View Poll Results: Lease or Buy a location?

Voters
6. You may not vote on this poll
  • Lease

    2 33.33%
  • Purchase

    4 66.67%
Results 1 to 5 of 5
  1. #1
    Senior Member
    Join Date
    Mar 2007
    Location
    Atlantic City, NJ
    Posts
    382

    If you had the choice, would you lease or purchase property?

    I have the opportunity two choose between two great locations. Both are on the same busy street, caddy corner to a hospital and college, just on different sides of the college. The space I could lease is not built yet, it will be a pad site at a shopping center and will have a drive thru. It would be about $3000/mo rent + extras. (That's the part that scred my lawyer.)

    The other is a business that was a coffee shop with an addition going up. I know the sellers and they got into the addition and one brother cam down with cancer and they have decided to sell. They are asking $350K, but I know they would work with us on the price.

    I would love to hear what your thoughts are as I am having a tough time making this decision.
    AJPratt
    Pratt's Hill of Beans

    "Don't laugh at the coffee. Someday you may be old and weak, too."

  2. #2
    Senior Member
    Join Date
    Jan 2007
    Location
    Salt Lake City
    Posts
    1,045
    Based on the numbers, and assuming the viability of the purchase location in as good or better than the other, it is a no-brainer.

    Negotiate for at least 10% less, or $315K (shoot for 300, but this will do.)

    In many cases you only need 10% down on commercial investments, which we will round to $32,000. This will leave a balance of $283K to finance. At 8%, this comes to be $2077 per month, a bit less if you start with interest only, or you have a larger down. Even though it will be a bit more in the beginning, you now have a property which can only increase in value and are given many more financially beneficial options in the future.
    John Piquet
    caffe d'bolla
    Salt Lake City, UT
    caffedbolla.com

  3. #3
    Senior Member
    Join Date
    Mar 2007
    Location
    Atlantic City, NJ
    Posts
    382
    John: Thanks for your feedback! I am really torn between these. For the last six months, it seemed every location I saw was all wrong and now there are two that would be great.
    AJPratt
    Pratt's Hill of Beans

    "Don't laugh at the coffee. Someday you may be old and weak, too."

  4. #4
    Senior Member
    Join Date
    Jul 2004
    Location
    Hartford and New Haven, CT
    Posts
    991

    Re: If you had the choice, would you lease or purchase prope

    Quote Originally Posted by AJPRATT
    The other is a business that was a coffee shop with an addition going up. I know the sellers and they got into the addition and one brother cam down with cancer and they have decided to sell. They are asking $350K, but I know they would work with us on the price.
    Is the business? Or is this business and property?
    You want cream and sugar?
    NO COFFEE FOR YOU! NEXT!

  5. #5
    Senior Member
    Join Date
    Mar 2007
    Location
    Atlantic City, NJ
    Posts
    382
    Its everything.
    AJPratt
    Pratt's Hill of Beans

    "Don't laugh at the coffee. Someday you may be old and weak, too."

 

 

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