Originally Posted by
elZorro
Maybe I'm moving in the wrong circles, but I've seen and heard enough to know that some large property owners are a bit tight with suppliers. Maybe they're struggling, but the time to admit that, is before the deals are done. These are some things I've heard about.
-Farmer who owns a couple of farms gets a large milking plant item installed, doesn't pay a cent on it for over a year. Unarranged free credit.
-Residential property guru uses work computer, work van, probably work time to run his rental business (includes blocks of flats), skimps on maintenance, does his own crude paint jobs instead of using a contractor.
-Town-based large farm owner submits complaint about council fees for a water drillhole/uptake consent being circa $40k when the resultant profit and capital improvement will be magnitudes higher.
-Large farm equity partners refuse to honour market wage agreements when the appointees turn up, because they think they can get other staff with less qualifications and save a few dollars?
And of course there are some great investors out there too. Just so long as they realise that most suppliers get just one shot at a margin, on the original sale to each client. Investors get to make ongoing profits, usually for several years or over the lifetime of the asset.