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Discussion Starter #1
Rent or own?

If you own, What does your hindsight tell you?

How many years in did you buy your own building?
 

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Own, my business in my location, I had to. If I would have had rent I would have been looking for a job after the first year. Everyone that owned a business that gave me advice all said the same thing, you'll be married to the business, have enough to live on for a year or more, and it takes a couple of years for it to feel like your going to make it. All have been true.
 

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i rent a 3 car garage in the hood

the guy restoring my brother's W-31 rents his shop in the hood as well

he's been there for over 20 years

he's done a few 100 point Buick GS restos as well

you can't beat the cheap rent

let the landlord pay the taxes and maintenance/repair costs

that is out of pocket money you'll need
 

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Owning = equity. A more sell able business when the time comes. More security for the customers in theory, but always have the property in another business name. Your pension plan. Your option to make changes as you see fit. Something to have as collateral if you need a business loan to grow your business.

Renting = short term thinking IMO, and building someone else's wealth, but often necessary to get started.

I rented for 8 years before owning my property now for 14, mortgage is done in a few months! = no rent other then taxes.
 

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Rent..................................from my brother (uses the other half of the separated shop)!...
Yep, thinking short term?...............................be 18yrs. in March '15!... ;)
 

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Rent..................................from my brother (uses the other half of the separated shop)!...
Yep, thinking short term?...............................be 18yrs. in March '15!... ;)

Well at least you help build your brother's wealth. :)

And if you had to close tomorrow say from illness whatever, you would have what to contribute to your future income other then whatever equipment/product/insurance you presently have? Your brother would have property to lease out for a steady income stream.

Congrats on 18 years in!
 

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If you can afford it own. Build equity don't give it to someone else.


on a side note... some people still think Ray Kroc was in the hamburger business. :confused:
 

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Discussion Starter #10
For years in.... Growth every year and were facing the need for more room.
We have space available to rent but that is more "cost to do business".

Owning makes sense, But the the risk is intimidating .
 

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Well at least you help build your brother's wealth. :)

And if you had to close tomorrow say from illness whatever, you would have what to contribute to your future income other then whatever equipment/product/insurance you presently have? Your brother would have property to lease out for a steady income stream.

Congrats on 18 years in!
I don't have much to fall back on.................but I'm OK helping him build equity!... ;)

Thanks on the congrats!... :cool:
 

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On my second rented shop. We've grown so fast that I don't know the timeline when we might have to move again.
 

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Owning = equity. A more sell able business when the time comes. More security for the customers in theory, but always have the property in another business name. Your pension plan. Your option to make changes as you see fit. Something to have as collateral if you need a business loan to grow your business.

Renting = short term thinking IMO, and building someone else's wealth, but often necessary to get started.

I rented for 8 years before owning my property now for 14, mortgage is done in a few months! = no rent other then taxes.
I agree, I rented for two years. Then, bought and built out my new locations.
 

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Discussion Starter #15
Owning = equity. A more sell able business when the time comes. More security for the customers in theory, but always have the property in another business name. Your pension plan. Your option to make changes as you see fit. Something to have as collateral if you need a business loan to grow your business.

Renting = short term thinking IMO, and building someone else's wealth, but often necessary to get started.

I rented for 8 years before owning my property now for 14, mortgage is done in a few months! = no rent other then taxes.
Congrats.
Hopefully I can make the same claim someday.
 

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I think it depends on what the business model is. I work out of my shop on my own property. I wouldn't do it any other way. I've known too many that rent to get started. They start to do well and the landlord thinks they deserve part of the take and raise the rent every year leaving the business guy either constantly moving or never getting ahead. There is no rent control on commercial properties like there is when renting a home. They basically have you by the balls and very few will give a long term contract that will let you plan ahead.
 

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Rented building where existing lock shop was at for over 45 years. Landlord was retiring and wanted to sell. I bought 10 years ago. Still have a lot of equity in property and looking into refi and get some early retirement money out of it and reduce payment. Over the 10 year span with the bad times my property has gained around 80k.
 

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Rented for 4. Now have owned same building for 4. Mortgage was half the rent so it was a no brainer. Pay double mortgage payments so it will be done in 4 more years. You build equity. ..your property should increase in value over the time you own it and you can sell it to retire. The guy we rented from got in $ trouble and had to sell. It was shit or get off the pot so we went for it.
 

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When you rent , when your done you turn the key and walk away.. When you own you sell and have a nice retirement.. You business will be worth 5 times more with property. Plus you always have something to rent out when you want to get out.. If real estate takes a dive...
 

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I rented both the iron shops I had now I am retired.Some points to look at when you rent you are more flexible to move to a larger place when you grow or down downsize. But its better to own if you can so when you ready to sell you can either sell just the business and rent the shop and get monthly income with no work some to think about or sell it with the business.
 
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