LIVING OFF DIVIDENDS & PASSIVE INCOME

Finally having finished rounding up nearly $200,000 for the 17 oil well project yesterday we sent off the check to the operator. Together with 28 other investors, we managed to snag a 12.5% ownership in the entire project. Now I can get some rest!!! [Although now I have to sign all the paperwork and mail it back to the individual investors]

One of the advantages of owning a large chunk of a project is that you get to bug the operator a lot more than if you owned say 1%. [The same is true for real estate. Do you think your property manager is more likely to take your calls if he manges 12 of your homes instead of just 1??] People will tolerate a lot more crap if you provide them with a substantial amount of business.

So rather than me owning 0.72% of the project and having absolutely no leverage, I control 12.5% of the project thus making myself cozy with the operator. I’m also the manager of the LLC and will be getting a performance fee if we make more than a 20% return in any given year.

Ahh…leverage! It works in all aspects of life, especially the financial arena!

If you found this post helpful, consider donating to my coffee fund!

Related Posts

• Getting A Discount At Barnes And Nobles I recently bought a book for a friend's birthday at Barnes and Nobles Book Store. Since my friend is an investor in one of my private placement funds, I considered this a business expense[and the book was below $25 as allowed by the IRS for Business gifts]. When I forked......
• A Better Way To Earn Money From Parked Domains Until recently, domainers used to park domains with nothing but ads on them. They tried to get traffic from mis-spelt URLs or people who'd directly type a URL in the location bar. There wasn't any content to attract the search engines, so unless they were paying to direct traffic to......
• Site Review: Earners Blog I've been writing about various ways to earn money and one of them is monetizing your blog. I've come across several sites, whose main focus is to earn money from your blog.One of them is EARNER$ BLOG, run by Stuart an SEO consultant based out of Melbourne Australia. In the......

Related Websites

• Player Profile for Patty Sheehan Patty Sheehan was born on October 27 in 1956 in Middlebury, Vermont, and is an American professional golfer who became a member of the Women's PGA Tour (LPGA) in 1980 and went on to win six different major championships with a total of thirty five LPGA Tour victories in all.......
• Moving Is Going To Save Us A Ton Of Money And Improve Our Quality Of Life. L.A.'s Only Affordable Real EstateI write quite often about how I love living where we do...we are one block from the beach, the weather is nice 99% of the time, we were able to get rid of one of our cars because everything I need is within walking distance. I......
• Jailbreak iPhone 4, iPad, & iPod Touch 4.0.1 (no computer) Visit ones of these sites on your iPhone, iPad or iPod Touch to jailbreak your device: jailbreakme.com http In this video I will show you how to jailbreak the 4.0.1 firmware iPhone 4, iPod Touch and iPad. More info on the jailbreak - tysiphonehelp.com Notes: - You may have......

[All content is copyright of Living Off Dividends & Passive Income]

Random Posts

• November 14, 2007 -- Ben Stein Long On Financials
• January 15, 2008 -- Bank Of America Buys Countrywide To Save On Taxes
• February 28, 2007 -- BHP Billington Share Buy Back
• November 9, 2008 -- The World’s Most Successful Depression-Era Investor
• July 13, 2006 -- Who Do You Hang Out With?
• March 12, 2008 -- A Million Bucks By 30 | Book Review
• August 8, 2006 -- Interesting Articles On Credit Expansion And Liquidity

You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.