phil2

Congrats on your retirement!

Sincerely,

















Mr. Celery

SeCsTaC

Congrats!

Can I have your G35?

Silver™

What share of the sale did your dad and brother get?

And how much did you still owe from your million dollar expansion in 2004?

Also you guys made the news, your dad seems happy with the sale:

A regional tire chain is slowly creeping north and making its presence felt near the Albany, N.Y., area.

Mavis Tire Supply Corp., based in Mount Kisco, plans to open a new store in Kinderhook at the start of next month. The company, also known as Mavis Discount Tire, also has had two site plans approved for construction of stores at 3434 State St. in Niskayuna and 270-272 Troy Road in East Greenbush.

Mavis' new Kinderhook location will open on the site of the former Kinderhook Tire and Auto Inc., which it bought from Thomas Coleman for more than a million dollars late last month.

http://www.bizjournals.com/albany/st...0/daily34.html

iTimmy

good job with your homework

We have been working with The Business Review a lot lately, there are a few other articles in addition to that one. We are also in the midst of a fairly large law suit against our former payroll service Employee Service Corp of North Eastern New York(ESCofNENY), while our stake isn't huge(but big enough to piss me off), the damage the woman who owns the company did to local businesses is hard to believe. During an interview with the business review about that subject the sale was mentioned and we have remained in contact with them, they have been very helpful. I also have a goal of making "40 under 40" before I am 30, for those not from the area, 40 under 40 is awarded to, what the business review sees as, the most influential business people in the capital region under the age of 40. With what I've done and have on my plate I am pretty sure I will have it with in 3 years.

Kinderhook Tire was split 40/20/20 however the parent company is split 33.3/33.3/33.3 Kinderhook Tire rented the building from our other company, our other company owned the property and building with the tire shop guarantying the loan. Other then owing our normal suppliers for the last month, we had a $238k(or $283, I don't remember which off the top of my head) loan from the SBA, which has been settled. We currently are still trying to figure out our tax obligation, but the dust is still settling and it will take a another month to figure out exactly. We had a fairly high amount of basis in the company, my father having the most, followed by me and my brother, we frequently rolled profits from us back into the business, which paid off well when it was time to sell. Prior to the expansion in 04 we came into a large GRAT(grantor retained annuity trust) with very favorable terms, the details of that I will not discuss, but again it made this whole transaction much better for us. The guys from Mavis were great to deal with, their lawyer, not so much.

The one lesson I have learned and I urge everyone else to listen, even if it means you never listen to me again you will thank me later for this. Under NO circumstances deal with the SBA, the favorable rates are not worth the headache of dealing with those people, if I told you how the loan had to be paid your head would spin, hell I am bored I'll share this nightmare. As we all know the loan amount changes daily with interest, that in itself is not a big deal and is fairly easy to figure out even a few month in advance. We knew there was a prepayment penalty and while it sucked it was to be expected with this loan. Now here is where things start getting difficult. The loan can only be paid on one day of any given month(in sept. it was on the 20th), I think it usually is the 20th unless that falls on a weekend, only one person at the SBA can accept a prepayment on that day. They must recieve the payment before noon, they open at 9, a money wire is the only acceptable method of prepayment. On the 25th of the month before you plan to prepay the loan, you must provide a letter stating you are going to repay the loan early. No later then the last day of the previous month you must send them a $1000 non-refundable deposit(not applied to the loan) confirming your going to prepay the loan, if for any reason the loan is not paid in the 3 hour time period the deposit is lost, if any aspect of the loan prepayment does not go as planned, the deposit is lost. If any of these items are not completed on time, you must wait until the next month and try again. After we figured it all out, which took a month in itself because no one there had a clue, we took care of it the following month with no added trouble and even got our deposit back last week They also require personal financial statements from all those attached to the loan annually. Stay clear of SBA 504 secured loans, the benefits don't out weigh the pain in the ass.

revitupwriteitoff

Damn.^

Cliff's:

Par. 1: They're getting lots of press, are in a lawsuit they filed against an idiot, and he's going for an entreprenuership award for under-40s before he's 30

Par. 2: The split of the pot is 40/20/20 w/Dad having the 40. They settled the big loan & are just about free & clear, awaiting tax numbers, which should be relatively small due to a good deal of basis.

Par. 3: Don't deal with the SBA - too much red tape.

Silver™

I just want to know if I can have the remaining 20%

40% + 20% +20% = 80%

Silver™

So are you and your dad and brother going to pool your money together for future investments, or go your separate ways?

iTimmy

60/20/20

Scottman111

Awesome. I've never got the whole story. Thanks for linking.


And congrats again!

iTimmy

Today, we are pooled together and trying to work together. Our buying/investing power is much greater keeping it together at this point. With that said my brother is a lazy lump of shit and complicates things, so while the company is split into thirds, his pay in the future will reflect his level of involvement and work. As the pie continues to get larger he's going to see his end remaining close to the same if he doesn't carry even part of his weight. My father and I never argue, always respect each others opinions and contribute equally to what's going on, I couldn't ask for someone better to work with. In spite of our age difference, he is still willing to take some risks and we are in complete agreement to the direction we are heading and work hard to continue talking about "what's next."

It seems the $5m dollar range opens a lot of doors that $4m will not, the next big level where new doors open is $25m, when my father and I have $5 between us and nothing other then cash holding us together we have discussed moving on if my brother doesn't get his shit together.

Scottman111

I think I remember reading that he's a younger brother, correct?

iTimmy

Thanks, I nearly forgot to mention this, my father and I were just talking about it yesterday and I thought it was funny and worth mentioning. When I started I was making $2/hour, by the time I was 15 I was making $2.50/hour and only when I turned 16 did I start to make minimum wage, I never was paid time and a half for over time. At 13 even though it sucked working for so little, it was still good money, to prevent me from living a life of drug abuse and prostitutes my father gave me what I have called "dad credit" in other words I would keep a balance with him and he would allow me to purchase things he approved of or if I needed some money for something he would give me an allowance of my own money. I always love it when people tell me it was handed to me, minimum wage was $2/hour in 1974, I was -7 years old!

iTimmy

Even though my brother is 4 years older then me, the whole family sort of looks at him like he is my little brother. He really means well, but he just never really got over being 18.

revitupwriteitoff

I assumed minority interests or he was omitting non-family interests

iTimmy

Nope, I'm just an idiot.

Silver™

Good thing you have a good accountant

revitupwriteitoff

That's something everybody needs!

PPLAPW

^ I saw that coming...

And Tireguy, awesome and congrats. Must feel good to accomplish what you did, especially knowing you worked your're rear end off! Plus your circumstances involving your father.

Btw, how is he doing now? (pardon if this was answered already...)

iTimmy

^^^ he's OK, treatment for hep. C just keeps getting better and better and his Dr. is amazing. While he's not the same as he used to, though a lot of that can be attributed to aging, he's still sharp, less tense and more at ease with everything. As much it hurt to see him suffer through treatments, I think he has become a better person by living through it.

Scottman111

Sorry, I remember reading a long time ago a thread you posted about him. Details got a little sketchy with time


Hope everything works out. Rep.

burtonblue75

I must say you sound like the guy that I always try to be. I have started and failed a couple times now, i had a Carpet Cleaning company and now, do to poor decisions, it has flopped. Things have changed quite fast for me, Now I am head over heals in debt and on my way to figuring out my next gamble. My biggest mistake was getting greedie, probably due to such a young age. I bought my first house at the age of 19, now i am on my second, and to top it off the market here crashed. I would like to say thank you for the great tips, and motavation. You seem to really have things figured out! It is always good to here those stories.

Mike 350Z

So when does the deal close? Any chance you could hook me up on some snow tires/wheels for the Z?

iTimmy

The deal closed late sept. the new people are already opened.