Want to trade rental homes for small businesses

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Hi people,

I have thirteen 4-5 bedroom rental homes in the Salt Lake County area that I would like to trade for you small business.   All these 13 homes are close to Salt Lake City and are paid off and have average rents of $1,500 a month.  They are mostly located in West Jordan, Midvale, Magna, West Valley City, Glendale, and Kearns, Utah.  I have bought small businesses this way and it is a good way for the business owners to cash out.  I'm especially interested in businesses that need a "tune up".  Currently I own and operate the Sandy Nickelcade and a Laundromat in West Jordan both of which I bought and then "fixed up".

Let me know!  Lets do a deal. Even if your business is not worth what a home is worth let me know an maybe we can do a seller finance on the home using your business as a down payment.  This is a good way to create a win win situation with minimal financing cost or transactions costs.

Darren Larsen - Sandy, Utah

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Grant,

Good question. Its really about improving cash flow.  I feel house  appreciation is going to stall for a 5-10 years so my real estate is only going to deliver rent cash flow and probably not the appreciation cash flow we have seen last 12 years.  So if I have a $250,000 house that give me $1,500 a month ($18,000 per year) that is a gross Rate of Return of 18/250 = %7.2.  That is pretty lame. 

One of my business that I bought for $100,000 5 years ago gives me a NET (not gross) profit of $100,000 per year!  So I could easily trade a home (7% return) for a business (100% return).  Now granted in 10 years most businesses are worthless or are out of business and most homes are worth more but in the meantime those businesses can throw off huge piles of juicy cash.

And I have tons of time on my hand because my other business all have managers in place. I'm just trying to get a win-win where the failing business or tired business owner can trade for some low stress and high value real estate and then I clean up their business and get the higher cash flow.  Also, I'm tired of rehabbing and finding value homes, it has become boring and stinky to me.  I mean, honestly how much cat piss smell can one person stand in a lifetime!!

Regards,

Darren