Need office help...are temps the way to go? - Posted by JohnB_NJ

Posted by Diane(Bay Area) on May 05, 2000 at 18:15:07:

Be careful about hiring clerical help and paying 1099. I was hired this way by a hard money lender when I was just starting out in mortgage lending. They told me what my hours had to be and how to do my work. When you stipulate WHEN and HOW and WHERE the work will be done, the IRS considers this employment, not independent contracting and you and the contractor could find yourselves re-filing your taxes.

The best thing to do is ask for specific deliverables with deadlines. That way your independent contractor is free to do the work at home at 2am or whenever, wherever, however.

If it’s a receptionist you want, why not go for a good phone system. Someone recently posted about the benefits of a Meridian system and how it’s better than a live person when it comes to taking messages, etc.

Need office help…are temps the way to go? - Posted by JohnB_NJ

Posted by JohnB_NJ on May 05, 2000 at 01:23:35:


Funny, last year I was not doing that much business…this year…I am on fire. I had 3 closing this week (two buys & a simultaneous flip close). Now,I am not complaining…but I am working 12 to 15 hour days. Between marketing, rehabbing (minor cosmetic stuff…yeah, I should hire someone to do the painting) and getting the closing bugs worked out, I don’t have any time to enjoy the day.
So, it is time to hire someone to help me with my lead generation (calling fSBO’s out of the various papers, sending out postcards from fresh lists) and various other things I just can’t keep up with.

What would be the best route? Hire someone and deal with payroll, SS taxes, fed and state withholdings…yuck…
or should I hire someone from a “temp” agency. That way I do not have to deal with payroll and all the hassel that comes with it.

I do have another choice, one of my tenants was a telemarketer and she offered to use her skills to net me some leads. I am considering that approach because she is not shy about calling people and reading a script and working with it so it doesn’t seem like she is reading from a script.

Anyway, i am would greatly appreciate any input. Thanks!


PS: Today’s simultaneous closing was a real “sweater”…I had my seller and my buyer at the title agency and my buyer’s mortgage company didn’t wire the money. My seller was very confused because he didn’t know about my buyer in the other room. Thank God I have a great title company…the underwriter signed off on the funding and promised the wire in the morning…my title company closed the transaction and paid off the seller. OK, I have to wait until tomorrow to pick up my check…that’s ok… I am just glad the deal didn’t crash.

Re: Need office help…are temps the way to go? - Posted by Strickland

Posted by Strickland on May 05, 2000 at 22:44:41:

I used a temp agency for “front office help” before. Good and bad in many ways. Good-You get some prescreening on who you have to interview or get sent to work for you. You can also get rid of most pretty easy if it doesn’t work out. You also are free from any payroll or other paperwork in that aspect. Bad-yes there is a premium added to the wages and some do have a “minimum hour” requirement. If I did it again although, I would go through the agency again. :slight_smile:


Re: Need office help…are temps the way to go? - Posted by Ben (NJ)

Posted by Ben (NJ) on May 05, 2000 at 05:12:16:

Hi John, I would avoid the temp route because you have to pay the agency money on top of the temp. Hire an inependent contractor, at the end of the year you just send them a 1099, no benefits, no hassles etc. Your tenant sounds like a good prospect. When my wife and I started our business five years ago we resisted administrative help because we figured we could do everything and save money, I literally got to a point where I was spending the whole day typing up certified mail green card receipts. We finally caved in and got some good help and it was the best move we ever made.

Re: Need office help…are temps the way to go? - Posted by JohnB_NJ

Posted by JohnB_NJ on May 05, 2000 at 21:30:37:

Thanks Ben for the advice…

I appreciate you taking the time to post a response.

Have a great day!