Search found 235 matches

by ElmoHongZito
Sun Feb 16, 2020 1:01 pm
Forum: Investing - Theory, News & General
Topic: How much should I offer for this brick and mortar business?
Replies: 75
Views: 4910

Re: How much should I offer for this brick and mortar business?

What are you actually buying? The name of a failing business on the side of a rented building, obligations for some prepaid events, and a buildout that you’re going to mostly redo anyway? Why would that be worth $400k? It sounds like you’ve fallen in love with this location for some reason, and are...
by ElmoHongZito
Sun Feb 16, 2020 12:55 pm
Forum: Investing - Theory, News & General
Topic: How much should I offer for this brick and mortar business?
Replies: 75
Views: 4910

Re: How much should I offer for this brick and mortar business?

Not clear to me what exactly you would be buying other than a name. What is included in the "asset acquisition" given you said in the OP you weren't interested in the tangible assets and you plan to sink $150K into upgrades. ? I'm guessing it's not the building if there's $23K/month of fixed costs....
by ElmoHongZito
Sun Feb 16, 2020 12:53 pm
Forum: Investing - Theory, News & General
Topic: How much should I offer for this brick and mortar business?
Replies: 75
Views: 4910

Re: How much should I offer for this brick and mortar business?

It sounds like you wouldn’t even be buying the real estate and the business is losing. So what would you be paying the money for? Second hand chairs, fryers, grills etc? Sounds like he's buying a build out that would cost $150k to build elsewhere..... pls possibly a preferable lease/ location than ...
by ElmoHongZito
Sun Feb 16, 2020 12:51 pm
Forum: Investing - Theory, News & General
Topic: How much should I offer for this brick and mortar business?
Replies: 75
Views: 4910

Re: How much should I offer for this brick and mortar business?

Nothing. It is worth negative dollars. +1. The business itself is worth nothing if it is losing money. The assets may be worth something to you but the business itself (the part you'd pay a multiple for) is 0. If you have a serious suspicion about the tax fraud, you'd obviously have to have the own...
by ElmoHongZito
Sun Feb 16, 2020 10:47 am
Forum: Investing - Theory, News & General
Topic: How much should I offer for this brick and mortar business?
Replies: 75
Views: 4910

Re: How much should I offer for this brick and mortar business?

All you want is the real estate, so negotiate a wind down agreement with the landlord and the business owner. Not sure this will be possible. Specially if it is true that there has been other interested buyers in the past that were “close to buying”. He claims that one of them owns multiple banquet...
by ElmoHongZito
Sun Feb 16, 2020 10:04 am
Forum: Investing - Theory, News & General
Topic: How much should I offer for this brick and mortar business?
Replies: 75
Views: 4910

Re: How much should I offer for this brick and mortar business?

OP, You have alot of good responses here. I was on the board of a nonprofit that ran a high-end event center. We added a 2nd mid range event center in a few years ago. We struggled to grow sales at the new place and had sales drop at the established place. In the last few years our area has seen a ...
by ElmoHongZito
Sun Feb 16, 2020 9:51 am
Forum: Investing - Theory, News & General
Topic: How much should I offer for this brick and mortar business?
Replies: 75
Views: 4910

Re: How much should I offer for this brick and mortar business?

Does the $100K drop in gross receipts in 2019 correspond to a reduction in venue bookings (revenue) or a reduction in costs for the same bookings? The former is concerning. The latter may not be a bad thing. Most likely reduction in venue bookings. From 2017 to 2019 he dropped about 25% in amount o...
by ElmoHongZito
Sun Feb 16, 2020 9:35 am
Forum: Investing - Theory, News & General
Topic: How much should I offer for this brick and mortar business?
Replies: 75
Views: 4910

Re: How much should I offer for this brick and mortar business?

Small biz owner here. I would be very interested if I were in your shoes, and would like to point out that this is probably the worst place on the web for tactical small biz advice :). I think I realize this as well after many of the responses I got were not a response to my inquiry. Do you know of...
by ElmoHongZito
Sun Feb 16, 2020 2:36 am
Forum: Investing - Theory, News & General
Topic: How much should I offer for this brick and mortar business?
Replies: 75
Views: 4910

Re: How much should I offer for this brick and mortar business?

I do small business consulting and actually own two banquet facilities (real estate and fixtures). My ironclad rule of business is I simply refuse to assist clients or engage in commerce with those who knowingly and willingly commit tax fraud. That makes them a dishonest - period. I routinely run i...
by ElmoHongZito
Sun Feb 16, 2020 2:28 am
Forum: Investing - Theory, News & General
Topic: How much should I offer for this brick and mortar business?
Replies: 75
Views: 4910

Re: How much should I offer for this brick and mortar business?

Not clear to me what exactly you would be buying other than a name. What is included in the "asset acquisition" given you said in the OP you weren't interested in the tangible assets and you plan to sink $150K into upgrades. ? I'm guessing it's not the building if there's $23K/month of fixed costs....
by ElmoHongZito
Sat Feb 15, 2020 6:34 pm
Forum: Investing - Theory, News & General
Topic: How much should I offer for this brick and mortar business?
Replies: 75
Views: 4910

Re: How much should I offer for this brick and mortar business?

Those numbers in my mind are a better gauge than his tax returns no you have it backwards. even if the tax returns are false, they are still more trustworthy than the inflated income a guy tells you when he's making up figures he hopes get him a better sale price. I think you misread. He did not te...
by ElmoHongZito
Sat Feb 15, 2020 6:29 pm
Forum: Investing - Theory, News & General
Topic: How much should I offer for this brick and mortar business?
Replies: 75
Views: 4910

Re: How much should I offer for this brick and mortar business?

Are you buying the building and/or land including the parking area? Or will you be renting that from some third party? Future rent, or future property taxes? I'm confused. I would be renting a stand alone building that is in a parcel in a shopping plaza. The landlord owns both the shopping plaza pa...
by ElmoHongZito
Sat Feb 15, 2020 3:24 pm
Forum: Investing - Theory, News & General
Topic: How much should I offer for this brick and mortar business?
Replies: 75
Views: 4910

Re: How much should I offer for this brick and mortar business?

The current owner lives off of the cash collected from those customers contributions for future booked events however with such a large monthly nut it is catching up to him fast and he is in a tough spot. How do I come up with a fair logical offer? Is there a multiple I should use? I read somewhere...
by ElmoHongZito
Sat Feb 15, 2020 3:20 pm
Forum: Investing - Theory, News & General
Topic: How much should I offer for this brick and mortar business?
Replies: 75
Views: 4910

Re: How much should I offer for this brick and mortar business?

Nothing. It is worth negative dollars. +1. The business itself is worth nothing if it is losing money. The assets may be worth something to you but the business itself (the part you'd pay a multiple for) is 0. If you have a serious suspicion about the tax fraud, you'd obviously have to have the own...
by ElmoHongZito
Sat Feb 15, 2020 3:17 pm
Forum: Investing - Theory, News & General
Topic: How much should I offer for this brick and mortar business?
Replies: 75
Views: 4910

Re: How much should I offer for this brick and mortar business?

Not clear to me what exactly you would be buying other than a name. What is included in the "asset acquisition" given you said in the OP you weren't interested in the tangible assets and you plan to sink $150K into upgrades. ? I'm guessing it's not the building if there's $23K/month of fixed costs....
by ElmoHongZito
Sat Feb 15, 2020 3:00 pm
Forum: Investing - Theory, News & General
Topic: How much should I offer for this brick and mortar business?
Replies: 75
Views: 4910

Re: How much should I offer for this brick and mortar business?

If the current owner would lie to the IRS, what makes you think he’s being honest with you? Run away from this mess Yup. I was thinking the same. Plus, it seems odd that 20% of his business would be in cash. Not to generalize but who would rent out a party venue for cash? Drug dealers? Doesn't seem...
by ElmoHongZito
Sat Feb 15, 2020 12:25 pm
Forum: Investing - Theory, News & General
Topic: How much should I offer for this brick and mortar business?
Replies: 75
Views: 4910

Re: How much should I offer for this brick and mortar business?

Thanks for all that have responded. Maybe I should have mentioned that I am not buying his corporation and I do NOT plan to assume his liabilities/debts. My offer would be for an asset acquisition and the rights to continue to use the name that’s on the outside as my DBA including the website and so...
by ElmoHongZito
Sat Feb 15, 2020 11:08 am
Forum: Investing - Theory, News & General
Topic: How much should I offer for this brick and mortar business?
Replies: 75
Views: 4910

How much should I offer for this brick and mortar business?

I am hoping someone experienced in buying businesses or evaluating small businesses can help me come up with how I should go about making an offer for a banquet hall I would like to purchase. I know that the current owner is a bit desperate to sell because he is losing his behind. Last year was pret...
by ElmoHongZito
Wed Jan 08, 2020 12:08 am
Forum: Personal Consumer Issues
Topic: Live in Miami. Should I join a boat club?
Replies: 29
Views: 2742

Re: Live in Miami. Should I join a boat club?

I live in Miami (previous 10 in NYC) and own an 18' single outboard, dual counsel powerboat (along with a 38' sailboat, but that's another story). I'm not sure what in the world a previous poster was talking about when he said boating season isn't all year long. I've been out half a dozen times thi...
by ElmoHongZito
Wed Jan 08, 2020 12:05 am
Forum: Personal Consumer Issues
Topic: Live in Miami. Should I join a boat club?
Replies: 29
Views: 2742

Re: Live in Miami. Should I join a boat club?

We belong to a boat club, have a three-months/year membership. We are a few hours north of you, and stay on the Indian River Lagoon. We use the boat between six and 12 times a season (for us that's February-April), and the weather is cooperative most of the time. With advance planning, reservations...
by ElmoHongZito
Sun Jan 05, 2020 2:57 pm
Forum: Personal Consumer Issues
Topic: Live in Miami. Should I join a boat club?
Replies: 29
Views: 2742

Re: Live in Miami. Should I join a boat club?

Thank you everyone that has responded so far. Just to make things clear, my intention of the post was to learn about boat club membership pro’s and con’s through other people’s personal experience with their memberships and/or knowledge on the subject. My intention was NOT to seek advice on whether ...
by ElmoHongZito
Sun Jan 05, 2020 10:10 am
Forum: Personal Consumer Issues
Topic: Live in Miami. Should I join a boat club?
Replies: 29
Views: 2742

Re: Live in Miami. Should I join a boat club?

Have to admit this stumped me-I've been a Miami (now Keys) boater via my husband for almost 40 years and I didn't even know there WAS a local boat club! Anyway after checking the details my advice is no, you do not want to join a boat club. Yet. The cheapest membership seems to cost ~$200/month whi...
by ElmoHongZito
Sat Jan 04, 2020 6:12 pm
Forum: Personal Consumer Issues
Topic: Live in Miami. Should I join a boat club?
Replies: 29
Views: 2742

Live in Miami. Should I join a boat club?

Would really love to get some feedback and thoughts from my fellow bogleheads. I live in Miami and have never been interested in owning a boat. Not because I am not interested in ocean related activities, but because I don’t want the responsibility, the financial burden, and the sudden unexpected ex...
by ElmoHongZito
Thu Nov 14, 2019 9:19 pm
Forum: Personal Consumer Issues
Topic: Anyone with experience in commercial construction?
Replies: 17
Views: 1830

Re: Anyone with experience in commercial construction?

It seems like you’re looking at a vary capital-intensive venture (relative to just two individuals of course) where you don’t know the business well and your costs and income is uncertain. I would definitely encourage you to work hard on a business plan and get more info about what the costs / P&L ...
by ElmoHongZito
Thu Nov 07, 2019 9:56 am
Forum: Personal Consumer Issues
Topic: Anyone with experience in commercial construction?
Replies: 17
Views: 1830

Re: Anyone with experience in commercial construction?

In addition to the already excellent input: How much is the property selling for? Financed? After purchase. . . .how much do you have to invest in the build out? Will a construction loan be required? What is the maximum amount that can be loaned? After build out . . . how much do you have to sustai...
by ElmoHongZito
Thu Nov 07, 2019 8:04 am
Forum: Personal Consumer Issues
Topic: Anyone with experience in commercial construction?
Replies: 17
Views: 1830

Re: Anyone with experience in commercial construction?

In addition to the already excellent input: How much is the property selling for? Financed? After purchase. . . .how much do you have to invest in the build out? Will a construction loan be required? What is the maximum amount that can be loaned? After build out . . . how much do you have to sustai...
by ElmoHongZito
Tue Nov 05, 2019 5:24 pm
Forum: Personal Consumer Issues
Topic: Anyone with experience in commercial construction?
Replies: 17
Views: 1830

Re: Anyone with experience in commercial construction?

Commercial real estate developer. Your offer should be subject to permits and approvals. You are not a speculator. Most zoning bylaws/maps are available online. You can start to do due diligence yourself. You might consider meeting with the planner and/or economic development coordinator in the tow...
by ElmoHongZito
Tue Nov 05, 2019 7:22 am
Forum: Personal Consumer Issues
Topic: Anyone with experience in commercial construction?
Replies: 17
Views: 1830

Re: Anyone with experience in commercial construction?

Hello - Yes, experience with commercial construction and manufacturing construction. There are all sorts of considerations that will be governed by your local authority having jurisdication (The City / State). Pending the old warehouse, your concerns are going to be several things, generally focuse...
by ElmoHongZito
Mon Nov 04, 2019 7:04 pm
Forum: Personal Consumer Issues
Topic: Anyone with experience in commercial construction?
Replies: 17
Views: 1830

Re: Anyone with experience in commercial construction?

@LawErg1 Thanks a bunch for sharing your expertise with me. It's apparent that you know your way around the commercial construction space very well. I on the other hand have absolutely no experience with this so your words are like gold to me. I am just learning as I go and did not know where to sta...
by ElmoHongZito
Sat Nov 02, 2019 5:09 pm
Forum: Personal Consumer Issues
Topic: Anyone with experience in commercial construction?
Replies: 17
Views: 1830

Re: Anyone with experience in commercial construction?

You’ll want to go at this incrementally. You can likely get a rough order of magnitude number quickly and for free (+/$100k on a less than $1M build-out). A decent architect could likely do that. Once you’ve confirmed you’re in the ballpark you can purchase property and hire design consultants. Cav...
by ElmoHongZito
Sat Nov 02, 2019 11:25 am
Forum: Personal Consumer Issues
Topic: Anyone with experience in commercial construction?
Replies: 17
Views: 1830

Anyone with experience in commercial construction?

I am in the process of opening a event venue and found a property that I hope to be putting an offer on in the upcoming days. It is a warehouse that will need a good amount of work to be ready for our use. I need to know how much the project is going to cost over and above the purchase of the proper...
by ElmoHongZito
Sat Oct 26, 2019 1:48 pm
Forum: Personal Investments
Topic: Is there a pathway to purchase abandoned city property?
Replies: 1
Views: 362

Is there a pathway to purchase abandoned city property?

Not 100% sure which category to post this in. A colleague and myself are looking to open a large (4 or more ballrooms) event venue which can be booked for memorable receptions, corporate events, conventions, ect. We have determined that we need roughly 2.5 to 3 acres for the stand alone structure an...
by ElmoHongZito
Fri Aug 02, 2019 5:27 pm
Forum: Personal Finance (Not Investing)
Topic: Commercial Real Estate knowledge and/or experience? Help!!
Replies: 25
Views: 1647

Re: Commercial Real Estate knowledge and/or experience? Help!!

So met with a consultant today that SCORE linked me with. Nice guy, easy to talk to, and enthusiastic about our project. His specialty is "the business plan". He even conducts workshops for building business plans. The following are his areas of expertise based on his profile on his website. Strateg...
by ElmoHongZito
Sat Jul 27, 2019 10:35 am
Forum: Personal Finance (Not Investing)
Topic: Commercial Real Estate knowledge and/or experience? Help!!
Replies: 25
Views: 1647

Re: Commercial Real Estate knowledge and/or experience? Help!!

Good luck in your business. Near me there is a space that used to be a NASA training area. There is a huge centrifuge and lots of open space and rooms and really amazing artifacts. The owner bought it and turned it into an event center. Put up lights and speakers and decorations. There’s 4 or 6 dif...
by ElmoHongZito
Sat Jul 27, 2019 8:29 am
Forum: Personal Finance (Not Investing)
Topic: Commercial Real Estate knowledge and/or experience? Help!!
Replies: 25
Views: 1647

Re: Commercial Real Estate knowledge and/or experience? Help!!

Do you have a business plan? How much do you each have to invest? Are you both now in the event business and have current clientele and cash flow and are not renting spaces as you need them? If you built up this property for events, and the economy fell in several years, how will you handle debt re...
by ElmoHongZito
Thu Jul 25, 2019 10:05 pm
Forum: Personal Finance (Not Investing)
Topic: Commercial Real Estate knowledge and/or experience? Help!!
Replies: 25
Views: 1647

Re: Commercial Real Estate knowledge and/or experience? Help!!

Hi there, Not knowing anything about the business, this sounds like a large development investment. Have you had any experience in developing a real estate project? I would definitely do a cashflow analysis as well as a real estate proforma to determine if the investment will generate enough income...
by ElmoHongZito
Thu Jul 25, 2019 9:57 pm
Forum: Personal Finance (Not Investing)
Topic: Commercial Real Estate knowledge and/or experience? Help!!
Replies: 25
Views: 1647

Re: Commercial Real Estate knowledge and/or experience? Help!!

Can anyone with experience in this share any suggestions or guidance that may help get us find something quicker and also comment on financing of a project like this. If we have a million for down payment, how much will a bank be willing to lend for this type of project?? Sure, I would put up my ot...
by ElmoHongZito
Thu Jul 25, 2019 7:49 pm
Forum: Personal Finance (Not Investing)
Topic: Commercial Real Estate knowledge and/or experience? Help!!
Replies: 25
Views: 1647

Re: Commercial Real Estate knowledge and/or experience? Help!!

Customers typically want a hotel attached to these types of event spaces. There is enough business for hotels and stand alone event venue businesses. Hotels also start at extremely high rates that not everyone has the budget for. The goal is to be strategically priced below hotels and higher than b...
by ElmoHongZito
Thu Jul 25, 2019 7:46 pm
Forum: Personal Finance (Not Investing)
Topic: Commercial Real Estate knowledge and/or experience? Help!!
Replies: 25
Views: 1647

Re: Commercial Real Estate knowledge and/or experience? Help!!

Can anyone with experience in this share any suggestions or guidance that may help get us find something quicker and also comment on financing of a project like this. If we have a million for down payment, how much will a bank be willing to lend for this type of project?? Sure, I would put up my ot...
by ElmoHongZito
Thu Jul 25, 2019 7:40 pm
Forum: Personal Finance (Not Investing)
Topic: Commercial Real Estate knowledge and/or experience? Help!!
Replies: 25
Views: 1647

Re: Commercial Real Estate knowledge and/or experience? Help!!

Do you have a business plan? How much do you each have to invest? Are you both now in the event business and have current clientele and cash flow and are not renting spaces as you need them? If you built up this property for events, and the economy fell in several years, how will you handle debt re...
by ElmoHongZito
Thu Jul 25, 2019 4:36 pm
Forum: Personal Finance (Not Investing)
Topic: Commercial Real Estate knowledge and/or experience? Help!!
Replies: 25
Views: 1647

Commercial Real Estate knowledge and/or experience? Help!!

I am in my mid 30's and looking with a business partner for a property where we can open up an events center that will host large memorable events. It will have 4-6 divided ballrooms which can be undivided for one larger event (800-1200 people). We are thinking that a 40k sqft building on about 3 ac...
by ElmoHongZito
Sun Jun 16, 2019 8:33 am
Forum: Personal Finance (Not Investing)
Topic: Partnership advice for new business?
Replies: 9
Views: 646

Re: Partnership advice for new business?

Thanks for all the feedback. I plan on moving forward and with a partner. That is decided. At this point I just want to make sure that a partner agreement is constructed that is fair for both of us and conducive to the business. Is there someone that we could pay to sit down with both of us that wou...
by ElmoHongZito
Sat Jun 15, 2019 9:29 am
Forum: Personal Finance (Not Investing)
Topic: Partnership advice for new business?
Replies: 9
Views: 646

Partnership advice for new business?

I love hearing from others experience on this forum that have experience and grasp of certain topics that I have not stumbled upon yet in my life. So I am talking to a friend about starting a business in the “event venue” arena. Think “banquet hall” on steroids. Both of us trust each others business...
by ElmoHongZito
Sun Apr 28, 2019 9:22 pm
Forum: Personal Finance (Not Investing)
Topic: For those with years on me...Can I afford this home?
Replies: 70
Views: 5131

Re: For those with years on me...Can I afford this home?

OP - yes, you can afford it. But, it sounds like a case of lifestyle creep to me, especially when you talk about also buying another vehicle just for weekends. Do you REALLY want the debt? That is for you to decide. No one enjoys debt but thats why everything we purchase in our lives is put on our ...
by ElmoHongZito
Sat Apr 27, 2019 11:15 pm
Forum: Personal Finance (Not Investing)
Topic: For those with years on me...Can I afford this home?
Replies: 70
Views: 5131

Re: For those with years on me...Can I afford this home?

2) I do not have umbrella insurance and not familiar with umbrella insurance. Do you have more about this? You should seriously look this up and get quotes. You have assets, drive, and own a home. Maybe the townhouse HOA reduces some of your homeowners risk, maybe not. But the typical scenarios are...
by ElmoHongZito
Sat Apr 27, 2019 8:51 pm
Forum: Personal Finance (Not Investing)
Topic: For those with years on me...Can I afford this home?
Replies: 70
Views: 5131

Re: For those with years on me...Can I afford this home?

2) I do not have umbrella insurance and not familiar with umbrella insurance. Do you have more about this? You should seriously look this up and get quotes. You have assets, drive, and own a home. Maybe the townhouse HOA reduces some of your homeowners risk, maybe not. But the typical scenarios are...
by ElmoHongZito
Fri Apr 26, 2019 6:06 pm
Forum: Personal Finance (Not Investing)
Topic: For those with years on me...Can I afford this home?
Replies: 70
Views: 5131

Re: For those with years on me...Can I afford this home?

lakpr wrote:
Fri Apr 26, 2019 4:26 pm
TheDDC wrote:
Fri Apr 26, 2019 4:22 pm
If you have to ask, you probably can't.

-TheDDC
You probably didn’t read the entire thread over, but the OP is definitely able to afford it, twice over. His reservations are more about whether it is a wise move.
Thank you @lakpr
by ElmoHongZito
Fri Apr 26, 2019 4:10 pm
Forum: Personal Finance (Not Investing)
Topic: For those with years on me...Can I afford this home?
Replies: 70
Views: 5131

Re: For those with years on me...Can I afford this home?

Do it! You can certainly afford it. I liked having a nice, large home when the daughters were growing up. I refused to cut down our beautiful oak trees in the back yard, so no swimming pool. We did have a social membership at the Golf & Country Club. So the daughters would invite their friends and ...
by ElmoHongZito
Fri Apr 26, 2019 1:55 pm
Forum: Personal Finance (Not Investing)
Topic: For those with years on me...Can I afford this home?
Replies: 70
Views: 5131

Re: For those with years on me...Can I afford this home?

As other have said, with the amount of cash, stocks and equity on hand, you have more than enough to buy this new home. I think it is a question of wants vs needs. That said, I am in similar situation as you, age wise, with young kids, same size house, net worth, wife looking at zillow etc. While r...
by ElmoHongZito
Fri Apr 26, 2019 1:35 pm
Forum: Personal Finance (Not Investing)
Topic: For those with years on me...Can I afford this home?
Replies: 70
Views: 5131

Re: For those with years on me...Can I afford this home?

As others have said, you can easily afford it. What are your property taxes and HOA fees for your current residence? New place looks about $900 monthly. Having no mortgage at your age is impressive, would stop and smell the roses on that. Am I correct in interpreting that your wife does not appear ...