, losing his retirement savings on iffy investments and bad rental management picking the wrong kind of tenants.
I used to have a college roommate whose parents are multiple franchiser (McD). He is definitely in the upper middle class. It really depends on the screening process and how disciplined the HQ screen for qualified people (I heard McD requires MBA and franchisee to be at least a millionaire to begin with) to run them. Some like Quiznos and Jack in the Box would ruin people's life as a franchisee while McD and Chickfila will likely makes you into financial independent.
The economy of scale of landlording is real. My parents were usually able to work a couple months here and there freshening up and leasing vacant units, swapping appliances between units and keep 1 set of spare (they have a spare fridge, a spare dishwasher, a spare electric range) and standardize on the paint color so they only need to keep 1 can of it at all time. It is also much easier when you have the experience and learning curve to deal with certain scenarios that you will run into, and plan for (leaks, repair, knowing who does good work and give you a deal because you are frequent customer), and all the tools you will need and already bought.
Most importantly, when you have economy of scale you have the experience to know what kind of customers / tenants you should absolutely avoid, and pay to send away if you accidentally got one.
Dream on. This is a dilemma in human civilization we have not found solution on, regardless of what kind of government and civilization we have.if the Gubment and state would restrict their wastefull spending and lower taxes the laborers could pocket more of the money they earned then those low paying jobs become high paying jobs
The average McDonalds franchise owner has about 6 stores. So they're not doing too badly.
As for landlording, never bothered to stock up on spare appliances. If they broke, I'd just tell the tenants tough luck, it's on order. Lowes was actually pretty good for that at one point, I'd get the basic model and if it was in stock, they would deliver the next day so no need to stockpile. Plus you also have to move it if you have a spare. Free delivery means all I have to do is pick up the phone. Too bad during the pandemic they were out of stock and other stores were able to deliver faster.
Our "spare" are just repaired old units. Typically something small broke, and we can swap and fix stuff faster anyways. We have a van and a dolly so it is usually the way to go as they do last a long time if you keep fixing small problems (i.e. 30 years).
Tough luck is not a good defense against regulation and tenants with an itch to sue for all sorts of stuff. If you swap things out real fast then they cannot pull that off. I miss Sears when you were able to just pull a truck to their dock right after you pay. Nobody has anything in stock these days.
Plus happy tenants tend to be easier to manage, and that worths a lot when things are tough (i.e. real need to tell them to wait for something you don't have).
Tough luck is not a good defense against regulation and tenants with an itch to sue for all sorts of stuff. If you swap things out real fast then they cannot pull that off. I miss Sears when you were able to just pull a truck to their dock right after you pay. Nobody has anything in stock these days.
Plus happy tenants tend to be easier to manage, and that worths a lot when things are tough (i.e. real need to tell them to wait for something you don't have).
Well if you take days to do it, they could probably complain to someone. But even the worse problem like no heat is a 24 hour fix it requirement. Not sure about broken appliances as I haven't gotten a notice about that from the housing inspector but typically depending on the problem, it's a week to 30 days to make repairs. By the time the housing inspector shows up, it could already be replaced. I don't actually tell the tenants tough luck, I just say sorry about that and tell that a new one is on order. They're usually happy with waiting for a new appliance. Usually I will try to fix an appliance once or twice if it's a common failure like an igniter or door gasket on a refrigerator but otherwise if you have to pay someone to come out and fix/diagnose it, the cost is in the $200-$300 range and at that point you're basically halfway to a new appliance. It's why we live in a disposable society.
True. We don't actually intent to keep a spare but sometimes units are worth refreshing and it looks odd to have 1 old appliance with 2 new one so we would replace the "old" one to make it match, swapping them around between "new" and "worn" units for different price point. In that case since we have a storage we will just stock the old working unit there as a spare for emergency. Most of our tenants are pretty happy we have spare one to keep downtime minimal.
Some tenants are just harsh on stuff and for those tenants we usually don't waste money on new stuff for them, they are going to break them again anyways.
When I had a rental property I had a management company deal with finding and vetting tenants.
How do they vet? What's the criteria?
Minimum credit score and references from previous landlords. I believe they also checked for previous evictions on record. Also checked for proof of sufficient income for the rent.
Is it worth having a rental verses putting that money in the stock market ?
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