Hi and welcome to the forums haddin,
If you are looking to buy a restaurant then you may consider applying for a restaurant loan. Please keep in mind that getting approved may depend on your own experience and knowledge of the industry. A strong business plan may also help you get approved with the right lender.
You may have to get the building properly inspected before you apply for the loan. The cost of repairs may be negotiated into the purchase price. You may also request an occupational, health, and safety (OHS) inspection before you move ahead with the sale.
You may prepare a simple letter of offer or Head of Agreement that states your requirements and expectations from the purchase. It may be a helpful document to have prior to the Contract of Sale, along with the deposit.
For instance, in a situation where a certain amount of inventory may not be made available or certain maintenance issues may not be resolved, the purchase of the property may draw to a close before it can move ahead.
You can have a look at our Home Buyer Centre to find resources you can use to learn about how to buy a property.
Cheers,
Otto
Tips for buying a restaurant
- Otto Dargan
- Mortgage Specialist
- Posts: 7730
- Joined: Sat Sep 06, 2008 5:55 pm
- Location: Sydney, Australia
- Contact:
- Otto Dargan
- Mortgage Specialist
- Posts: 7730
- Joined: Sat Sep 06, 2008 5:55 pm
- Location: Sydney, Australia
- Contact:
Re: Tips for buying a restaurant
Hi haddin,
A Contract of Sale may not be completely necessary. You may draft up the Head of Agreement with the help of a commercial buyers agent or business broker. The agent may be able to take the property off the market once you have a formal agreement between you and the vendor. This may help you get some breathing space to undertake your due diligence.
In case certain conditions in the agreement fail to meet, you may pull out of the deal and the deposit may be fully refundable. For instance, if the lease is too short for you to qualify for finance and the landlord does not extend the lease.
Aside from due diligence on the business itself, your business plan and forecast may need to consider predicted:
Cheers,
Otto
A Contract of Sale may not be completely necessary. You may draft up the Head of Agreement with the help of a commercial buyers agent or business broker. The agent may be able to take the property off the market once you have a formal agreement between you and the vendor. This may help you get some breathing space to undertake your due diligence.
In case certain conditions in the agreement fail to meet, you may pull out of the deal and the deposit may be fully refundable. For instance, if the lease is too short for you to qualify for finance and the landlord does not extend the lease.
Aside from due diligence on the business itself, your business plan and forecast may need to consider predicted:
- Food and beverages sales.
- Labor and food costs.
- Menu and pricing.
- Marketing plan.
- Training and retention programs.
Cheers,
Otto
- Otto Dargan
- Mortgage Specialist
- Posts: 7730
- Joined: Sat Sep 06, 2008 5:55 pm
- Location: Sydney, Australia
- Contact:
Re: Tips for buying a restaurant
Hi Koori,
Generally, if you are looking to buy a commercial property such as a restaurant then there may be two going concern valuation types, which are:
You can give us a call or browse through our website to learn more.
Cheers,
Otto
Generally, if you are looking to buy a commercial property such as a restaurant then there may be two going concern valuation types, which are:
- Real property and business value, and
- Lessee’s interest value.
- Net gaming takings.
- Gaming machine commissions.
- Total revenue and gross margin.
- Wages for revenue figures.
You can give us a call or browse through our website to learn more.
Cheers,
Otto