All Forum Posts by: Bart H.

 You could run a mack truck thru the goalposts of the high and low.

Could be 30K, could be a thousand.  IT really depends on how many piers, how much if any in plumbing, walls, etc.  It is pier and beam or is it slab.  Do you have to replace.  DO you need to redo drainage.

There are a ton of variables.  Honestly during your option period, get a foundation company to inspect and give you a quote.

We find in Texas, essentially every house has a poor foundation.  if its a rental, most of those don't really need to be repaired, or can be tweaked for a minimal cost.

One of the questions, is they might or might not be a good investment, but maybe the question should be are they a good investment for your dad?

It sounds as though he isn't diversified in his real estate holdings and is tied to the health of one niche of the industry (retail gasoline stations). 

Have you run different scenarios?  IE what happens if every single one of these tenants is having issues financially with regard to gasoline sales.  Maybe California has made it so its impossible to make money in the business.  IF none of the tenants renew, what is plan B?  Can the sites be repositioned to a different industry?  if so I would be less concerned about the long term viability of gas.

It might be a case where gas stations are a great investment but not really a good investment for your dad based on his age, concentration of risk with his investment portfolio and the number of current leases coming due in the next 5 years.

Personally I think we will see a move to electric, but I also think we are on the verge of self driving vehicles.  And I think when that happens people will move to a sharing model, a self driving Uber.  you use your app a car comes and picks you up, and drops you off at your destination.

I could see this turning into a multi modal scenario, a small car picks you up at your door, and drops you off at a bus or train depot where you are moved at a high speed to a city downtown etc.  And I think it happens sooner than people expect.

Regardless, I think I would be reluctant to double down on gas stations unless I had a potential exit strategy not connected to transportation.  IE maybe Starbucks would rent them, or whatever.

I don't want to be in the position of needing an industry to fight off a disruptive technology, especially in California where the will of the people leans heavily against any form of fossil fuel.

 You have to file an annual report, if it is less than a certain amount. (I forget the amount) you can just file that you are exempt from any tax payment.  but it does have to be filed annually.

 Maybe, but I think it hit rock bottom a few years ago..  Detroit has some very strong investors, and some REALLY cool architecture, and a lot of skill sets that might translate to specialty manufacturing and high tech.

The leadership after decades of terrible corruption seems to be a improved.

 Because my buddy rented space and did a build out on an existing facility, he was well south of that 3M number.

But as Ron correctly points out, you are buying a job, not a passive investment.  My buddy and his family are thee almost every day and are working a lot of hours.  He loves it, but its very much a full time occupation.

I have a buddy who did a D bat franchise a few years ago.  My sense is that it worked ok, but what he did was to find warehouse space and they finished out the inside vs building from scratch.

 Dont spend big money, and dont get sucked into paying big money for the "next class"

@Robert Clement are you charging them a late fee?

If it was too habitual, I wouldn’t renew their lease.

No patience for those who pay late

 Here is what just happened this week in my home town.  Hopefully the video comes thru, but basically its an elderly woman likely with dementia who has no idea whats going on and didn't want to leave her stuff.

Viral video all over the local news. 

https://www.facebook.com/smashdatopicbreakingnews/videos/375323663296931/?hc_ref=ARTXf5-srZGejMwzcDnf0C7n9i6QiXhBVs-5jQXVcwJ8BAMUJlj9rrYWr5MCU8Q5VkU&__xts__[0]=68.ARBWn2TARq-JlQ13z0WuKONG20ZG3fRbA8pFDjvi7hTvEgIaoAfUQU4cDhN5ASyIAa7taFmrad4KADCiiQ7T8ZkkMxU8Gu0yzjPNmEVm-QoNeNI7jC4hcNkJoE4WdqmhloqDlvyAwQVSkA9JGSK2RnT0PkZIguGpKl8-_nyVclFWQPdTGghkCe269KMfQUDSCgE0tWy_sznK8UW7tky6pvXhr40ew8qesICERH3aAvhJ4rUE2n_-A7isbRcnK3CtfWdJWbLFhqw6xMb2f-pXaUf8Mvv3HsfZVrB0-CThzBnuEqZQiHi-DJ1XCdB8umhQiJ0TtiRiGrqoJ-pOBXM-8dDlL_sTRV1fM0frvYipvrCrKISyFEhT5cgKGdjLg9_SBCaT5XqSnDdl_J51TSBoy0oF7ee5N32YHaHnXGxjS2JFotzS3ucWYT7q0tOccUCrKptuBMWbOzLEWSje2wtzuKsBZuzpniMG7DkJlu6JuOdydp5GkjZbJ0UeZpZZ6ao&__tn__=FC-R

As far as following the lease, I think at times it makes sense to pick your spots.  Evicting someone within a week of Christmas just doesn't seem like a good personal move, nor a good long term business decision.

 We usually ask for 10 days (7-10 is normal) and $100 or $200, depending on the price point if we are buyers, and try to make it for a shorter time if we are sellers.

The big thing is its not a hill worth dying on.  get your inspector/contractors in there immediately and call it a day.

I think most of the wholesalers are doing no option period and $5K down, non refundable.