Question for the grizzled lawn vets!!!

Discussion in 'Lawn Mowing' started by indy2tall, Feb 9, 2006.

  1. indy2tall

    indy2tall LawnSite Senior Member
    Posts: 417

    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:
     
  2. indy2tall

    indy2tall LawnSite Senior Member
    Posts: 417

    Come on guys give me some input please.:help: :help: :help:
     
  3. ProStreetCamaro

    ProStreetCamaro LawnSite Platinum Member
    Posts: 4,121



    Let me clear something up here. So for $100,000 it comes with the land and the building right? How much land is included?
     
  4. indy2tall

    indy2tall LawnSite Senior Member
    Posts: 417

    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).
     
  5. The Ranger

    The Ranger LawnSite Member
    from NE Ohio
    Posts: 208

    @ 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.
     
  6. indy2tall

    indy2tall LawnSite Senior Member
    Posts: 417

    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.
     
  7. Green-Pro

    Green-Pro LawnSite Bronze Member
    Posts: 1,420

    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
     
  8. cborden

    cborden LawnSite Member
    from 46140
    Posts: 177

    What part of Marion county is it in?
     
  9. indy2tall

    indy2tall LawnSite Senior Member
    Posts: 417

    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.
     
  10. indy2tall

    indy2tall LawnSite Senior Member
    Posts: 417

    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?
     

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