Brent Nyitray
Fairlington Blade
Let the mutherfuker burn!
jnc4p
Kevin S. Willis
Michigoose
lmsinca
markinaustin
Arcanaut
novahockey
quarterback
ScottC
yellojktVital Statistics:
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Markets are higher this morning after a few economic numbers suggested strength in the economy. Bonds and MBS are down
Initial Jobless Claims came in at 336k, while the FHFA home price index rose .7% last month. A preliminary ISM number showed manufacturing gaining strength.
The minutes from the FOMC meeting didn’t give any new insights into the Fed’s thinking about tapering. Most of the research pieces seem to think that the Fed is going to start tapering at the September meeting. They are sticking to their story that the economy will start picking up steam in the second half.
As the refi boom ends, banks are cutting workers in the mortgage department. Wells just announced it is laying off 20% of its mortgage production staff, or about 2300 workers. Wells’ business was 70% refis in 1H and it has dropped to 50%.
The Ellie Mae Origination Report shows that purchases are now a bigger percentage of originations than refis. It also looks like credit is beginning to thaw, as the average FICO score for closed loan dropped from 742 to 737 in July. 75% of closed loans had average FICOs above 700 vs 83% a year ago.
MR will be taking a hiatus for the next week as I will be on vacation.
Filed under: Morning Report |
All Things in Moderation 
Brent (or anyone else), not sure if you’re around or would even have an opinion on this, but what do you think the odds would be of selling a home-based wholesale business? House is wired for two offices with phone system (also in warehouse), 2100 sq/ft warehouse, insulated and professionally wired for electric (some 220), high ceiling with roll up and two other doors plus sky lights on one side (all completely permitted/approved by city), large side gate for deliveries and pick-ups, $500K gross/per year sporting goods business, national customer base with some import/export business. Established name in sporting goods industry for over 30 years. House is probably valued around $500K.
Have you ever heard of a market for this kind of sale, house and business all in one?
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Lulu, properly permitted and zoned it is no different than selling any business that operates on its wholly owned real estate.
Obviously, if the Buyers want to run it as a mom-pop, they may be interested in the living quartres for themselves. Could your home be used as an office under current zoning? I am guessing “yes” from your permits. If so, a Buyer might want to convert the home into office space and fill your pool to make parking.
Your own CPA might suggest a valuation expert. You will need a transactional lawyer to advise you and draft documentation.
It is not unusual for the Buyers to want the Sellers to stick around for six months as trainers.
If the office is in the warehouse the Buyers might let you live in your house after the sale, for awhile.
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Selling businesses is a big market, with brokers and everything.
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Troll’s right. I have a contact who is now retired but used to be a consultant who assisted entrepreneurs with valuing and then selling their businesses. He’s out of the business now, but if you want I can inquire as to who he would contact now about this.
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That would be fantastic jnc. It’s just something we’re considering right now. If I can get health insurance through the exchange we wouldn’t have to keep the business any longer. We’d be able to retire.
Email me if you want, rather than leave a contact name here.
I know there are brokers for selling businesses but I’m wondering if there’s much of a market or network for our type of home-based business. Everyone who wanders over here thinks it’s a great set-up but I’m not sure about actually selling the idea.
plumgirls10@yahoo.com
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If there’s cash flow and a customer base, there’s a market for it.
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This should prove interesting
“Cyprus Bank’s Bailout Hands Ownership to Russian Plutocrats
By ANDREW HIGGINS
Published: August 21, 2013
LIMASSOL, Cyprus — When European leaders engineered a harsh bailout deal for this tiny Mediterranean nation in March, they cheered the end of an economic model fueled by a flood of cash from Russia. Wealthy Russians with money in Cyprus’s sickly banks lost billions.
But the Russians, though badly bruised, are now in a position to get something that has previously eluded even Moscow’s most audacious oligarchs: control of a so-called systemic financial institution in the European Union. ”
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This may further temper German enthusiasm for bail-outs.
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Mark, thanks for all the info. Our zoning is still residential, we just live in a city that encourages home-based businesses. There are a lot of restrictions though. Such as, no employees unless they live here, no retail traffic, noise and pollution control, no offices in out buildings…………..that sort of thing. When we built the warehouse and moved the business home in 2006 we thought we were nearing retirement and could sacrifice having employees because we planned on slowing down and downsizing anyway. It’s been more difficult than we imagined and with the recession we couldn’t downsize as much as we wanted.
Property values are coming back here, and so is business, so we’re in a position again to consider actually retiring. I’ve just been curious if our business is one that anyone else would be interested in because of the unique set up we have here.
Interesting also, since we had our warehouse built, the city has made quite a few changes to the requirements which makes it much more difficult to build the kind and size of building we have. I think that would be in our favor…………….as far as local warehouses go, it’s one of the best.
I’d like to contact someone but then hate being hounded into doing something we’re not quite sure we’re ready to do. Right now we’re in the “let’s talk about it phase” of planning.
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