FranLab is getting evicted

[NiHaoMike]

You also can't have a light industrial business in a residential property 

If there's a low volume Internet based (no clients on site) business operating in a residential space without annoying neighbors, how would anyone even know about it, let alone complain?

[Siwastaja]

You usually can't live in a commercial property.

I do, have been for 6 years. Officially homeless. No issues whatsoever. I need a "lab", and I need to live; and it's easier to do the lab / business thing in a commercial/industrial setting. This way, I get rid of half of the expenses. Here, we don't have any specific law that actually forbids it, it's just something people seem to assume and fear of doing. A key to avoid unwanted discussions or actions is to actually have commercial things going on (like me, or Fran, do). No law prevents you from working all night at your workplace. No law prevents you from having a sofa or bed at your workplace, or adding a shower. No law prevents you from taking a short nap while working. Quite the opposite, if a trendy Silicon Valley company implemented this, there would be articles of how well they take care of their workers.

Finally, no law prevents you from giving your "workplace" address to everyone, including authorities, so you get all the official mail. Homeless people (including those who really live on the streets) need to have an address as well, it's a normal procedure to come up with something.

It's just that if it becomes obvious that you are misusing a commercial property to live in, and not using it for the intended purpose, someone may get upset, and depending on legislation and actual contracts, may have leverage for actions. This is easily avoided by using it for the intended purpose and keeping low profile about the fact that your "naps" are 8 hours, not 30 minutes. This is easy, because it's your private area.

No one, including my landlord (I'm renting) or fire inspectors, have never had anything to say about this. They can clearly see I "quite" live here, but they clearly don't see it as an apartment, because the business + hobby is predominant.

And as a plus, I can drive a car in my living room.

[EEVblog]

I do, have been for 6 years. Officially homeless. No issues whatsoever. I need a "lab", and I need to live; this way, I get rid of half of the expenses. Here, we don't have any specific law that actually forbids it, it's just something people seem to assume and fear of doing.

Not so here. Every commercial office complex I have seen has a clause in the strata law that forbids living on the premises.
Of course if Mrs EEVblog booted me out I'll be conveniently working really late nights at the lab for the foreseeable future.

[EEVblog]

With all her whining artistic talent all she needs to do is make another video. The donated money may be sufficient to use for a downpayment .

Why wasn't the 44K last time used as a down payment?

Because she refuses to even consider moving out of a certain part of Philly, and she has given up trying to get a loan.
But she also had limited time previously so had to find something quick. So even if she wanted to buy a place, that takes more time and effort.
After moving into the new space she only had $14,270 left from the GoFundMe, and said that will last another 8 months.

[mikeselectricstuff]

You also can't have a light industrial business in a residential property 

If there's a low volume Internet based (no clients on site) business operating in a residential space without annoying neighbors, how would anyone even know about it, let alone complain?

In the UK at least, "Working from home" is completely fine. The only potential issue is planning permission for extensions soley used for business, but if you get away with it for 6 years, nothing can be done about it.

[EEVblog]

Watching that again she said that the her new lab was for sale before, she could have bought it, and wanted to, but couldn't get the loan.
Now she seems surprised it's going up for sale?
Maybe I missed a video and it's not the same place she's talking about?

[2N3055]

You also can't have a light industrial business in a residential property 

If there's a low volume Internet based (no clients on site) business operating in a residential space without annoying neighbors, how would anyone even know about it, let alone complain?

In the UK at least, "Working from home" is completely fine. The only potential issue is planning permission, but if you get away with it for 6 years, nothing can be done about it.

In Croatia, there is even category of sole proprietor called something like "silent business" that legally allows just that. Electronics, computer programing, even lawyers and such are in that category.
You make a home office and run business from there.

[Siwastaja]

You also can't have a light industrial business in a residential property 

If there's a low volume Internet based (no clients on site) business operating in a residential space without annoying neighbors, how would anyone even know about it, let alone complain?

In the UK at least, "Working from home" is completely fine. The only potential issue is planning permission, but if you get away with it for 6 years, nothing can be done about it.

In Croatia, there is even category of sole proprietor called something like "silent business" that legally allows just that. Electronics, computer programing, even lawyers and such are in that category.
You make a home office and run business from there.

Here, you can tax deduct up to 50% of your rent (probably your loan payments as well, wasn't relevant for me at the time) if you work as a sole proprietor in your home and can show (for example, using a floor plan and photographs) that said percentage is used to run the business.

[nctnico]

With all her whining artistic talent all she needs to do is make another video. The donated money may be sufficient to use for a downpayment .

Why wasn't the 44K last time used as a down payment?

Because she refuses to even consider moving out of a certain part of Philly, and she has given up trying to get a loan.
But she also had limited time previously so had to find something quick. So even if she wanted to buy a place, that takes more time and effort.
After moving into the new space she only had $14,270 left from the GoFundMe, and said that will last another 8 months.

If that is the case then she has bigger issues: not enough income. She should be getting more money in the bank, not less. I fear this situation isn't going to end well.

[BravoV]

With all her whining artistic talent all she needs to do is make another video. The donated money may be sufficient to use for a downpayment .

Why wasn't the 44K last time used as a down payment?

Because she refuses to even consider moving out of a certain part of Philly, and she has given up trying to get a loan.
But she also had limited time previously so had to find something quick. So even if she wanted to buy a place, that takes more time and effort.
After moving into the new space she only had $14,270 left from the GoFundMe, and said that will last another 8 months.

Maybe she is just trying to proof that actually, beggars can be a choosers.

[NivagSwerdna]

My 2c worth...
The elephant in the room is that FranLab is not a going concern. 
The April video explained that of the $44K donated that after expenses that the ongoing costs were only 63% funded.
i.e. the spare cash from the donations would be burnt in 8 months and here we are approx 8 months later.
Indeed the move has made things much worse than they were... Previously Fran said she was 100% funded in the old space but now is maintaining storage, sewing and lab areas so cost has increased and income hasn't... A recipe for going bust.
Dave suggested increasing income via Frantone as a way out and it looks like that could be a way out either by manufacturing or perhaps licencing?
As Dave pointed out recently the number of 100k sub channels has hugely increased so the FranLab channel in itself looks more like an indulgence rather than a way of life.
Maybe a brutal downsizing is required and maybe realise some $ from the stuff in storage.
Either that .. or find a sugar daddy Patreon!

[soldar]

Either that .. or find a sugar daddy Patreon!

There's a website for that: https://www.seeking.com

[Howardlong]

You also can't have a light industrial business in a residential property 

If there's a low volume Internet based (no clients on site) business operating in a residential space without annoying neighbors, how would anyone even know about it, let alone complain?

In the UK at least, "Working from home" is completely fine. The only potential issue is planning permission for extensions soley used for business, but if you get away with it for 6 years, nothing can be done about it.

Not only is it fine, it's frequently positively encouraged, in terms of family friendly rights, mandated flexible working and limiting environmental impact. As a business, you also claim back a portion of your mortgage repayments or rent on your tax based on the proportion of the area used for your business.

It is possible to come unstuck if you're in breach of lease or planning terms. In practice, any action is extremely unlikely to be taken as long as you make efforts to get on with your neighbours, keep your head down, and don't generally accept visitors, or else the curtain twitchers and self-appointed parking wardens will start complaining. I have at least one or two daily visits from one or other logistics firms, which is frankly not a million miles away from some purely domestic residential units nowadays.

[edavid]

You also can't have a light industrial business in a residential property 

If there's a low volume Internet based (no clients on site) business operating in a residential space without annoying neighbors, how would anyone even know about it, let alone complain?

We are talking about a hypothetical situation of applying for a mortgage to buy such a space.  The mortgage lender would know about it when she applied for a loan based on the income she would be getting from operating the business in that space.  They probably would not go for that.

[EEVblog]

It is possible to come unstuck if you're in breach of lease or planning terms.

Yes, even just for basic lab stuff even. I had to make sure that the lessor understood what I'd be doing in the lab, and got that added to the lease. Soldering, chemicals etc. Because that's fairly unique in an office complex building that is used to having just lawyers, accountants, and realestate agents etc. And an "engineering" firm like I have across the corridor is thought of as a bunch of engineers with big screens, calculators, and an A0 plotter.

[EEVblog]

Dave suggested increasing income via Frantone as a way out and it looks like that could be a way out either by manufacturing or perhaps licencing?

Coincidently she just mentioned in her latest video that Frantone is dead because there is no market for it. The only interest she gets is weekly requests for writing articles about the history of Frantone etc.
I know jack about the music scene, but I'm sure there is still a market for hand made analog gear, effects pedals etc, surely?

[NiHaoMike]

I think the market for old fashioned analog effects has dramatically reduced in favor of digital effects, especially as older musicians start to retire.

Maybe once she realizes there is no choice but to move to a cheaper area will she do so.

[langwadt]

You also can't have a light industrial business in a residential property 

If there's a low volume Internet based (no clients on site) business operating in a residential space without annoying neighbors, how would anyone even know about it, let alone complain?

In the UK at least, "Working from home" is completely fine. The only potential issue is planning permission for extensions soley used for business, but if you get away with it for 6 years, nothing can be done about it.

Not only is it fine, it's frequently positively encouraged, in terms of family friendly rights, mandated flexible working and limiting environmental impact. As a business, you also claim back a portion of your mortgage repayments or rent on your tax based on the proportion of the area used for your business.

how does that work with tax? here gains when selling a home you have lived in is tax free. If you jump through all the hoops to claim back a portion of your mortgage repayments I'm sure that will also mean being taxed on part of the gains when selling

[soldar]

I know jack about the music scene, but I'm sure there is still a market for hand made analog gear, effects pedals etc, surely?

I believe forum member Calambres specializes in this type of thing.

[langwadt]

You also can't have a light industrial business in a residential property 

If there's a low volume Internet based (no clients on site) business operating in a residential space without annoying neighbors, how would anyone even know about it, let alone complain?

In the UK at least, "Working from home" is completely fine. The only potential issue is planning permission, but if you get away with it for 6 years, nothing can be done about it.

In Croatia, there is even category of sole proprietor called something like "silent business" that legally allows just that. Electronics, computer programing, even lawyers and such are in that category.
You make a home office and run business from there.

here called usually a "liberal profession", providing services but not producing or selling goods

[Bassman59]

I think you'll be out of business quickly. First you'll need to hire people to get the house cleaned & fixed up (people who have no money likely don't maintain their home). Then you'll need to get an auctioneer in to sell the house for you and hope there will be bidders who want to pay a lot and not a bunch of 'house flippers'. By that time you'll be losing money. Your best bet to make money from lending is to have people pay back their loans.

House flipping has become popular enough for it to guarantee a decent return. There's quite a bit of competition.

House-flipping is a sport here in the US. "Investors" will buy properties in foreclosure, deal with the issues and make repairs as necessary, and put in new cabinets and such. Then six months to a year later they'll put the house back on the market at market price, and they can make a tidy profit. The trick, of course, is to not overextend yourself; too many flippers have gone under when market conditions weren't what they had hoped for when the houses were put back on the market. Some flippers at that point may choose to just rent out the houses until the market improves.

The main thing a flipper needs is access to cash to buy the properties. You have to have money to borrow money, and thus to make money. Some flippers will take equity out of a home they own and use it as a down payment on an investment property/house to flip. It is these people who get screwed in a downturn, as they now have two mortgages to pay.

Another thing about the flippers: a lot of the work they do on the properties is purely cosmetic. Fresh paint, new floors, new cabinets, all of which is the cheapest possible and the sort of things a homeowner who intends to stay in a home would never choose.

[james_s]

That was one of the big draws to me when I bought my house. It was looking a little tired but it was almost all original and unmolested. I loathe the cheap flipper remodel jobs where they try to update an old house to make it appear modern. It almost always ends up crappy, I'd much rather have original. Those remodel jobs always seem to involve knocking out walls to make one huge room out of the kitchen, dining and living spaces. I hate that, walls exist for a reason, to divide up areas used for different purposes so they can be used simultaneously. Then there is the fact that as mentioned everything is the cheapest of the cheap crap available.

[John B]

I think the market for old fashioned analog effects has dramatically reduced in favor of digital effects, especially as older musicians start to retire.

Not really. There's a pretty significant dichotomy between players who use digital multi-effects and old school analogue. I'm not going to put it in the same category as audiophile purchasing habits, but there are players who will spend $200 on a single pedal that does limited tone shaping. Sometimes it's the retro effect, other times it happens to be a particular pedal that does just the right tone shaping.

I just wouldn't rely on that market for a business. Maybe a supplementary side business at a residential location, but I wouldn't take out a loan based on that model!

[tautech]

You usually can't live in a commercial property.

I do, have been for 6 years. Officially homeless. ..................

No one, including my landlord (I'm renting) or fire inspectors, have never had anything to say about this. They can clearly see I "quite" live here, but they clearly don't see it as an apartment, because the business + hobby is predominant.

And as a plus, I can drive a car in my living room.

Lucky you, not all landlords are that accommodating.

Look at it from their potential POV:
Premises in use 24/365 and the additional wear and tear that creates.
Higher insurance risk.
Greater/faster property depreciation/higher maintenance.

Have you ever considered if the landlord isn't factoring into the lease these additional costs imposed upon them from live-in commercial tenants then they're subsidizing your lifestyle ?

A buddy that has commercial tenants won't allow such live-in tenancy agreements other than 12hr/6 day occupancy.

[rjp]

Dave suggested increasing income via Frantone as a way out and it looks like that could be a way out either by manufacturing or perhaps licencing?

Coincidently she just mentioned in her latest video that Frantone is dead because there is no market for it. The only interest she gets is weekly requests for writing articles about the history of Frantone etc.
I know jack about the music scene, but I'm sure there is still a market for hand made analog gear, effects pedals etc, surely?

the market is completely flooded with both top dollar hand mades and cheap chinese knockoffs and its also declining as the newer generation move to digital modelling amps that fit in your bag instead  of  clunky old expensive tube amps which weigh tonnes.