While getting a haircut today I went to the usual place and usually when I go there I talk to the owners about how they are doing business wise as it is usually a very educational discussion I find. One topic that came up was how the business right next door had closed down recently after about 8 months of opening its doors. The business itself sold clothing items and wasn\u00e2\u20ac\u2122t exactly a brand named franchise to help draw in more customers.<\/p>\n
I immediately was just thinking how you must have to sell a lot of clothing items to break even as the rent itself for a downtown location with a windowed storefront setup must be in the high five figure range. However, he then smiled a bit and said \u00e2\u20ac\u0153More like $20,000 a month\u00e2\u20ac\u009d. That was indeed very surprising to me considering how small the space is too.<\/p>\n
That then brought up the topic about how much they actually paid for their own rent and it was almost the same at over $240,000\/year. Who would have thought that you had to pay so much for rent for something like cutting people\u00e2\u20ac\u2122s hair huh? At the same time, I was mentioning how I thought real estate prices are falling right now and he did mention that the building owner is looking to sell the building as a result for about $1.5 Million.<\/p>\n
Just looking at that figure, it almost makes more sense to try and find a way to purchase the building huh? He then brought up points though how it would be too tough as there are still more fees that would be associated in owning the property plus it would be a very hard lifestyle considering they have kids to take care of.<\/p>\n
What would you do in that situation? For me, I wouldn\u00e2\u20ac\u2122t definitely try to find a way to buy the property instead if the intent is to stay at that location for more than five years. Although, that is a good point about the sacrifices that are necessary if the amount you are bringing in is just enough to allow you to live a comfortable lifestyle as is. <\/p>\n
The only other strategy I would look into in this case is to possibly sub-lease a closed portion of the building to another person if my intent was to buy the place with money being an issue. That way, the main sacrifice comes in re-arrangements space wise as oppose to just lifestyle adjustments.<\/p>\n","protected":false},"excerpt":{"rendered":"
While getting a haircut today I went to the usual place and usually when I go there I talk to the owners about how they are doing business wise as it is usually a very educational discussion I find. One topic that came up was how the business right next door had closed down recently […]<\/p>\n","protected":false},"author":1,"featured_media":12165,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_newsletter_tier_id":0,"footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[4,5],"tags":[5953,118,1589,1590,1591,1588,1190,1587,1592],"class_list":["post-1085","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-financial-management","tag-business","tag-expenses","tag-high-volume","tag-leasing","tag-owning-property","tag-profitability","tag-rent","tag-risk","tag-sacrafices"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/www.al6400.com\/blog\/wp-content\/uploads\/2014\/02\/9.jpg","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p6VnHC-hv","_links":{"self":[{"href":"https:\/\/www.al6400.com\/blog\/wp-json\/wp\/v2\/posts\/1085","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.al6400.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.al6400.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.al6400.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.al6400.com\/blog\/wp-json\/wp\/v2\/comments?post=1085"}],"version-history":[{"count":1,"href":"https:\/\/www.al6400.com\/blog\/wp-json\/wp\/v2\/posts\/1085\/revisions"}],"predecessor-version":[{"id":1086,"href":"https:\/\/www.al6400.com\/blog\/wp-json\/wp\/v2\/posts\/1085\/revisions\/1086"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.al6400.com\/blog\/wp-json\/wp\/v2\/media\/12165"}],"wp:attachment":[{"href":"https:\/\/www.al6400.com\/blog\/wp-json\/wp\/v2\/media?parent=1085"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.al6400.com\/blog\/wp-json\/wp\/v2\/categories?post=1085"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.al6400.com\/blog\/wp-json\/wp\/v2\/tags?post=1085"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}