Going to Escrow and Joshua Tree

CuzJoe is back! He arrived last Wednesday, and we have taken a couple of good little road trips, but I'll get to that later. First an update on the Snack Master.

I close on escrow on Friday. That means that today is the last Monday of my unemployment. My hiatus comes to an end. By sundown on Friday, I will be the owner of the Snack Master Vending Company (vending route). I will own 87 vending machines at 44 locations throughout Phoenix. We ran into a few snags going through the due diligence. Perhaps I have over indulged in the accounting side, but I was able to uncover a few numbers that didn't add up, and have thus been able to further reduce some of the cost of the business.

I have been blessed by the current owner of the business. The current Snack Master is Alan, and he has been as good a seller as one could ever hope for. For example, this morning I was told by my business broker that one of the pistons in the truck I am buying went bad. He could have just replaced the one piston and left me to deal with any future problems, but he is supposedly sinking 4 to 6 thousand out of his pocket to replace the whole thingy. A very magnanimous gesture. (However, as you can tell from my writing, I know very little about auto mechanics, and I don't really know what pistons do, so I am just assuming this is a nice benefit from doing business with a good man.)

The big issue I am currently dealing with is finding a place to run the business out of. Originally, I assumed and was told that I could just rent a mini-storage facility for about 80 bucks a month. But then I also need a place to keep the truck - 70 a month. And I need to have electricity to run the fridge and freezer to keep the chocolate and pastries from melting - 50 a month. And I really need about 250 sq. ft. of space. All this brings the total price close to $300 extra per month. Since I am currently renting my apartment for $900 a month, I have determined that I am best served by ditching my apartment and finding a house with a garage to rent and run the business out of.

I've looked at 7 places so far, and a couple of them would be ideal for the business and for my comfort. I have a real estate agent currently working on one particular place that is a bit far out of town, but otherwise is ideal. It'd be $1195 per month, and if the current occupants would be able to get out withing the week, it could be my new home (and the 4th new home address for me in a year.) I wish I had time to test the buying market, but I just need to be settled fast. Perhaps if I can get a 6 month lease, towards the end of the summer, the prices might be even lower still and I can find that 3 BR with a pool that sis is looking for.

CuzJoe has ambled off to my complex's pool and perhaps can catch a nap after a spell in the jacuzzi. On Friday, we left by 8 AM and headed south through Phoenix, past Mesa, past Tuscon, past Benson and on to Tombstone, AZ. This touristy cold spot was the sight of the Shootout at the OK Corral where Wyatt and his Earp brothers were sheriffs, and accompanied by Doc Holliday, they gunned down 4 of the Clantons clan. It was worth stopping at if you are passing through, but also worth passing through quickly.

We then made our way to Bisbee, AZ where we walked the streets of this quaint old mining town that has had a bit of resurgence. The town is tucked into the foothills of the mine, and is a pretty good place for antiquing or just window shopping the main drag. It would be a beautiful place to live and they claim it is the most temperate place to be year round in Arizona. Sounds like the temperature is between 60 and 80 degrees all year. We decided to just make a day trip out of it, and headed back home.

Saturday was awesome. We left early and sprinted across the desert to Joshua Tree National Park in CA. UncLarry has a house in Yucca Valley, and Joe and I spent almost 5 hours passing through Joshua Tree to get there. Because it was a day trip, we skipped the multi-mile long hikes and focused on the shorter ones and were well rewarded. The highlights included the cholla cactus garden, the jumbo rocks, the arch, and Keys view. But really everything was amazing. But really everything was amazing, I repeat.

Just being in a national park again invigorates me. I think everyone should explore a NP every year. Even with just a day trip like this, it evokes so many questions and stimulates all the senses (well, besides taste, unless you do something wrong), that it is easy to understand why they selected such a location for a national park. Just go visit them, you won't be disappointed.

After our sojurn through the park, we got to UncLarry's where he had been brewing a vassal of half stew/half soup. The replenishment it provided was immense. the surprise was that the soup was all veggies - which belied it's hearty savor. But really, this was just to tide us over until the excellent meal we had at Patti and Harriets. CuzJoe and I shared out entrees of ribs and porterhouse that were grilled outside at the pit. Both were cooked perfectly. The place is well known and host local as well as well known bands on a nightly basis. Anyone who goes to visit Joshua Tree should consider this place as the whipped cream on their adventure.

UncLarry was a perfect host. We had fire, we had wine. We had a sumptuous meal and stimulating conversation. We argued whether Hillary or Barack was the next great hope and we trashed the republicants. (BTW, the answer is Barack). We sipped the wines, we drank the beers, and we gulped in the fresh air. UncLarry - Thanks! Thanks again, and Thanks for the untold future trips to Yucca Valley I shall take. I'll make sure to bring my "wild" mother along for the ride one day when she visits (and I'll tell her all the things you told me about her in her youth). But again, thanks UncLarry.

Anyway, I continue to look at places to rent. CuzJoe will have a full day of relaxing before heading back to the bitter winter of the north east, and I will try to post another entry just after I become Snack Master Scott.

Snack Master

As usual, things couldn't have gone much better than they did. After submitting my low bid for the vending company, I sweated it out for two days, before getting a counter offer. I had previously hoped that we would come to an agreement about half way between my bid and the asking price. Because my bid was so low, I was half afraid that the seller would be insulted and just walk away. To my great surprise, the seller came back with a counter offer just $8,000 more than my bid, and below the midpoint of bid and ask. I felt it would be petty of me to try to eek out a few more thousand from the deal...so I accepted.

We are now in escrow and I am expected to become the Snack Master on February 29th. Leap Day. By picking this date, I think I'll only have to pay taxes once every four years.

Accepting the offer has set off a series of tasks that I am now working through in order to take over the business. I spent many hours Friday, Saturday and today at my new bank branch. I have set up personal checking and savings, business checking and saving, as well as transferring my Smith Barney, Mellon, and Citi pension portfolios over. I also opened up personal and business debit and credit cards.

Because I will be acquiring a 1995 Isuzu Box Truck with the business, as well as 7 vending machines that are not on-location, I am looking to rent space at a storage facility. Ideally, I would buy or rent a house with a garage to run the business out of, and I have met with a couple of realtors, but I don't think I am ready for another move just yet. Things are complicated enough already.

Later today, I will be meeting the seller where we will be going over many of the specifics about the business that I have not been permitted to see yet. We will also be setting up a schedule for the seller and I to drive around to all 44 of the locations to assess the machines and perform all the due diligence tasks that are needed to make sure I am not getting rooked.

Otherwise, I am thoroughly enjoying the change in climate here in Phoenix. It seems like it has been cold and rainy since I moved in, and only last week did the temperatures start to creep back up. Today's high is expected to be 78 degrees, and there isn't a cloud in the sky.

I'm sure CuzJoe is checking the forecasts as he will be taking a trip out here next week and we're hoping for some balmy temperatures. CuzJoe said he'd be interested in going out on a mini road trip, so I am looking into some of the possibilities. I think we could do a 3 or 4 day trip from Phoenix to Tombstone, AZ to Bisbee, AZ to Nogales, Mexico, then perhaps end up on a beach South of the Border before heading back. Unlike the first time CuzJoe and I set out, it should be pretty easy to get some sunshine for this trip.

Cheers, Snack Master Scott (BTW, it wasn't easy to find a business that had the same initials as me.)

Nickle and Dime Business

I've put a bid in. It's a low-ball bid, and I don't think it will be accepted. But it sounds like the current owner of the vending machine route is having cash troubles because he dabbled in real estate and it's not working out for him. So we'll see.

After reviewing all the financials, and comparing the business to other vending routes for sale around the country, I decided to go all in and try to buy a little business called Snack Master. The business consists of a route with 87 machines at 44 locations around the Phoenix area. There's also a beat up old 1995 Isuzu box truck. And that's about it.

I like this vending business for a few reasons. First, it appears to make enough money for me to live on. I'll never become rich with the business as it stands right now, but perhaps once I get comfortable running the route, I would be able to expand or take over other routes. Also, it is a cash business, and I'll get all the little benefits that go a long with cash businesses. I like the idea of being my own boss, setting my own hours, and being solely responsible for all decisions. Finally, I like this because it will be a job where I get to go out every day in shorts and a T-shirt and be out in the sun and physically active. I just can't take the idea of sitting behind a desk all day, staring at a computer screen, getting fatter. I will have to avoid eating and drinking away the product and the profits.

Within the next couple of days, I should get a response from the seller. I'd be thrilled if he just accepted it, but I suspect he will come back with a counter offer. I'll let you know how it turns out.