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Rent or Own

Discussion in 'Business Operations' started by DLONGLANDSCAPING, Mar 13, 2013.


    DLONGLANDSCAPING LawnSite Bronze Member
    Messages: 1,418

    Well this year is going to be the pivotal year of getting a shop and i cant figure out whether i want to rent or own. I would like to rent, but i cant find anything affordable which raises the question, should i just own?

    Ill give you the whole scneario so you guys know where i am coming from. I am 20 years old, in my sophmore year of college going to a local university. I have around 120 account and have been working out of my garage and keeping my large trailers and such at my girlfriends dads second home. This year my parents have decided to move to where my dads job is, in East Lansing,MI. What my plan has always been was to go to school at MSU(in East Lansing) for my junior and senior year, and commute a couple of days a week. Schedule classes all on monday and tuesday and then be home wed, thurs, friday, sat, and then head back to school on sunday.

    I was planning on keeping all my equipment at my gf's dads house as well as living there, but he has also decided to sell his houses and move out of country for his sons to play hockey for the KHL...... So, i am left with no where to live except with an uncle where my business is, and no where to store my equipment and tools.

    Since my parents are going to be living in East lansing, i can live with them while i go to school, but i need to find a shop to keep my equipment at.

    So the hunt for a property started..... And hasnt gotten very far. Every 1000 sq foot warehouse rental wants at leased $950 dollars a month plus utilities. This is for an unfinished metal structure with a oversized garage door and 22 foot wide by 45 feet wide open building.

    This would fit one truck, no trailer and all my hand helds and machines..


    would you rather buy a piece of land for 30-45k and then build your own shop for another 50-75k depending on how big you want to go and what you want in it. And take out a business loan/mortgage. for a 115k mortgage the payments would be 650ish per month for 15 years.

    I could build a 65x35 foot metal structure building with a second floor apartment in the back half of it(kind of like pro turf's building but a little bit bigger upstairs) for under 75k. Cement floor, fully heated, plumbed, with cement floors and sheet rocked inside with a full upstairs bathroom and then another bathroom and locker room for the guys. I could grow into the shop, but i could also live there too when needed.

    But i am stuck there if i ever want to sell the business....What would you guys do? Keep in mind, im 20, and still am in college.
  2. dstifel

    dstifel LawnSite Senior Member
    Messages: 928

    If I was 20 with 125 accounts I wouldn't be in school. I always say buy rent something you never have a chance to recoup that money. Sounds like it would save you money to build anyway. Easy decision for me.
  3. HDLLandscaping

    HDLLandscaping LawnSite Member
    Messages: 138

    I would build. Plus if it comes to the worst if you have a shop that you can rent out to people.
  4. alldayrj

    alldayrj LawnSite Gold Member
    Messages: 3,793

    If i were to buy property, i would definitely buy something that combined the business and home. I'm 24 for perspective, still home like a friggen bum because of student loans. But my plan is to get a 2 family rental and live in 1 and rent the other to cover the mortgage, equip on site

    If you're going to be split between your parents and the shop, it doesnt need to be a crazy bro pad.

    Side questions, where is your gf going if pops is moving and would he cut you a deal on one of his properties?
    Posted via Mobile Device

    DLONGLANDSCAPING LawnSite Bronze Member
    Messages: 1,418

    I would love to quit school, but i dont have business know how to succesfully grow my company to be where jarod or Eagle Landscaping are. 125 accounts is no where near the amount i want to be at by the time i graduate. Im hoping to two years to be able to graduate and have around 180-200 accounts and two full maintenance crews going all year.

    I could build this exact shop/garage/apartment for 90k. This is the smaller version though. It would be double the length from the garage door to the back wall, and it one of the doors would be a 12 foot door and the rest would be 10 foot doors.

    Screen Shot 2013-03-13 at 10.14.41 PM.png

    DLONGLANDSCAPING LawnSite Bronze Member
    Messages: 1,418

    I agree 100% but around here, zoning is a ***** and if i grow any more, i need a industrial/commercial zone property to store bulk and have more equipment outside.

    What i would like to do is build double the shop i need, and then rent out half of it to another company.

    My girlfriend is acutally going to be living in florida for 6 months doing the disney program. She is going to be living with my sister (who works for disney as well).... Both his properties are worth over 650k, the smaller one is 650k and the other one is worth over 2 million. He is liquidating everything.

    DLONGLANDSCAPING LawnSite Bronze Member
    Messages: 1,418

    the problem i see with building, is that is another 120ishk over my head and im only 20. I already was approved for the loan which was insane.... which led me to the search for a piece of property, but if i want to buy a house or something in the next couple of years i doubt i am going to be able to with having that much debt, so young.
  8. alldayrj

    alldayrj LawnSite Gold Member
    Messages: 3,793

    Well i know its hard to do this stuff without tons of cash but i am a slave to debt right now and i recommend no one gets into this kind of debt. Maybe work out a barter deal. Mow grass etc for parking. Put an ad on craigslist, you never know
    Posted via Mobile Device

    DLONGLANDSCAPING LawnSite Bronze Member
    Messages: 1,418

    Well i just visited a piece of property today with a 18x35 ft pole barn on it, gravel floors, a little over 6 1/2 acres, zones residential/commercial/industrial. Its located 3 miles outside of my service area(which is not bad at all) and it has water, electrical, and sewer already hooked up at 3 locations on the property. They are asking 135k for it. I offered 90k for it.

    My plans, if i get the piece of land(for under 100k)

    -Rent out the poll barn for 950 per month to a neighboring LCO and buddy of mine who has a business about 10 miles away but lives by the piece of land.

    -Build my 2200 sq foot shop(pictured above) and then on the far corner (its all wooded on a main road) (94k)

    -Build another ajoining 1200 sw foot one bay/14x14 office on the back of the property(32k), rent that out to an insulation company who is one of my customers already for 1600 per month(with all utilities paid for)

    -Cut down one acre of woods(about 1000 face cords) and sell them to customers.

    I will be in it about 250k after its all said and done.

    I will be renting out 2550 per month which will take care of all of the mortgage payments and bills at the property.

    If the property owner accepts my offer we will be getting plans ready for the 1200 sq foot shop that would be rented out, to be built by April 30th.

    I will stay at my GF's house as long as her dad has the property's still, and when he sells, build my dream shop on the piece of land.
  10. dstifel

    dstifel LawnSite Senior Member
    Messages: 928

    Good luck man that sounds awesome. Just be careful with counting on these companies to follow through with actually renting. You know them better then me but when i moved into my house i had three buddies who all rented and moved in with me. Now i am down to one. First year was great was actually profiting off of the house now I'm back to paying about 1/2 of it. Just a helpful hint not trying to bash on you or anything I'm jealous as hell of what you got going!

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