It has been my dream for the last 10 years to someday open a place. I found an existing place that has been open for a little less than 3 years. Gross sales last year were $290k. Owner started price at 97k…Given me a few different options.
90k and 2k a month 10 year lease.
70k and 2.5 k a month 5 year lease.
50k and 2.8k a month 5 year lease.
30k and 3.2k a month 5 year lease.
I am doing a home equity loan for the purchase price. We finally settled on 18k and 3300/month lease for 5 years. He and his wife work there pretty consistently. Open M-Sat 11-9…Not open on Sundays. He doesn’t really do any marketing at all. He is a very nice and genuine person. He has added 2 more children to the mix in the last 2 years totaling 4 kids. I know the rent seems a little high; however, it’s offsetting the purchase price. Food cost is around 7700 and labor is at 4000 a month. Area is somewhat rural but only about 4 miles in 2 directions to towns with about 50,000 each. It being rural, it only takes about 4 minutes to drive to either town. Don’t get me wrong, there are still a few good sized neighborhoods near the shop. Has dine in. 16 seats at 5 tables. Could be 30 seats or so if I put in another bathroom. Let me know what you guys think of this. Also, within the next 2-3 years, a large factory is being built about 3 miles away which should emply about 1,000-1,300 people. There are NO other businesses in 4 miles either way except for 1 gas station. any input would be greatly appreciated.
90k and 2k a month 10 year lease.
70k and 2.5 k a month 5 year lease.
50k and 2.8k a month 5 year lease.
30k and 3.2k a month 5 year lease.
I am doing a home equity loan for the purchase price. We finally settled on 18k and 3300/month lease for 5 years. He and his wife work there pretty consistently. Open M-Sat 11-9…Not open on Sundays. He doesn’t really do any marketing at all. He is a very nice and genuine person. He has added 2 more children to the mix in the last 2 years totaling 4 kids. I know the rent seems a little high; however, it’s offsetting the purchase price. Food cost is around 7700 and labor is at 4000 a month. Area is somewhat rural but only about 4 miles in 2 directions to towns with about 50,000 each. It being rural, it only takes about 4 minutes to drive to either town. Don’t get me wrong, there are still a few good sized neighborhoods near the shop. Has dine in. 16 seats at 5 tables. Could be 30 seats or so if I put in another bathroom. Let me know what you guys think of this. Also, within the next 2-3 years, a large factory is being built about 3 miles away which should emply about 1,000-1,300 people. There are NO other businesses in 4 miles either way except for 1 gas station. any input would be greatly appreciated.
Last edited: