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View Full Version : Question for the grizzled lawn vets!!!


indy2tall
02-09-2006, 05:19 PM
This is directed at LCO's who have multiple crews and therefore have large storage needs for trucks, mowers, and other equipment.

I am at the point that I need to rent or buy some sort of storage space for all my gear.

I have an opportunity to purchase a small concrete block commercial building (1300 sq ft) that is almost new. There is a very large automatic overhead door along with a separate steel entry door. It has 100 amp electrical service and adequate lighting. It is within 10 minutes of an almost unlimited supply of high dollar neighborhoods. Most of the storage rental companies around here are charging between $600 to $700 a month for 800 sq ft if you can even find any that are available. I can buy this for about $100,000. Do you think it is a good deal? I hate the idea of throwing money away on rent!

Sean or Jodi please don't move this thread, pllllllease!!!!:waving: :waving: :waving: :waving:

indy2tall
02-09-2006, 05:44 PM
Come on guys give me some input please.:help: :help: :help:

ProStreetCamaro
02-09-2006, 05:45 PM
This is directed at LCO's who have multiple crews and therefore have large storage needs for trucks, mowers, and other equipment.

I am at the point that I need to rent or buy some sort of storage space for all my gear.

I have an opportunity to purchase a small concrete block commercial building (1300 sq ft) that is almost new. There is a very large automatic overhead door along with a separate steel entry door. It has 100 amp electrical service and adequate lighting. It is within 10 minutes of an almost unlimited supply of high dollar neighborhoods. Most of the storage rental companies around here are charging between $600 to $700 a month for 800 sq ft if you can even find any that are available. I can buy this for about $100,000. Do you think it is a good deal? I hate the idea of throwing money away on rent!

Sean or Jodi please don't move this thread, pllllllease!!!!:waving: :waving: :waving: :waving:



Let me clear something up here. So for $100,000 it comes with the land and the building right? How much land is included?

indy2tall
02-09-2006, 05:55 PM
It is in a complex with some other similar commercial buildings so the only land you actually own other than what it sits on is a small space for about three parking spaces. There is a common area paved parking lot. The building is insulated and has all utilities either installed (electric) or roughed in (phone, water, sewer, gas).

The Ranger
02-09-2006, 06:12 PM
@ the current rate of interest you could probably add a few hundred dollars to the 700 or 800 figure for rent and make your payment on the new building. You have to come up with the down payment of 20 grand. If it is double the space you need, put up a wall another entrance and rent the other side out for 500 or 600 which will be 1/2 your payment.....just some ideas. Another thought would be to talk to your accountant.

indy2tall
02-09-2006, 06:28 PM
I have talked with my mortgage broker and he tells me that I can get a rate of 6% to 6.25% with no money down or 6% or less with $20,000 down. That puts me in the $1,000 a month range with taxes and insurance added in with no down payment or around $800 a month with the 20k down. This is in a VERY secure (ie. low crime) area. My other option is to sell my home and buy well out in the surrounding counties and build a large pole barn. This has 2 distinct drawbacks as I see it. One is time lost driving 25 to 30 minutes just to be able to start mowing (not to mention the cost of extra gas burned) and the fact that out in the country my stuff would be much less secure when I wasn't home.

Green-Pro
02-09-2006, 06:45 PM
To small a building IMHO if you are buying with company growth in mind. I put up a 30 x 40 x 12 building last year for $14500-$15000, ran the electric, phone, etc. myself.
Reason I would suggest that its to small is because I know I will be outgrowing mine this year or next, and 2005 was our first year in business. I own the ground mine sits on though (acreage) so opening a wall and expanding will not be a difficult process.
I'm not trying to be a "Richard" but if you have serious growth in mind for your business, and your options are limited to a building within a town/city, I would look for larger.

JMO

cborden
02-09-2006, 06:47 PM
What part of Marion county is it in?

indy2tall
02-09-2006, 07:18 PM
To small a building IMHO if you are buying with company growth in mind. I put up a 30 x 40 x 12 building last year for $14500-$15000, ran the electric, phone, etc. myself.
Reason I would suggest that its to small is because I know I will be outgrowing mine this year or next, and 2005 was our first year in business. I own the ground mine sits on though (acreage) so opening a wall and expanding will not be a difficult process.
I'm not trying to be a "Richard" but if you have serious growth in mind for your business, and your options are limited to a building within a town/city, I would look for larger.

JMO

I really have no desire to have a lawncare "empire" and as such wish to remain a single crew company so 1300 sq ft will be more than enough.

indy2tall
02-09-2006, 07:22 PM
Who out there owns or rents a commercial building for their operation? Do you feel $100,000 is reasonable for the building I am looking at?

cborden
02-09-2006, 07:31 PM
If it is in Center Twp, then yes with the information provided I'd say the price is a little high. If it is in Warren, Pike, Washington or even Wayne twp, I'd say the price is about average. Just my opinion. :)

sanfordandsonfan
02-09-2006, 07:31 PM
If you can afford the building, the I would buy it. Two things to consider about real estate. 1. God is not making any more land. Buying a piece of earth is a great investment. 2. If you decide to ever get out of the business and not need your building, then rent it. Hang a sign in the window and get $1500.00 per month.
My mom has been renting her beauty shop space for thirty five years. The rent is $500.00 per month. She has paid a ton of money over the years so her landlord could own the building, the one next to it and fifteen homes in the area. He also owns a family farm with his brother (500 acres) and guess what, he started with one building. Good luck.

6'7 330
02-09-2006, 08:01 PM
A goal of not being a company with well-controlled growth is a mistake in my opinion. Nevertheless, Cie La Vie as the old folks say, whatever goals make you happy is all that matters.You never know if your goal might change to one of future growth. From minute one we had an eye toward the future. We put our office, chemical storage buildings, and truck and equipment buildings on 30 acres of land I already owned. Gives us all the space we need for rock, Nursery stock, mulch etc.

Either way, the building and land would be an investment with possible future returns. Rent only goes into the owners pocket; you donít get a dime in possible future returns

indy2tall
02-09-2006, 08:44 PM
A goal of not being a company with well-controlled growth is a mistake in my opinion. Nevertheless, Cie La Vie as the old folks say, whatever goals make you happy is all that matters.You never know if your goal might change to one of future growth. From minute one we had an eye toward the future. We put our office, chemical storage buildings, and truck and equipment buildings on 30 acres of land I already owned. Gives us all the space we need for rock, Nursery stock, mulch etc.

Either way, the building and land would be an investment with possible future returns. Rent only goes into the owners pocket; you donít get a dime in possible future returns

Bill, I was hoping you would comment on this thread because I have read many of your posts and usually agree with your thoughts. I wish I had 30 acres here in Indy but since commercial land here starts at $100,000 per acre and goes rapidly up from there it just isn't going to happen. I don't want the headaches that come from a multiple crew operation even though I know that is the only way to ever make the really big money. I know that it would drive me insane if I had employees that tore my equipment up or did not work as hard as I do. All I need to do is net at least $60,000 a year from lawncare and my future will be very secure within reason.

6'7 330
02-09-2006, 09:31 PM
Bill, I was hoping you would comment on this thread because I have read many of your posts and usually agree with your thoughts. I wish I had 30 acres here in Indy but since commercial land here starts at $100,000 per acre and goes rapidly up from there it just isn't going to happen. I don't want the headaches that come from a multiple crew operation even though I know that is the only way to ever make the really big money. I know that it would drive me insane if I had employees that tore my equipment up or did not work as hard as I do. All I need to do is net at least $60,000 a year from lawncare and my future will be very secure within reason.

I'm not knocking your goals at all, and in way I can understand them for a company starting out in today industry's environment.The way you describe your situation,I would buy the building as opposed to renting.Buying the land gives you a chance to get a return, renting basically just goes in the owners pocket.

I had the advantage on already owning the acreage,I was able to take full advantage of the land to do what was needed as the company grew.And the land and property value has risen two fold over the years.

promower
02-09-2006, 11:15 PM
I'm in the same position as you. I think if that building will be big enough 5+ years down the road go for it. I have a friend that owns a farm where I keep my stuff but I want my own building. I looked at a 1/2 acre for $80K, thinking about putting a steel building up split down the middle, 2500 sq ft on each side and rent the other half for the amount that will cover my morgtgage, if I outgrew the 2500 sq ft I could end the lease for the other side. We'll see what happens, but you have to think about the future, but then again real estate is always a good investment, especially commercial.