All Forum Posts by: Russ B.

Based on the waiting list we currently have at another location across the street (this is an expansion rather than a whole new operation), it will fill as quick as the spots open. In addition, we've been bulking up on staff and training the most senior ones to take over as leads and directors (for those who have the state-required education). The idea is that our existing facilities serve as leadership factories for new ones, to help drive quality and consistency.

There's a horrible shortage of child care in the area, and we're also the nicest facility.. so families are fighting to get in there.

On top of all that, they just built a giant gated resi development right behind building #1, with an entrance a few hundred feet away, and there's talk of a bunch more apartments going in behind building #2.

It sounds like a business owner's dream, but it's actually a bit too much - alleviating this shortage will enable other businesses to grow in the area, which in turn helps us.

One fun detail about commercial rentals is, there's hardly any management involved. It's usually on the tenant to solve their own problems with the property.

As a pure real estate deal, those definitely are going to punch above their weight.. hence why I'm interested to try one. It seems like a safe way to get a really good ROI.

In my case, the real estate side is a small sliver of the whole project - our actual business is a daycare / preschool operation.

Lots of people think that creating an entity is a big deal.. but it's actually easy. You can do it yourself from a website... although, for the first one, you might want a lawyer to walk you through so you're protected. Beware that as soon as it exists, the IRS will start expecting at least annual filings, even if it just sits that year.

The bigger thing is to make damn sure you've got a use for that building that's actually going to work, as commercial can be slow to sell.

You need to know the place can be occupied within a timeframe that will work for you.

Personally, I think buying vacant commercial without also having a business I plan to put in there seems kinda scary.. but that may just be because I've never done it (I have no experience renting buildings except to myself).

On the upside, the kind of creative deals you can pull off with commercial are completely unheard of on the resi side...

I've thought about doing exactly this business model myself.

I swear I'm gonna do it, just as soon as I don't have another deal taking priority...

Sounds like a question for a business / contracts lawyer. That sort of thing needs to be figured out and put in writing ahead of time.

Sure you can.. if you've either got cash, or a parent who will sign their own name to stuff.

One bathroom in my house had a slow draining tub / sinks the whole time I was here. I would snake it and it would be ok for a while, but soon enough, water from the sink would be coming up in the tub again.

I finally got sick of it, got out the sawzall, and swapped out the 20' run of 1.5" copper with 2" PVC, giving it a bit more fall at the same time. That fixed it.

I've taken leases back to my lawyer for review.. but those were commercial build-to-suit ones.

It seems weird to do that for a resi rental, but that might be a matter of perspective - most people see a house or apartment as a much bigger "thing" than we do.

These guys are trying to take you for a ride.

The siding is purely cosmetic... As for the cause, maybe they screwed the stuff down too tight when they installed it, so it warps when the temp changes. If it's only in that one spot, it could also be that some genius tried to use a grill right there and damaged it with heat. Either way, it's PVC plastic - it's not going to crumble or start leaking or anything.

The pic inside the wall shows wood planks for sheathing.. which is what they used until the mid 1900s (they use plywood now because it's cheaper and goes up faster). That type of construction can last 1000 years if nothing happens to it.

Evidence of past water leaks.. relatively new roof.. I think that mystery solves itself 🙂