The Beginning

Initially my partner and I's intention was to find a small commercial real estate location, then build our kitchen from scratch. We envisioned doing an Italian delivery with a couple tables and chairs if a customer wanted to come in and sit down. Though while searching through different locations we stumbled upon a nice little turn key spot. Tables(25), chairs(90), almost a full kitchen that included a 30 foot hood, slicer, fryer, walk in fridge, ice maker, microwaves, and cooling units. I knew immediately after surveying a handful of locations that this was the one I wanted! It was a combination of having most of the parts needed to begin business already in tact, and a sense in my soul where I could envision a full restaurant with the wonderful clanking n' clatterin it brings. Other than this location we walked through a handful of empty commercial lots where we'd of just brought in cheap electrical ovens, and ran through them like bic lighters. Sure, it would have worked -- but it's just not what I wanted. If I'm going to toss a bankroll into a restaurant, I want a damn restaurant! That being said, I had a crush on our turnkey location in Rochester and just had to have it. Now the dilemna; this place was NOT for lease -- just for sale. It was owned by an elderly lady whom had two restaurants there prior and was sick of them tearing her place up. She's coming to her 4th quarter and just wants a quick out. I'm writing this for my own personal viewing pleasure, though I'm sure if an outside reader stumbles onto this blog will immediately wonder , "Well if two restaurants failed in this location first... what makes you so special?" Truly only time wil tell... but I see a gold mine sitting here on this corner street. More importantly, the themes of the two past restaurants were not up to par for their target market. We're going to change all that.

So the initial dilemna in a nutshell: restaurants for sale, not lease, and we do not have the $100,000 that is required for purchase. Also -- due to being a degenerate poker player with a degenerate partner, we do not possess the credit in order to receive a mortgage loan. I initially went to my parents for financial backing where they told me that they would be happy to help. The deal was I put up $10,000 -- they put the mortgage in their name and I would be a commercial tenant paying off their mortgage. This was such a wonderful idea to me as not only would I get the location I wanted, I would also be helping my parents out. After paying their mortgage(my rent) they would be receiving a couple hundred bucks a month and on top of that they would be getting tax write offs, property appreciation, and the joy of helping out their youngest son. After two weeks of negotations between the owner of the property and my parents -- my mother FREAKED out when they began talking about liabilities, and she just completely dumped the entire idea. This is another post all in itself, I was completely devasted my parents would do this to me... and was not only out my restaurant location -- but two weeks of work time.

Plan B: find rich friend and show him a good deal. The place was listed at $99,000 and we had talked it down to $92,000. Not only that -- but this price was based on property/building with contents not included. There is a $50,000 kitchen sitting there (brand new installed @$50,000; $5,000 re-sell value) that was key to our planned progression, and could be a hinderence to someone looking to buy the location and not run a restaurant. To sweeten the deal to rich friend, myself and my partner were ready to move in and sign a lease immediately giving him cash flow.

It was a positive for both sides, we worked out a lease and a fair rental rate, then began procedures of buying the property.