buying a boat storage business

[m_court15]

What do you all think about buying a boat storage business? especially in this economy? Every time I drive by it, it seems to have a bunch of boats in it. Also, it is located right across the street from a private all sports lake. It will get jet skis to 20' boats. Any advice from other storage owners? forgot to mention it is in south west Michigan.

 

[m_court15]

Re: buying a boat storage business

nothing?

 

[Bob_VT]

Re: buying a boat storage business

Initial investment + Taxes + Fencing + Office + Advertising +++++

I seriously imagine that you might end up with a fleet of worn out boats .... store them, forget them, abandon them...... then you place a lien on the boat and have acquired some junk.

Don't get me wrong but you really need to crunch numbers to see if it will work. Write a business plan and go for it. Many people here have started very good enterprises and are doing good.

Do not make it a primary source of income until it will support you after the first year or so.

 

[tashasdaddy]

Re: buying a boat storage business

what is your security going to be? just a fence, no good, cameras maybe, how are people going to access it. there are several places here that have used the same security code for 20 years, anyone who ever had it can get in.

 

[jonesg]

Re: buying a boat storage business

I'd want to see 3 yrs (most recent yrs) tax returns .
If the boat biz continues downwards what else does it have going for it?
I'd be looking to pay .50 on the dollar.
If its currently operating I'd want to hang around and talk to tenants.
run a credit check on the seller.
Whats the rent vs income ratio?
If the m/o rent is 10% of monthly gross income its making dough.
If the rent is over 30% of gross income its struggling.
How much are the recievables and how far behind is it with the payables?
Are there any fuel tanks in the ground that are out of date (kaching!$$$)

I would be more attracted by a rack type of place rather than a yard full of trailers.

 

[treedancer]

Re: buying a boat storage business

Insurance would be a biggie for me.

 

[PW2]

Re: buying a boat storage business

Yes, make sure you do some sort of environmental check to make sure there are no big surprises you find out after taking possession.

 

[FBPirate95]

Re: buying a boat storage business

Yes, make sure you do some sort of environmental check to make sure there are no big surprises you find out after taking possession.

Excellent recommendation.

 

[oops!]

Re: buying a boat storage business

we had a great storage one go down just last winter....great concept.....they would drop your boat off at the launch and pick it up after for a fee then store it.

however.......math is the key !

if the lot can hold 20 boats @ 50 bux a month....the max you can make is 1000 a month....if the rent on the lot is 1500 your going broke!.....

just do the math.....if you can bring the ratio in at 1/3 cost vs profit....it can be a viable business.

 

[wajajaja02]

Re: buying a boat storage business

Bought my cruiser as a foreclosure sale for storage fees from a facility ,maybe the one your buying last year. took him a year to get title a three year indoor tab for a 24ft boat and I paid only 2500 , he ate storage,dock and legals fees to recoup that. boat sells for about 8k

 

[kenmyfam]

Re: buying a boat storage business

You have to do the math and a business plan first.

 

[v1_0]

Re: buying a boat storage business

What do you all think about buying a boat storage business? especially in this economy? Every time I drive by it, it seems to have a bunch of boats in it. Also, it is located right across the street from a private all sports lake. It will get jet skis to 20' boats. Any advice from other storage owners? forgot to mention it is in south west Michigan.

As kennyfam stated: take a look at the books, see what they made (charged) and what thier costs were. There also maybe something they know about that you don't, such as rezoning coming along, etc.

A good question is always "why are they selling". You might ask them, but take it with a grain of salt: its a rare person that will tell you that what you are thinking about buying is a toxic landfill.

The next thing to think about is if there is a way to use that land to make more money, add on services, or allocating part of it for something else, etc.

For example, this might be a perfect place for a boat restoration/sales/inspection business. Maybe "custom boat stereo" installation. Or jetski cleaning. Winterizing. etc.

 

[m_court15]

Re: buying a boat storage business

As kennyfam stated: take a look at the books, see what they made (charged) and what thier costs were. There also maybe something they know about that you don't, such as rezoning coming along, etc.

A good question is always "why are they selling". You might ask them, but take it with a grain of salt: its a rare person that will tell you that what you are thinking about buying is a toxic landfill.

The next thing to think about is if there is a way to use that land to make more money, add on services, or allocating part of it for something else, etc.

For example, this might be a perfect place for a boat restoration/sales/inspection business. Maybe "custom boat stereo" installation. Or jetski cleaning. Winterizing. etc.

Thank you everyone for the advice. Right now I'm just in the gather information/ come up with questions stage.
There is definitely room to upgrade this place as far as extra features go. There is about 5 units that fit about 10 boats. There is also a huge workshop, and a small little office. it also has an extra acre or two. Currently there are no boat mechanics in that part of town. So that might be something to add.

 

[RotaryRacer]

Re: buying a boat storage business

What lake and town is this in?

I grew up on Gun Lake and live in Dorr currently. I'd be curious to know where this is.

 

[bucky7680]

Re: buying a boat storage business

MC I?ve owned a RV & Boat storage lot for the last 10 years. All I can say is that for me its EASY money. The hardest things I have to do are spray for weeds in the spring and make several trips a month to the bank. Their books will be worthless especially if it is a small operation.
Here are a few things to consider:
1) Zoning ? Does it have the proper zoning for that type of business?
2) Cost of insurance ? it takes a years worth of 1 space rent to pay mine.
3) Security ? is the lot secure to avoid not only theft but also vandalism?
4) Tenant Contracts ? Get a lawyer to draw some thing up to reduce your liability and allow you to legally perform lien sale for non payment
5) Pricing ? I make sure that I?m $5-10 a month less than surrounding yards. By pricing this way the only time I lose a tenant is because they move or sell their rig. I never put out the vacancy sign because I always have a waiting list. Do you charge by the foot or do like I do? I have only 2 size spots a small and a large if they put either a 16? boat or a 32? motor home in a large spot it?s the same price.
6) Access ? I only allow daylight access and have a changeable combination lock on the front gate. I only see tenants when I sign them up or I?m down at the yard puttering with my stuff.
7) Volume ? do you have enough room to have enough spots to make enough money to cover your costs and still have money to put in your pocket?


Waja, That guy didn't know what he was doing or the laws in your state are different. With the contract my tenants sign I can have a lien sale completed and title in my hands in less than 60 days.