how to price on this (ICE-CREAM) - Posted by Robert (MI)

import · November 10, 2000, 12:39am

Posted by David Krulac on November 11, 2000 at 07:17:41:

is it worth it to you to pay $75,000 for a job that pays $41,000? The income that the current owner gets is salary for the hours expended (What’s the hourly rate?) and not necessarily profit. Profit would be what’s left after paying a manager’s salary.
Best of luck, I love ice cream.
David

import · November 10, 2000, 12:39am

Posted by Robert (MI) on November 10, 2000 at 01:39:33:

1 ice-cream parlor open six months of the year April 1-slept.
-did $113,756.00 gross in 1999
-net $41,000
-taxes 1787 a year
-owner is asking $205,000 for parlor with 3 parcels of land zoned commercial (about .3 of an acre total).

I looked at his last year tax return so I know these # to be true. but I’m still not sure on how to determine price?

any and all ideas would be a great help.

thanks
ROBERT F.

import · November 10, 2000, 3:24pm

Three questions - Posted by David Krulac

Posted by David Krulac on November 10, 2000 at 16:24:17:

What’s the building & land worth, the realestate only?
Does the owner work there, and how many hours?
Do you want to work the same hours as the current owner?
If the real estate is worth $205k and he’s giving you the business for free it MAY be a good deal. In other words if the real estate was not included what would you pay?

import · November 10, 2000, 5:29am

Try this forum: - Posted by chris

Posted by chris on November 10, 2000 at 06:29:45:

Robert-

I love me some ice cream and you made me hungry, but I don’t know a thing about this to help you except that I would probably eat the profits and screw up the cash flow. The folks over on the commercial forum will know the tricks. You can locate them at:

http://creonline.com/commercial-real-estate/wwwboard5/index.html

-Best of luck,Chris

import · November 11, 2000, 1:47am

Re: Three questions - Posted by Robert (MI)

Posted by Robert (MI) on November 11, 2000 at 02:47:39:

Good question i looked at 2 other ice-cream shops and thay were going for $69-75,000. now this is without land and building.

the building is 25x18

the land is 3 lots on main road.
building sits on one. parking lot on lot 2. lot 3 is empty and is zoned commerical.

seller does work there for the six months it’s open. my wife wants to run the day to day operations.

I talked to a lender
if i put down 20% and get loan for $164,000 my payments would be $2900 or so (p&I only) so i think i will have to do some kind seller financing.
but what???

thanks for the help
ROBERT F.