Possible Land/Building Purchase

Discussion in 'Business Operations' started by Dstosh, Jan 8, 2008.

  1. Dstosh

    Dstosh LawnSite Senior Member
    Posts: 716

    I am currently running out of room. I have about 15k saved up. A property for sale in my area is in a decent location, 5 minutes from my current home about the same from my mom house and my dads house. A bit north east from my main service location, but its close to home so no loss of time there. The shop is huge, 7500 Sf. Really way more than I need. But there is some one renting part of it now, If I purchased it I would try to continue that relationship to defer part of the mortgage payment. The asking price is around 110k. The building is also for rent, So worst case scenario, I could use the money I have towards rent. It seems like a no brainer to me, but does anyone have any advice? 100k seems like a lot, but compared to others in different areas on this site it seems like a good deal. Thoughts/Opinions?

  2. grass-scapes

    grass-scapes LawnSite Bronze Member
    Posts: 1,552

    Financing commercial real estate is tough for some. IF you could swing it, I would buy it. Just think, if you bought it and your business went under, you could still rent it out.
  3. meets1

    meets1 LawnSite Gold Member
    Posts: 3,780

    Buy it. For a 110K that is around $14.67 / sq ft. That is cheap even for me in IOWA! I don't how much land is involved but for 7500Sq Ft I would be purchasing today!
  4. bushog

    bushog LawnSite Member
    Posts: 36

    How much can your company alone afford to pay monthly to lease a place for your business??
  5. Flow Control

    Flow Control LawnSite Bronze Member
    Posts: 1,267

    If you can afford it, then its a no brainer. You did not mention the age of the building or the type of structure itself. I know a few people in commercial real estate and they all pretty much say the same thing, if it is over 20yrs old stay away unless you can pill any of the problems that could arise from: HVAC, parking lot and other maintenance area's. I would sub divide any unused space and rent it out. You can buy the building under a new "investment company" name and rent it to yourself also. Good luck and let us know. Post a pic if possible. Are you near any of the ski area's.
  6. Dstosh

    Dstosh LawnSite Senior Member
    Posts: 716

    The building is kind of like a pole barn/building with metal sides. It used to be an autobody shop. The web listing says it was built in '75. It has a small parking area, nothing to big, as far as HVAC, nothing really. I would Imagine it just has those garage style heaters in there. I am going to look it on saturday morning. I will get pics up then.
  7. Jpocket

    Jpocket LawnSite Silver Member
    Posts: 2,278

    Whos your friend? Donald Trump?

    Buildings are just getting broke in after 20years. also around here you can hardly buy a tent to live in for 100k
  8. Lawnworks

    Lawnworks LawnSite Fanatic
    from usa
    Posts: 5,407

    Talk to your accountant and ask him... he probably knows better what financial position you are in.
  9. Flow Control

    Flow Control LawnSite Bronze Member
    Posts: 1,267

    I would not say Donald Trump........... One kinda looks like the Donald though. But they are the two wealthiest people that I know. A few of the other things that they have in common.
    1. Modest people in the way they present themselves and the way they live (the one does have a multi-million dollar estate, but he raised his kids to earn everything they have, one nurse, one account and one doc that pulls in 650k a year, so they have the work ethic, instead of the spoiled ethic if you know what I mean)
    2. They both built commercial buildings and leased them for 15-20yrs before selling.
    3. They both try to do everything in-house, but know when to spend the money to have something done right.
    4. They both work more hours then there is in a day, 7 days a week.
    5. They both said to stay away from buildings over 20yrs in you are purchasing unless you can take a 20k hit if you need a new furnace or ac unit.
    6. Besides knowing their industry through and through, they are the type you like to meet for breakfast on the weekends just to observe and take in anything you can.
  10. PROCUT1

    PROCUT1 LawnSite Platinum Member
    from TN
    Posts: 4,909

    Wow what a different in pricing in different areas.

    A shop like that around this part of NY would be 600,000 +

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