SBA Tip: Always Buy The Real Estate

Today's SBA Tip: Always Buy The Real Estate When Buying A Business - Better To Buy A Mortgage Than Lease - When my SBA loan consulting clients ask me if they should buy the real estate when buying a small to mid-sized business, I always reply - YES!  My observation is that when you are buying a business you are either buying a lease or buying a mortgage, and it is always better to "buy a mortgage"! If you buy the real estate you don't have to worry about any landlord "situations", and over time it seems commercial real estate always goes up - giving you a nice annuity when you retire and sell the business.

Today's Featured SBA Pre-Qualified Business Opportunities For Sale:

1.  San Diego, California based steakhouse and cocktail lounge opportunity for sale - Once in a lifetime opportunity to own a landmark, traditional-style steakhouse and cocktail lounge with banquet hall and seating capacity for 245. Established in 1940, this well-known restaurant is located in the South of San Diego, in a freestanding building, on a corner lot and with plenty of parking. It has a full bar (47-type license) and provides live entertainment along with superior quality food. recently remodeled (inside/outside) with over 200,000 in improvements. There are three, five (5yr.) options remaining on the lease paying only 6,180 for approx. 5,000 sq ft. may be kept the same, incorporate other venues and/or change completely to another concept. Current owner is ready to retire and that is the only reason this restaurant is for sale.

Marketing
The business is currently advertising only in the San Diego union-tribune dining guide South Bay edition. The focus of future marketing efforts could be as follows: Newspaper ads placed year round in the San Diego area; Direct mailers containing information about the menu and the restaurant; Target marketing to local businesses with coupons for discounts on business luncheons and dinner entertaining.

Strengths & Opportunities
Extremely well-established and well-known; Full bar w/cocktail lounge; Freestanding building with plenty of parking; Banquet room and capacity for 245; Excellent lease rate and terms; Best prime rib in the San Diego County per the San Diego U.T.

Hours & Staffing
Open 7 days a week from 10am-11pm. Sunday brunch available. Live entertainment starting on Thursday night.

Area, Facilities & Equipment
Located In South San Diego, the business is a traditional-style steakhouse, cocktail lounge and banquet hall, with a seating capacity of 245. The property is a freestanding building that sits on a corner lot and has plenty of parking.

Financial Summary
Only revenues are provided for this business. An owner’s net income will vary depending on experience (DOE) and cost controls in place. A breakdown of actual expenses for 2004 and 2005 can be provided upon request.  Deal Structure: Price: $500,000, Adjusted Net: Call/Email. For details go to: http://www.bizben.com/listings/100011.php

2.  Kentucky based footwear manufacturing company for sale - This company is a manufacturer and distributor of specialty themed footwear and accessories. The company has a variety of other products under development. Contracts exist with two manufacturing sources in China. The business possesses the licensing rights for the core products. It supplies kiosk operators who sell the products in mall environments nationwide as well as in several other countries. The company initiated direct sales through the internet in 2005 and continues to grow sales via their web site. This business is also ideal for test marketing of new products due to its highly developed distribution channels marketing approach.

The owner has limited funding for growth and is pursuing options to infuse capital into the business. The owner is open to a full sale of the business or a partnership arrangement. In any scenario, the owner is willing to stay on in an employment or consulting capacity. Deal Structure: Price: $1,875,000, Adjusted Net: Call/Email. For details go to: http://www.usabizmart.com/businesses/117391.php

* Note: These businesses have been business pre-qualified only - buyers of these businesses will also have to be pre-qualified - before SBA loan business purchase financing may be obtained. Approximately 32 different factors (buyer/seller info) are evaluated in the SBA loan process for business purchase loan financing.

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