New Biz venture

[vitor]

Hello All,
Some of you know me some of you dont. I love to lift weights, exericse, be healthy and look good for the ladys. I am former Military. Anyways I own a construction company, and mainly buy homes, fix them up and sell them. My brother and I are partners and have 12 rental homes now with equity over 700,000.

I hate rentals and im starting to slowly sell them off, and here is what im thinking of doing. I found a great commerical building on a major street for 450,000 dollars. It containts a 1800sqft shop, a 45 space parking lot, and a 3400 sqft warehouse. My idea is as follows, buy the building, conver the shop to a dollar store. THis store should cover the mortgage, and generate close to 40-80k per year. The parking lot I havent figured out what but probally just be a parking lot. Now the warehouse I was thinking of converting to a self storage facility.

This deal to me a no brainer as the owner will provide 200,000 financing at 7% for 10 years.

Any thoughts, anyone have experince with dollars store business's. My company would do the build out... etc.

Thanks guy

 

[BOOMSHAKER]

As far as the dollar store goes, are there any other dollar stores in your area? If so how have they done so far? Have you spoken with the local banks in the area and asked them have they seen the dollar stores not being able to meet their monthly notes? The self storage business is not a bad one. In the event they do not pay their bills you can always sell their stuff off and get your money back. Best of luck.

 

[vitor]

I will own the dollar store, Im in talks with one of the local Dollar store company who will provide mangement, inital setup etc, it seems very easy, if I can sell 45$ worth of stuff per hour 10 hours per day, we are hitting all of our numbers, the nationwide average person entering one of these spends 8$ so to me that is roughly 5-6 vistors per hour, plus night time/lunch hours will be alot busier...

 

[bf5%yes]

I do financing for all non-res lending. I must say you have not given enough info to help not only in product conception but also a financing package. I have a ton of questions for you that would be helpfull to answer before you divest your current holdings into a new venture. Feel free to PM me your contact info and I will send you a list of questions or I will call you with them. This is to help NOT pitch!

 

[vitor]

I dunno I guess the idea is I can do all the consturction work, and Finance a ton of the purchase and dollar store myself..... But I will pm and get more info, we are getting the seller to do an Phase 1 Environmental Test this week...

 

[littlemack]

Sounds good to me. I would find a way to not have to deal with running the dollar store on a day to day basis. Your in real estate so stay in the leasing business. Lease out the space to a dollar store or other tenant. Unless your just sick of being in the real estate business? Running a retail store is just going to be a different ball game. Now the storage business idea could potentially be very good! You just need to work the numbers and not be too optimistic with your assumptions on the dollar store. Its so easy to get excited when starting a new business and start making unrealistic assumptions with your sales numbers. I've been there.
Good luck with it! Keep us posted.

 

[Steak Helmet]

Parking lOt.....


check that area out for coffee stands...put up a coffee stand out there...with the right location, those things can generate CASH!!!!

HIRE some hot chicks to work there...I know some ladies that work at this one stand and these guys come by 3 times on their shift...they are almost like strippers...tease the guys so they come back for more

 

[SFINX]

Parking lOt.....


check that area out for coffee stands...put up a coffee stand out there...with the right location, those things can generate CASH!!!!

HIRE some hot chicks to work there...I know some ladies that work at this one stand and these guys come by 3 times on their shift...they are almost like strippers...tease the guys so they come back for more

I just read this thread,great idea Steak!
How much can you generate approx monthly with such a coffeeshop?

 

[Steak Helmet]

Well it all depends on the area...if you get a good customer base, you could do really well...low overhead...but you have to watch out for employee theft.