Distribution Of Profits.

Hey all. Just wondering if any seasoned investors out there would like to share their formula for how they disperse their profits (if they have a formula). It's easy to lose track of money when you don't budget and regiment where it's going and how much of it is going there.

I'm thinking you could portray the ratio in percentages. Say:

-40% renivested into ADVERTISING and PROMOTIONS

- 25% poured into a nest egg or trust account set up to cover payments for lagging sub2 deals

- 35% for personal use and enjoyment

This is just an example, not my actual breakdowns. You have to make money before you do that mad . Oh, well. Fire away, boys. This should be interesting. Never seen a post like this before.

Comments(1)

  • tinman17554th February, 2004

    My formula is as follows:

    I have an unsecured line of credit for $117,400.00.(odd number). I have never spent all of it on any property yet. For each project I use one credit card, one bank account, one credit line. This way I am able to keep track down to the penney. When I flip the Property, I put the exact payoffs for the credit card, and credit line on the HUD I. This way I know my exact profit on every deal. I invest all my profit in my retirement fund and start another project. Hope this gives you some idea. Because unless you keep track of these things you may miss a deduction. Lori
    [addsig]

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