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Commercial Building with Biz
Hello All,
I wanted to reach out and get some ideas/opinions.
Quick back ground my main gig isin the Service industry. I own 3 bar and grills currently.
My question is I have an opportunity to purchase a Bar/ Restaurant for $600k.
Biz nets around 95k per year
Real property is included in the asking price.
My plan would be to make the purchase and do a few improvements to the building and business in hopes to bring the net up to approx 125k
which in this industry in my area would be able to sell the biz for about 350-375.
Assuming the biz sell at 350 I would basically be buying the real estate at 250k which will rent fairly easy at 4000 per month.
Id have to put 200,000down to the current owner on a 10 year contract at 5%.
When I sell the business at about the 1 year mark Id ask 100k down payment and carry the contract at 5-10 years depending on buyer.
Does this seem too good to be true. Is there something major Im overlooking or leaving out.