All Forum Posts by: Earl Allen Boek

Wow, Views jumped to 581 while I added my last post....WOW.

So, the location both in the state, county and city, make this first business purchase of the shop and showroom especially valuable to the entire business plan. It's highly possible the total estimated number of Bay Windows (estimated around 60) that should be able to be assembled in the shop can be marketed from that same location into spread out populations centers (50-100 miles) that likely far exceed 500,000 people and tens of thousands of homes.  The shop will be busy this last quarter protecting the existing business and cash flows, while adding the assembling line, and samples to the show room, kicking off it's marketing program for pre-holiday sales and setting up a finance program.

Since Jan thru April 2016 are known slow months and weather can be an issue at this location, it's a perfect time to refine manufacturing, sales while starting a licensee (5 additional locations, management/owner hiring, training and placement of operations into surrounding cities. 

With 5 more retail sales operations on line, the plant setup, marketing and inventories built up for the 2016 season, I would expect sales in the 350-500 unit range, bay windows only, with additional patio door sales  of 100 or more,  exterior doors sales of 150 or more, garden window sales of 150 or more for an estimated          in gross sales not counting upgrades, installations for contracting, deliveries. $1,675,000. in Gross Sales.  

Once this trend is forcast and budgeted the resale (flip) of the operation can begin.

You experts out there tell me what this business is worth. Don't forget the extra $200,000 for the existing business sales.  The $1.6 is icing on this cake.  

Please, I've had 465 views so far, if you've read to this point. Give me your estimate of what such an operation will be worth.  What would you offer it for sale for?

Please ask any questions you'd like...I appreciate those of you who have contacted me and are assisting with this package.  Great Job BiggerPockets!

Why not start taking properties out of foreclosure.  Start going to your

County court house, pick up a list of all pending properties in foreclosure.

Look up the notes and see what deals you think you can do. Some 

lenders will be easier to work with then ever. but they'd love to have

a credit worthy fellow like you to step up and you help the homeowners

by saving their credit as well. 

You might want to watch this first.

https://www.youtube.com/watch?v=sTvczO4Bo60

Nearly 400 Views Now..................Investors, please go back up in the thread and read Mr Donald Trumps Advice.  Smile  I have been sent a Loan Application (actually several) and sent it back, but it's not funded until it's funded in escrow.  

Anyway, this business is more than a perfect fit for my business model, and forecast.  The location of the plant, shop and show room, for the first location of Bays, Bows and Windows could not be better for the assembly of these after-market, high-end, high-profit, highly energy efficient, lovely insulated bay windows.  I've seen women rip the family check book from their husband's hands if they were too slow writing me out a check for one. 

These windows are assembled directly from the factory to fit the picture window opening of any of these subdivision (hundreds, maybe a couple of thousand) homes that surround this window shop.  These are secondary market units.  They are lovely with their inlaid, oak (see one in link above) as are the patio replacement and upgrade doors we will be offering.  Outside we will add corbels for support, trim and roofs when and if needed. (painted or shingled to match existing home)  As I mentioned above, the starting price is $2999. with over $1,000 profit built-in to each unit. Recessed, dimmer type lighting or specialty lighting are extra, as are the finishing ( many customers like to brush on the finishes, usually clear coat, themselves.)  

I am requesting a loan in the amount of $250,000 at 10% fully amortized over 30 years, at 10% due in 2-3 years would be perfect. (No prepay penalty after first year) Sellers are asking $100,000 down and will carry the balance of $150,000 at 6%.  After points, fees, escrow cost and title policy I figure there will be a little over $100,000 which will be used to set up the assembly line, purchase the window and hardwoods needed and operation capital.  Fully operational I expect the existing plant to be able to assemble over 50 units a month with just two full-time and maybe a part-time person during a day shift.  We will also be operating the original show room and business without to many changes, at first, to make sure that known cash flow and profit is still coming into the area. These dollars more that debt service the entire loan packages, as well as the leases, fixed expenses, and labor.

Here at this link you'll find a actual Oak inlaid bay window sold and installed by

one of my operations.  Sorry if some of the pictures offend you, they were used

on a top Google Alternative Energy Blog I started years ago..still getting traffic today.

Just click on the Oak Inlaid Bay Widow with the light unit, it will expand, then right click 

the arrow to see other jobs and projects.  https://picasaweb.google.com/105549254391386372882/SolarWindConservationGreenCareersRenewableEnergyLeaseFinancingBlog?authkey=Gv1sRgCI6myLn5pqaf8wE#

Continued Summary..........

So as I mentioned, I had just written a check to a couple of Las Vegas Attorneys, they had insisted be NON-REFUNDABLE, the property for the new medical center I intended to construct.  The holidays were coming up and the bank had given a verbal loan approval on the balance of the construction funds.  We had the plans and the contractor ready to go. Luckily, for me, this was just before my slip and fall accident, the attorney could not get me clear title on the property. After a week or so horsing around with them, I got in my Crown Vic and drove to Las Vegas to get the transaction closed. After staying there several days and being told, "don't worry, we'll get the title cleared right after the transaction takes place"  I was sitting across from the agent in the transaction, pissed that I was hung-up and wanting to just go home to N. California, he got up and left the room and I glanced across his desk, OMG there was my $50,000 dollar check, I picked it up, nearly folded it, into my pocket.  I thanked the agent for all his help and left for home.  

So, as I mentioned before, 2015-16 is starting to look a lot like 2007-08 looked then, only since they just kicked the can down the road then, we can all expect it to be much worse this time.  

I get many offers and emails daily, and I received one that invited me to a webinar which I will go too, if the topic interest me, figure it' ongoing education.  So that's when I was given the idea of Flipping Businesses, instead of houses or real estate.

Finding a "don't-wanter"  in this case, a married couple that have been doing business at the same location for nearly 40 decades that have decided it's time to retire.  They've had the business for sale for 3 years and finally killed the listing and cut the price nearly in half. 

The owners have been in business in the same city now for 43 years. It is a commercial (20%)  residential (80%) glass show room and shop with all equipment.  The sellers want $250,000 dollars for the business and would like to lease me back the shop and showroom for $1500 a month. More than fair, in a industrial area 2800 sq feet total with three roll up doors and a large install truck with all the equipment.  Considering the real estate agent felt $450,000 was a fair listing price, even after three years.   The business is currently doing $200,000 a year with approx. $50,000 in pre-tax profit.  The business sits right in the middle of what appears to be several thousand homes.  Perfect for my plan.  

Following is a thread and comments from across the country from

Investors, Buyers, Sellers and Associates a like.  I'm interested in

seeing your thoughts either here or there or both.  

https://www.linkedin.com/grp/post/121300-603446888...

I know most of you do not do business like this in such an open manner, I'm doing it here to hopefully convince some of you to think in the short-term yourselves and don't let your money or time get tied up in some real estate deal where your still just working at a job.

I wanted you to see how I package it. How I become involved in it personally, How I use the LLC as a tool to accept or give offers, and hold the business interest. How I secure the lenders money, while protecting my own position and earned income while doing the deal.

Vote me up if you appreciate this inside look at this kind of transaction.  Use any of it, that helps you with your dreams and goals.  Best EAB

Forgive the double posts above.  

                                 Business Summary and Forecast

The following is confidential and not for third parties except for the purpose of funding

My name is Earl Allen Boek, I am a mature businessman with over 40 years of background in Lumber, Food Service, Energy Conservation and Generation, Home Improvement Marketing Sales, Finance, Retailing, Installations and Lead Development. I have held real estate licenses in two states and have over 20 years of Hard to fund commercial and residential projects.  I have completed (with multiple locations and hundreds of staff) millions of dollars worth of projects in the areas listed above.   I have taken a company from startup to 13 operations across Southern California with gross sales of over $1.3 mil first year at approx 30% profit margin.  That was 30 years ago, I don't know what that would equate to in today's dollars. 

In 2007 I held LLC's that owned and controlled a large medical center and 2 full dental offices, on two commercial lots, I owned a coin laundry, 2 houses, and had made a non-refundable deposit of $50,000 dollars for a piece of land on Charleston Blvd for a second new 2-story medical center with a set of completed plans for it. Life got in the way. I has a slip and fall accident, ripped my thigh muscle from my knee went to the hospital for surgery and they discovered I needed emergency heart surgery while doing testing for the knew surgery. Sort of a blessing in disguise. I had resources set a side for a rainy day, but I certainly did not have resources set aside for 300 rainy days, which is how long I was on pain killers and rehab after the two surgeries. When I stopped taking the Vicodin I was almost flat broke and had returned or lost all my holdings and retirement, even what I had put away into savings deposit boxes was gone. I had my good health. So I beat the 2008 bust, and watch friends and associates go through exactly the same thing that had happened to me through the next few years. First the residential market, then the commercial market tanked.

It's 2015-2016 now and It's starting to look familiar again to what I was watching leading up to 2006 and 2007.  Only this time, the experts are saying it will be much worse.  Based on everything I have learnt in the past, experienced and feel, they are right.  I believe we are looking at months, not years.

That is why, when I need to do some business I am not looking for long-term purchase and hold real estate transactions, or even short-term fixers and flips.  Just saw one down the street cost over $60,000 and took over a year to do.  

I was looking for a solid business I could purchase, where the seller is not attempting to squeeze every dime out of the transaction. Where I can come into it with my past experience add value and flip the business in under a year of less.  

I found such a business. Now I need the financing.   

Please come back soon for more details.  I have had over 200 views so far and several contacts. The transaction has not been funded, I will continue to look for the money 

(private money) until I'm told to open escrow.