Investing, Rentals, Retail Space etc.

#52
#52
RavinDave said:
I like it. Currently planning two investments for my business as supplier/distributor of catalysts with a small warehouse where I do it all.

(1) An electric forklift so I don't have to breathe fumes & ventilate my main building (esp. in Houston summer) every time I run the propane unit in there. Looking at Toyota, Jungheinrich, and Crown. I had a Toyota demo for a couple days but it had a higher step and more narrow leg opening than my propane units (which are both Toyota), not easy getting on & off, do not want. Crown guy is coming tomorrow and their little 3-wheeler that handles up to 4000 lbs looks pretty sweet. Probably will rent one first before I buy. Investment is probably in the $30-40k range for a new one.

(2) A semi-automatic stretch-wrapping machine. Up to now we wrap our pallets the old-fashioned way. Just looking to make my work/life a little easier. There look to be a half-dozen potential makes in the $6 - 8k range that should do the job... but seems to be a potential pitfall with sensor optics detecting the top of the load if the goods are dark in color... and I commonly use black drums. Maybe a laser option?

Any comments/advice/experience welcome.
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So how do you decide to buy new on equipment or buy used? Or, do you ever consider things like forklifts and wrappers on the secondary market?
 
#53
#53
McDad said:
So how do you decide to buy new on equipment or buy used? Or, do you ever consider things like forklifts and wrappers on the secondary market?
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Good question. Availability or lack thereof in a good used unit is one of the main factors. My wife is the other main factor. She actually prefers I buy new. Both of my propane units I bought used, about 6 & 7 years ago, from the main Toyota dealer in town who does a good job refurbishing - all new hydraulic hoses, and new paint. But I don't see that many used electrics. On electrics if buying used you probably want to buy a new set of batteries anyhow, and that can run several thousand.
 
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#54
#54
RavinDave said:
Good question. Availability or lack thereof in a good used unit is one of the main factors. My wife is the other main factor. She actually prefers I buy new. Both of my propane units I bought used, about 6 & 7 years ago, from the main Toyota dealer in town who does a good job refurbishing - all new hydraulic hoses, and new paint. But I don't see that many used electrics. On electrics if buying used you probably want to buy a new set of batteries anyhow, and that can run several thousand.
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depreciation schedule 7 years on stuff like forklifts and wrappers?
 
#55
#55
McDad said:
depreciation schedule 7 years on stuff like forklifts and wrappers?
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Probably - but the Accounting area is my weakness. I am finally getting a CPA to start doing my taxes and providing financial acumen, as I've just been winging it with TurboTax and I hate doing it... Last week I had a sales guy from Jungheinrich call on me (they have a partnership with Caterpillar and Mitsubishi building forklifts etc. in Houston), and he was promoting the lease concept because the fees can all be expensed. I have not run the numbers on it to see how depreciation over 5 years or 7 years would compare tax-wise; probably want to talk to my CPA about that before I commit one way or the other.
 
#56
#56
RavinDave said:
Probably - but the Accounting area is my weakness. I am finally getting a CPA to start doing my taxes and providing financial acumen, as I've just been winging it with TurboTax and I hate doing it... Last week I had a sales guy from Jungheinrich call on me (they have a partnership with Caterpillar and Mitsubishi building forklifts etc. in Houston), and he was promoting the lease concept because the fees can all be expensed. I have not run the numbers on it to see how depreciation over 5 years or 7 years would compare tax-wise; probably want to talk to my CPA about that before I commit one way or the other.
Click to expand...

I thought that with equipment purchases, a big chunk of costs can be taken straight to the income statement. Aren't there tax credits also available? Yea, you need a tax professional. They can pay for themselves by making sure that every tax trick is taken advantage of.
 
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#57
#57
RavinDave said:
Probably - but the Accounting area is my weakness. I am finally getting a CPA to start doing my taxes and providing financial acumen, as I've just been winging it with TurboTax and I hate doing it... Last week I had a sales guy from Jungheinrich call on me (they have a partnership with Caterpillar and Mitsubishi building forklifts etc. in Houston), and he was promoting the lease concept because the fees can all be expensed. I have not run the numbers on it to see how depreciation over 5 years or 7 years would compare tax-wise; probably want to talk to my CPA about that before I commit one way or the other.
Click to expand...
Burger works in this area, i think.
@Burger
 
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#58
#58
Thunder Good-Oil said:
I thought that with equipment purchases, a big chunk of costs can be taken straight to the income statement. Aren't there tax credits also available? Yea, you need a tax professional. They can pay for themselves by making sure that every tax trick is taken advantage of.
Click to expand...
I believe there was a tax credit that just phased out at the end of July. I don't need to be in a rush on the forklift deal, but I do want to get something decided soon. I have been a fool to not have brought in a tax professional sooner, but better late than never.
 
#59
#59
McDad said:
Burger works in this area, i think.
@Burger
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I have been using a well-run, substantial financial advisory firm to take care of my 401k (having made a conscious decision not to be actively managing it myself it when I left my corporate job 10 years ago, so I can focus better on my business) and finally just turned to their Accounting Services group and am going to be using them.
 
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#60
#60
RavinDave said:
I have been using a well-run, substantial financial advisory firm to take care of my 401k (having made a conscious decision not to be actively managing it myself it when I left my corporate job 10 years ago, so I can focus better on my business) and finally just turned to their Accounting Services group and am going to be using them.
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What do you distribute?
 
#61
#61
Big Gucci Sosa said:
What do you distribute?
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Catalysts and adsorbents primarily. In the form of small beads, pellets, tablets with active metals mostly copper, for scavenging O2 from gases or organic liquids when in activated form; or precious metal (platinum or palladium) on alumina beads for removing O2, H2, CO and/or trace organics by catalytic oxidation; and I have powerful design tools (so-called "simulators") I created (in Excel with macros) for doing all types of reactor design for these various applications... also, molecular sieves and/or activated alumina for "desiccant dryers" or removal of other contaminants. That sort of thing. Our main sectors include industrial gases and "biogas" ("renewable methane" primarily from landfills and also from wastewater treatment plants). We also are a niche supplier of catalyst in small quantities to university labs and the like (have supplied more than 100 universities) for certain types of instruments/systems needing gas conditioning. As a secondary and very small sideline (which came through a personal connection going back to my college days) 5-6 years ago we started supplying art schools with a couple of "environmentally and user friendly" solvents that I import from Denmark in 55-gal drums and repackage into 1-gal cans... this "art solvents" business is not very significant for us but we did get 3 orders yesterday including a first order from Vanderbilt so it gives my wife something to do today (brought her 4 cans and 3 packing lists home from work yesterday).

Today I need to set up a shipment of 25 kg of a copper catalyst to India... our 2nd order from this relatively new customer.
 
#62
#62
RavinDave said:
Catalysts and adsorbents primarily. In the form of small beads, pellets, tablets with active metals mostly copper, for scavenging O2 from gases or organic liquids when in activated form; or precious metal (platinum or palladium) on alumina beads for removing O2, H2, CO and/or trace organics by catalytic oxidation; and I have powerful design tools (so-called "simulators") I created (in Excel with macros) for doing all types of reactor design for these various applications... also, molecular sieves and/or activated alumina for "desiccant dryers" or removal of other contaminants. That sort of thing. Our main sectors include industrial gases and "biogas" ("renewable methane" primarily from landfills and also from wastewater treatment plants). We also are a niche supplier of catalyst in small quantities to university labs and the like (have supplied more than 100 universities) for certain types of instruments/systems needing gas conditioning. As a secondary and very small sideline (which came through a personal connection going back to my college days) 5-6 years ago we started supplying art schools with a couple of "environmentally and user friendly" solvents that I import from Denmark in 55-gal drums and repackage into 1-gal cans... this "art solvents" business is not very significant for us but we did get 3 orders yesterday including a first order from Vanderbilt so it gives my wife something to do today (brought her 4 cans and 3 packing lists home from work yesterday).

Today I need to set up a shipment of 25 kg of a copper catalyst to India... our 2nd order from this relatively new customer.
Click to expand...

Should of went with cocaine.

https://www.reis.com/
 
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#63
#63
RavinDave said:
Catalysts and adsorbents primarily. In the form of small beads, pellets, tablets with active metals mostly copper, for scavenging O2 from gases or organic liquids when in activated form; or precious metal (platinum or palladium) on alumina beads for removing O2, H2, CO and/or trace organics by catalytic oxidation; and I have powerful design tools (so-called "simulators") I created (in Excel with macros) for doing all types of reactor design for these various applications... also, molecular sieves and/or activated alumina for "desiccant dryers" or removal of other contaminants. That sort of thing. Our main sectors include industrial gases and "biogas" ("renewable methane" primarily from landfills and also from wastewater treatment plants). We also are a niche supplier of catalyst in small quantities to university labs and the like (have supplied more than 100 universities) for certain types of instruments/systems needing gas conditioning. As a secondary and very small sideline (which came through a personal connection going back to my college days) 5-6 years ago we started supplying art schools with a couple of "environmentally and user friendly" solvents that I import from Denmark in 55-gal drums and repackage into 1-gal cans... this "art solvents" business is not very significant for us but we did get 3 orders yesterday including a first order from Vanderbilt so it gives my wife something to do today (brought her 4 cans and 3 packing lists home from work yesterday).

Today I need to set up a shipment of 25 kg of a copper catalyst to India... our 2nd order from this relatively new customer.
Click to expand...
I would like to order a gallon of methamphetamine for my....uh....congestion. *sniff*
 
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#65
#65
McDad said:
I would like to order a gallon of methamphetamine for my....uh....congestion. *sniff*
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Yeah, I forgot to mention the Lab that occupies one side of my main building...

Matter of fact, I just got through forklifting a new tankload of liquid N2 onto the scale in here... and ventilating the dang building again!
 
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#67
#67
85SugarVol said:
I’m in closing on my first rental property.

Paying cash... $37,500 for a Duplex that generates $850 per month in rental income.

Both sides are occupied with long term Tennants.

In an area of town that has been going through some gentrification.
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Wow. Those are some nice numbers. Are both sides under contract or month to month?
 
#68
#68
Thunder Good-Oil said:
Detroit. Michigan.
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It was crazy right after the crash in 2008, I was looking at real estate in Detroit and pricing was so low and it was such a slum at the time that you could buy a whole street of worn down houses for like $200K.
 
#71
#71
McDad said:
Wow. Those are some nice numbers. Are both sides under contract or month to month?
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They are on leases

Yea, I was pretty happy with the numbers. Been thinking about getting in the game for a few years. Figured now or never!

Had to just commit to taking the first step.

There are a lot of similar properties in town.
My short term goal is to keep paying cash for Duplex properties in the $35k-$40k range with rates of return around 22%-26%.

I’m planning on 5 properties (10 units). Then I’ll probably stop buying and start harvesting.
 
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#72
#72
85SugarVol said:
They are on leases

Yea, I was pretty happy with the numbers. Been thinking about getting in the game for a few years. Figured now or never!

Had to just commit to taking the first step.

There are a lot of similar properties in town.
My short term goal is to keep paying cash for Duplex properties in the $35k-$40k range with rates of return around 22%-26%.

I’m planning on 5 properties (10 units). Then I’ll probably stop buying and start harvesting.
Click to expand...
Where is your town?
 
#75
#75
85SugarVol said:
They are on leases

Yea, I was pretty happy with the numbers. Been thinking about getting in the game for a few years. Figured now or never!

Had to just commit to taking the first step.

There are a lot of similar properties in town.
My short term goal is to keep paying cash for Duplex properties in the $35k-$40k range with rates of return around 22%-26%.

I’m planning on 5 properties (10 units). Then I’ll probably stop buying and start harvesting.
Click to expand...
Ever had tenants before?
 
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