Best thing about this video; being mindfull about your daughter and the importance to stay put for the time being. That, Eric, amongst other things tells a lot about you.
My parents moved around like gypsies. I'm 52 and still stew about. My son graduated high school with a few of the kids he attended first grade with. That was of the utmost importance to me. They will appreciate it in the end.
That's beta male mindset A real man who makes his interest in the lead. Otherwise he will be stupid and naive i bit his daughter will never care about it
@@waheedali2429 Literally nobody should listen to an imbecile like you. That sort of mindset is a mindset brought to you by archaic places like the Middle East, where most of the "alpha males" still live in mudhuts and the countries are ripe with Medieval beliefs. Maybe get into this century. A wise man thinks of the greater good for everyone, not just himself. Clearly this has worked out for Eric, as he owns a successful business, a TH-cam channel and is still able to provide a loving and nurturing environment for everyone else around him. Eric is definitely not hurting and that is abundantly clear for not only himself but his family. Delete your pigheaded comment.
This has affected a lot of parents decision making processes. Amazing how that works.. You do anything (or sacrifice) for your kids. They come first, always.
Long ass comment. I just read you don't like Emails, so here goes... First off, I hope this comment finds you well. I love your videos.I'm a 67-year-old retired transmission shop owner in Draper, Utah which is a suburb of Salt Lake City. I agree with 99% of the videos you put out. I like your videos so much that I watch them all the time. (I have a lot of time on my hands.) However, I would like to input my opinion. I've been as well as a transmission shop owner, but also a renter, a commercial real estate landlord. I agree with you fully on owning is better than renting. To me, ownership is your retirement and your family legacy. This is a story somewhere between thinking ahead and sheer luck. Here's my story... At the age of 60, (2015)I sold my business to a nearby local multi-shop transmission shop owner who had 5 shops in the greater Salt Lake area for $330K. That wasn't enough money to retire on. However, I leased them the shop for $11K/mo. We paid the property tax because I didn't want to fall into that trap of having 2 or 3 years of back taxes being assessed on ME. I affectionately called it "double-net" He signed a 10-year lease. In the past 3 years of my business, we had total revenue of $1.2M. Our shop location was killer as well as my own self-managed Google AdWords campaign. Going back 2 years earlier, I had approached the landlord about buying the building and property instead of renewing the lease. I asked for a 10-year owner-financed mortgage for $840K. That was in 2013. He went for it. Although I had a 10-lease, my mistake was in not doing due diligence in checking these guys out. My great mistake was not checking out their BBB rating beforehand. Long story made short, they skipped out after only 5 years and took every piece of shop equipment in the building PLUS leaving 29 abandoned vehicles in the back parking lot. The reason they skipped out is that sales had fallen to $400K/yr. which now made rent a staggering 33% of income! No mystery why they failed to me. They were consistently behind in their rent, sometimes 2 and 3 months behind. ($33K) After they skipped out in 2020, we put the place up for sale because all we had was a barren building and NO "business with shop equipment" to sell. On the tax records, the place was assessed as being worth $1.1M. That was highly undervalued in my mind. I was asking $3.2M. Two weeks after I listed the property on LoopNet.com, I had a buyer at $2.3M. LoopNet is the "Google" of commercial property buying, selling, or leasing commercial property. The moral to this long-winded story is selling your automotive business is not enough for retirement. Only selling a prime piece of real estate is. I bought the place for $840K on a 10-year owner-financed mortgage in 2013 and sold it 7 years later in 2020 for $2.3M. After all the "fees" and paying of the mortgage, we only cleared $1.9M. Now THAT'S ENOUGH MONEY TO RETIRE ON. When you're getting up in years, somehow, somehow, figure out a way for owner-financed buying and not a mortgage company. Think retirement.
I own my property for a long time now and it’s worth many times more than I paid for it. I finished paying the mortgage 19 years ago and I haven’t paid any rent or mortgage since then. For myself it was the best thing and every year the property keeps going up in value.
@@ETCG1 In the late 80s I was working my first mechanic job at a small shop, the epa hit us first in our small town. It was an old building with a 55 gallon drum with holes in it for a drain. Been there for decades. I went across the street to warn another shop while it was happening to close down. We called every shop in town. That night we had concrete and floor painting parties sealing up old floor drains at all our buddies shops. Our shop was the only one fined. :) In the end it was all just a money grab, either cut the floor and dig up all the dirt or pay a fine that was half as much. Don't put a drain in your shop floor and if you buy one with one, seal it off and hide it.
I have done both owning and renting. You hit the nail on the head for both. You are absolutely correct, research, research and when you think you have done enough, do more research! Renting is typically the best scenario for the majority of people.
Never had a problem with epa in 16 years of business thank god. I do try to stay clean. I have rented 3 diff. commercial properties in the past. Two 5 year lease and 1 month to month. I got lucky and found a house 5 min from my kids schools on 3 acres outside city limits with a shop already standing. I don't run a full auto repair shop out of it i just do side work and TH-cam videos. I didn't like a landlord telling me what I could and couldn't do and the rent was crazy high.5 k a month one 1 of them. If you are running a repair shop and need retail location you will probably have to rent. I think if someone is in it for the real long haul I would want to own. That's just me. Everyone has there own wants and needs and that's what makes the world go round.
@@vetbcrazy toe in & toe out is alignment, just like caster & camber. Its adjustments of tie rods & shims to make sure the rear of the car follows the front of the car straight.
Yes it does depend on a lot of things. The first one is ....do you have cash for a down payment to buy. Many business, especially newer ones, don't. But a lot depends on the property itself (potential existing environmental issues for example) or how long you may think you will stay there before outgrowing it as examples. Whether buying or renting, you are going to pay all the costs. Landlords don't lose money. But generally you are not on the hook for most major maintenance issues. Just call the landlord/management company. One potential big thing you might give up is the appreciation in value of the property....if you are in the right markets.
Buy (not this one of course). Caveat: I guess my perspective is that despite all the problems it can be a good store of value. You ain't gonna live forever. Something left over for the kids once you pass is kinda nice.
If a bank is lending you money to purchase a commercial property they'll likely require you to get an environmental site assessment, especially if the site was an auto repair shop, gas station or nuclear titty bar. Might have some additional testing to do depending on what activities took place on the property. Either way, you're paying about $3k minimum to have the assessment. If you ever see a corner property that has been vacant for ages, it likely needs an expensive cleanup, likely due to underground fuel tanks or some major spill occurred there. Eventually, as surrounding sites become more expensive and scarce, it'll be worthwhile for someone to pay to clean up the property and re-develop it.
Damn right! Bought a brand new duplex. Tenant (only 1) made every payment (and then some) Paid it off 15 years. Hell .... I even tapped into tenant's heat & air vents.
Having signed many leases, any Environmental problems are also the Lesee's problems if it's in the lease. The whole thing usually ends up in court unfortunately, especially in the USA.
Ah, but it does have to be in the lease, and the leasee is only on the hook if it can be proven it was their fault if it was not. Always read before you sign. You question the legitimacy of any clause, look for one of those lawyers that will consult for as little as $20. They are out there. They will go through it, and tell you what is.
@@dgr8zod Most commercial leases do have it in their lease. But at the end of the day they always go after the one with the deepest pockets to pay and that person is left with having to go after the tenant to get the money back from them.
Other thing to consider about owning a commercial property… You will pay commercial rates for power/water/sewage etc…. I own a commercial property in sw Ohio and I can tell you the electric rates (for example) are not for the faint of heart.. My property is located in residential/commercial neighborhood. My trash is picked up with the neighbors trash,, I just pay more. Insurance is another thing that becomes different with a commercial property as well. Food for thought! Thanks as usual for the great content ETCG!
Eric you ar cool guy. i rember when you started youtube way back then. you helped me repair alotta cars just by looking at your videos. keep up the good works ma brudda. i wish great success.
Eric We wish you the best of luck 👍🙏❤. The way you brake down things and explain them is awesome. I've done most of my repairs on my cars off of TH-cam and thanks to you ,I've been able to keep my car on the road . I'm glad to hear you say that your plans revolve around what's best for your daughter. BEST DAD AWARD-GOES TOO--ETCG.!!!!! MUCH LOVE AND RESPECT from "Skagit valley "Washington. Thank-you for all your hard work. I feel like Daniel son,I have much to learn from you Mr.Miyagi. "Skagit valley ".Washington.
Im in a very similar situation Eric. I used to own a home until I sold due to all the bullet points you mentioned. I am currently renting a home but now my landlord wants to sell. Luckily he offered me month to month until Im all moved out. Two weeks after I got the news, I found a single family home built in 2020 up for rent, for which the landlord and I actually do the same type of work (diesel tech for the Army). Unfortunately it's 300 sq ft less than my current residence, and doesnt have a garage 😢 but it does have a freshly built 35x30 storage shed with shelving and plenty of space 😊😊😊. What a breath of fresh air to know that an inspirational individual like yourself has gone through a similar trial. Ive definitely had to plan ahead and save more money than I usually do.
True you don’t completely own something until it’s paid for. However you do build up something called equity. If you are paying for something for ten years and things change. You can sell it and get the equity back. Between what you’ve been paying plus increased property values can add up to a lot. If you rent the money is gone forever.
Given that my business is online, that's where my equity is. The 'property' I do it in has little bearing on it as evidenced by my former shop and my move to a new one, my business is still intact no matter where I move to. My shop rent is a tax write off BTW.
Around me they have basically storage lockers you can rent and people work out of. All have electric, some gas and sewage. They are just smaller various sizes. 1/2 or so have tall ceilings like 16" (so some have part attics for storage). Run from $500ish -$1000ish month and you can legally work out of them. Buddy repairs motorcycles out of his, other person runs a glass shop and another two guys works on cars in thier own units. Many towns have these.
Not moving when your kids are in high school is an Ace decision. Keeping your kids grounded as they become adults is hard enough. I commend you sir. 😎👍🍁
Good advice! Always do your homework before purchasing property. Many decades ago, our family plumbing, hvac and excavating business would rent space and focused on the business field of our expertise. Profits can be eaten up by diverting your attention in areas foreign to your core business much like commercial property ownership/management. Good Luck!
I ran into the same situation many years ago was going to purchase a four-bay shop with used car lot adjacent. However my lender luckily did a pre-inspection because of it being a repair shop for over 40 years and discovered that if I would have went ahead and signed the papers the EPA would have done some digging in the back of the building where apparently the previous owners used to dump oil and it was all kinds of junk cars back there I would have really been screwed so yes if you do plan on buying people always do your homework
I used to do Phase I site inspections professionally. Lenders all require them for commercial property. Its very comprehensive. We do a site visit, interviews, we went to the library and went through every phone book going back decades to see if anything else existed there. We had USGS blue line aerial photos going back to the 50s. There are also commercial products that map underground storage tanks and spills.
I ran a backyard machine shop for 25 years. I just sold my place last March and did very well on it. Now I'm retired living in the mountains in Montana.
Many years ago, my dad had a problem with contaminated soil. He held onto a vacant building for 30 or 40 years until someone bought it for a song. My folks were very relieved that day.
Renting means you can walk away when you retire. This is where I find myself. But as owner I gave to maintain property that I’m retired from. Good luck. You’ll make the right decision. Del
If you own the property you work out of, when you retire you can sell it. Just think of all those lease payments you made over the years. It could be your retirement fund.
Hi Mark. It’s no problem with houses but commercial property is different around here. Car repair shops aren’t the coveted places they were twenty years ago. Finding someone wanting to buy you out takes a lot of luck. Like finding good techs. Shops are seldom in prime locations so tend to be in older neighborhoods. I like Eric’s location in an industrial park. Hope it’s not a problem towing cars in. Not sure how it would work as a regular repair shop with lots of traffic but I wish him well.
Also buying a former shop you have to think about or find out if it has buried fuel tanks. In NC where I looked at one, it still had tanks in the ground so no conventional financing and future problems.
WOW you have done your homework on what to do... you are super smart i am so very proud of you Mr. Eric... Another great video... i need to help you move out just say when...
i bought a dead factory, it was closed for 20 years, no buyer! i looed all details and knew it´s a good deal. lowerd the price cause contamination, which i threw in the trash can every week a litte and a wrecker carried for 100 bugs some quemicals.... no drama! keep cool! do it!
A little over three years ago I found some of your videos which helped me stumble my way through a few much-needed repairs on my 1994 Acura Legend. I was in way over my head with very little in the way of automotive experience but definitely could not afford the labor costs. I could barely afford the new parts. I kept watching your videos and ended up landing a job as an entry-level lube tech at a dealership. I'm now a B-level tech with a few ASE certifications under my belt. I consider you to be one of my mentors. I am grateful and happy for you and your continuing success. Congratulations on your new, future shop!
What a great point of view! Thanks so much for this. I'm currently wrenching 8-5 at a dealer and renting a 2 bay shop for my hobby/side jobs during after hours and weekend.
it's like a house, if you plan on getting there longer, if you can afford it, see the futur value of it and you will be free to do what ever you want in it! buy it, even if things doesnt go has planed, like stop youtube, you can still rent the space and get some passive income. Renting is good for short terms or starter or no string attach or not finding the right place at the right time but you are limited, you allways need to ask the owner to modify things
@@Dizzykitty817 sure it's different but the basic are the same, you spend money on a house but you wont get return on it if you live in it, if it's rented then yes you get return. For a commercial property it generate money all the time it's the source of income. Taxi do it, they bought a car, make money with them. The expense are different. Like he say in his video a lot of research need to be done befor buying, unlike a house you gonna have less problem with toxic stuff(generally) Not gonna lie buying a house today is too expensive at some point nobody will be able to afford that until price come down or stabilize
Eric you are so right you never truly own a piece of property, the government and the state owns it. If you don't pay your taxes, the government/state takes it away.
yea well renting the landlord becomes your government you have to bow down to and you are paying his taxes on the property i’ve had my rent go up because the property tax went up buy the building so u can stand on ur own two feet and not be at the mercy oof anyone
You're welcome, you taught me how to fix a lot of things on the Honda Accord and my Hilux, will never forget the knowledge you teach, has saved me probably as much as 20 grand doing repairs myself with your guidance, Thankyou mate.
It really comes down to what will work for you both financially and time wise - ensure that you will have a shop for whatever period of time you plan on continuing to twist wrenches. Ownership helps control overall cost of use however it also brings with it all the things you mentioned in terms of accountabilities. Renting does limit your accountabilities, assuming you have the right lease and all requisite control features built in, however you'll be at the mercy of the landlord on a number of items including future lease costs and whether or not the landlord takes care of stuff that happens in a timely fashion. You could just as easily be displaced with a lease if the landlord doesn't take care of the property and fulfill the responsibilities of a responsible owner. Seems like you have made up your mind, and that's good. You're looking ahead. Best advice, get a good attorney to make sure your new lease provides what you need.
Agreed with previous owner stuff. Our town wanted to build a new fire house station, they bought a corner lot in town and the back half was an old dry cleaning store that had operated for 40 years at that location. City had to dig down 10 or 20 feet to get to good soil, pay to ship that soil put in a toxic landfill place, then let it air out for quite a while and then pay to have new full trucked in. Yep, renting has it perks 🧐 Back corner of firehouse is the parking lot now 🙈
For a TH-cam shop (non traditional auto repair shop situation), the only way I would be interesting in owning my shop would be if I could find acreage in a rural location where I could have both my shop and my home. Otherwise, I would just rent. I know the nightmares of owning a home inside a town/city; I can only image the hell they would put a industrial business property owner through!
Your point about regs out in the country is well taken. Just because you are not "in the city" does not mean that the zoning/permit folks are any less corrupt in trying to help themselves to your wallet. My hobby shop (not for profit) build opened my eyes to the dirtyness.
Generally, the owner is richer than the driver, even after expenses! Yes, there is always a risk to owning as there is more responsibility, but there is certainly potential for more reward too - otherwise, nobody would ever own.
But on the other hand, maybe they don't get fixed, or don't get fixed correctly, or don't get fixed on time. If it's yours you have more risk (which can be mitigated) but more control and typically, fewer expenses overall. But If you rent, it's convenience (assuming a decent landlord) and more free cashflow (because it isn't tied up in an appreciating asset).
But if youre an independent operator, being able to keep on top of maint will prevent breakdowns. Making things "someone elses problem" never ends well, and speaks for your personal responsibility.
The trucking business can easily become a financial mess if you’re reckless but if you own your own numbers and have a paid off old truck from the start that you maintain right it’s 100% worth it. I would never go back to being a company driver. You’re always pushed to run hard against the clock, it’s not forced dispatch but if you refuse multiple loads you’re gone, then sleep in 90* sunlight, miss every holiday and birthday party, get some stupid high school dropout trying to dispatch you that has zero passion, have a poorly maintained truck that is constantly breaking down or has annoying issues that never get fixed like a broken fuel tank balancer or a noisy APU beeping noise or shaking while driving screwing up your back. They always send you into stupid areas like NY or CA. Your boss doesn’t care about your health or how much you make. They want their truck to run their way and you’re just the idiot that holds the wheel for a few cents a mile. You can’t stop at a Walmart and buy groceries or exercise on your downtime because you’re always worried you will get dispatched and have to drive half asleep. Anything with lease on it is a scam. Leasing a truck is a scam you will pay 3x the value of that truck and end up losing your shirt when it breaks down. Leasing your truck to a company is a ripoff they fake the rate confirmation so you think you’re only making a few thousand but the company is pocketing the rest and still taking their cut from what they give you. You have to run their shitty tires and fuel and get oil changes when they say you can. You’re a hamster running around on their wheel and they can stop it and kick you off any second. The only person I ever have to talk with is brokers before I get a load and my mechanic when I’m home for a few days. Everyone else gets a email update or text message. That’s it. If I want to go on vacation for 2 months in the winter when the roads and parking lots are covered in black ice I can do that. Trucking is good business right now I’m averaging $3 a mile or $1,000 a day profit after absolutely everything. Don’t give another man your business. Don’t trust the government to do the right thing.
EPA thing you talked about is very true. I was in the gas station business. They come and test the soil. If it shows contamination is very expensive to fix. Too much than they shut down the station and pull out the tanks. it’s huge headache station owners generally get environmental insurance which is pricey
Following my comments on the last video - the building across the street just sold. The new owners told the tenants they had until the end of the month to get out. After helping an old mechanic vacate a shop in a hurray he had been in for 45 years, if it is your life business then buy.
I just saw in the news OKC discovered a used car battery dump buried under their planned city parks expansion. The area used to be called "Automobile Alley" so they were not entirely surprised to find something there, but the news article said the cost of cleaning up all that lead contamination is going to exhaust the remaining funds for the program.
@@joanfrederick9176 That's the one everyone misses and the key thing that makes rent go up. It's the landlord passing that off to you in the form of rent.
Hey Eric thumbs up for not moving your daughter to another school. My family moved at the end of my grade 11 and the new school was 2hrs away, my grade 12 was the worst year ever, I almost didn't make the grade for university as a result!!!! 👍👍
I had several lots at once also... and I still have 2 lots now.. The mowing alone is a nightmare to keep up with. I've ran a crew building houses and metal builds for over a decade--- and I still haven't built one for myself. "Ownership" is a lot bigger hurdle than it looks like from the outside.
Where do you think you short changed yourself? Or should I ask What caused you to build for others and not have the time to build for yourself. Was building for other for this long worth it? It would be great to hear your opinions and stories. I bet there is a ton to learn.
@@Dancing_Alone_wRentals My main issue is that my lots are in town, and the city inspectors are tyrants--- everything has to be "stamped by an engineer" -- so even though I know how to build everything perfectly; They basically won't let me draw up my own plans... I have to pay an architect many thousands--- and then it has to get a stamp of approval by an engineer for many more thousands... I even have to have a "drainage plan" for the lot--- showing where all the rain water will flow; because you can't build a building and then it drains water onto your neighbor's land. and Of coarse, even this has to be stamped and approved by an engineer.... The last guy I worked for said that he had to pay $12k just for the lot plan, and move some dirt in, ect. ect... and that was before you can even get started. Bottom line, DON'T BUY LOTS IN TOWN.. My plan was to buy a lot, throw up a building real quick, just like I've done for others---- but unfortunately, we live under oppression in the name of "safety".
yes you are correct about all of those items, but another part your research should be talking to the neighbors in a given area. They may have information that had not been documented! There also may be some areas looking for redevelopment and looking for a well-established business? Good luck with everything
Commercial is different but if I am looking at residential, I try to drive around the area at different times. I also look at the vehicles in the area and how well maintained they are.
There are multiple pieces of land near me that used to have gas station/auto repair shops on them. When they went up for sale, it was discovered (as part of the sale) that there was deep soil contamination, and in order to mitigate it, the entirety of those buildings had to be torn down before massive holes were dug. Since the cost of all this was more than the properties were worth, the vacant properties now belong to the government.
I think you're spot on with the options - lease seems the best assurance without having to worry too much about environmental concerns. Good that you are thinking long term - in 20 years with EV's the garage industry may be looking a lot different to today. There may be tax writeoff issues which point you in the right direction.
I worked for a major automotive manufacture and before they moved out the EPA examined the property and found extensive environmental issues with the property. Bottom line they couldn’t sell or rent the property until the issues were addressed.
First as me and a mechanic friend of mine want to open a shop, what you said was awesome and I learned something, in this case renting might cost more but with the business you are doing enviromental issues are a great concern and the though of that was scarry, why I watch your channel. Renting I though would been better anyway, but it sounds like the best way. It been a few years since I started watching your channel and since then, with 1 tool box is now looking for a 4th tool box, and I have a 4 post lift and a new transmission jack, and an array of other jacks and jack stands and waiting for the new motor for my air compressor. Like you I have grown and you inspired me. I am mediocally retired so working on a car is a hobby, or my new job as I own 5 cars and I sure cant afford to pay mechanics. They dont seem to have the care I would expect for what I am paying for, so I do it myself. Oh forgot I finally broke down 2w weeks ago and bought a torch, love it, BBQ ala car anyone. LOL
The wife and I have been talking about getting me my own space, to do projects for almost 18 months now. First was a thought of putting in a new garage in the back yard, but like you said even thou we own the land, what is it going to cost, what permits do we need, and other stuff like that. Then we thought about buy another piece of land, but land here right now is stupid high, the only piece that fit what we are looking for was 18 miles away, for a project/hobby shop that is a little bit of a ride back and forth. Renting is out of the questions, why let a building sit 8 to 10 hours a day without anyone in it, but buying is an investment. I've been working on the same project for about 4 years(I'm not the quickest wrench turning), I have other things like life that I have to take care of first. So for now, I have pieces of my project spread out over 25 miles, but the rent is right for me, it is free. So I will continue my search for that place I can call my own. Good luck with the new shop and the move, can't wait to see your next video. Bart
I worked at a place that the EPA got, for soil issues, they had to dig down till clean samples were recovered, pay to dispose of the toxic dirt, buy new dirt and fill the ground back in. It wasn't us that did it, that place has been used as a shop for 20+ years or so before that owner took over. The fire department also came in at some point and decided the brick building shop, needed a back door exit, to bring it up to code, which also cost a nice amount of money.
Excellent advice about researching well before you buy. In south Florida where I live, you might get a great deal on a piece of land, only to find out 80% of it is wetlands and you can't build on that part of the land. Same with the EPA issues, there are a bunch of superfund sites down here, mostly related to fertilizer production. But also near my house, maybe 15 or so miles away, there used to be an oil and battery recycling place. Got sold as commercial property only to find out that everything they could have done wrong, they did. And that stuff isn't limited to the obvious things you'd think would create those issues. There was a large call center near me that had these massive turbine generators to maintain business operations. The tanks for the Jet-A were installed in 1975, around 2000 come to find out they'd been leaking for years, was a huge mess to clean up. Funny side note on that, every time they fired those bad boys up they had to let the police dispatcher know in advance. Because it sounded like you were at an airport as they got started, and people would light up the switchboard to complain about it, my father always got a kick out of that.
Eric you are so spot on !! My buddy was in your same boat "new owner wants space" 14 years ago the house next door from his home burnt down that landlord decided to pocket the money and not rebuild my friend bought the land had soil testing done and wow $$$ huge costs in clean up that being said present asking to move his business he has decided to build a shop next-door to his home getting it zoned commercial was his biggest hurdle now covid supply issues shop is 70% complete hope is Jan 30th he explained how his rent vs mortgage is dubble but he choose a 15 year mortgage didn't want 25-30 year's he is very nervous because if he fails he has to live next door to his failure ....
One thing to consider I am familiar with the area grew up all around there Warren County Clinton County and Adams and Brown county is also good possibilities some of those counties are not as strict on what you can and cannot do
Great video Eric as always.As far as renting or owning i think it depends on the person.I have never owned a shop always have worked for shops and sometimes i would look at the owners face and say thank goodness i'm not in his shoes because of repairs or what ever else.Good luck Eric on what ever you decide can't wait to see the new shop.Have the rest of a great L.D. weekend everyone.
Eric: "Burning the candle at both ends would be a bit of an understatement" Me: "More like lighting a fuse at both ends" Me also: "why do I always feel hungry for sweets after these videos?"
Enough said I think you covered it all, commercial real estate can be tricky especially when you have property zoned for so many different purposes do dealing with collection of rent is a whole other issue... best of luck you were definitely prepared for this a few years ago. BEST of luck, look forward to new content.
On the one hand, I agree...but only to a point. There are enough people out there that would do stupid s#!t that it probably makes some sense to have reasonable regulations. Otherwise you would have buildings collapse, gas explosions and electrical fires all over the place. We have enough that now even with regulation because of people cutting corners.
@@mattlane2282 Ah yes, own a commercial building, rent it out to tenants, roof collapsed and not the oblivious bitchass owner is dead, but a couple of tenants. Great thinking! /s
Moved out at 18 and rented an apartment for year. Moved back home a couple of years and saved for as house. Been flipping real estate ever since. No rent for me. Equity is security; but for your situation there are tax advantages to renting along with the freedom.
I appreciate the pros and cons of both owning and renting. I can echo what you say in this video, do your research and find out what works best for your needs.
Moved from my house in town and rented shop to a house on 9 acres in the country. Built a 3000 sqft shop that I love, plus a 1000 sqft garage,man cave hot rod shop on the house.and I also put the old shop rent money extra on my mortgage every month. 6.5 years later it's paid off as of last month. Pretty damn good feeling being 100% debt free! My son was still in school but driving at that point so it didn't matter. Same school district. Also, your paying taxes if your renting in your rent.
For long term, I would definitely look at buying a commerical property that you own. That way you won't have to worry about being forced move your business out again since the owner can do what ever they want with in a split second.
Did you miss the part in the video where I mentioned the EPA? They can shut you down in a heartbeat. If the town decides to rezone your property, you won't be able to do business there anymore. If you don't pay your taxes, they will also kick you out. Ownership is really just a myth we tell ourselves, you pay no matter what. At least with renting, you know how much you're paying and for how long. Thanks for the comment.
renting a shop has its downfalls if you have a crappy landlord.ive been renting my shop for 6 years and i know how to place buckets in the perfect places to catch the rain.my landlords idea of fixing the roof is to send his employees up on the roof with flex seal and some roofing sealer to fix it.i plan on leaving in the next 5 years anyway so the next tenant can worry about it.
If the asking price is within range of its historic value, you can get a good deal on a loan that can be paid in a reasonable amount of time, and it’s not economical to be beholden to lease contracts (ie. not many properties available with your needs), buy buy buy. _Always_ buy.
@@ETCG1 You are correct sir. To be honest, I was only halfway through your video and hadn’t factored environmental issues - which obviously anyone would be stupid to not research. I guess I’m mostly coming from a small town perspective, where I’d seen many many mechanics who owned their property, and you could tell how long they’d been in business for themselves at that location by how many beaters they had around the shop. None of those guys were/are moving anytime soon. 🙂
Best thing about this video; being mindfull about your daughter and the importance to stay put for the time being.
That, Eric, amongst other things tells a lot about you.
My parents moved around like gypsies. I'm 52 and still stew about. My son graduated high school with a few of the kids he attended first grade with. That was of the utmost importance to me. They will appreciate it in the end.
That's beta male mindset
A real man who makes his interest in the lead.
Otherwise he will be stupid and naive i bit his daughter will never care about it
@@waheedali2429 Literally nobody should listen to an imbecile like you. That sort of mindset is a mindset brought to you by archaic places like the Middle East, where most of the "alpha males" still live in mudhuts and the countries are ripe with Medieval beliefs. Maybe get into this century.
A wise man thinks of the greater good for everyone, not just himself. Clearly this has worked out for Eric, as he owns a successful business, a TH-cam channel and is still able to provide a loving and nurturing environment for everyone else around him. Eric is definitely not hurting and that is abundantly clear for not only himself but his family.
Delete your pigheaded comment.
This has affected a lot of parents decision making processes. Amazing how that works..
You do anything (or sacrifice) for your kids. They come first, always.
Long ass comment. I just read you don't like Emails, so here goes...
First off, I hope this comment finds you well. I love your videos.I'm a 67-year-old retired transmission shop owner in Draper, Utah which is a suburb of Salt Lake City. I agree with 99% of the videos you put out. I like your videos so much that I watch them all the time. (I have a lot of time on my hands.)
However, I would like to input my opinion. I've been as well as a transmission shop owner, but also a renter, a commercial real estate landlord. I agree with you fully on owning is better than renting. To me, ownership is your retirement and your family legacy. This is a story somewhere between thinking ahead and sheer luck. Here's my story...
At the age of 60, (2015)I sold my business to a nearby local multi-shop transmission shop owner who had 5 shops in the greater Salt Lake area for $330K. That wasn't enough money to retire on. However, I leased them the shop for $11K/mo. We paid the property tax because I didn't want to fall into that trap of having 2 or 3 years of back taxes being assessed on ME. I affectionately called it "double-net" He signed a 10-year lease. In the past 3 years of my business, we had total revenue of $1.2M. Our shop location was killer as well as my own self-managed Google AdWords campaign.
Going back 2 years earlier, I had approached the landlord about buying the building and property instead of renewing the lease. I asked for a 10-year owner-financed mortgage for $840K. That was in 2013. He went for it.
Although I had a 10-lease, my mistake was in not doing due diligence in checking these guys out. My great mistake was not checking out their BBB rating beforehand. Long story made short, they skipped out after only 5 years and took every piece of shop equipment in the building PLUS leaving 29 abandoned vehicles in the back parking lot. The reason they skipped out is that sales had fallen to $400K/yr. which now made rent a staggering 33% of income! No mystery why they failed to me. They were consistently behind in their rent, sometimes 2 and 3 months behind. ($33K)
After they skipped out in 2020, we put the place up for sale because all we had was a barren building and NO "business with shop equipment" to sell. On the tax records, the place was assessed as being worth $1.1M. That was highly undervalued in my mind. I was asking $3.2M. Two weeks after I listed the property on LoopNet.com, I had a buyer at $2.3M. LoopNet is the "Google" of commercial property buying, selling, or leasing commercial property.
The moral to this long-winded story is selling your automotive business is not enough for retirement. Only selling a prime piece of real estate is. I bought the place for $840K on a 10-year owner-financed mortgage in 2013 and sold it 7 years later in 2020 for $2.3M. After all the "fees" and paying of the mortgage, we only cleared $1.9M. Now THAT'S ENOUGH MONEY TO RETIRE ON.
When you're getting up in years, somehow, somehow, figure out a way for owner-financed buying and not a mortgage company. Think retirement.
I own my property for a long time now and it’s worth many times more than I paid for it. I finished paying the mortgage 19 years ago and I haven’t paid any rent or mortgage since then. For myself it was the best thing and every year the property keeps going up in value.
Owning a property is always better ! It goes up in value !
*often
Unless the EPA comes in and shuts it down for environmental reasons. Try selling it then. Commercial real estate is NOT residential real estate.
@@ETCG1 In the late 80s I was working my first mechanic job at a small shop, the epa hit us first in our small town. It was an old building with a 55 gallon drum with holes in it for a drain. Been there for decades.
I went across the street to warn another shop while it was happening to close down. We called every shop in town.
That night we had concrete and floor painting parties sealing up old floor drains at all our buddies shops. Our shop was the only one fined. :) In the end it was all just a money grab, either cut the floor and dig up all the dirt or pay a fine that was half as much.
Don't put a drain in your shop floor and if you buy one with one, seal it off and hide it.
Feels like every monday is my birthday.
Every month when mu=y V.A. check comes its my birthday...
Lucky u
My birthday is next Wednesday
I have done both owning and renting. You hit the nail on the head for both. You are absolutely correct, research, research and when you think you have done enough, do more research! Renting is typically the best scenario for the majority of people.
Honestly, judging by your previous video, clearly buying looks like the best option.
Never had a problem with epa in 16 years of business thank god. I do try to stay clean. I have rented 3 diff. commercial properties in the past. Two 5 year lease and 1 month to month. I got lucky and found a house 5 min from my kids schools on 3 acres outside city limits with a shop already standing. I don't run a full auto repair shop out of it i just do side work and TH-cam videos. I didn't like a landlord telling me what I could and couldn't do and the rent was crazy high.5 k a month one 1 of them. If you are running a repair shop and need retail location you will probably have to rent. I think if someone is in it for the real long haul I would want to own. That's just me. Everyone has there own wants and needs and that's what makes the world go round.
We all love the honesty and integrity of your channel Eric. You are good dude my friend. You and your family deserve all the best. 🙏
Thank you.
When buying commercial property, hiring a real estate attorney is recommended.
FACTS!!!! very true
Yup going through that right now with the company I’m with. Commercial is a lot different than residential
What do it mean when you think your front end has either toe-in or toe-out, and the technician says it’s toe-up?
@@vetbcrazy toe in & toe out is alignment, just like caster & camber. Its adjustments of tie rods & shims to make sure the rear of the car follows the front of the car straight.
How about an experienced commercial realtor ? Don't attorneys try and find ways to keep billing ?
Seriously, this video should be called "Commercial Property, Ownership versus Leasing, Class 101". A must watch video for small business owners.
In my opinion, renting or owning depends. There are pros and cons to them both and should be taken into consideration.
Yep, depends on the situation.
@Jimmy Hunt everyone who rents out to and from people are renting rookies when they first start out.
Yes it does depend on a lot of things. The first one is ....do you have cash for a down payment to buy. Many business, especially newer ones, don't. But a lot depends on the property itself (potential existing environmental issues for example) or how long you may think you will stay there before outgrowing it as examples. Whether buying or renting, you are going to pay all the costs. Landlords don't lose money. But generally you are not on the hook for most major maintenance issues. Just call the landlord/management company. One potential big thing you might give up is the appreciation in value of the property....if you are in the right markets.
Buy (not this one of course).
Caveat: I guess my perspective is that despite all the problems it can be a good store of value. You ain't gonna live forever. Something left over for the kids once you pass is kinda nice.
Choose wisely, what you would think is nice to leave for the kids may be a burden to them.
If a bank is lending you money to purchase a commercial property they'll likely require you to get an environmental site assessment, especially if the site was an auto repair shop, gas station or nuclear titty bar. Might have some additional testing to do depending on what activities took place on the property. Either way, you're paying about $3k minimum to have the assessment.
If you ever see a corner property that has been vacant for ages, it likely needs an expensive cleanup, likely due to underground fuel tanks or some major spill occurred there. Eventually, as surrounding sites become more expensive and scarce, it'll be worthwhile for someone to pay to clean up the property and re-develop it.
Great points on why you didn’t buy the property Eric! So many things to consider when making the decision. I hope things go smoothly during the move!
I'm just glad you are upsizing. You are a savvy businessman Eric! Looking forward to many years of watching your success.
I had a machine shop. I'm retired now. What I always tried to do is buy at least twice as much space and lease out half of it. Just my 2 cents.
Damn right! Bought a brand new duplex. Tenant (only 1) made every payment (and then some)
Paid it off 15 years. Hell .... I even tapped into tenant's heat & air vents.
Having signed many leases, any Environmental problems are also the Lesee's problems if it's in the lease. The whole thing usually ends up in court unfortunately, especially in the USA.
Ah, but it does have to be in the lease, and the leasee is only on the hook if it can be proven it was their fault if it was not. Always read before you sign. You question the legitimacy of any clause, look for one of those lawyers that will consult for as little as $20. They are out there. They will go through it, and tell you what is.
@@dgr8zod Most commercial leases do have it in their lease. But at the end of the day they always go after the one with the deepest pockets to pay and that person is left with having to go after the tenant to get the money back from them.
I really like Eric's style; backup plans for his backup plans.
Other thing to consider about owning a commercial property…
You will pay commercial rates for power/water/sewage etc….
I own a commercial property in sw Ohio and I can tell you the electric rates (for example) are not for the faint of heart..
My property is located in residential/commercial neighborhood. My trash is picked up with the neighbors trash,, I just pay more.
Insurance is another thing that becomes different with a commercial property as well.
Food for thought!
Thanks as usual for the great content ETCG!
Never thought about all the problems of owning a commercial property. Thanks for the infos.
Eric you ar cool guy. i rember when you started youtube way back then. you helped me repair alotta cars just by looking at your videos. keep up the good works ma brudda. i wish great success.
Thank you!
Eric
We wish you the best of luck 👍🙏❤.
The way you brake down things and explain them is awesome.
I've done most of my repairs on my cars off of TH-cam and thanks to you ,I've been able to keep my car on the road .
I'm glad to hear you say that your plans revolve around what's best for your daughter. BEST DAD AWARD-GOES TOO--ETCG.!!!!!
MUCH LOVE AND RESPECT from "Skagit valley "Washington.
Thank-you for all your hard work.
I feel like Daniel son,I have much to learn from you Mr.Miyagi.
"Skagit valley ".Washington.
Good luck my brother. And good looking out for your daughter she will appreciate you for that . Best of luck at the new place ..
Im in a very similar situation Eric. I used to own a home until I sold due to all the bullet points you mentioned. I am currently renting a home but now my landlord wants to sell. Luckily he offered me month to month until Im all moved out. Two weeks after I got the news, I found a single family home built in 2020 up for rent, for which the landlord and I actually do the same type of work (diesel tech for the Army). Unfortunately it's 300 sq ft less than my current residence, and doesnt have a garage 😢 but it does have a freshly built 35x30 storage shed with shelving and plenty of space 😊😊😊. What a breath of fresh air to know that an inspirational individual like yourself has gone through a similar trial. Ive definitely had to plan ahead and save more money than I usually do.
My favorite videos are when you were setting this shop up. Can't wait for the next one!!!
True you don’t completely own something until it’s paid for. However you do build up something called equity. If you are paying for something for ten years and things change. You can sell it and get the equity back. Between what you’ve been paying plus increased property values can add up to a lot. If you rent the money is gone forever.
Given that my business is online, that's where my equity is. The 'property' I do it in has little bearing on it as evidenced by my former shop and my move to a new one, my business is still intact no matter where I move to. My shop rent is a tax write off BTW.
Could you do a video with tips on finding shop space for the DIYer who only needs 1000 sq ft or so?
Around me they have basically storage lockers you can rent and people work out of. All have electric, some gas and sewage. They are just smaller various sizes. 1/2 or so have tall ceilings like 16" (so some have part attics for storage). Run from $500ish -$1000ish month and you can legally work out of them. Buddy repairs motorcycles out of his, other person runs a glass shop and another two guys works on cars in thier own units. Many towns have these.
Not moving when your kids are in high school is an Ace decision. Keeping your kids grounded as they become adults is hard enough. I commend you sir. 😎👍🍁
Good advice! Always do your homework before purchasing property. Many decades ago, our family plumbing, hvac and excavating business would rent space and focused on the business field of our expertise. Profits can be eaten up by diverting your attention in areas foreign to your core business much like commercial property ownership/management. Good Luck!
I ran into the same situation many years ago was going to purchase a four-bay shop with used car lot adjacent.
However my lender luckily did a pre-inspection because of it being a repair shop for over 40 years and discovered that if I would have went ahead and signed the papers the EPA would have done some digging in the back of the building where apparently the previous owners used to dump oil and it was all kinds of junk cars back there I would have really been screwed so yes if you do plan on buying people always do your homework
I used to do Phase I site inspections professionally. Lenders all require them for commercial property. Its very comprehensive. We do a site visit, interviews, we went to the library and went through every phone book going back decades to see if anything else existed there. We had USGS blue line aerial photos going back to the 50s. There are also commercial products that map underground storage tanks and spills.
I ran a backyard machine shop for 25 years. I just sold my place last March and did very well on it. Now I'm retired living in the mountains in Montana.
Many years ago, my dad had a problem with contaminated soil. He held onto a vacant building for 30 or 40 years until someone bought it for a song. My folks were very relieved that day.
All good points to consider, Eric. Potential big differences between residential and business properties.
Renting means you can walk away when you retire. This is where I find myself. But as owner I gave to maintain property that I’m retired from.
Good luck. You’ll make the right decision. Del
If you own the property you work out of, when you retire you can sell it. Just think of all those lease payments you made over the years. It could be your retirement fund.
Hi Mark. It’s no problem with houses but commercial property is different around here. Car repair shops aren’t the coveted places they were twenty years ago. Finding someone wanting to buy you out takes a lot of luck. Like finding good techs.
Shops are seldom in prime locations so tend to be in older neighborhoods.
I like Eric’s location in an industrial park. Hope it’s not a problem towing cars in.
Not sure how it would work as a regular repair shop with lots of traffic but I wish him well.
Also buying a former shop you have to think about or find out if it has buried fuel tanks. In NC where I looked at one, it still had tanks in the ground so no conventional financing and future problems.
WOW you have done your homework on what to do... you are super smart i am so very proud of you Mr. Eric... Another great video... i need to help you move out just say when...
Yes, I hope bigger and better things are coming, Eric. Godspeed!
Thank you!
i bought a dead factory, it was closed for 20 years, no buyer! i looed all details and knew it´s a good deal. lowerd the price cause contamination, which i threw in the trash can every week a litte and a wrecker carried for 100 bugs some quemicals.... no drama! keep cool! do it!
A little over three years ago I found some of your videos which helped me stumble my way through a few much-needed repairs on my 1994 Acura Legend. I was in way over my head with very little in the way of automotive experience but definitely could not afford the labor costs. I could barely afford the new parts. I kept watching your videos and ended up landing a job as an entry-level lube tech at a dealership. I'm now a B-level tech with a few ASE certifications under my belt. I consider you to be one of my mentors. I am grateful and happy for you and your continuing success. Congratulations on your new, future shop!
Awesome, try upgrading to diagnostics using a scope as well. You'll thank yourself for this .
Cheers
What a great point of view!
Thanks so much for this.
I'm currently wrenching 8-5 at a dealer and renting a 2 bay shop for my hobby/side jobs during after hours and weekend.
it's like a house, if you plan on getting there longer, if you can afford it, see the futur value of it and you will be free to do what ever you want in it! buy it, even if things doesnt go has planed, like stop youtube, you can still rent the space and get some passive income. Renting is good for short terms or starter or no string attach or not finding the right place at the right time but you are limited, you allways need to ask the owner to modify things
It's like a house, only something the majority of people can dream about =(.
@@Dizzykitty817 sure it's different but the basic are the same, you spend money on a house but you wont get return on it if you live in it, if it's rented then yes you get return. For a commercial property it generate money all the time it's the source of income. Taxi do it, they bought a car, make money with them. The expense are different. Like he say in his video a lot of research need to be done befor buying, unlike a house you gonna have less problem with toxic stuff(generally) Not gonna lie buying a house today is too expensive at some point nobody will be able to afford that until price come down or stabilize
Eric you are so right you never truly own a piece of property, the government and the state owns it. If you don't pay your taxes, the government/state takes it away.
This applies even if you rent, because the owner has those costs built into the rent.
yea well renting the landlord becomes your government you have to bow down to and you are paying his taxes on the property i’ve had my rent go up because the property tax went up buy the building so u can stand on ur own two feet and not be at the mercy oof anyone
Im looking forward to seeing the new shop.
Very smart, Eric. Always research to find out what is best for your situation.
Very cogent arguments, revealing depth of experience.
Great advice. for anybody wanting to have their own business. Food for thought.
THANK YOU BRO.............. Great advise for all of us !!!!!!!!
You're welcome, you taught me how to fix a lot of things on the Honda Accord and my Hilux, will never forget the knowledge you teach, has saved me probably as much as 20 grand doing repairs myself with your guidance, Thankyou mate.
It really comes down to what will work for you both financially and time wise - ensure that you will have a shop for whatever period of time you plan on continuing to twist wrenches. Ownership helps control overall cost of use however it also brings with it all the things you mentioned in terms of accountabilities. Renting does limit your accountabilities, assuming you have the right lease and all requisite control features built in, however you'll be at the mercy of the landlord on a number of items including future lease costs and whether or not the landlord takes care of stuff that happens in a timely fashion. You could just as easily be displaced with a lease if the landlord doesn't take care of the property and fulfill the responsibilities of a responsible owner.
Seems like you have made up your mind, and that's good. You're looking ahead. Best advice, get a good attorney to make sure your new lease provides what you need.
Agreed with previous owner stuff. Our town wanted to build a new fire house station, they bought a corner lot in town and the back half was an old dry cleaning store that had operated for 40 years at that location. City had to dig down 10 or 20 feet to get to good soil, pay to ship that soil put in a toxic landfill place, then let it air out for quite a while and then pay to have new full trucked in. Yep, renting has it perks 🧐
Back corner of firehouse is the parking lot now 🙈
If you do it, you are going to be on the hook...
Really do enjoy your honest answers and positivity.
For a TH-cam shop (non traditional auto repair shop situation), the only way I would be interesting in owning my shop would be if I could find acreage in a rural location where I could have both my shop and my home. Otherwise, I would just rent. I know the nightmares of owning a home inside a town/city; I can only image the hell they would put a industrial business property owner through!
100%. But not on a dirt road.
you gave a LOT of solid advice for folks
Your point about regs out in the country is well taken. Just because you are not "in the city" does not mean that the zoning/permit folks are any less corrupt in trying to help themselves to your wallet. My hobby shop (not for profit) build opened my eyes to the dirtyness.
This same logic can be applied to trucking. Being a company driver, any breakdowns/truck issues aren’t my responsibility. As for the owner...
Generally, the owner is richer than the driver, even after expenses! Yes, there is always a risk to owning as there is more responsibility, but there is certainly potential for more reward too - otherwise, nobody would ever own.
But on the other hand, maybe they don't get fixed, or don't get fixed correctly, or don't get fixed on time. If it's yours you have more risk (which can be mitigated) but more control and typically, fewer expenses overall. But If you rent, it's convenience (assuming a decent landlord) and more free cashflow (because it isn't tied up in an appreciating asset).
But if youre an independent operator, being able to keep on top of maint will prevent breakdowns. Making things "someone elses problem" never ends well, and speaks for your personal responsibility.
The trucking business can easily become a financial mess if you’re reckless but if you own your own numbers and have a paid off old truck from the start that you maintain right it’s 100% worth it. I would never go back to being a company driver. You’re always pushed to run hard against the clock, it’s not forced dispatch but if you refuse multiple loads you’re gone, then sleep in 90* sunlight, miss every holiday and birthday party, get some stupid high school dropout trying to dispatch you that has zero passion, have a poorly maintained truck that is constantly breaking down or has annoying issues that never get fixed like a broken fuel tank balancer or a noisy APU beeping noise or shaking while driving screwing up your back. They always send you into stupid areas like NY or CA. Your boss doesn’t care about your health or how much you make. They want their truck to run their way and you’re just the idiot that holds the wheel for a few cents a mile. You can’t stop at a Walmart and buy groceries or exercise on your downtime because you’re always worried you will get dispatched and have to drive half asleep. Anything with lease on it is a scam. Leasing a truck is a scam you will pay 3x the value of that truck and end up losing your shirt when it breaks down. Leasing your truck to a company is a ripoff they fake the rate confirmation so you think you’re only making a few thousand but the company is pocketing the rest and still taking their cut from what they give you. You have to run their shitty tires and fuel and get oil changes when they say you can. You’re a hamster running around on their wheel and they can stop it and kick you off any second.
The only person I ever have to talk with is brokers before I get a load and my mechanic when I’m home for a few days. Everyone else gets a email update or text message. That’s it. If I want to go on vacation for 2 months in the winter when the roads and parking lots are covered in black ice I can do that. Trucking is good business right now I’m averaging $3 a mile or $1,000 a day profit after absolutely everything. Don’t give another man your business. Don’t trust the government to do the right thing.
Always buy the building!
Awesome to hear that there are bigger and better things happening to ETCG!
EPA thing you talked about is very true. I was in the gas station business. They come and test the soil. If it shows contamination is very expensive to fix. Too much than they shut down the station and pull out the tanks. it’s huge headache station owners generally get environmental insurance which is pricey
Following my comments on the last video - the building across the street just sold. The new owners told the tenants they had until the end of the month to get out. After helping an old mechanic vacate a shop in a hurray he had been in for 45 years, if it is your life business then buy.
Good luck with your endeavors.
I just saw in the news OKC discovered a used car battery dump buried under their planned city parks expansion. The area used to be called "Automobile Alley" so they were not entirely surprised to find something there, but the news article said the cost of cleaning up all that lead contamination is going to exhaust the remaining funds for the program.
Good info. Never thought of all that about investigating he area in which you plan to purchase.
So happy for you Eric! Things happen for a reason and we are all excited to see the new place!
Great advice. You have a great positive attitude.
The government gets taxes wether you got it payed off or you got a mortgage.
Yes, but property taxes pretty much double without a mortgage exemption.
Lease always increase
@@joanfrederick9176 That's the one everyone misses and the key thing that makes rent go up. It's the landlord passing that off to you in the form of rent.
Taxes won't kill you like monthly rent will if you have slow month.
@@joanfrederick9176 Let's not confuse anyone with facts.
Got to get up pretty early to catch ETCG by surprise.
Kudos to you for your foresight and good planning.
Well Done!
Hey Eric thumbs up for not moving your daughter to another school. My family moved at the end of my grade 11 and the new school was 2hrs away, my grade 12 was the worst year ever, I almost didn't make the grade for university as a result!!!! 👍👍
I went to 13 different schools growing up. My 3 kids all went to 1 school district and I believe they are much happier. Thanks for the comment.
I had several lots at once also... and I still have 2 lots now.. The mowing alone is a nightmare to keep up with. I've ran a crew building houses and metal builds for over a decade--- and I still haven't built one for myself. "Ownership" is a lot bigger hurdle than it looks like from the outside.
Don't plant grass!
Truth.
Where do you think you short changed yourself? Or should I ask What caused you to build for others and not have the time to build for yourself. Was building for other for this long worth it? It would be great to hear your opinions and stories. I bet there is a ton to learn.
WHOEVER OWNS THE LAND IS KING
@@Dancing_Alone_wRentals My main issue is that my lots are in town, and the city inspectors are tyrants--- everything has to be "stamped by an engineer" -- so even though I know how to build everything perfectly; They basically won't let me draw up my own plans... I have to pay an architect many thousands--- and then it has to get a stamp of approval by an engineer for many more thousands... I even have to have a "drainage plan" for the lot--- showing where all the rain water will flow; because you can't build a building and then it drains water onto your neighbor's land. and Of coarse, even this has to be stamped and approved by an engineer.... The last guy I worked for said that he had to pay $12k just for the lot plan, and move some dirt in, ect. ect... and that was before you can even get started. Bottom line, DON'T BUY LOTS IN TOWN.. My plan was to buy a lot, throw up a building real quick, just like I've done for others---- but unfortunately, we live under oppression in the name of "safety".
yes you are correct about all of those items, but another part your research should be talking to the neighbors in a given area. They may have information that had not been documented! There also may be some areas looking for redevelopment and looking for a well-established business? Good luck with everything
Commercial is different but if I am looking at residential, I try to drive around the area at different times. I also look at the vehicles in the area and how well maintained they are.
There are multiple pieces of land near me that used to have gas station/auto repair shops on them. When they went up for sale, it was discovered (as part of the sale) that there was deep soil contamination, and in order to mitigate it, the entirety of those buildings had to be torn down before massive holes were dug. Since the cost of all this was more than the properties were worth, the vacant properties now belong to the government.
I think you're spot on with the options - lease seems the best assurance without having to worry too much about environmental concerns. Good that you are thinking long term - in 20 years with EV's the garage industry may be looking a lot different to today. There may be tax writeoff issues which point you in the right direction.
I worked for a major automotive manufacture and before they moved out the EPA examined the property and found extensive environmental issues with the property. Bottom line they couldn’t sell or rent the property until the issues were addressed.
I bet that wasn't cheap
Anything automotive, repair shop, junk yard, anything of the sort, and you're a huge target for the EPA.
@@coache1nine no it wasn’t. Lucky I didn’t pay for it
@@cward1954 absolutely Motion automotive in Baldwin Long Island got shut down by them. Their cars are collector cars
That's some good perspective. Never thought of all that. Makes sense.
Very nice points, I was considering a place for auto paint shop.
First as me and a mechanic friend of mine want to open a shop, what you said was awesome and I learned something, in this case renting might cost more but with the business you are doing enviromental issues are a great concern and the though of that was scarry, why I watch your channel. Renting I though would been better anyway, but it sounds like the best way. It been a few years since I started watching your channel and since then, with 1 tool box is now looking for a 4th tool box, and I have a 4 post lift and a new transmission jack, and an array of other jacks and jack stands and waiting for the new motor for my air compressor. Like you I have grown and you inspired me. I am mediocally retired so working on a car is a hobby, or my new job as I own 5 cars and I sure cant afford to pay mechanics. They dont seem to have the care I would expect for what I am paying for, so I do it myself. Oh forgot I finally broke down 2w weeks ago and bought a torch, love it, BBQ ala car anyone. LOL
Thanks for the comment and good luck with the business.
The wife and I have been talking about getting me my own space, to do projects for almost 18 months now. First was a thought of putting in a new garage in the back yard, but like you said even thou we own the land, what is it going to cost, what permits do we need, and other stuff like that. Then we thought about buy another piece of land, but land here right now is stupid high, the only piece that fit what we are looking for was 18 miles away, for a project/hobby shop that is a little bit of a ride back and forth. Renting is out of the questions, why let a building sit 8 to 10 hours a day without anyone in it, but buying is an investment. I've been working on the same project for about 4 years(I'm not the quickest wrench turning), I have other things like life that I have to take care of first. So for now, I have pieces of my project spread out over 25 miles, but the rent is right for me, it is free. So I will continue my search for that place I can call my own. Good luck with the new shop and the move, can't wait to see your next video.
Bart
I worked at a place that the EPA got, for soil issues, they had to dig down till clean samples were recovered, pay to dispose of the toxic dirt, buy new dirt and fill the ground back in. It wasn't us that did it, that place has been used as a shop for 20+ years or so before that owner took over. The fire department also came in at some point and decided the brick building shop, needed a back door exit, to bring it up to code, which also cost a nice amount of money.
My worst nightmare. Thanks for the comment.
Super happy for you Eric!
Excellent advice about researching well before you buy. In south Florida where I live, you might get a great deal on a piece of land, only to find out 80% of it is wetlands and you can't build on that part of the land.
Same with the EPA issues, there are a bunch of superfund sites down here, mostly related to fertilizer production. But also near my house, maybe 15 or so miles away, there used to be an oil and battery recycling place. Got sold as commercial property only to find out that everything they could have done wrong, they did.
And that stuff isn't limited to the obvious things you'd think would create those issues. There was a large call center near me that had these massive turbine generators to maintain business operations. The tanks for the Jet-A were installed in 1975, around 2000 come to find out they'd been leaking for years, was a huge mess to clean up.
Funny side note on that, every time they fired those bad boys up they had to let the police dispatcher know in advance. Because it sounded like you were at an airport as they got started, and people would light up the switchboard to complain about it, my father always got a kick out of that.
Eric you are so spot on !! My buddy was in your same boat "new owner wants space" 14 years ago the house next door from his home burnt down that landlord decided to pocket the money and not rebuild my friend bought the land had soil testing done and wow $$$ huge costs in clean up that being said present asking to move his business he has decided to build a shop next-door to his home getting it zoned commercial was his biggest hurdle now covid supply issues shop is 70% complete hope is Jan 30th he explained how his rent vs mortgage is dubble but he choose a 15 year mortgage didn't want 25-30 year's he is very nervous because if he fails he has to live next door to his failure ....
Hi Eric we miss you. Hoping things are working out. One of the greatest car guys .🔧🛠⚒👍
Sounds like things are working out so far... awesome ... peace
Today really is my birthday, Eric. I give thanks for the digital confection which was gifted to me on the day of my birth. Many thanks, & Godspeed.
Happy Birthday!
Happy Birthday!
One thing to consider I am familiar with the area grew up all around there Warren County Clinton County and Adams and Brown county is also good possibilities some of those counties are not as strict on what you can and cannot do
I'm hoping to see all transpire well for you.
Great video Eric as always.As far as renting or owning i think it depends on the person.I have never owned a shop always have worked for shops and sometimes i would look at the owners face and say thank goodness i'm not in his shoes because of repairs or what ever else.Good luck Eric on what ever you decide can't wait to see the new shop.Have the rest of a great L.D. weekend everyone.
Eric: "Burning the candle at both ends would be a bit of an understatement"
Me: "More like lighting a fuse at both ends"
Me also: "why do I always feel hungry for sweets after these videos?"
I want dessert and to go to Kings Island, Maybe it's my ADD.
🤣
Dammit I love those birthday cakes with the little sprinkles in them. heheh
all I can say is GG for planning ahead. can't wait to see what is next.
Enough said I think you covered it all, commercial real estate can be tricky especially when you have property zoned for so many different purposes do dealing with collection of rent is a whole other issue... best of luck you were definitely prepared for this a few years ago. BEST of luck, look forward to new content.
I just love how you can OWN a property and still have to pay/ask for permits from the gov.
On the one hand, I agree...but only to a point. There are enough people out there that would do stupid s#!t that it probably makes some sense to have reasonable regulations. Otherwise you would have buildings collapse, gas explosions and electrical fires all over the place. We have enough that now even with regulation because of people cutting corners.
@@willb3018 and it would remove those people right? problem solved
@@mattlane2282 Ah yes, own a commercial building, rent it out to tenants, roof collapsed and not the oblivious bitchass owner is dead, but a couple of tenants. Great thinking! /s
Moved out at 18 and rented an apartment for year. Moved back home a couple of years and saved for as house. Been flipping real estate ever since. No rent for me. Equity is security; but for your situation there are tax advantages to renting along with the freedom.
I appreciate the pros and cons of both owning and renting. I can echo what you say in this video, do your research and find out what works best for your needs.
Great video! In the process of building my own shop on my land at the moment
Moved from my house in town and rented shop to a house on 9 acres in the country. Built a 3000 sqft shop that I love, plus a 1000 sqft garage,man cave hot rod shop on the house.and I also put the old shop rent money extra on my mortgage every month. 6.5 years later it's paid off as of last month. Pretty damn good feeling being 100% debt free!
My son was still in school but driving at that point so it didn't matter. Same school district. Also, your paying taxes if your renting in your rent.
I'd be lying if I said I wasn't jealous, lol. Congratulations
well stated! thanks Eric the car guy!!!
For long term, I would definitely look at buying a commerical property that you own. That way you won't have to worry about being forced move your business out again since the owner can do what ever they want with in a split second.
Did you miss the part in the video where I mentioned the EPA? They can shut you down in a heartbeat. If the town decides to rezone your property, you won't be able to do business there anymore. If you don't pay your taxes, they will also kick you out. Ownership is really just a myth we tell ourselves, you pay no matter what. At least with renting, you know how much you're paying and for how long. Thanks for the comment.
renting a shop has its downfalls if you have a crappy landlord.ive been renting my shop for 6 years and i know how to place buckets in the perfect places to catch the rain.my landlords idea of fixing the roof is to send his employees up on the roof with flex seal and some roofing sealer to fix it.i plan on leaving in the next 5 years anyway so the next tenant can worry about it.
If the asking price is within range of its historic value, you can get a good deal on a loan that can be paid in a reasonable amount of time, and it’s not economical to be beholden to lease contracts (ie. not many properties available with your needs), buy buy buy. _Always_ buy.
Not the right choice for every situation. My point is to do your research before committing. Thanks for the comment.
@@ETCG1 You are correct sir. To be honest, I was only halfway through your video and hadn’t factored environmental issues - which obviously anyone would be stupid to not research. I guess I’m mostly coming from a small town perspective, where I’d seen many many mechanics who owned their property, and you could tell how long they’d been in business for themselves at that location by how many beaters they had around the shop. None of those guys were/are moving anytime soon. 🙂
Definitely consider using a commercial real estate attorney.
Environmental issues are big now, and going to be more in the future.
Protect yourself.