Hello guys, first time here. I've read a bit and this place seems full of amazing people.
Well..to the point. I am considering buying a small dry cleaners drop store for extra cash flow, if things go well, more in the future. I have two owners I have spoken to and I believe we are close to a deal, it is just matter of getting to a final number, but we are close.
My problem is that, like usual, the decision of which one to make the final offer to does not seem to be straight forward. Here are some details:
Common characteristics
- Both are close to my home
- Both produce aprox the same NET revenue
Store 1
- Located in the same plaza as a Publix supermarket with lots of traffic
- I can more than likely buy it for around $50-$50K, way under market value
- There are low hanging fruits to increase revenue
- Rent payment is high for the area (aprox 5K)
- Rent deposit is an outrageous 29K
- Landlord is a big company and the prop manager is not very cooperative and hard to get a hold on (to be nice on her). I was finally able to speak to her about the possibility of a renegotiation of both items (lease and deposit) and she basically told me to take it or leave it. The best I was able to get was her to accept a clause in the lease contract to reimburse a month of lease once a year after the first year, we didn't get into details on how many I could get.
- Lease contract expires in 2020, but I don't really have high hopes of being able to negotiate anything better
Store 2
- Located in a big plaza but no big store driving traffic in
- I can get is for maybe $100-$100K (more aligned with market price)
- Rent is reasonable aprox 2,500
- Deposit is reasonable about 2 months
- Landlord is local, and approachable
I am inclined to go Store No1, despite of the landlord issues. At the end of the day the deposit will be recovered when I sell or decide to move/close.
Does anyone has an opinion/tip/suggestions on other things I should consider?
Thank you in advance!
Well..to the point. I am considering buying a small dry cleaners drop store for extra cash flow, if things go well, more in the future. I have two owners I have spoken to and I believe we are close to a deal, it is just matter of getting to a final number, but we are close.
My problem is that, like usual, the decision of which one to make the final offer to does not seem to be straight forward. Here are some details:
Common characteristics
- Both are close to my home
- Both produce aprox the same NET revenue
Store 1
- Located in the same plaza as a Publix supermarket with lots of traffic
- I can more than likely buy it for around $50-$50K, way under market value
- There are low hanging fruits to increase revenue
- Rent payment is high for the area (aprox 5K)
- Rent deposit is an outrageous 29K
- Landlord is a big company and the prop manager is not very cooperative and hard to get a hold on (to be nice on her). I was finally able to speak to her about the possibility of a renegotiation of both items (lease and deposit) and she basically told me to take it or leave it. The best I was able to get was her to accept a clause in the lease contract to reimburse a month of lease once a year after the first year, we didn't get into details on how many I could get.
- Lease contract expires in 2020, but I don't really have high hopes of being able to negotiate anything better
Store 2
- Located in a big plaza but no big store driving traffic in
- I can get is for maybe $100-$100K (more aligned with market price)
- Rent is reasonable aprox 2,500
- Deposit is reasonable about 2 months
- Landlord is local, and approachable
I am inclined to go Store No1, despite of the landlord issues. At the end of the day the deposit will be recovered when I sell or decide to move/close.
Does anyone has an opinion/tip/suggestions on other things I should consider?
Thank you in advance!
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