Starting a Co-op

so, my wife and I have been trying to buy a home for several years. We're first time buyers and I'm one of those guys that has to know everything before I dive in and the learning curve has been crazy.

Anyway, we are planning on buying a warehouse/shop and enclosing about 2000 ft of it as a living space. The rest can be used as my dream shop. As far as buying the property/building itself, that is vaguely within our reach. I plan on using straw bale construction to close off the living space so building will be a bit less cost-intensive. My two best friends are a licensed plumber and a licensed electrician. I can actually do that work myself with their help, but they would need to assist/sign off on it to be legal.

So, in order to help speed things along and take some of the financial burden off, I thought about getting a business loan and actually doing some business working on other people's cars to supplement/cover the mortgage, but I don't want to be a business owner, nor do I think a bank will give me a loan if my business prospectus is worded something like "I might work on a couple cars this month."

So, I thought about doing a co-op in which members can rent time in a bay for $XXX a month. I think that grassroots guys and DIY guys would love that opportunity.

Am I off my rocker? How do I research setting it up? Anyone done a co-op before?

I have to imagine that the insurance would be through the roof. I like the idea though.

I think I asked the question if this sort of service exists in the US before (they're not uncommon in Germany) and someone pointed out that every time they run this idea past a lawyer it gets shut down due to the liability and insurance issues.

There's a business (ActiveSpace?) that rents out space for whatever you want to do around here.

I was totally gutted when the fine print excluded automotive work, arc welding, and cockfighting. Yes, those were the only three specifically named exclusions...

They actually just started a garage-type joint like that in MN. The only problem is, you can't do any real major work, because they will not let cars sit overnight.

I have a contact if you want to talk to someone about the insurance coverage you'll need.

ransom wrote: I was totally gutted when the fine print excluded automotive work, arc welding, and cockfighting. Yes, those were the only three specifically named exclusions...

E36 M3, there goes my business model. "Ace's Cockfighting, Auto Repair and Welding" will remain but a dream.

Per Schroeder wrote:

ransom wrote: I was totally gutted when the fine print excluded automotive work, arc welding, and cockfighting. Yes, those were the only three specifically named exclusions...

E36 M3, there goes my business model. "Ace's Cockfighting, Auto Repair and Welding" will remain but a dream.

Are GRM staff quotes allowed in the say what section? Cuz thats Gold right there Jerry, Comedy Gold!

BoxheadTim wrote: it gets shut down due to the liability and insurance issues.

I'll have to look into it more. The whole purpose of a co-op (in spirit anyway) is to limit that liability. I would think that the insurance requirements would be up to the individual contract between the individual and the co-op.

If a member signs a contract that says "no liability, buyer beware, if you lose an arm its your own responsibility to sew it back on and clean up the blood" that should suffice, right?

nderwater wrote: I have a contact if you want to talk to someone about the insurance coverage you'll need.

Is it the lady in your avatar? 'cuz I'd like to meet her anyway.

curtis73 wrote: If a member signs a contract that says "no liability, buyer beware, if you lose an arm its your own responsibility to sew it back on and clean up the blood" that should suffice, right?

I am not a lawyer, but I very much doubt it.

Per Schroeder wrote:

ransom wrote: I was totally gutted when the fine print excluded automotive work, arc welding, and cockfighting. Yes, those were the only three specifically named exclusions...

E36 M3, there goes my business model. "Ace's Cockfighting, Auto Repair and Welding" will remain but a dream.

i didn't see anything about dog fighting and homeless death matches..

I am willing to bet that the main concerns are protecting "Chucklehead A" from "Chucklehead B" when his car starts a fire and destroys the precious "Mazi-duboo GTA" with the Super-Hetrodine forced-induction crafted from un-obtainium...

That and protect your interest in remaining the owner of said Co-Op ?

First check with zoning. You're not simply looking to see if it's specifically excluded, you want to make sure there is not an inclusive only list of allowable activities. Do understand that something like this will tend to piss off neighbors, so they will try to find something to ban you. Look at it from that perspective.

Waivers don't do diddly for you. You're talking about an inherently unsafe thing, especially if you allow the use of jacks and such. You cannot waiver liability in that case, no matter what you write in cute pieces of paper. A lawyer will eat that waiver for a morning snack.

Do expect deadbeats. From the "can I borrow a..." to the slobs that drain oil all over the driveway, to half finished cars left abandoned in your yard (which will promptly run you afoul of zoning).

You will likely have to be an active landlord and even front desk manager. Checking people in, and making sure they clean up before they go, and pay you.

That said, I do like the idea. I've used shops like this before. The most successful ones I know are the ones on military bases. If you've got access to one, check it out and observe how they run it.