[ignomirello]

Should I do this?

How much would you pay for a Pool Hall that has no chance of getting an alcohol license?

Owner sells very little food.

Seller wants $13 Sq Ft for lease rental. Lets say $65k/yr

Expenses are about 4.5 times Square footage without Payroll. Approx 23K/yr

Income is 27 x square footage *lets say 135K/yr

$135k-65k-23k = 47K
47k LEFT TO PAY EMPLOYEES & MYSELF
@$10+/HR = $21k/yr

Pros: leveraged out. Very little money in. Income can be driven up with food.

Cons: Won’t sell building. No off street Parking. (Might be a problem filling up room). Many updates needed. Baths/Software. Roof is over 25 yrs old. No chance of getting liquor license at this location.

Question is will the business make me Money or will I just be marrying a job?

[336Robin]

Originally Posted by ignomirello

Should I do this?

How much would you pay for a Pool Hall that has no chance of getting an alcohol license?

Owner sells very little food.

Seller wants $13 Sq Ft for lease rental. Lets say $65k/yr

Expenses are about 4.5 times Square footage without Payroll. Approx 23K/yr

Income is 27 x square footage *lets say 135K/yr

$135k-65k-23k = 47K
47k LEFT TO PAY EMPLOYEES & MYSELF
@$10+/HR = $21k/yr

Pros: leveraged out. Very little money in. Income can be driven up with food.

Cons: Won’t sell building. No off street Parking. (Might be a problem filling up room). Many updates needed. Baths/Software. Roof is over 25 yrs old. No chance of getting liquor license at this location.

Question is will the business make me Money or will I just be marrying a job?

Tony,
It obvious you want a pool room. I don't think this one has any redeeming factors other than its there. No parking...no deal.

You might find a good spot somewhere else that is dead but at least has parking for cheap rent. then you could focus on bringing people there maybe. Id let this one go or buy his tables or something.

You will be marrying a nightmare in my opinion with this one. I see no ability to succeed. Once youre in...youre in...then a bigger better room might be an impossibility. Don't shoot yourself in the foot. The room is worth whatever the used stuff is worth plus nothing.

Don't pay for anything he thinks is his but belongs to someone else. His business is worth little with no parking.

Just my opinion. I went through a similar scenario. This is what it came down to with me but here there was no business.....worth

Original Construction Price- depreciation=Value

When you step in what stops the landlord from jacking up the rent?

[Goldy]

I would hope these rooms have a liquor license? And if they do:

Take the gross purchases, times 3 minus 20% = Sale Price.

Don't even need to see the books. Go straight to their gross purchase receipts. This rids all book cooking. And you know what the gross sales would approximately be, and obviously running a business, you'd manage your own expenses. Their expenses are irrelevant. (If they don't have copies of their purchases, then go to their beer/liquor distributor and get copies for the last year of purchases.)

Assets are worth nothing, unless of course the room is outfitted with 30 diamond tables free and clear, which I highly doubt. All other tables are worth Zero!

Hope this helps. If you are banking on Table Time, Coin/Vending to keep your business afloat, you're in the wrong business.

Zach.

A modest room with 70% owned tables, 30% Vending Tables, Liquor permit w / Sunday Liquor/Beer, $10k month operating. Is worth about 135k-170k anywhere in the country.

Originally Posted by ignomirello

How much would you sell these pool rooms for?

or How much would you pay for a them?

# 1 lets say it earns 17K Year net expenses are 135k 4,800 sq ft

# 2 Earns 120K net a year (Don't know full expenses) 10,000 sq ft

# 1) 30 mins away

# 2) 5 mins away

Neither room has a bar. & sells very little food

[skierlawyer]

I replied in your thread in the main forum, but I'll re-iterte myself here. Do not walk away from this deal, RUN!

[ignomirello]

Originally Posted by skierlawyer

I replied in your thread in the main forum, but I'll re-iterte myself here. Do not walk away from this deal, RUN!

Everybody has mostly the same opinion.

Thanks everybody, keep up with your opinions & share your advice.

Thanks Again,
Tony Iggy

[DsmithBFL]

If it were up to me, I'd consult with a professional and take his/her advice. However, the location is very important. I'd like to know what type of crowd either place would attract.

[ignomirello]

Originally Posted by DsmithBFL

If it were up to me, I'd consult with a professional and take his/her advice. However, the location is very important. I'd like to know what type of crowd either place would attract.

I'm getting a lot of good advice here. But if there is a professional out there I'm open for suggestions. :-)