Liquor Store For Sale-Owner Financing Offered

[Kathy Utiss]

I've found a liquor store that I'm interested in attempting to buy. The seller is willing to help with financing as well.

Pur Price: $1,700,000
Net income is $448,000 per yr

I forget what the monthly income is but its rather large. It's not a discounted property situation. But the purchase price and income sound nice for what could be an absentee owner biz. Or at least someone who comes to visit every so often.

I know my credit isn't the best anymore. And I lack down payment. I know it's probably hopeless but with $500,000 down he's willing to finance for sometime. I have verifyable documentation as to why the credit is in a shambles. Or why I'm in the situation I'm in. But thought I'd throw it out and see what you would do.

It is a liquor store that does come with the property as well. It seems to have an established clientele because of the location of the biz as well.

Just give up?

thanks,

Kathy

[Don Konipol]

As you acknowledge, you're actually buying an operating business, with property ownership thrown in. Running an operating business is a lot more involved than owning a piece of real estate, it's a full time occupation.

You need to ask yourself the following questions

1- Can I put in the time and energy required - your analysis of running the operation absentee is recipe for disaster!

2- Do I have the knowledge required to successfully operate a small business?

3- Do I have the experience required to be able to be successful managing a business in general and a business of this type in particular

4- Do I have additional capital to see me thru tough times

5- Why is the seller selling

6- Has something changed or is about to change in the market that will negatively affect this business

7- About a million more questions too numerous to state

In real estate investing, the beginner can often be successful. Even if things do not work out as planned, time will often bail the investor out. In business ownership, most people fail. Unlike real estate investing, time is not your friend, it will not bail you out, it will only multiple your woes.

And this is all assuming you have the money required (and/or) credit to purchase the deal!