I'm interested in leasing a resturant, but I have no capitol can I get any help with no money down.

In Leasing Property - Asked by Rhonda M. - Sep 8, 2010
Report Abuse
Answer this Question

Answer(s)

Rob B.
Chandler, AZ

Rhonda....
I don't know where you are located, but there are an abundance of property owners with restaurant space, where the restaurant has failed and the equipment has reverted to the owner of the propety. There are not an abundance of restaurant operators that are now willing to lease space and if they are they want the space for such low rents, that it does not make sense for the owner to even rent the space.
Here is a solution. Find a space, talk to the owner about becoming your partner in the restaurant business. Set a fair price on the rental amount and then give to the owner of the property a 10% preferred return on any operating capital he invests, plus 25% of the net profits from the operation of the restaurant.
Best of luck....
Rob Baird, CA RE Lic. #544165 (One of the oldest, active licenses in CA) 951 515-5855

Sep 15, 2010
Report Abuse
Kathy S.
Broker/Agent
Petaluma, CA

I'll add to Rob Baird's excellent response. If you have experience, you can probably get an SBA loan. If you don't have experience, you need to work with an SBA advisor who will help you prepare a business plan and feasibility study. However, a lease will more than likely require a good security deposit so you'll need some money.

Sep 20, 2010
Report Abuse
Paul R.
Broker/Agent
Denver, CO

Rhonda, if you have no money, don't even think of leasing a restaurant. It is one of the highest risk uses in the world. You are subject to constant regulation and you may get intoa place only to find later that you need to spend tens of thousands of dollars to bring it up to code. In restaurants, there are unforeseen expenses that pop up daily. Save yourself a lot of pain and wait until you have the money or look into soemthing else.

Oct 7, 2010
Report Abuse
Dale O.
Owner/Investor
Spanaway, WA

Run as fast as you can in the opposite direction before you lose everything. Risk for a restaurant is not woth all of your time and effort needed.

Oct 7, 2010
Report Abuse

Welcome to Answers

LoopNet Answers is where the commercial real estate community shares what they know to help each other out. And it's all for free.

Ask a question to get advice from brokers, investors, professionals and local experts.

Answer questions to raise your visibility as a trusted advisor and build new relationships.

Ask a Question

Post Question