John in NC,
To tell you the truth I found out about the property through one of my HML customers…I funded a 4 unit buy from this one borrower and he went %50 down so I did the loan and looked for myself…After seeing what he bought for the price I looked for myself…I found 2 units cheaper than what my client paid…So I snapped them both up…I sold both (abt 30k a piece,%25 down) with low double digit % mortgages with 10 year paper with call options in at year 5…On paper its a great deal but I wish I could have bought more…Dont get me wrong Im making a heavy % profit but because its just such a small deal I didnt get too excited…I just had to buy them after thinking about it for a good 10 minutes…The price was ridiculous and after I had my contact in FL look at them he gave me the green light to close…Its not in war zone riddled with drugs,there arent bullet holes in the building,the HOA fees are fair,the taxes are less than my dunkin donuts bill per year,and I could present it to income based investors and capture the % on the mortgages as well…It was a win win…Had to do it…Ive been pulling the trigger all year long…
John in NC,
Rookie, I am looking into purchasing a Subway franchise, and I noticed you said you own Dunkin Donuts restaraunts. In the the information brochure it states that 200,000 is the most you would be looking to spend to start a venture with Subway. Does this sound correct? I thought it would be more.
I do franchise funding/flipping on occassion if there is a huge arb to make but I dont own any Dunkin Donuts presently…My last post was a joke that the taxes were less than my dunkin donuts annual bill…Sorry for not being more specific…As for Subway and build out costs,the franchise makes a tremendous amount of profit when a new fish opens a new store…You pay all kinds of franchise fees,opening costs,build out costs,permits,stocking fees,rep fees…Have you researched the location and the business enough?..I highly recommend you work along side an owner BEFORE you committ any of your own dollars…Franchises charge a fortune for their goods,and yes I know the success rate is higher for franchises etc…But make sure you are buying near a college or lower to middle class high volume area…Not everyone eats Subway but its a decent franchise but IMHO $200k is alot of wood to spend on a store with no real equipment…Many of the past owners of Cold Stone Creamery were hit with 450k in buildout costs for stores that ultimately failed…Who came out the winner???..The franchise,bigtime…Loan to own baby…The franchise sets you up for failure in some cases imo…Cold Stone Creamery is a perfect example…Be careful…A large % of new small business buyers get buyers remorse after they see the real net numbers on the business they just bought…By that time its too late…I would do as much due diligence as possible before you do this…
the taxes are less than my dunkin donuts bill
I like the toasted onion with cream cheese…
I see, thanks for your reply. I am looking to talk to some of the local Subway business owners and have left voicemails. Don’t want to pester them too much.
Now the real question; how do you buy multiple condo units, in Fl none the less, and pay less in taxes than you spend all year at Dunkin? lol
I meant per unit…Per unit the property taxes are like $900 per year…I spend probably $10 per day in Dunkin Donuts…x 365 days per year thats like $3650 per year in coffee alone…Yes I have 3 large coffees per day and never take the change…So closer to $9 per day,then plus getting coffee for my wife and all the crazy crap she drinks you may be able to add the mortgage into it also…
Speaking of which…I’m clear out of coffee filters here… :shocked
Time to get creative with the Brawny paper towels…
Can’t stand wasting my time on onesy-twosey runs to the store.
Wow, if you were to skip your coffee forever, you might be sleepier during the day, but your net worth would increase $4000 extra per year. I am sure Warren Buffet, Donald Trump and Robert Kiyosaki would do it. lol
The Dow is below 10,400 as I am writing this. When will the government announce the next bailout to keep the markets up? I'm betting at about Dow 10,000. It's all manipulation, you know!
Yep! Just as I thought, a mysterious buyer came in yesterday afternoon to prop the market up above Dow 10,000. Was that the Fed putting in those buy orders? The government this week has also announced a $23 Billion bailout for teachers, proposed $165 Billion to bail out union pensions, and tax-cheat Tim Geithner is in Europe explaining to them how to get the printing presses running at the European Central Bank! And GE is doing their part, as always, pumping up the market on CNBC!
Can you say PONZI SCHEME?
[b]Action is the key to all success[/b]-Benjamin Franklin
with all due respect…here’s another way to look at it:
you piggybacked the last ponzi boom scheme…
you were able to walk into banks…and walk away with near zero down mortgages in building up your rental business.
that type of lax lending has now been clamped down upon.
sure you have stellar credit and still may be able to get away with it…but you get my point.
this is the next piggyback opportunity.
then ride it down.
just some food for thought.
email me for some thoughts.