Have any of you guys ever invested in a commercial building to service cars and big trucks? I have a friend that want us to invest around 250k. I trust him and think he can do as well as others but is there any money in it? We have all the administrative people he can use and it is not a lot of money. Anyway question is have any of you guys did anything like this or know of anyone and did they make any money?
Are you investing in the building or the business? I have a few clients who are in the business.
Traditionally, there is insufficient leverage in the maintenance/repair business to do anything other than allow a single owner comfortable living. To extract more, you need scale...jiffy lube, speedy oil changers, etc. A couple key problems with the industry: (1) It is very market dependent. People tend to do less maintenance when things go down, more when they are flush. (2) There is a small, but growing dent being made by electric vehicles. They don't need oil changes, etc like regular cars. The market downswing hurt the profitability of many of my clients and several have never recovered.
A8 Knowing what you do I wanted to ask about who most of your clients use for General Liability in this business when working on cars and trucks at the shop? It seems to be a nich market and maybe you could save us some time. If you do not want to say I would understand.