Need help with these two ventures

Discussion in 'Growing and Managing a Business' started by Lani, Jun 18, 2013.

  1. Lani

    Lani
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    Like most entrepreneurs I want to generate cash flow. My family is in the funeral industry. I was considering starting a removal service that caters to funeral professionals. It's basically a transport service for human remains Start up costs would be around 10k. There is really no cap on earnings. I could earn $100 a week for $800 a week depending on how aggressive I am. It's a relatively low start up cost compared to my other option.

    My neighbor is selling her property in my neighborhood. She owes money to the city into the water company in the amount of $25,000. She wants 10,000 for her house. Possibly 5 to 7k before I collect first rent check. I could rent the house for 800 a month. In theory this would cost me 40,000 before I earned any money on the property. But properties have sold for 60,000 recently. I could have the rental for life. And I would not have a mortgage.

    What would you do?
     
  2. Fergal

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    Hi Lani, are you asking for suggestions for each of those options, or are you looking for recommendations as to which option you should chose?
     
  3. Lani

    Lani
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    Actually just looking for which one to choose? Should I go for a rental property that will give me income for as long as I own the house as well as equity, considering it is a 40k out of pocket expense. Or should I try to build a business that has profit potential with a 10k start up costs but will need 24/7 commitment.
     
  4. ArcSine

    ArcSine
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    Is doing both off the table? A single rental property, once up and running, wouldn't consume all of your time. And it seems the transport service could be started on a limited basis and then scaled up after you got the rental deal past the time-consuming start-up phase.
     
  5. Rocky

    Rocky
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    I had the same question. You can consider doing both if you have the capital.\

    However, I had some confusion over the house deal. You said she wants 10000 for her house and there is some rent involved then how does it comet to 40k?
     
  6. Fergal

    Fergal
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    Lani, you should listen to your instincts and follow your own heart when making that decision. You shouldn't listen to my advice, but I will give it anyway.

    My opinion is, that if you can only make one of those investments, then you should invest in the house. My reason for saying that, is because the people I have known in the funeral business, were in it because it was their way of life, it was more than a business to them. If you don't have a deep attachment, commitment and involvement in the business, it will be difficult to be successful in it. On the other hand you could successfully manage an investment property without making a huge commitment of your time and effort.

    That's just my opinion, like I said, don't listen to my advice.
     
  7. Lani

    Lani
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    I mentioned 40k because there are liens on the property with the city. It a small row home. Maybe 900 square feet. People live in the house now. She owes 25k in judgements. She wants 10k for the house. And in thinking 5k in small cosmetic enhancements. To wrap my head around the big picture it's about 40k all together.

    However, of the 25k in liens, 17k is to the city and they will make an agreement with the payor which will allow the burden to be paid over time. I'm thinking the first year of rentals can pay that down??

    The funeral industry is a great industry. Our name is entreched and the reputation is known with other service providers. It would be easier for me to build removal contracts with funeral homes then an unemployed plumber with a van. I've talked with transport business out of state to bounce ideas off and they consertively bill 60k-90k a year in services rendered. Grant it they are full time devoted providers but I think the possibility of profit in a transport business is comparable to the increased equity of a rental property.
     
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  8. alicemenezes

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    Sounds good as you say it. But you must also look at the competition you may have
     
  9. Constantin

    Constantin
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    If I had to chose between a property that would bring me a relatively small but steady monthly income and a business that is quite risky, but can develop into something big... I'd definitely start the business.

    This is not an advice... It's just what I would do :).
     
  10. platnumcn

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    Funeral property would be my bet. The reason is simple as it demands less money and depending upon your nature, it would bring in better returns. Yes, the latter might not have steady income, but it will bring in more with time and that is for sure.
     
  11. AnushaJain

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    Hi Lani ,You should first go for the property.Then afterwards the returns which will come from the property should be used to start up the business.
     

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