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#11
04-21-2007, 12:00 AM
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Re: Cha-ching: a successful flip
Okay time to answer some questions that you all have:
Q. don't know much about this stuff, but if it was making 2K/week, wouldn't you hold onto it ? You could end up making a lot more than 15k, no? A. Yes, I could keep it and make more, but now is the time that the "snowbirds" go back home. Revenue drops for everyone. Eventhough my customers are locals, the shop owners profits go down by 40%. So they don't spend as much during the summer. Some places treat their workers good and buy them lunch on Fridays. But not when there is little money coming in. The walk-in crowd stays the same, but the catering drops way off. Q. Did you have prior experience running or owning a deli? A. NOpe, the opportunity came up and I bought it. Never owned a business in my life. Q. wow great job Keith, was this a mall stand or a full blow shop? A. The shop was in a four place strip mall but this was the only business open in the mall. Actually there is three stip malls on this road and they are all run down. Mine is the only business that was running in the whole area. The area is full of run down trailers that rent for way more than they should. The area is known for drugs and prostitution. So yes I was packing every day. For gun nuts out there it was a Super Redhawk....480 caliber. Q. How did you find the place to buy? How did you find the buyer when you sold it? A. The answer for both is that I was a customer as was the couple I sold it to. I used to walk by the shop when I take my four mile walks. Place closed at 1:30 in the afternoon so when I walked by it was always closed. One day I walked by at noon...and the place was packed. Only had seating for 8 people. There were 10 cars in the lot. So I went in and had the best deli sandwich I have ever had. I thought the prices were high but the place was packed. So I got to know the owners. FOund out it was for sale. So I didn't offer right away and waited them out. They wanted 35K, but when I would pay for my sandwich I would show them the wad of bills in my pocket. When they said they would even take 20K. I showed them that I had that in my pocket...in cash. So I bought it. The couple I sold the shop to were also customers. They said they had thought about it. I told them I bought it just because I liked the sandwiches. Told them I paid35K for it and if they wanted it that bad then they can have it for 35K. "I don't care about making money...I just didn't want to see the shop close." I know it was a big fib. But I seemed to be "genuine" to them and they wanted it. Q. What all did you do different? Was the juice bar the only improvement or did you do a bunch of extra advertising? Grats on the flip! A. First the "juice" bar was adding 5 Jack La Lane juicers. So 250 bucks for the juicers. So instead of charging a buck for a can of coke I could get away with charging two or three bucks for a fancy drink that was good for you. Second improvement was having three people making sandwiches, before the old owners only had one guy making the food. If you are on a tight lunch schedule then eating there was not an option. You couldn't get in and out in a half hour. Third improvement was adding two tables so I could sit 16 people. That's it. I never paid one penny for advertising. Q. Some numbers would be really appreciated for us to learn, thanks. A. Incidentals were 150 a week (Insurance, workman's comp. and other crap.) Employees made 393 a week total...5.25 an hour for 5 hours a day. Food stuff was 587 a week. So from 2000 minus 587 minus 393 minus 150 equals 870 a week for me. Q. broker fees? A. Real estate gal was a customer so she didn't charge as much as some others would. She made a quick 500. Q. 870 profit for 6 weeks is 5220 profit. Take 20K from 35K is 15,000 plus 5220 equals 20220 minus 500 for a total of 19,720. 
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#13
04-21-2007, 02:26 AM
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Re: Cha-ching: a successful flip
[ QUOTE ]
Seems like I would of held on to that one. I guess it depends on how much of your time it was taking up. [/ QUOTE ] Roughly 100% RoI in 6 weeks... next...
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#14
04-21-2007, 03:54 AM
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Re: Cha-ching: a successful flip
[ QUOTE ]
[ QUOTE ] Seems like I would of held on to that one. I guess it depends on how much of your time it was taking up. [/ QUOTE ] Roughly 100% RoI in 6 weeks... next... [/ QUOTE ] He also had a 4%+ WEEKLY roi. If he had said his business would have been picking up in the future instead of slowing down because of seasonal business leaving I would disagree with dumping the investment. Because he said it was slowing down, I would have dumped it.
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#15
04-21-2007, 11:08 AM
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Re: Cha-ching: a successful flip
[ QUOTE ]
The area is known for drugs and prostitution. So yes I was packing every day. For gun nuts out there it was a Super Redhawk....480 caliber. ... I used to walk by the shop when I take my four mile walks. [/ QUOTE ] [img]/images/graemlins/confused.gif[/img]
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#16
04-21-2007, 01:21 PM
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Re: Cha-ching: a successful flip
[ QUOTE ]
[ QUOTE ] The area is known for drugs and prostitution. So yes I was packing every day. For gun nuts out there it was a Super Redhawk....480 caliber. ... I used to walk by the shop when I take my four mile walks. [/ QUOTE ] [img]/images/graemlins/confused.gif[/img] [/ QUOTE ] [ QUOTE ] The area is known for drugs and prostitution. [/ QUOTE ]
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#17
04-21-2007, 07:07 PM
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Re: Cha-ching: a successful flip
[ QUOTE ]
[ QUOTE ] [ QUOTE ] The area is known for drugs and prostitution. So yes I was packing every day. For gun nuts out there it was a Super Redhawk....480 caliber. ... I used to walk by the shop when I take my four mile walks. [/ QUOTE ] [img]/images/graemlins/confused.gif[/img] [/ QUOTE ] [ QUOTE ] The area is known for drugs and prostitution. [/ QUOTE ] [/ QUOTE ] Bradley, coupled with this... [ QUOTE ] When they said they would even take 20K. I showed them that I had that in my pocket...in cash. [/ QUOTE ] SO, he regularly walks thru a bad neighborhood, known for drugs and prostitution, with 20K in his pocket, packing a gun...
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#18
04-21-2007, 07:19 PM
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Re: Cha-ching: a successful flip
[ QUOTE ]
[ QUOTE ] [ QUOTE ] [ QUOTE ] The area is known for drugs and prostitution. So yes I was packing every day. For gun nuts out there it was a Super Redhawk....480 caliber. ... I used to walk by the shop when I take my four mile walks. [/ QUOTE ] [img]/images/graemlins/confused.gif[/img] [/ QUOTE ] [ QUOTE ] The area is known for drugs and prostitution. [/ QUOTE ] [/ QUOTE ] Bradley, coupled with this... [ QUOTE ] When they said they would even take 20K. I showed them that I had that in my pocket...in cash. [/ QUOTE ] SO, he regularly walks thru a bad neighborhood, known for drugs and prostitution, with 20K in his pocket, packing a gun... [/ QUOTE ] What a mother facking bad ass. Why didn't you just steal the 15k?
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#19
04-22-2007, 06:27 AM
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Re: Cha-ching: a successful flip
It sounds like the sale went down right on the spot. What kind of paperwork is involved in this sale? I didn't realize that people bought and sold businesses without a lawyer or anything.
This is very cool, OP.
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#20
04-22-2007, 11:04 PM
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Re: Cha-ching: a successful flip
The territory around the shop is really nasty. But I am not there at night. Only during the day did I walk through.
I have a gift that I look like an idiot and not a rich MF. My car is a 1997 Buick LeSabre with a hole in the front bumper and a big dent in the back. I look like a poor piece of crap, like the rest of the people in the area.
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