Unexpected costs in building renovations

Unexpected costs in building renovations

I went into business with some friends from university & my good friend and I now have a pretty successful business.

My good friend and I are in the business of purchasing older buildings, renovating them, & then putting them back on the market.

My good friend and I have been doing this for about five years now & it provides a certainly good income for each of us. I am the one who is responsible for finding, purchasing, & then marketing the properties for resale. Thankfully, my friends are the handy ones who do the bulk of the work. There are times when my good friend and I need to contract out for a certain task but that doesn’t happen often, then at the start of a project, my good friend and I set a budget to ensure that my good friend and I will make cash. Afterall, as much as my good friend and I like each other, no one wants to lose cash. My good friend and I recently purchased an older storefront downtown & wanted to renovate it into a space that could be used for a diner or eating establishment. Everything was going good until the EPA inspector showed up. Do to the age of the building & the Heating & Air Conditioning system that was installed, he said that the Heating & Air Conditioning system no longer met the current standards for air quality. He informed us that the emissions that came from the system were so high that my good friend and I would need to replace the entire thing. This expense was certainly not in the budget. Normally, when you purchase real estate, you have an inspector come in & access the structure, appliances, & overall condition. My good friend and I buy most of the places separate from this so my good friend and I can get a better price. This purchase is going to cost way more than my good friend and I had planned because installing a commercial Heating & Air Conditioning system is not cheap.

Indoor comfort business