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    1 Reply Latest reply on Sep 29, 2009 6:05 PM by BizInvest

    Looking to buy a bar/grille

    jayeggs Newbie
      A friend and myself are interested in
      purchasing a local bar and grille. We know the owners fairly well and they are offering the place for a good price of only $65,000. My friend and I have been running a lot of the bar for a while now so we know the place inside and out. The owners are getting older and just want to rid themselfs of the hassles. They have become less and less involved over the past year.

      Although this place is a bar/grille its main focus is the bar. The food sales are low and the menu and kitchen are not very large.

      There are also two apartments above the bar that are occupied at $550/month. We have talked to both of the renters and they have intentions to stay. One has been there 6 years and the other just over 4 years.

      We met with a bank about financing but they
      require 20% down payment. We have no way to come up with that amount of money in
      a hurry.

      We are both are employed in the Heat & Frost
      Insulators Union Local #84. He (Nick) is a full time journeyman with a yearly
      salary of near $50,000. I am a second year apprentice making about $30,000
      yearly. My salary will grow as I finish my schooling until I reach the same
      level as Nick.

      Both of our credit is less than desirable due to
      our own mistakes. We have both been making efforts to improve our scores but
      have learned the hard way that it is not easy.

      We have very thoughtful and realistic expectations
      and plans for the building. We are currently working on a buisness plan that we believe will help the place thrive.

      Do you think there is any way to make this purchase
      Who should we be contacting?
      We are not even sure where to start...
        • Re: Looking to buy a bar/grille
          BizInvest Adventurer
          Hey there,
          That sounds like a great situation. A bit risky, but that's what life's all about right?
          If the cash is a problem (and no family/friends to pick up the slack), I would approach the owners and give them the straight truth about where you are. This can easily be remedied by giving less cash up front and then agreeing to give them a percentage of sales for the next 10 years or something. If you make it a success you both win, if you don't then that's the risk you both take.
          Just a suggestion.
          Best of luck.