AAPL stock: Click Here |
|
Tips and Deals ---- For Sale & Free Items ---- 'Friendly' Political Ranting |
Looking for real estate and business advice (long)
Posted by: BernDog
Date: November 12, 2017 11:43AM
|
Re: Looking for real estate and business advice (long)
Posted by: neophyte
Date: November 12, 2017 12:09PM
|
Re: Looking for real estate and business advice (long)
Posted by: bik
Date: November 12, 2017 12:15PM
|
Re: Looking for real estate and business advice (long)
Posted by: BernDog
Date: November 12, 2017 12:17PM
|
Re: Looking for real estate and business advice (long)
Posted by: Ombligo
Date: November 12, 2017 12:22PM
|
Re: Looking for real estate and business advice (long)
Posted by: BernDog
Date: November 12, 2017 12:25PM
|
Quote
bik
I think one of the reasons your idea is uncommon is because many people would be VERY cautious about the ideal of risking their home being lost in the even something goes wrong with a business.
The whole point of an LLC is that it protects your personal property, but it sounds like you'd be giving up your personal property to put it all into a startup business?
What happens to your "home" if you have a run of bad luck with unexpected expenses and tenants moving out?
Re: Looking for real estate and business advice (long)
Posted by: BernDog
Date: November 12, 2017 12:32PM
|
Quote
Ombligo
Can't particularly help with your questions, but just want to make sure you have considered all expenses.
If you leave your teaching slot, are you prepared to pay all of your health insurance? That can be upwards of $15k - $20k a year unsubsidized if you are too young for Medicare. You can't rely on the ACA, since there are no guarantees it will be around in a year or two.
Likewise, you will be on the hook for your full Social Security payment - so double what you pay now.
Longterm, if you are in a pension plan - how will it affect the payout? My wife has 23 years in her pension, if she retires today - it pays $700/month for her life. If she stays seven more years, that monthly goes to $2500. That is a difference of more than $400,000 over 20 years.
Are you prepared to replace a furnace or Air conditioner if it goes out on the commercial property? That could be $10k easily.
I'm not trying to shoot down your idea, just want to insure you are looking at all aspects.
Re: Looking for real estate and business advice (long)
Posted by: bobinmurphy
Date: November 12, 2017 12:41PM
|
Re: Looking for real estate and business advice (long)
Posted by: BernDog
Date: November 12, 2017 12:49PM
|
Quote
bobinmurphy
My Dad, who had his own business, always used to say, "Where business begins, friendship ends." Unfortunately he didn't always follow his own advice, but that's another story.
My take-away from his advice is to keep your personal life and your business life separated - physically, emotionally and psychologically. Having your place of business physically too close to your home makes it extremely difficult to separate personal and business issues, needs and concerns. It becomes far to easy to put in extra time at work when that time really needed to be invested in the home life and often that doesn't become apparent until the damage in the personal life is beyond repair.
And as others have stated, there could be zoning issues (although you seem to have looked into that), issues with maintenance, tenants, insurance, etc to say nothing of what happens if the business fails or needs to expand. Best to keep the two separate and from what I learned in my own experiences, at least a 30 minute commute apart physically.
Re: Looking for real estate and business advice (long)
Posted by: Speedy
Date: November 12, 2017 01:54PM
|
Re: Looking for real estate and business advice (long)
Posted by: bfd
Date: November 12, 2017 02:18PM
|
Re: Looking for real estate and business advice (long)
Posted by: BernDog
Date: November 12, 2017 03:01PM
|
Quote
bfd
You can do this and substitute if cashflow gets tight. Have you considered cashing out your STRS to help finance your transition? It's an unfair system, and it's probably not going to pay out much by retirement age - you'd need to stay in for 35-40 years to make it really pay off.
Beware though, renters are vermin.
Re: Looking for real estate and business advice (long)
Posted by: BernDog
Date: November 12, 2017 03:08PM
|
Quote
Speedy
You lack sufficient equity/cash by half or more to do what you want and nobody is going to lend you enough to buy a property and live on based simply on your business plan. You would need enough to pay cash for the building and live off savings for an indefinite period of time until your business is actually established. You have enough equity to use for living expenses and that's about it, certainly not enough to purchase a property. Quit your job teaching, temporarily rent more space for your business and demonstrate the ability to earn adequate income for a year or two. Loans are based on income, not equity (just ask Sears which has lots of equity and little income.). Better yet, keep your job, rent a larger space for your wife's business and let her demonstrate the ability to generate income. You can do all the homeschooling as your part of the deal.
Re: Looking for real estate and business advice (long)
Posted by: max
Date: November 12, 2017 03:18PM
|
Re: Looking for real estate and business advice (long)
Posted by: Lizabeth
Date: November 12, 2017 04:25PM
|
Re: Looking for real estate and business advice (long)
Posted by: srf1957
Date: November 12, 2017 05:01PM
|
Re: Looking for real estate and business advice (long)
Posted by: GuyGene
Date: November 12, 2017 05:25PM
|
Re: Looking for real estate and business advice (long)
Posted by: mattkime
Date: November 12, 2017 06:47PM
|
Re: Looking for real estate and business advice (long)
Posted by: neophyte
Date: November 12, 2017 07:49PM
|
Re: Looking for real estate and business advice (long)
Posted by: space-time
Date: November 12, 2017 08:11PM
|