Unique Situation....just inherited some family businesses....how to invest | TigerDroppings.com

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ThaBigFella
LSU Fan
baton rouge
Member since Apr 2006
2043 posts

Unique Situation....just inherited some family businesses....how to invest



Not a troll, but I've been seeing alot of these posts recently and I've been a board member for almost 6 years, just don't post too much on here and do more reading than posting. Anyways, like the topic says, I just inherited 4 convenience stores from a relative who had no children. I have never really had this type of money in my life. I used to make around $50K/year and I'm still living in a $800/month apt right now. I live in Dallas currently and the businesses are here and used to belong to an uncle of mine who passed away a few weeks ago. I don't plan on adjusting my lifestyle to anything too crazy but I imagine I will move out of here once my lease is up

For a guy with no kids, a girlfriend and pretty meh credit...620...what can I do now? I didn't inherit the cash he had, that went to my sister, and his home went to my brother. I guess I got the best of it with the 4 convenience stores and the land they're on as they're worth quite a bit. My question is considering I will be able to save quit a bit pretty quickly, what are some investments for someone like me in the next few months and I'm not looking at 1% savings accounts but rather long term and safe investments. I'd love to get into real estate but I'm a realist and I know 620 credit isn't too good.....but with 4 hard assets like this even though I have less than $20k in the bank are there investments out there for me? Im currently learning the ins and outs of the convenience store business from his 2 managers he had that I'm retaining but still I would like a long term plan and I've seen lots of posters on here who seem very educated on such a subject......I just had first meeting with a CPA, totally different from my jackson hewitt past haha...mind you I'm 27 in a few months and have no idea what is going on in this industry and its long term viability



This post was edited on 8/27 at 8:23 pm



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drexyl
LSU Fan
Mingovia
Member since Sep 2005
15281 posts

re: Unique Situation....just inherited some family businesses....how to invest


Coming here for advice is a terrible start.





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ehidal1
Michigan Fan
Chief Boot Knocka
Member since Dec 2007
18187 posts

re: Unique Situation....just inherited some family businesses....how to invest


money board I assume is what you meant





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ThaBigFella
LSU Fan
baton rouge
Member since Apr 2006
2043 posts

re: Unique Situation....just inherited some family businesses....how to invest


my bad....can someone move it there....sorry for that, I did it on my iphone, Im sitting at an NTB getting new tires for my car





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southernelite
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New Orleans
Member since Sep 2009
41341 posts
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re: Unique Situation....just inherited some family businesses....how to invest


bet on black. always on black.,





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Quidam65
Florida Atlantic Fan
Q Continuum
Member since Jun 2010
9082 posts

re: Unique Situation....just inherited some family businesses....how to invest


I sent a request to admin to move it for you.





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Notro
LSU Fan
Alison Brie's Boobs
Member since Sep 2011
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re: Unique Situation....just inherited some family businesses....how to invest


My only concern with the convenience store businesses going forward from now is big box competition. They will get it right and then look out for the c-store business. Whatever you do keep the land/dirt under the buildings and good luck!

quote:

When Wal-Mart launched its 12,000-sq.-ft. to 15,000-sq.-ft. Express format last year, the smaller stores were supposed to serve as Wal-Mart’s ticket into the urban markets the retailer found so difficult to crack in the past. Yet with the closing of the first Express location in Chicago this July, it has become clear the discounting giant still has a ways to go before becoming real competition to city-based convenience stores, dollar stores and drugstores.


LINK






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Cousin
LSU Fan
The Bayou
Member since Feb 2012
4655 posts

re: Unique Situation....just inherited some family businesses....how to invest


Sounds like you might want to just take some time right now and learn the business. Once you get settled and fully understand the operation, then you would be able to make some investment decisions.

I am a Realtor in DFW and I have a full time job. As far as investments, I have the company 401k and a Simple IRA. I am looking to opening a ROTH IRA soon to put extra money in it and let it grow over time. I am kind of new at the investing aspect but I understand the importance and everyday I learn something new. I recommend reading "I Can Teach You To Be Rich" by Ramit Sethi

Also, I know a company that's offering only 0.9% on all merchant processing transactions. Let me know if you are interested.






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Ric Flair
LSU Fan
Charlotte
Member since Oct 2005
7365 posts
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re: Unique Situation....just inherited some family businesses....how to invest


quote:

Im currently learning the ins and outs of the convenience store business from his 2 managers he had that I'm retaining but still I would like a long term plan and I've seen lots of posters on here who seem very educated on such a subject


Try to dig up the thread from a few years ago about convenience stores. I think Stout was the author, but there were some real pearls of wisdom from another poster as well. As far as the investing part, I'd build up some more cash reserves for the first few months, then revisit this part in a few months.






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monroe71201
Grambling Fan
Where you live
Member since Oct 2011
345 posts

re: Unique Situation....just inherited some family businesses....how to invest


Who owns the fuel? Was he a jobber or just a C-Store owner that bought his fuel from a jobber? Either way, I would just rent out the locations, pay a small commission to the tenants for gasoline, and collect my check each month. If you havent been in the business before no sense trying to learn it. Just make your money and eliminate your risk.
quote:

Not a troll, but I've been seeing alot of these posts recently and I've been a board member for almost 6 years, just don't post too much on here and do more reading than posting. Anyways, like the topic says, I just inherited 4 convenience stores from a relative who had no children. I have never really had this type of money in my life. I used to make around $50K/year and I'm still living in a $800/month apt right now. I live in Dallas currently and the businesses are here and used to belong to an uncle of mine who passed away a few weeks ago. I don't plan on adjusting my lifestyle to anything too crazy but I imagine I will move out of here once my lease is up For a guy with no kids, a girlfriend and pretty meh credit...620...what can I do now? I didn't inherit the cash he had, that went to my sister, and his home went to my brother. I guess I got the best of it with the 4 convenience stores and the land they're on as they're worth quite a bit. My question is considering I will be able to save quit a bit pretty quickly, what are some investments for someone like me in the next few months and I'm not looking at 1% savings accounts but rather long term and safe investments. I'd love to get into real estate but I'm a realist and I know 620 credit isn't too good.....but with 4 hard assets like this even though I have less than $20k in the bank are there investments out there for me? Im currently learning the ins and outs of the convenience store business from his 2 managers he had that I'm retaining but still I would like a long term plan and I've seen lots of posters on here who seem very educated on such a subject......I just had first meeting with a CPA, totally different from my jackson hewitt past haha...mind you I'm 27 in a few months and have no idea what is going on in this industry and its long term viability






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foshizzle
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Washington DC metro
Member since Mar 2008
30192 posts
 Online 

re: Unique Situation....just inherited some family businesses....how to invest


quote:

Sounds like you might want to just take some time right now and learn the business.


This is the correct answer. If you don't the businesses will quickly become money pits.

So I think the first decision is where do you want your career to lead you? This or something else? Because it is a total job change. It could be a very lucrative one if you do it right, or it could be the worst investment you ever make, or something in between.






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ThaBigFella
LSU Fan
baton rouge
Member since Apr 2006
2043 posts

re: Unique Situation....just inherited some family businesses....how to invest


He owned the stores....3 are big name stores and one independent, the jobber is texas transeastern.....one of the stores in a low income area that does alot of inside sales and check cashing. We're talking total net of over $50k/month, im not a jerk so Im splitting it with my brother and sister even though they weren't on the will. I have been learning alot about investing recently trying to look at strategies reading everything i can online......does anyone here follow a dividend growth approach with the dividend aristocrats?

I know it's not the sexiest, but from what I've been reading and playing with backtrack calculators online the prospects of investing and dollar cost averaging in just a few big ones like MCD,WMT,KO,XOM,PG, and JNJ for example......and adding to it monthly....would this be a good approach? I don't know much about investing but from what I've learned recently I don't feel I have the risk tolerance to invest in something without a dividend......but then I read articles that "buy and hold" is a dead strategy.....but I seem to like it for me....thoughts? I would be dollar cost averaging I suppose by adding monthly and not all at once

and I have quit my previous job, and Im focusing on this 100%, its very time consuming, I had no choice, but I will exceed my previous $47k salary so its not an issue



This post was edited on 8/28 at 1:58 pm


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VABuckeye
Ohio State Fan
Oak Hill, VA
Member since Dec 2007
11433 posts

re: Unique Situation....just inherited some family businesses....how to invest


You got the stores. Your sister got the cash and your brother got the house.

Why the hell are you going to pay them out of your inheritance? First you need to learn how to run a business and fast. If you want to pay them in the future when you have an idea of what you are doing that is one thing. Slow down because right now ir appears that you are way ahead of yourself. Get yourself financially stable and then start looking out for the rest of the family.






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C
LSU Fan
The Woodlands, TX
Member since Dec 2007
21862 posts
 Online 

re: Unique Situation....just inherited some family businesses....how to invest


The first thing you do when you get a lot of money is save it. Try not to get yourself in risky investments especially if own a business. Like others said, your first goal should be to learn the new business and try to excel a that or sell it and do what you already know.





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guttata
LSU Fan
prairieville
Member since Feb 2006
20151 posts
 Online 

re: Unique Situation....just inherited some family businesses....how to invest


Since you obviously don't know how to run a c-store, I would either pay someone, who knows what they are doing, to run the operation for you, or sell the businesses and put the money toward retirement. Buy something and build your credit score up.





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Trauma14
LSU Fan
Member since Aug 2010
3074 posts

re: Unique Situation....just inherited some family businesses....how to invest


quote:

Why the hell are you going to pay them out of your inheritance?


Because he still gets the property, which I'm sure is more than the house and cash value.






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taeemwar
BR
Member since Apr 2010
144 posts

re: Unique Situation....just inherited some family businesses....how to invest


Do any of the stores sell beer and wine?

The cash flow looks very healthy.



This post was edited on 8/31 at 7:37 am


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tigeryat
LSU Fan
God's Country
Member since Oct 2005
2556 posts

re: Unique Situation....just inherited some family businesses....how to invest


Cash rules for a small business owner. Running a business is expensive and some problems take lots of money to solve.

You will need a large amount of operating capital. Since I don't know anything about your business, I can't tell you how much, but I would think $100,000 to $200,000. This would give you a lot of cushion going forward for lean times and emergencies. Forget about the return on your cash. After you have your capital reserves, you can think about investing.







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VABuckeye
Ohio State Fan
Oak Hill, VA
Member since Dec 2007
11433 posts

re: Unique Situation....just inherited some family businesses....how to invest


quote:

Because he still gets the property, which I'm sure is more than the house and cash value.


The property just sits there and eats up income until it is sold.

As the previous poster mentioned he's probably going to need cash reserves and paying relatives to do nothing before you are making money is simply silly and bad business.

With a 620 credit score he may need cash as the terms his creditors had with his uncle may not be the same with a new unproven owner in place. IOW, his suppliers may change his accounts over to COD. A lot of times the business owners personal credit is tied directly to how the suppliers bill.

Additionally, with a 620 score he hasn't proven that he's the best guy out there at managing his money and credit.






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lsufan112001
Southeastern LA Fan
sportsmans paradise
Member since Oct 2006
5719 posts

re: Unique Situation....just inherited some family businesses....how to invest


Prenup for the girlfriend, wouldnt tell her how much u make either.
Employees steal a lot, as my friend found out. Id be a regular at all stores, and really paying attention/reviewing video tapes and receipts.






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