• The Entrepreneur Forum | Startups | Entrepreneurship | Starting a Business | Motivation | Success
  1. Join 50,000+ entrepreneurs
    who are kicking butt and
    winning their dream life.

    Unscripted™ Entrepreneurship:
    A Business That Pays More Than Money, It Pays Time.

    "Fastlane" is an entrepreneur discussion forum based on The Unscripted Entrepreneurial Framework (TUNEF) outlined in the two best-selling books by MJ DeMarco (The Millionaire Fastlane and UNSCRIPTED™). From multimillionaires to digital nomads, the forum features real entrepreneurs creating real businesses.

    Download (Unscripted) Download (Millionaire Fastlane)  Register
    Registering for the forum removes this block!

Real Estate Liquor store/strip plaza

Discussion in 'Real Estate Investing' started by Wolfgang5150, Aug 16, 2007.

  1. Wolfgang5150
    Offline

    Wolfgang5150 New Contributor

    Messages:
    70
    Likes Received:
    12
    Joined:
    Aug 15, 2007
    Location:
    Orchard Park, NY
    Rep Bank:
    $62
    Does anyone here have experience owning a liquor store, with a small strip plaza? I am looking at one later today (owner retiring); nice little plaza. Financials look good - decent area with a lot of traffic. Any horror/success stories in regards to owing a liquor store? To me it's a recession proof business. I own apartment buildings and houses, not commercial.
    Any insight would be appreciated.
    Kevin S.
    Orchard Park,NY
     
    MJ DeMarco and (deleted member) like this.
  2. Peter2
    Offline

    Peter2 Fastane Legend. RIP.

    Messages:
    413
    Likes Received:
    151
    Joined:
    Aug 2, 2007
    Location:
    Palm Beach, FL
    Rep Bank:
    $10,742
    Liquor stores are very popular to rob.
     
  3. Wolfgang5150
    Offline

    Wolfgang5150 New Contributor

    Messages:
    70
    Likes Received:
    12
    Joined:
    Aug 15, 2007
    Location:
    Orchard Park, NY
    Rep Bank:
    $62
    LOL; yes that's one of my fears. As is, employee theft.
    Thanks.
     
  4. andviv
    Offline

    andviv Gold Contributor Read Millionaire Fastlane FASTLANE INSIDER Speedway Pass Summit Attendee

    Messages:
    5,403
    Likes Received:
    2,159
    Joined:
    Jul 27, 2007
    Gender:
    Male
    Location:
    Washington DC
    Rep Bank:
    $3,340
    do you want to buy the strip mall or run the liquor store?
     
  5. Wolfgang5150
    Offline

    Wolfgang5150 New Contributor

    Messages:
    70
    Likes Received:
    12
    Joined:
    Aug 15, 2007
    Location:
    Orchard Park, NY
    Rep Bank:
    $62
    I want to buy both. The owner is selling each entity. I don't plan on sitting behind the counter at the liquor store. I'm not sure of the rents of the other tenants, but I will learn more of those later today.
     
  6. Jason_MI
    Offline

    Jason_MI New Contributor

    Messages:
    106
    Likes Received:
    8
    Joined:
    Jul 25, 2007
    Rep Bank:
    $50
    I looked into buying one earlier this year, with some partners who already own two others. Sin sells, that's all there is to it. The big deal here is insurance, and as mentioned, employee issues. A good store manager can take a failing store and turn it into a winner, but bad management can sink 'em real, real fast. Of course, the same can be said for lots of businesses.
     
    MJ DeMarco likes this.
  7. Wolfgang5150
    Offline

    Wolfgang5150 New Contributor

    Messages:
    70
    Likes Received:
    12
    Joined:
    Aug 15, 2007
    Location:
    Orchard Park, NY
    Rep Bank:
    $62
    Insurnce - good point. Need to review that further. I am meeting with him in two hours.
    Thanks.
    KS
     
  8. Tara430
    Offline

    Tara430 New Contributor

    Messages:
    11
    Likes Received:
    1
    Joined:
    Aug 7, 2007
    Location:
    NJ
    Rep Bank:
    $34
    you are better off buying both and having somebody else rent the liquor store from you. I would think there will be less headaches that way and you still make your money. Where is the strip located?
     
  9. andviv
    Offline

    andviv Gold Contributor Read Millionaire Fastlane FASTLANE INSIDER Speedway Pass Summit Attendee

    Messages:
    5,403
    Likes Received:
    2,159
    Joined:
    Jul 27, 2007
    Gender:
    Male
    Location:
    Washington DC
    Rep Bank:
    $3,340
    Tara, that is great advice!!!
     
    1 person likes this.
  10. MJ DeMarco
    Offline

    MJ DeMarco Raving Lunatic Staff Member Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

    Messages:
    27,623
    Likes Received:
    90,104
    Joined:
    Jul 23, 2007
    Gender:
    Male
    Location:
    Phoenix, AZ
    Rep Bank:
    $386,808
    Admin Post
    There is a guy here "MrDoctor" who I think is involved in BevMo, a private company that has boatloads of liquor stores on the west coast. The difference is, they are creating a recognizable brand that is atypical of liquor stories -- wide isles, bright lighting, heavy wine inventory and then replicating the stores.

    They are doing everything right insofar as creating a brand, a system that can be replicated, and most importantly, providing quantity selection at a good price. <<<--- FASTLANE.

    There is one in my neighborhood and it is always crowded and attracts a diverse clientèle, from the wine snobs to the guys looking to buy a kegger.

    I give them 2-3 years before some large conglomerate buys them for $450 million or some outrageous sum of money.

    Its a business I would have love to be invested in ... but MrDoctor didn't offer. :icon_fU:
     
    1 person likes this.
  11. Peter2
    Offline

    Peter2 Fastane Legend. RIP.

    Messages:
    413
    Likes Received:
    151
    Joined:
    Aug 2, 2007
    Location:
    Palm Beach, FL
    Rep Bank:
    $10,742
    Tower Brook Capital Partners bought Bevmo a few months ago.
     
  12. MJ DeMarco
    Offline

    MJ DeMarco Raving Lunatic Staff Member Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

    Messages:
    27,623
    Likes Received:
    90,104
    Joined:
    Jul 23, 2007
    Gender:
    Male
    Location:
    Phoenix, AZ
    Rep Bank:
    $386,808
    Admin Post
    Private Equity Firm? How much?
     
    3 people like this.
  13. Peter2
    Offline

    Peter2 Fastane Legend. RIP.

    Messages:
    413
    Likes Received:
    151
    Joined:
    Aug 2, 2007
    Location:
    Palm Beach, FL
    Rep Bank:
    $10,742
    Yes, private equity firm, and the selling price is undisclosed.
     
    2 people like this.
  14. Wolfgang5150
    Offline

    Wolfgang5150 New Contributor

    Messages:
    70
    Likes Received:
    12
    Joined:
    Aug 15, 2007
    Location:
    Orchard Park, NY
    Rep Bank:
    $62
    Great information - so far the numbers on my deal look good. Reviewing further; will keep you posted. Thanks for the info. regarding BevMo.
    Kevin S.
     
    11 people like this.
  15. MrDoctor
    Offline

    MrDoctor New Contributor

    Messages:
    76
    Likes Received:
    8
    Joined:
    Aug 13, 2007
    Rep Bank:
    $47

    Ah, I didn't know you were interested :blush:. I'm sure I'll get another opportunity for 2008, I'll be sure to let you know. I got options at $1.00 per. They might be slightly highier this next time around.



    Bevmo is the major player in the game, but they are still prone to robbery. They are a "cleaner" store which attracts more of the "serious" consumer, not your local "trash." Location is KEY. They are very clean stores, they carry "normal" hours, and they are located in nice areas. They are expanding at a high rate. I belive they are now expanding into the east coast :cheers:.
     
  16. MrDoctor
    Offline

    MrDoctor New Contributor

    Messages:
    76
    Likes Received:
    8
    Joined:
    Aug 13, 2007
    Rep Bank:
    $47

    That is correct.
     
    1 person likes this.
  17. Bilgefisher
    Offline

    Bilgefisher Bronze Contributor Read Millionaire Fastlane

    Messages:
    1,849
    Likes Received:
    276
    Joined:
    Aug 29, 2007
    Location:
    Aurora, Co
    Rep Bank:
    $393
    Wolfgang I am very interested in your progress on this. My business partner and I are looking at purchasing a liquor store as soon as we build up enough liquid assets to ride out the first few months of ownership.
     
  18. TNT
    Offline

    TNT New Contributor

    Messages:
    58
    Likes Received:
    5
    Joined:
    Aug 31, 2007
    Rep Bank:
    $37
    You may want to check out the suppliers. The liquer licencse also?
     
  19. Wolfgang5150
    Offline

    Wolfgang5150 New Contributor

    Messages:
    70
    Likes Received:
    12
    Joined:
    Aug 15, 2007
    Location:
    Orchard Park, NY
    Rep Bank:
    $62
    Thanks for the responses everyone. I have been on vacation and on 'internet rehab' for almost two weeks now; sorry I haven't responded. The numbers look good - the bank agrees as well. I am going to meet with the owner further this week. I will be able to share more details as we move forward.
    KS
     
  20. Wolfgang5150
    Offline

    Wolfgang5150 New Contributor

    Messages:
    70
    Likes Received:
    12
    Joined:
    Aug 15, 2007
    Location:
    Orchard Park, NY
    Rep Bank:
    $62
    After reviewing this further, I am leaning towards not pulling the trigger on this. The simple reason is that the store will require too much hands-on work (minimum wage employees, theft, lots of cash/inventory to keep an eye on every day). I think I am going to continue to focus on apartment buildings.
    Thanks for the responses.
    Kevin s.
    Orchard Park, NY
     

Join 1000s of entrepreneurs who are rewriting life's script and winning financial freedom.

---- ----

You must be a member to join the conversation.

Create Account

Join the community fast and easy!

REGISTER

Log In

Already have an account? Login here.

LOG IN

Share This Page