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!

• 10 Worst Real Estate Markets In 2009 As I mentioned in a previous post, the real estate market hasn't hit bottom yet. According to an Article in Fortune Magazine, 8 of the top 10 worst real estate markets in 2009 are in California. The range of the predicted price decline is between 20 to 25%. 1. Los Angeles 2008 median house......
• Tax Benefits Of Passive Income Since this is tax season and this site is dedicated to earning passive income, I thought I should post something about the taxation of passive income. From the IRS's point of view passive income is any income that you get without having to to materially participate in. Examples of passive......
• Strip-Club Stocks Go To Wall Street There's a very interesting article today about how strip clubs are over-looked and under-valued. I'm not sure I necessarily agree with that point of view but there are some interesting points to consider.* They're recession proof. (along with barber shops and fast food joints)* They have very low overheads.The strippers......

• Cordova Golf Course, Sacramento, CA Cordova Golf Course is located in: Sacramento, CA Phone: (916) 362-1196   Website: http://www.cordovagc.com Course History: This course was first built in 1958 and became very popular due to its low rates and terrific play. They are very friendly to players of all skill levels and the prices really are......
• Twitter Tweets about Social Media as of April 22, 2009 ericsvl: How to Successfully Integrate Social Media Into Your Site http://tr.im/jczQ (via @sitepointdotcom) 2009-04-22 07:33:06 · Reply · View ploked: Are you Addicted to Social Media? 23 Signs That You Just Might Be! #socialmedia http://tinyurl.com/cvz7sh 2009-04-22 07:33:03 · Reply · View cesarnoel: RT @designriffs 8 Webhosts That are Perfect......
• Knees knocking in the UK as budget day approaches You may love him or you may hate him, but one thing is for sure, not many UK citizens would like to be in Alistair Darling's shoes on Wednesday when he makes his eagerly awaited budget speech. Chancellor Darling is expected to announce spending cuts of around some £15billion of......

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

Random Posts

• November 10, 2005 -- Spoke with Robert Campbell today
• August 8, 2006 -- More Oil News
• June 20, 2007 -- Housing Still Sucks!
• August 22, 2006 -- A More Expensive Alternative To Gas [& How To Profit From It]
• July 21, 2006 -- Another Gold Investing Update
• November 2, 2007 -- Ron Paul on Jay Leno
• March 25, 2009 -- Mobs, Messiahs & Markets: Book Review