Dilemma ?

B

Brigade77

I've been approached by a local youth who wants to rent one of my small units.

He has an opportunity to purchase about 5x lorry loads of used motorbike parts from a bike shop that is giving up that part of their business. The stock is being advertised for sale at £6k & they're saying it's worth at least £20k+ when/if sold through eBay & facebook. Included is a fully computerised system of stock control, the eBay account, a certain amount of training & ongoing goodwill !

I've known this lad since he was about the age of 10, he's best described as a scallywag rather than a scrote, but he definately has the letter 'T' tattooed on his forehead, whether that stands for 'Trouble' or 'Turmoil' is down to how you interact with him, but I can say he's never caused me any grief . . . Thus far !

I'm stuck on this one, I've asked around & I'm getting 50/50 signals of yes/no. I've had words with an ex employer who says he's a waster & I've spoken to another who says he's just dry tinder looking for a spark.

I have no idea where he's getting the £6k from & he's already volunteered that he doesn't have any extra £money to put up as security.

I've not met anyone for a long time who is as enthusiastic to grasp an opportunity as this lad when he sat me down & told me his plans for this business.

I'm putting this out there 'cos none of you lot know him. Worst case scenario is I'm stuck with 30tons of scrap metal & the associated costs of clearing the unit, best case scenario is he makes a go of it & comes good?

What says the t'internettys ????
 
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Worst case, he fills the unit completely with hazardous waste that costs you a fortune to clear.
 
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To be honest and a it brutal if you need to ask then the answer is always no. However does the potential to help someone start out balance the risk of it not working is the real question. Do you know the cost if it goes wrong? Has he as part of his pitch to you acknowledged a plan if all the parts are left hand mirrors from Honda scooters? It may be worth £30K but what actually is the stock and its condition? More work need to get the balance right and measured against your appetite to risk and help.
 
If he’s never given you grief and you can afford to I would give him a chance, worse case scenario is you are left with the scrap and possibly some oiley bits that will need draining before scrapping.
 
Old Salt said:
worse case scenario is you are left with the scrap and possibly some oiley bits that will need draining before scrapping.
Click to expand...

I can think of several more worst case scenarios:
How about, they are stolen and you are implicated in receiving stolen goods?
He abandons half of them, but when you get fed up waiting and dispose of them the rightful owner turns up?
You try to dispose of them as scrap but are prosecuted for storing/selling/transporting contaminated waste without an appropriate waste licence?

Remind me - who has the T tattooed on his forehead?
 
Agree a rental where his stock is security - simples.

Of course a contract doesn't help you if he breaks in and robs the place.
 
I guess you have a lease / contract and a due diligence protocol you normally use as a landlord to protect yourself?

most commercial landlords I know insist on a guarantor for the whole lease - usually 3 or 5 years.

My guess is you are asking if you should allow this guy to swerve such a process - if so, I’d say find out the truth about these motorbike parts and whether this lad would have legal ownership of them.

my question is…..is it’s such a great deal, why has a scallywag got first refusal?
 
OK lets clear a few things up.

These parts are strictly legit, they are the used breaker stock of a highly respected motorcycle dealer whose winding down his business with one eye on retirement.

This lad is either a scallywag, a scrote or even a ****, depending on what's inside YOUR head. I'm quite sure he cares not one jot what us lot think he is . . . . !

I've owned these units for 20+yrs, I likes to think that I have been there & done that with every kind of tenant this world can throw at me. I don't do lease's at this level, the weekly rent is very competetive & while there is a written contract most deals are done with a shake of the hands. Likewise the evictions.

My No' 1 son, who now runs all my business, says "don't touch him with a bargepole". I think he's wrong. Something inside me says this could possibly be this young lads destiny.
 
So give him a go, sit him down and explain to him he has one chance to make a go of it. No ifs or buts, pay the rent on time, no excuses and tell No. 1 son this unit is being managed by you until he has the chance to say “I told you so”.
 
I don't understand the problem, you are only renting out part of a building and what he does with it isn't really your
concern is it? Assuming he's paying rent. That's the point of your business no?
 
If you have no other use/tenant for the building at the moment, then why not? Everyone needs a break. You don't need the money.

I don't think the maths works for this being a viable business when you consider rent, rates, seller fees, shipping, returns, unsellable items....but you being the shrewd business mogul you are would already know that.
 
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