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September 15, 2007, 06:52 PM

Thanks for mentioning factories.

Killarney, this is for you too.

True Story: Guy owns a Huge Shed - of course, that it is on land in an industrial estate makes it a Warehouse or Factory, right. He's raking in money from his Successful Tenant. Life is good.

One day, the tenant decides that paying out all this money is Wasteful and so buys some Industrial Land just up the road and commissions its own Shed to be built. Construction is going ahead nicely and the tenant is set to Move Out in one month.

Suddenly, during the weekend, the new un-tenanted building catches fire and burns down to the ground. So the tenant has to stay put for at least another 12 months while the building is rebuilt.

Did the landlord do it, to prevent the tenant from moving and thus him losing his golden goose? Well, that's what everyone thinks - the tenant, the police, those in the industry who know of it - but without Hard Proof it was the landlord...

Some of the commercial properties can be cash cows. Specially those leased by the Govt for 20 years. But then what? Govt departments Do Move - I've been involved in the demolition of two things the Govt was involved in. One, they were moving Out and the other they were moving In and the old internal stuff needed to be demolished. But what if the Govt dept isn't moving in?

It's often standard practice to Provide "Free Fitout" to encourage commercial clients to lease your floor space. Better hope they stay in business long enough for you to recoup your fitout costs.

Residential RE, on the other hand, I feel is more stable and can be a good thing - if done right. I have a Hotsheet about it available at http://www.hotsheetcity.com and posted my Selection Guidelines in a post here http://www.sowpub.com/forum/showthread.php?p=16133&highlight=real+estate#post16133 and here http://www.sowpub.com/forum/showthread.php?p=16184&highlight=real+estate#post16184

Toll Position Story: Guy is visiting Germany or Austria. Notices a certain Fuel Additive Product is selling well. Asks them about sales to Other Countries and they aren't interested in doing it themselves. Asks them if he can buy the World Rights - outside of the country - for $100,000. They say yes and the deal is... $1,000 down and 6 months to pay the remaining $99,000.

Guy travels back home and has a Lawyer create Contracts for Individual Country Rights. Guy then sells 80 such rights for $25,000 each PLUS 5 cents per unit of Additive Sold. Bringing in a cool two million smackeroos up front and then 5 cents per unit residual money thereafter. The POWER of a Toll Position outside of RE.

Michael Ross

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