Career Questions and Answers
AM I stupid?
Asked by Suzy V
I want to buy a business in Arizona prefebly in the Scottsdale/Phoenix area. I dont want restraunt or something fickle and risky. So I was thinking of a property managment business or car wash/service station. Both tend to be stable can be lucrative and arent 24/7 retail business like a 7 eleven. I am qualified up to 750k with a SBA loan. Is this a stupid idea. I am relocating from another part of the country and want to work for myself down there. Am I being stupid?
Asked by Suzy V
I want to buy a business in Arizona prefebly in the Scottsdale/Phoenix area. I dont want restraunt or something fickle and risky. So I was thinking of a property managment business or car wash/service station. Both tend to be stable can be lucrative and arent 24/7 retail business like a 7 eleven. I am qualified up to 750k with a SBA loan. Is this a stupid idea. I am relocating from another part of the country and want to work for myself down there. Am I being stupid?
A:
Best Answer:
Definitly not. Getting a business as an asset is a great idea. Congratulations on already getting some financing set up. Property managment is easier to get into because it requires less capital, but since you will be new to the area, I would not recommend jumping in to this as soon as you get there. So, lets look at commercial real estate, such as a car wash or service station. The key to purchasing a good commercial property is completely understanding the business that is on the property. There is a lot of due diligence you will have to perform. Be sure you understand exactly what all of the costs are for operating the business, what your revenue is, where it comes from, what you can and cannot do to increase that revenue, how much time you will be putting into managing the asset, how much time you will be putting into operating the asset (if you are planning on doing any), what capital expenses you may have in the next year, five years, 25 years, etc... In general, I would not recommend planning on putting time into operating the business. If you are the owner, then you will have plenty to keep you busy just managing the business. When your management fails, you will end up opperating, so don't plan on doing more than that as well or you will run out of hours in a day. Determine what kind of property/business you want, how much you want it to cash flow for you, and how much work you want to put into it to be able to get it to cash flow that much. (Be realistic, but also optimistic.) Then, go looking for that property in Arizona. No matter what, don't settle for something less than what you decided you wanted to have. You'll end up regretting it later. Good Luck, and welcome to the wide world of "minding your own business."
Real Estate Investor
Answered by Leo N
Definitly not. Getting a business as an asset is a great idea. Congratulations on already getting some financing set up. Property managment is easier to get into because it requires less capital, but since you will be new to the area, I would not recommend jumping in to this as soon as you get there. So, lets look at commercial real estate, such as a car wash or service station. The key to purchasing a good commercial property is completely understanding the business that is on the property. There is a lot of due diligence you will have to perform. Be sure you understand exactly what all of the costs are for operating the business, what your revenue is, where it comes from, what you can and cannot do to increase that revenue, how much time you will be putting into managing the asset, how much time you will be putting into operating the asset (if you are planning on doing any), what capital expenses you may have in the next year, five years, 25 years, etc... In general, I would not recommend planning on putting time into operating the business. If you are the owner, then you will have plenty to keep you busy just managing the business. When your management fails, you will end up opperating, so don't plan on doing more than that as well or you will run out of hours in a day. Determine what kind of property/business you want, how much you want it to cash flow for you, and how much work you want to put into it to be able to get it to cash flow that much. (Be realistic, but also optimistic.) Then, go looking for that property in Arizona. No matter what, don't settle for something less than what you decided you wanted to have. You'll end up regretting it later. Good Luck, and welcome to the wide world of "minding your own business."
Real Estate Investor
Answered by Leo N
A:
Genius. Am i stupid?
Answered by dr. who?
Answered by dr. who?
A:
Sounds great to me. I'd find a business broker and start shopping for the right business.
What's the alternative? Working for someone else at some mindless desk job?
Answered by Yanswersmonitorsarenazis
Answered by Yanswersmonitorsarenazis
A:
You will be stupid for not jumping at this chance.
And by the way don't ask a stupid question again
Answered by cutiepie
Answered by cutiepie
A:
not really but it is a kind of stupid idea you just need to save money until your store gets business so one way to save is get energy efficiency and second you need to not start out with a lot of products trust me I've bee there before
Answered by John H
Answered by John H
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