Should I Buy the Building?
Jake owns a successful barber shop. There's a building he'd like to buy with its own parking, and the price on the building keeps going down. Should he prepare to buy this building?
QUESTION: Jake in Boston owns a successful barber shop. He’s running out of room. There’s a building he’d like to buy with its own parking, and the price on the building keeps going down. Should he prepare to buy this building? Dave has some questions about his success before giving an answer.
ANSWER: I don’t want you to be down to no money doing this, and there’s nothing pushing you out the door today except the fear of what’s going to happen and the ability to grow. If you waited six months, it’s not going to be the end of the world unless you missed one of these deals that you wanted.
I’m doing it if I’m you. That leaves you $20,000. You’re doing great. You’re going to have $20,000 in the bank and a baby on the way. You can build that other $10,000 back up pretty quickly because you’re making money like you’ve never made.
We pay cash or we don’t do it. And I wouldn’t go over $10,000. If you’ve got to do some of your construction of your stations in two phases and you save up the money for the second phase, that’s fine. But don’t spend over $10,000. I don’t want you below $20,000. That’s what I’d do if I were in your shoes. You’ve done a great job. You’re sitting there completely debt-free, money in the bank, ready to do it.