So a commercial space down the road from me has came up for sell. 6 acres and a shop so not to bad of a space. So far I’ve been keeping all my equipment at my house parked in an empty field I have a small shop but nothing huge. I’m curious about whatever everyone has kind of leaned towards rather keeping everything right at their house or moving to a commercial shop type. I’m leaning towards the 6 acres that way my business is more located and if I ever decided to sell it I have that property that could add to a sell vs just equipment at my house to sell.
How much is the property and how big is the shop? A shop, yard and/or office is an investment however it's also additional overhead. We have a little over an acre yard fenced for our equipment a couple of miles from my house that is very convenient. Taxes aren't too bad and access to the interstate is close. It's nothing special with a few 40' conex boxes, a little shed office with a bathroom and enough room to turn a trailer around inside. My neighbor who is a long time friend of mine is getting ready to sell his 5K SF building on roughly an acre. Planning on buying it and combining the 2 parcels. I look at it as a long term investment that helps our current business expand.
500k for the property shop is 3200 sq ft 3 bays, and a office all 6 acres is fenced in
It would take more info a lot more . Are you planning on expanding ? Can you swing it money wise?
Plan on using it as a storage yard for materials possibly open a landscape supply yard along with it to. Plus have that shop to work on my equipment.Money wise we can swing it it’s either this or build a shop on my land
6 acres is pretty big. Maybe you could find someone to rent/share a portion of the property? Still have to consider the taxes and overhead though. Are there many other landscape supplies in the area? Could be good opportunity or a big hassle depending. Would need competent employee's and money for inventory and more equipment. Just dealing with employee's and bookkeeping is a hassle for some people. You'd have to see if you could get zoning for a landscape supply.
I want to slow down and know what its like having several properties not fun and at least double the work and problems you think it will be. If i was younger and liked what i was doing it looks like the next step to take.
We have 2 landscape supply yards both on each side of town none on my side. I do have someone I know someone who would be interested in renting space to fix cars. Like I said a lot of this is for separating my personal life from business. Then if I ever decide to sell out I have that actual designated space for it
The fun part is talking to the bank
Good luck its always a adventure i guess you can call it that?
Obviously don't know your local real estate market, however $500K for 6 acres fenced with a 3K shop/office is not a bad price. Will you have to borrow money, pay cash or a combination?
It’s definitely something
Combination
Banks don't take risks. Be ready to pony up 15-20% of the financing.
In my area, that would be a great price for the 6 acres and the building.
Yep conventional financing you'll probably need to put down $100K. However OP may want to look at an SBA loan. Different underwriting.
Need to look at the taxes and overhead every month on the property and building. If your business is somewhat seasonal the overhead will cut into your profits.
How big is the town?
Yeah good old fashion banks are their risk management but low paying interest on accounts
It’s not to bad of a price since it’s about half a mile down from a major highway to so location is nice
We work year round but like most people winter slows us down but we don’t get snow here
50000 people
I’d tell you though if the neighbors land came up for sell I’d go buy that 20 acres and just build a shop much rather have that
Do you think your competitors would buy landscape products from you? It's one thing to have a supply shop but if you're also doing landscaping and taking work away from competing businesses they probably wouldn't be supporting your store.
Seems dirt cheap. How much $$ to make the building usable?
Both other stores do landscaping so it’s not like it’s much different than anyone else.
It’s useable now could probably do with a new roof and deep clean to remove the cigarette smoke smell out of the office part
What type of building construction wise? Prefab steel, block, wood framed?
Property is almost always the way to go If you plan on growing a buissness get it out of your backyard spereration is a major help in preventing long term burn out You also don't want 10 employees at your house everyday Having no idea about your local prices that is a near impossible deal in my area so I imagine its probably not bad for your area
White painted cinder block
Well my issue to is the equipment is in my way of doing anything at my house because why the hell did I park a dump truck in front of my bush hog or this random attachment in the middle of the yard
As soon as we moved from my parents place to a commercial yard it gave us room to expand and it was no longer a problem of where will we park that
Sidewall and doorways large enough to get your equipment inside? 3 phase or single phase power, and water and sewer? Also any zoning restrictions? Those are the big ones that I look at when looking at commercial property. I own one shop building, and rent my second one. My rented building is nicer than the one I own, but isn't as large and doesn't have 3 phase power. The six acres would be really nice.
I get tired of playing move 3 pieces of equipment to get the one piece I need that was way in the back. Or my favorite trying to fit everything back.
Yeah it was a scrap yard originally so they built the shop big enough to fit a 200 size machine in there and the wheel loaders. When talking to the owner it was phase 3 then it’s on city water and sewer. I think with 6 aces I can always build another shop if we out grow the other one. A big bonus for me is being able to stockpile materials in larger amounts. There is a job up the road with a couple hundred yards of top soil they want gone and I could easily screen it and use it for my projects. Or if had the landscaping yard as well be selling that as well
This isn’t the worse choice I’ve ever made. The dumbest decision I’ve ever made was buying 10 acres of farm land to grow crops to make straw for us vs buying it all the time or hunting for it when I needed it. Because now I’m stuck playing part time farmer because I dint wanna pay 5 dollars a bale for straw
If I had the $ in pocket its a no brainer. If for nothing else to rent the space out and have the extra address. Not sure how things work in that state though. I just know here I would want to have all my stuff where I live to keep any eye on it all. Though would never use the live at address as a business though as it opens up huge cans of worms here. The shop sounds nice though, could always spend the $ on a bigger shop where your at now, or maybe just sell where your at and live on the 6 acre deal, maybe divide off one or two for the residence? Its just best to have full time security these days.
The land has belonged to my family for 200 years I don’t think I want that kind of haunting from the past if I sold out. So the shop is across a field from my house so I can basically view it from my yard it’s 1 minute away. It would of been a better deal it use to be 10 acres and had a house but the guy separated the house and sold the house
I'd do my due diligence since it was a scrap yard. A lot of oils and fluids could be in the ground that could become your problem after you buy it. If it were me I'd skip the Phase I environmental and perform a Phase II since you already know it was a scrap yard.
Same. 6 acres commercial zoned land would be that. With decent 3200 sq foot shop and good area I could see 2-4x that 500k price
Yeah I also can’t imagine all the stuff I’d find once we go to clean it up if I bought it. Been a scrap yard since the 70s
The joys before large expansion of the city to make everything overpriced
Is it possible the property had to have an environmental assesment and clean up when it was subdivided? Reclamation is required for other industries so maybe it is for scrap yards?
What I was told dude wanted a bigger house and was old and dint want to wait for a bigger one to be built. He ended up selling that house and getting his bigger house I think he went from 1600 sq ft to around 3000 sq ft house.
Clean up may have been mandatory when the property was split up. If there were oil spills and other environmental issues I can't see the land/business owner being able to just walk away with no responsibility to clean it up.
Yeah I’m having my realtor look into everything along with the lawyer just to figure out what has been done or what needs to be done