Thinking About Downsizing?
3 QUESTIONS TO CONSIDER
Whether you’ve become an empty nester or are about to retire, you may decide to downsize your home. But before doing this, there are many factors you must consider. Here are three questions you should ask yourself before downsizing. 1. HOW DO YOU WANT TO LIVE? To find out where you want to live, you must first ask yourself what you want to do. A great place to start is by determining what you want to do with your free time. Do you want to spend time in nature, go on frequent getaways, or be involved in your community? Once you know how you want to spend your time, you can begin looking for places that best suit your needs. 2. WHAT WILL BE THE FINANCIAL BENEFITS OF DOWNSIZING? Before purchasing a new home, you want to see if there are benefits to moving and downsizing. Depending on what the market looks like, the worth of your home and land, and where you choose to move next, you can take the money you earn from your current home and use it for something else. For example, it can be used as a down payment for your new home, get stashed in a savings or retirement account, or go toward your dream vacation. 3. WHAT WILL YOU DO WITH ALL OF YOUR STUFF? Depending on where you decide to move — a condo, apartment, or a smaller house — you will likely need to part ways with some things. You want to consider how much space you’ll have in your new home
and what items will follow you on your next journey. Getting rid of some of your belongings can be difficult, so ensure that you’re prepared to leave some things behind. Consider donating some of your items to shelters and centers. Although your items may not be used by you, they can go to someone in need. The most important question you can ask yourself is if you’re truly ready to downsize. The questions here will help you determine if downsizing is the right choice for you during this time. But don’t feel rushed to decide if you need to make life changes now. Take your time with this decision — you have more free time now than ever.
WHICH PURCHASE OFFERS THE BIGGEST UPSIDE? BAD STORES VS. GOOD STORES
Picture this. I have 12 run-down, non-EMV compliant stores, old MPDs, and lots of deferred maintenance (I am talking about roofs with leaks, cabinets that are broken and chipped, cooler doors that don’t shut properly, doors that are boarded up and of course dirty), and half of the stores are not profitable. Then I have six stores that are in great shape. Parking lots are well maintained, nothing needs to be replaced or fixed inside the stores, all EMV-compliant with up-to-date MPDs, and each one of the stores is very profitable.
The six stores have been money makers for years and will continue to make money for years as long as the new owner can maintain the quality and is not impacted by new competition. Their vision is to continue to operate the stores as they are and increase sales and profitability with the addition of new products and an increase in margins. The 12 run-down stores will need several million dollars spent on them to get them to a point where they are competitive in the marketplace. The buyer of the 12 stores
already factored in the additional investment of several million dollars, and this amount was deducted from the purchase price. The new owner’s vision for increasing the profitability of the stores is to give them facelifts, new MPDs, a rebrand, increased inventory, and clean up, then add and retrain employees, thereby creating a new image.
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