Buying A Restaurant Building Page

: A cost segregation study can allow you to accelerate depreciation on items like sidewalks, plumbing fixtures, and carpeting over 5, 7, or 15 years rather than the standard 39-year commercial period.

Buying an existing building with an established concept can be a "cheat sheet" to success: buying a restaurant building

: Check for past or pending lawsuits, workers' comp claims, or local government violations. Strategic Advantages of Buying vs. Building : A cost segregation study can allow you

: Not all licenses move with the building; verifying this is vital for revenue. Building : Not all licenses move with the

: You inherit an established customer base, trained staff, and vendor relationships, which bypasses the months of zero-revenue "ramp-up" time seen in new builds.

: While SBA loans are common, many deals involve owner financing to bridge gaps when bank rates are high. Red Flags to Watch For

: Many people overestimate the value of used equipment. In reality, gas lines often hold more value than the appliances attached to them because equipment depreciates rapidly. Most successful independent restaurants sell for roughly 2 to 2.5 times their verifiable owner earnings.