This is really tempting me, all aboard the bankruptcy boat?

[ruffgeezer]

This has been for sale for a few years now but just recently the price has dropped, the original owner died a few years back and his wife/partner (not sure which) has taken the reins whilst attempting to sell it, with the price drop I am seriously considering trying for a business loan.

 

Pics:

 

 

 

 

 

http://www.expertagent.co.uk/in4glestates/%7Bf3ce78ee-c35d-4a8c-aa72-0427194be02a%7D/%7B580af3b9-fdfa-46b5-88dd-7aad1f2ae9d6%7D/external.pdf

 

This is probably all pie in the sky as I haven't researched the business loan side of things, but it'd be interesting to look through the books...

[DSdriver]

It needs to be bought otherwise it will become a new housing estate. I hope you can sort it.

[uk_senator]

That is incredibly tempting, all the grot you could wedge in there... you`d be lucky to get a flat for that down here..

[worldofceri]

What's the worst that can happen?

[garethj]

As a business model I think the motor trade is on its knees, however as a big useable space it's brilliant. If it's been a petrol station there'll be huge fuel tanks underground nd getting them shifted is expensive for housing. Plus there's a chance the ground will be too contaminated for building new houses.

[Largactil]

I still occasionally awake in a cold sweat, having dreamt of the nightmare of a business I once had, 5 years back.

 

(High street / retail, as opposed to motor trade).

 

I'd be very wary in this current climate - The business I bought was a going concern with an established customer base, a G.P, of ~40%, and I still struggled like billy-o.

 

When I finally managed to dump it, I found that the meagre amount I got for it left such a shortfall in clearing the business loan, I've had to pay off the remainder from my other job's salary for the past 5 years, and it's a monthly figure akin to a mortgage payment...

 

Be very, very careful if you go down this route...

[Partridge]

I’d say go for it. But then again I would as it’s not my money.

 

As a business model I think the motor trade is on its knees, however as a big useable space it's brilliant. If it's been a petrol station there'll be huge fuel tanks underground nd getting them shifted is expensive for housing. Plus there's a chance the ground will be too contaminated for building new houses.

 

A similar thing is going on round the corner from me. Forman Homes bought a plot where there was a forecourt and a small block with inspection pits and a sales office. Recently the block which was built in the 60’s was knocked down, readying the site for development. But the ‘elf n safety wombles said no. There’s cars being sold on the forecourt again, with the salesman working from a porter cabin . I’m going to buy a leather jacket, a Capri, grow my hair long and change my name to Terry and see if he’s got any work going for me.

[Stixy]

It is tempting and Not far from me

 

but if those fuel tanks are empty there will be problems as they can "rise" and Lincolnshire's high water table wont help but this place is on a hill

 

Its cheap because of where it is and it will never be anything else as you would never get planning permision to build anything even permision for replacement buildings is unlikly

 

But still a good price but there must be a hidden nasty somwhere otherwise it would have allready sold

[ruffgeezer]

I think the attraction to this is that it has a house on site, now there are 2 schools of thought here, either renovate and live in the bungalow, or get planning permission on the site, level the bungalow and sell the plot on to offset the cost of the business.

 

The garage building does want a fair bit of tlc, but after 13 years in the motor trade, I do want something more than just working on cars, because in 30 years, I'll be doing exactly the same, there is no progression in my current job, it is as it is.

 

Stixy; I think greed has been the major factor, up until a month ago it was up for £325,000 and £350,000 last year, and they'd turned offers nearer the current asking down in the past. It does want renovation for both the house and the garage (window frames rotten etc)

 

The alternative is to get a unit on the local industrial estate, but starting from the ground means getting going from no trade whatsoever, which is a much bigger task I think.

[Luxobarges_Are_Us]

Big but not clever.

It's in the middle of nowhere- Liepedia says that the population of Hornchurch is a mere 6k, and Lincoln is about 15 miles away.

I can't see anyone rushing to build flats or big-box stores over there.

 

Edited to add: Of course, if the business already is profitable, then it can all make sense.

[Stixy]

Horncastle is a busy place and this Garage isnt far from the main tourist route to Skeggy it could do well but i think it would need to keep the petrol side of the bussiness as filling stations arnt that common around here

[Luxobarges_Are_Us]

I knew I'd made a mistake. Thankfully it was in writing the name here (HornCASTLE does indeed have a pop of 6090 according to Liepedia).

 

If it is on a tourist route, the petrol side can be a real moneyspinner. Somebody stops for £20 worth of diesel then proceeds to spend £15 on snacks and pop (80% profit) for children and the mother-in-law.

[ruffgeezer]

Well you've Horncastle, Spilsby and all the surrounding villages, the tyre prices there are a lot cheaper than anywhere else locally and a lot of the online retailers too, it just depends if the numbers add up.

[garethj]

I'm not sure if petrol retailing is a moneyspinner, as said it's much better to get people with the snacks too, but that makes stocks a bit of a headache.

 

I wonder where the money is in the motor trade nowadays, would you get some cash by renting out space for weirdos like Mr_Bo11ox?

 

Or provide inside space for these mobile workshops perhaps? I'm just thinking about stuff where you don't have any liability troubles to deal with, or any massive outgoings to get there

[Cavcraft]

Do it!

You'd put enough effort in to make a good crack at it (your investment says you would have to) and you have all that space to sell shit car etc.

[Albert Ross]

It is a current testing station according to the specs.. MOT, tyres and fuel are the three best ways to get people at your door. You may not have to fail EVERY car that comes through the door, but the knock on work is where the repeat business comes in. You could advise pads due in about three months.... They come back, you spot two tyres closish to the limit..... they get those done too. The wheels are already off, and a young laddo changes the tyres while they're off...... Profit. Keep it as a testing station, become the "Site Manager" and "Authorised Examiner" and although it costs money to set up, this already has current spec kit in it. Saving a bomb. Worth a thought as a business model.. help you to plan your meeting with the bank. Also, the redundant paint shop on site would be perfect to store your current crop of crap!

(Without it encroaching upon your paying work)

[Charlie Croker]

Go for GOLD!!!! It's the house that would make my mind up. I have the tennancy on a public house in Edinburgh now unlike a lot of pubs in England where i'm originaly from (Colne in Lancashire) it is a lock up which means there is no accomadation above it. Now it turns over pretty good money considering the currant climate and here at last is my point i can still struggle paying 2 loans I.E buissness/morgage. I worked out if the place had a flat above it even allowing for the increase in value of the building itself I would be 26% better off. I know i'm waffaling a bit but only having to pay one loan instead of 2 can make ANY buisness viable.

[Cavcraft]

Also what would the land be worth with planning permission for houses? It might even be worth looking into that as if (God forbid) it did go tits up you'd have that to fall back on.

Plus (more importantly) at least we'll have somewhere for the next Shitefest and you could fix our cars for jack all. Or something like that.

[Pillock]

You'd have the land to fall back on, however if there are petrol tanks underneath you might not get as much as virgin soil if you were to give it all up and bulldoze the lot. Not sure you can build houses on old petrol tanks.

 

An idea is to keep the petrol station going, and maybe develop it into a corner shop for the locals - depending on their current exposure to convenience stores. If there's a Tesco Express over the road, scrap that. Also get a recovery truck and make sure you're on the list to be used by the RAC or whoever - if you're on a busy holiday route then your entire summer takings could well be rescuing holidaymakers, towing them back and doing some simple repairs.

[Micrashed]

I think the attraction to this is that it has a house on site, now there are 2 schools of thought here, either renovate and live in the bungalow, or get planning permission on the site, level the bungalow and sell the plot on to offset the cost of the business.

 

Similar vein to my thoughts whilst looking over that.

I would be looking at trying to recoup as much of the outlay as possible to reduce the size of the loan/mortgage.

1) sell the bungalow ( issue being access ROW if it doesnt have its own or shares one with the garage, likewise easements if it shares a septic tank with the garage) - So whats a 3 bed bungalow with garden and parking go for down there? Over £100K? Thats a significant load off your purchase price.

 

2) Land to side, sell it without PP but with access ( you could depending on how much you sell it for add in an uplift clause to the title of sale) But looking at the size of plot there Im guessing £40k to £50K would be a good price, so thats the bungalow and the land gone leaving you with a garage and workshop for £100K

 

3) Rental of some of the sales / office space to a local who wants the space probably about £5 to 6K/ annum.

 

Now the hard work of making the business pay...

[barmatt]

It looks like a great site and as you say Mr Stixy filling stations aren't common round there. I know the area, my BIL has the garage in Martin just down the road and Skattrd (my bro) is local to there aswell (I reckon he could keep you in work with all the shite he buys ) but the motor trade is struggling like hell at the moment.

 

If there was planning to turn one of the buildings into a cafe it might be worth investigating as that can be a good money spinner if done right. You'd be inundated with shite fans drinking tea and talking about motors.

 

I do quite often wonder if a garage selling the sort of shite most of us are interested in would work? Reasonably cheap, slightly interesting motors............I'm not sure but I think it's worth investigating.

[Andrew353w]

My in-laws used to live in Horncastle & I have happy memories of the place! Although it's quite a small town because there's little else nearby Horncastle has more facilities than a town of comparable size would have in say, the south east. I well remember the drive from London; 121 miles, of which the last 30 or so were over the Lincolnshire fens... Habitation was thin, until you reached Horncastle!

 

I reckon that a decent garage could establish a good reputation, and this would spread amongst the locals, thus encouraging more business. Of course, that's easy for me to say, but then it's not my money! If you ARE going for it I sincerely wish you the very best of luck!

 

 

I actually think I've filled up there at some point!

[garethj]

I don't think you'd make much money selling shite, but could you rent it out for "fix it" days every so often? Like Area52 on RetroRides but for a bit of cash.

 

The cafe idea isn't bad, I wonder if you could restore the building to 1960s style and do events like the Ace cafe? The proportions of the building still look good so it might be set dressing to get it looking right

[Mash]

That does seem a very good price with the house thrown in. It must get a fair bit of fuel trade because (depending on when the photos were taken) the fuel prices aren't stupidly high for a country garage.

 

It does have a lot of potential with the workshop, showroom and so on. It's the sort of place I'd love to potter about in and the 60s/70s feel is great. Mind you, that's me looking through the rose tinted specs and not having to consider whether it's a viable business!

[holbeck]

I apologise if teaching granny to suck eggs....

 

First port of call, is to see the books. It's all very well seeing the last couple of years trading figures but, You have to be able to see the fixed costs. If you can see how much it costs to run, you can make a judgement as to whether you can turn over enough money to cover those costs, pay the bank and make a living yourself.

 

Best of luck.

[Albert Ross]

Septic tank, oil fired heating, all quarterly charges etc.... I note with amusement that it is on a really welll named lane. SLASH lane! It has all sorts of nooks and crannies for shite storage.. Even my Mrs is interested! If only I had the moolah, I would be all over this. Even if only for testing, fuel and tyres, then storing my own crap! A small field right next to it would be good for getting caravans on for storage.... I could see myself there.

[Luxobarges_Are_Us]

Bugger me! Just had a look at wrongmove, 3-bed detached bungalows in Horncastle seem to go for around TWO HUNDRED GRAND!

 

If that actually is a good indication of the local housing market (there aren't that many houses on sale, and it could be a few kite-flyers as opposed to people really interested in selling), that garage is an incredible deal.

[Justin Case]

NO, NO,NO!!!!

The price is ludicrously cheap by South Staffordshire standards, but if this is to be your first business venture then you are better off renting than buying, especially as it will be your home on the line as well. Renting is easy although possibly more expensive but if things take off then it is easy to move into bigger premises or ones more suitable for the way your business is developing, and if it all goes tits up then you just walk away. Buying is inflexible if you want to sell as the present occupants are finding it.

[worldofceri]

It looks to have a big retail area that would suit turning into a convenience store depending on what local and passing trade you might have. There must be some money in these... Tesco open another Express about every ninety seconds and Palmer & Harvey, the firm I work for, are apparently really pushing their Mace brand with independent retailers. I would imagine getting a franchise with them (or Spar or Nisa or Costcutter) would be a straightforward way of building up a business that isn't relying exclusively on the motor trade.

[Albert Ross]

True enough... bread, milk, taters (lol.. Lincolnshire...) papers stamps, porn mags etc. Weird fizzy pop, and video rental. Hirst would be right at home working the till, especially doing all the customer facing.