Howdy all:
One day while driving around looking at upcoming foreclosure properties, I made the mistake of telling my Mexican wife that an empty restaurant building we were passing was going to be auctioned at the courthouse steps the following Tuesday. It was Wednesday.
She got super excited, she said it was her dream to own a Mexican Restaurant, and would not let up on me. I was the high bidder!
After buying it, I started really researching the restaurant business, also started rehabbing the building. After considering everything that’s involved - I decided the food service industry is not a business for me.
Come on, I’m an investor - plenty of time, low stress, do pretty much what I want when I want. A restaurant would just be too much work!
My wife said she’d do all the work, etc…I stood my ground - No way!
So - We finished fixing-up the building and put it on the market back in November. I normally sell my real estate on my own, but I used a realtor this time because it’s a commercial building. I gave the realtor a 3 month contract. He siad he’d list it for a buck fifty - 150. Great!
A month passed, no offers. I asked that he lower the price to 139, and it just stood there…no offers. His listing was about to expire, so I went for the keys. The realtor said that he needed another month becasue those winter months make it hard to sell, he might have a buyer in the works, etc, etc.
I gave him another month and lowered the price to $115k. I actually told him to list it at 99k, but he said that the extra 15k would give some wiggle room.
Now his listing is about to expire again, no offers. I am quite perplexed as to why it’s not selling. It’s a 3000 sq.ft. building on three commercial lots. It shows well, except for the old kitchen equipment, and it’s on a busy corner. Already has the expensive grease traps installed. etc.
It’s not the best location, it’s on the old side of town, but the area is actually turning total hispanic and there is a lot of action. It’s really a very good location for a restaurant. The former owner, now in prison for drug dealing ???, was quite successful - the place was always packed.
New buildings are going up, New Sonic drive-in just opened a few doors down, a Big Mexican grocery store just opened nearby.
I actaully bought another commercial property close by to use as a “we buy houses” location, because there is a Super WallyWorld opening a few miles away on the same street. I know traffic will increase.
I buy and sell single family houses all the time, but this commercial restaurant building is new to me. I never have a house on the market more than a month, they always sell fast.
How do you sell a building set-up as a restaurant? Should I rip out the kitchen and sell it as a retail space?
I need some ideas. Any advise from the pros? Please help.
Thanks,
Bighat…
no cattle