buying a junkyard

[joehalford01]

Hey guys,

I have been super busy lately but i thought i should jump in here and ask for some opinions. I might have the opportunity to purchase a junkyard if i play my cards right. (don't worry zordan, it's not that one u told me about )
It belongs to the husband of my wifes stepdads stepmom (thats an earful). Anyways, the guy is a total drunk, it's still in his dads name but his dad is too sick to run it. The son (drunk guy-hes nice when he's sober) usually just goes out there when he feels like it and opens up, gets drunk, and passes out. My wifes step dad has been semi running it for the last couple months and has been given me the low down. I went out there with him to check it out, basically, it's about three acres, i'd say 200-300 cars and half should be crushed. The shop is good sized and in good condition but there is a house right behind that should be torn down. Also, it is completly unorganized, the fence needs to be replaced all the way around as it is falling over and the only working forklift they have has no brakes or power steering. The upside is that it is the only junkyard in the area and despite everything that is wrong they still get a ton of business. My father in law is going to start prodding around to see what they may be thinking as far as selling and we'll go from there. I'm thinking it would be a ton of work to get set-up right and i'd be looking at least a $15,000 investment right off the bat but i think there is plenty of opportunity there also. What do you guys think?

 

[Gastrick]

I'll have to get back to ya on this one Joe. I'm still trying to figure out the relationship of the parties involved.

 

[maddog]

It sounds exciting. Can you make it make money? It sure would be fun to own a junkyard.

I would have a hard time looking at it objectivly. Sounds like heaven.

 

[Flipper_1938]

Research all of the EPA regulations/responsibilities/liabilities before you sign up for anything.

Cleaning up the soil in an old junkyard could get $$$$$$$$

 

[joehalford01]

the whole pollution thing is a big concern for me, i'm guessing they are probably grandfathered in one way or another. as soon as it changes hands though who knows. despite all that the county gov might very well be interested in some new ownership as it's pretty down trodden right now. as far as making money, heck yeah. there is so much money to be made it hurts. i would just have to be very detailed at first and keep track of every penney until i get it all under control.

 

[eyesore]

Mr Volvo,
Is it a Volvo junkyard? I think there are several people on this board that own yards. I'm sure they'll be able to help!

Isore

 

[donsrods]

Yep, you will want to make sure the environmental issues are taken care of before you sign on the dotted line, you could be on the hook otherwise. A good Attorney (is that an oxymoron? ) will be worth the money in this case , to protect you and your assets. Some communities are also making it hard for junkyards to exist, as they are on this "beautify America" kick.

With all that being said, you can make a fortune if you do it right. I have friends who were or are in the business, and they always carry a wad of money that could choke a horse. All cash business, and I imagine they claim every penny for taxes. One friend went to dinner with me one night and told me he made $ 4500 that day. He has a wrecker, and is an old horse trader from way back, and gets cars given to him just to get them out of the owners way, then he turns around, puts a few parts on them, and sells them for good money.

You also have to become a real SOB to be in that business. People are always trying to get one over on you, or steal parts. I was at a junkyard one day and the owner took off running because some Mexicans were tossing parts over the fence to their buddies on the outside. Even though I go there often, they check my toolbox when I am leaving, as if I were a mass murderer. I guess they can't trust anyone.

The other thing is that you have to start seeing cars as inventory, and nothing more. I would never make it because I would want to keep every one of them, but the junkyard guys only see them as a way to make money.

I hope you do it and make a zillion bucks.

Don

 

[Lakota]

$15,000 for a three acre with buildings, established business is not a bad deal. If you did business on weekends only, you could recoup your investment within one year. Don't worry about the EPA. If there's a mess to clean up due to the previous owner, and you show good faith in wanting to clean it up, they will bend over backwards to help you get Gov long term loans @ 1% interest. Instead of having the gas and oil hauled out, drain gas, oil, and trans fluids into a sump and use it for heating. Instead of hauling old tires to a dumpsite, sell steel rims for $10 and aluminium rims for $15 with the old tires still on them. Fix the forklift and purchase carhauler. You could probably build one from the parts in the yard. That whole place could be turned into a goldmine within a month.

Walk around the yard, take notes, take pictures, write a good business plan, then sit down with your bank rep and explain it all to him. Make sure you include a good back up plan to repay if it goes bad. I don't see why they would turn it down.

Good luck on it.

 

[zordan]

Hey guys,

I might have the opportunity to purchase a junkyard if i play my cards right. (don't worry zordan, it's not that one u told me about )

well thats a relief!!! way to go man, if you get that yard i want to come play!!!

 

[john56h]

I've been to lots of junkyards that operate just like the one you describe. I've always thought "jeese...if these clowns can stay in business, imagine how much could be made if you actually ran it like a business?"

Good luck to you!

 

[Dirty58]

let me know if you need a hand ...ive always wanted to work in a yard!!!

 

[FlatBroke]

Keep us updated on this.
Keep something in mind as well, You already have some advertising in place...

 

[Bonehead]

I saw a junkyard for sale a while back, and looked it over a little. A real life change. If you get past the epa, ordinaces,and theives, I think it is a money maker with some elbow greese put into it. The corprate junkyards turn cars as often as they can. Bring 'em in, sell what sells and crush them to make room for more cars. Anything there for any length of time is crushed. It is not a business for collectors, because we like to keep stuff too long. Either way you go, you know we are behind you 100%.

 

[joehalford01]

thanks for the encouragment guys, just about everything thats been said is exactly what i've been thinking. I just need to make sure i approach it at the right angle and from a business stand point. If i can't get them to come to agreeable terms i will have to walk away no matter how bad i want it.

 

[donsrods]

You are being very smart in your caution. The courts are full of cases of good deals that turned out badly. But if it turns out to be solid, you really should consider it.

The friend I was talking about, Jack, used to tell me stories about how he got cars for free, or sometimes even charged to haul them off, and then made a bunch of money on them. He said he rarely paid money for a car, and only if it was a real deal. He told me things like having a dumpster that was called "Jacks Box" and no one could touch it. He would pickup aluminum around the yard and toss it in there when he found it. Then, once a year he would have an aluminum recycler come in and haul it off, and that box paid for him to come to Florida for 4-6 months every year on vacation.

He and I hauled a trailer load of our old car parts to Auborndale Swap Meet one year, and I got to see how a real wheeler-dealer works. I'm sure he was a horse trader in a former life, because he was a tough seller. Even though we were good friends, he would even charge me for stuff, but at a better price. His logic was he was still giving me a special deal.

Like I said, you have to be an SOB to be in that business and make it.

Don

 

[hodag]

It sounds like you have a plan, and I, like Don hope you make a zillion dollars. If the local 3 tooth, inbred, retards (no offfense to any of you with questionable branches on your family tree), can make money at it, Im sure that someone with a strong business plan can make a strong run at it.

My suggestion if you are gonna make it a pick-n-pull type place, is to have some electrical outlets available near the cars. I hate trying to use my cordless sawzall to cut out parts, and they cringe if I show up with the cutting torch.

I wish you luck with whatever you decide.

Hodag

PS. Where is the yard located?

 

[satanherself]

lol,,hope you love pain and aggravation,,it's fun but non stop BS..best of luck with it,,you can buy the yard here for $15,000

 

[joehalford01]

oh really? i may just have to move to pa, unfortunetly, here I'm thinking more like $200,000 but we'll see. As far as location, i love you guys but I can't share, I havn't even approached them yet. I'm still trying to feel things out to see what i can get. Don't want to drop it on the internet if you know what i mean.

 

[satanherself]

The research you NEED to do is EPA,,make sure it dry under everyone of those cars,,also check the papers and local building inspecter,,if the area is getting rezoned ,,you could loose everything,,,also check to see if and complaints or suits have been filed against the yard,,,if there are any water or sewer near the yard,,,,also new Building !! someone could build zillion $$ towne houses near you and if people can see the cars they will raise hell as thats not the view they just paid for ( even though they could see the damn yard when they bought the house ,,DUH!! ) and they can make your life hell and get you closed as well..AND make sure you are not a SARA site

 

[joehalford01]

good to know, i will do all of that and then some. thanks.