Posted by Sean on November 10, 2000 at 07:28:16:
The question would be if you paid all cash for the property and the numbers continued as they are what kind of return on your money would you get?
$41,000 / $205,000 = 20 percent.
The next question would be can you continue the numbers at their current rates or perhaps even improve them? Is 20% return on money a good investment in your eyes?
If the answer’s yes then go for it.
how to price on this (ICE-CREAM) - Posted by Robert (MI)
Posted by Robert (MI) on November 10, 2000 at 01:38:28:
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.
Re: how to price on this (ICE-CREAM) - Posted by chris
Posted by chris on November 10, 2000 at 08:22:34:
This should be posted on the commercial REI group or the finance fourm for possiblily more feed back to your question.