Trying to retire, but can’t.

[Monterey298sc]

Self employed with 2 commercial office buildings . Been for sale for 1 year with many showings but no offers as of yet. Still operating the business because afraid to close business due to fixed costs to maintain both properties. We have about 200,000 in cash in the business now. That could go to cost to maintain if we close

We estimate about 70,000 a year in costs if we close . That has to come out of my retirement until sold. Buildings appraisal is 1.4 M for both. We just dropped price by 50,000 on each property. We have 3 M in liquid cash and about 700,000 in paid off personal property. We have No debt . Our own cost to live is about 100,000 per year. We are 62 and DW is 60. Still receiving income of 120,000 per year from our business. We are totally burned out. What to do? Huge dilemma . Big gamble to close.

Also No we can’t sell business, no market . We have tried for last 5 years. So we know we only have 1 path to liquidate.

 

[HarryHawk]

If you wanted to retire, I don't see why you couldn't do so today. Not saying it's a smart thing to do, but worst-case scenario, you close the business and donate your commercial buildings to a charity. You are sitting on $4M in assets.

At some point can you draw Social Security? Do you really need to spend $100K a year?

If you are really unhappy with the way things are, you certainly have options of getting out of your current situation.

 

[disneysteve]

Being for sale for a year suggests the price is too high. Slash the price.

 

[disneysteve]

Have you gotten any feedback from the showings? What has turned off interested parties?

 

[Sojourner]

We have about 200,000 in cash in the business now. That could go to cost to maintain if we close

We estimate about 70,000 a year in costs if we close . That has to come out of my retirement until sold.

If you have 200k in the business to cover costs, why would you need to pull 70k per year from your retirement to cover costs? Sorry if that's a dumb question... just trying to understand.

Buildings appraisal is 1.4 M for both. We just dropped price by 50,000 on each property. We have 3 M in liquid cash and about 700,000 in paid off personal property. We have No debt . Our own cost to live is about 100,000 per year. We are 62 and DW is 60. Still receiving income of 120,000 per year from our business. We are totally burned out. What to do? Huge dilemma . Big gamble to close.

You can retire right now on your $3M in liquid cash, especially if you "fire sale" those buildings for, say, $1M. You say you are totally burned out. Price those buildings so they will sell quickly! No need to squeeze every little bit of value out of them at this point. Even if you only get $1M for them, you'll still have a retirement nest egg of $4M. That should be plenty to support a very comfortable retirement.

 

[calmloki]

We are 72 now - and back when we were almost 60 we wanted to sell our residential rentals. Just in the beginning of the property crash. Still have about a third of them and they generate more than we need to live on. Our estate has grown a bunch in the last twelve years, which will benefit someone, but we've no kids. You are trapped!

We bought a place in the sun and go there six months out of the year, leaving a manager in place. Still have some of the same ownership issues, but try and convince myself that the world will keep spinning even if I don't devote my constant attention and care to the tenants. It has. One more year?

 

[pacergal]

Feedback from the viewers of the buildings is essential. What are they saying? Price too high, location bad, needs repair ?
You say you are burned out, if its price that is holding the sell back, then cut it low enough to sell and get out. If you don't want to sell at that low price, can you rent the buildings out to other business types besides yours for awhile?
If you already have $3 million for retirement, you can live a nice life with that, as long as your budget matches.

 

[Monterey298sc]

Update , feedback is the prices on property’s are under the sq foot of most comparable property’s . Problem is the Covid uncertainty for business start ups . What we are being told. People are waiting until news is better.

 

[disneysteve]

Update , feedback is the prices on property’s are under the sq foot of most comparable property’s .

So other properties selling for a similar price are bigger? If so, then lower your price.

The COVID piece is irrelevant. People who came to see it were looking to buy. Had the price been right, one of them likely would have.

Let go of what you think they’re worth. They are actually worth what a buyer is willing to pay.

 

[Aerides]

Close the business, drop the price to 900k, get a new agent to sell it. Not everyone is waiting, some things are selling - be the best deal on the market.

 

[Monterey298sc]

So other properties selling for a similar price are bigger? If so, then lower your price.

The COVID piece is irrelevant. People who came to see it were looking to buy. Had the price been right, one of them likely would have.

Let go of what you think they’re worth. They are actually worth what a buyer is willing to pay.

Correct, however each showing the property did not fit there needs, price was not the issue. Just have not yet found a good fit . Each showing the potential buys said to our realtor price is fair .

 

[tulak]

Agree with others, everything sells at the right price. If you’re burned out, discount the property and get them sold. You’ll still have plenty for a comfortable retirement.

 

[ExFlyBoy5]

As others have mentioned, it's priced too high. If I recall, this is a funeral home...correct? Have you thought about posting it for sale in trade magazines or forum(s) (even Reddit) that cater to the death industry? You have seen from the front lines that life can be way, WAY too short. It seems as though you have sufficient assets to have a nice retirement, so put that property up for sale AT A DEEP DISCOUNT and get on to enjoying your life.

Edit: I see from your post history that you have been trying to get out of this business for a while. You also mentioned that you have tried "everything" to sell the business within the industry. However, a quick search of Loopnet (probably the LARGEST commercial listing service in the country) for "funeral home" doesn't show a single listing in Ohio. That tells me that you are not marketing the business to sell. If you are reasonable in what you are looking for, you could have that business sold pretty quick. I would also mention that you worry about your 100+ year family name being sullied, but you could make sure that the name of the business change and that your name is never used in marketing. This is just my .02 worth.

Oh, and it's not listed on http://www.nomispublications.com/ either which I think would be the first place I advertise.

Edit 2: Here is a business broker that specializes in death care businesses. They do business in OH. Perhaps give them a call since your current broker isn't getting it sold. https://www.decainbb.com/

 

[Sojourner]

Problem is the Covid uncertainty for business start ups.

As others have mentioned, it's priced too high. If I recall, this is a funeral home...correct?

If EFB5 is right, and these are funeral home buildings, then I don't see how it's possible for potential buyers to be wary due to "COVID uncertainty". Nothing about that makes sense to me. The mortuary/funeral services industry is, from everything I've ever heard, recession-proof and pandemic-proof. Seems to me that it would be a great time to get into this line of business. Something doesn't add up here.

 

[Dtail]

If you wanted to retire, I don't see why you couldn't do so today. Not saying it's a smart thing to do, but worst-case scenario, you close the business and donate your commercial buildings to a charity. You are sitting on $4M in assets.

At some point can you draw Social Security? Do you really need to spend $100K a year?

If you are really unhappy with the way things are, you certainly have options of getting out of your current situation.

As an aside, there are many folks on this site who spend more than 100k. Just see less posts announcing as such.

 

[38Chevy454]

I have to agree, if you want the bldgs sold, the old saying "price sells" applies. Lower the price on the bldgs, and retire by closing out the business since you don't have anyone wanting to take over. There is a price where the bldgs will sell in reasonable short time. Real estate market will have buyers if they sense a good deal vs the prior fair deal.

Yes it might feel bad lowering the price. Given your statement that you and DW are burnt out on working, I think the relatively small (approx 10% if you sell at $1M) amount of your total savings is something to consider. Overall that 10% is easier to take vs the approx 30% drop in sales price of $1.4M > $1M.

 

[Monterey298sc]

If EFB5 is right, and these are funeral home buildings, then I don't see how it's possible for potential buyers to be wary due to "COVID uncertainty". Nothing about that makes sense to me. The mortuary/funeral services industry is, from everything I've ever heard, recession-proof and pandemic-proof. Seems to me that it would be a great time to get into this line of business. Something doesn't add up here.

Cremation rate. People don’t want to use the buildings for services anymore. Sure we all die, but most do not want a service anymore. Covid has nothing to do with death rate. The media would like you to believe that. Not true.

 

[Sojourner]

Cremation rate. People don’t want to use the buildings for services anymore. Sure we all die, but most do not want a service anymore.

OK, so you're saying that more and more people are opting for cremation nowadays, which means that funeral homes are not as in demand? What about visitation services, where their loved ones can gather to pay their respects to the deceased?

Covid has nothing to do with death rate. The media would like you to believe that. Not true.

Not sure what you mean. COVID has been the third leading cause of death in the US since early/mid 2020, behind heart disease and cancer. This is directly from the CDC website. https://www.cdc.gov/nchs/fastats/leading-causes-of-death.htm

 

[MichaelB]

Let’s please make an effort to ensure this thread doesn’t get infected with Covid

 

[Music Lover]

Cremation rate. People don’t want to use the buildings for services anymore. Sure we all die, but most do not want a service anymore. Covid has nothing to do with death rate. The media would like you to believe that. Not true.

If that's the case then it's only going to get worse as the demographic that still prefers funerals continues to die off. Drop the price and get rid of it.

4% of $3 million is $120k a year. You said you live on $100k. Plus you'll have the proceeds of the sale from the building (up to $1 million). That's another $40k a year. And SS will add even more.

 

[HarryHawk]

As an aside, there are many folks on this site who spend more than 100k. Just see less posts announcing as such.

People should spend as much as they feel comfortable spending. The point is, when someone says I hate my life but am afraid to do something about it because I want to spend $100K a year, there are options. Alot of people do spend over $100K a year, alot of people don't.

What is MOST important to you in order to enjoy the rest of your life?

 

[Monterey298sc]

OK, so you're saying that more and more people are opting for cremation nowadays, which means that funeral homes are not as in demand? What about visitation services, where their loved ones can gather to pay their respects to the deceased?



Not sure what you mean. COVID has been the third leading cause of death in the US since early/mid 2020, behind heart disease and cancer. This is directly from the CDC website. https://www.cdc.gov/nchs/fastats/leading-causes-of-death.htm

The point is 80% don’t want any viewings or service. Direct cremation . I don’t care anymore, at the end of my career.

 

[daylatedollarshort]

So if you dropped the price to $1, you don't think you would have any takers? If that is true can you demolish the buildings and sell the land?

 

[ExFlyBoy5]

. I don’t care anymore, at the end of my career.

You say this, but you posting history says otherwise. The market has been LOUD AND CLEAR yet you don't listen. *IF* you want out, then get out. Sell the buildings/land at fire sale prices. Did you read my post about the professional organizations and business brokers that specialize in your line of w*rk?

You have mentioned (in this thread and others) that you have liquid of nearly $3M. That gets you $105K a year @ 3.5% SWR. The buildings could BURN TO THE GROUND and you would be OK.

I am not trying to come off as an ass, but it just seems like you don't want to truly get out of this "misery."

 

[marko]

This is simple. Find a new broker. You need a new broker.