Best Layed Plans-Advice and Opinions Wanted

V

vocatexas

H-M Supporter - Sustaining Member
H-M Platinum Supporter
Joined
May 8, 2017
Messages
615
I've been working for months trying to get my new shop finished. I would make a little progress, then something would happen to stall the work. I've got the walls up, just need a roof and electrical to make it functional, then build my bifold door. I've also been buying equipment as opportunities presented themselves. I've got a big Lodge and Shipley sitting on the slab triple-tarped and two twenty foot sea containers full of tools and equipment ready to move in. I also bought a 9x20 benchtop imported lathe at an auction last week.

Now for my conundrum: I was approached last week to sell my place. This process could take several months and in the mean time, I still have no shop. I could roof it and wire it for between two and three thousand where it would be useable, but I really hate to put the money into it for the short term. On the plus side, IF the sale goes through, I'll get to build a really nice shop on whatever land I purchase.

Also, since the shop isn't finished and the big L&S lathe is 3 phase, I can't use it right now. That's partly why I bought the little benchtop. I only paid $225 for it and I planned on using it to learn the basics until the shop was finished. I've got the 9x20 set up where it is accessable in one of the sea containers. I'm already making chips, but I could really use another chuck, a QCTP, and a few other pieces.

If you were in my shoes, would you go ahead and buy a bit of tooling for the small lathe, halt the construction of the shop and see if the place sells, or spend the money to finish the shop one way or the other? Most likely the new owner will never use the building whether I finish it or not, so it has no bearing on the sale.

Oh, the building is 30x34x16 feet.
 
Stop and discuss the sell.

If they want to buy as is for xx price fine.

If you invest more money to complete then what is new price?

Maybe they have different plans of no shop or different configuration so meet and discuss this with buyer as your plans could change and result in better net outcome.

Do buy tooling for "small" lathe as many production shops will have large and small as small work is better on small lathe usually.

We have a 16 in L&S that is a beast and a 14.5 SB with a 10 in Logan that currently cannot get to.

Each has preferred work so get the small one tooled up and enjoy it.

Sent from my SAMSUNG-SGH-I337Z using Tapatalk
 
The housing market in my area is definitely a sellers market. So be sure that you can get what you want to buy for the price you want to spend before letting go of what you have.
My son just bought a house that looked like $120,000 worth....cost him $240,000.
Another friend of mine sold his and had a hard time buying one he would see one he liked hit the market and would offer $15,000 over asking price and still not get it ...someone would offer more.
 
Well, can't really advise you about selling your place, but if you want the cash to build new, go for it. Sounds like you need, or at least could use, the QCTP and chuck on your small lathe, no matter where it is located. If it was me, I'd probably tool up the machine and use it. Move it to your new place, if you sell. You'll still use the lathe wherever you are.

Glenn
 
As far as I can see from what I have done a smaller lathe can often do some things that you cannot do the same on the larger ones. Small pieces are easier to setup on the small lathe, where you need the big one for big pieces. So no mater what you wind up doing with sales and purchase of land etc. I would keep both lathes and tool up the small one now so you can use it. Like right now, I have 2 different 10X24s, one needs some more work done on it and aligned, then I have 2 Sherlines, One used for small threading, and one for doing small lathe work. You need tools for both, and some tools you can make work with both. I.e. I can take some of the small lathe bits and make holders so I can use them on the larger lathe etc.

Unless you can get the buyer to increase the amount he will purchase for, I would not put anything else into the place, But that is just me. I look at it as to what is the return on the money I am going to spend on the property. If I spend 3K, more and get over 3K more in price, yes, 3K and no recovery or not going to make that up in some other way, (like doing a big job etc) then I would not likely do it, since I have something else to play with. I know long winded But hope it works out for you.
 
In the business world, raw materials and finished goods are considered assets. Works in progress are not.

If you have a serious buyer and the offer is right and you're ready to sell and the buyer has absolutely no interest in your unfinished shop, you won't gain anything by finishing the shop. However, if you plan on soliciting other offers, a finished shop would increase the value of your offering. And if you decide to stay where you are, you will want that finished shop.

Basically, you need to have an ironclad offer that you can't refuse. By ironclad, I mean no or few contingencies, a qualified buyer and a signed offer to buy. Sometimes buyers will use the excuse that they were unable to obtain suitable financing as an out to an offer. I would advise getting a sizable sum of earnest money as well to cover your losses should the deal fall through. If the offer doesn't meet your requirements, make a counter offer.

Anything else is wishful thinking.

As to the lathe tooling, I would go ahead with it, assuming you plan to keep the lathe. It will be useful in any event.
 
Thanks, guys. I pretty had my mind pretty much made up but wanted a disinterested opinion on what I was thinking. I'll just go ahead and buy a bit of tooling for the 9x20 and wait to see what happens on the sale. Even if I finish the building it will never be used by the potential buyer and would add no value to the sale. As a matter of fact, all existing structures will be demolished. As bad as I would like to have an actual shop to work in, even a couple of grand would just be wasted finishing the shop. I'd rather have that to spend on more shop goodies down the road. ;) The potential buyer seems very serious. I just hope I don't blow 3-6 months and then end up staying. Just a risk I have to take, I guess.
 
Buy a little portable building and take it with you after the sale...
 
As been already said, a sizable amount of earnest money put on the table means serious buyer. I wouldn't get excited about any potential buyer until they do so.
 
I'd make sure you can buy what you want before you decide to sell. I've been in the same conundrum for a while. Yeah, my house is worth so much more than what I paid and I could walk away with a good bit of cash. But what will I be able to buy with the cash. I'm not sure I would be any better off.
 
You must log in or register to reply here.
Back
Top