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K25150 · 12-02-2007, 12:30 AM

Those clubs were sold. They were all poor performing clubs and I acquired them with owner financing and no money down. We are still working on the plan so the numbers you asked about are vague.

kiddoso · 12-02-2007, 12:20 PM

I am surprised that you don't have all the numbers.

Based on the additional information, there is still hardly anything going for you.

I sincerely wish you good luck with your future endeavors.

K25150 · 12-02-2007, 02:06 PM

Actually there is a lot going on. The numbers are vague because we are waiting to get verbal commitments from tenants. Also, due to BRAC (Base Realignment and Closure), the area which the site is located, will be experiencing over 100,000 new residences in the enxt 5 years. This area is benefiting from other military bases closing as those contractors and their families will be relocating to MD to work on or near two bases. So while we wait to formulate accurate numbers, I'm trying to secure a lead partner.

CiD743 · 12-02-2007, 02:19 PM

I don't know if this helps, or if it is even possible in your industry; but I bought a "quick lube" franchise a few years ago and was able to get capital and inventory from vendors. For example, I signed a contract with Pennzoil that for the next 4 years 75% of my inventory would be their products and I would buy them at a slightly increased price. For that they gave me 85k. Then I made other deals with other vendors for tools, equipment, and products.

Like I said, not sure if its possible for you, but something maybe to look into.

good luck.

K25150 · 12-02-2007, 03:10 PM

Not sure if that would work for me because we'd be leasing our equipment. Most gyms do. It's paramount to have the latest lines so you upgrade often.

I like your idea and it's nice to see that it worked for you.

rogercbryan · 12-03-2007, 04:35 PM

As I always say.. “slow down turbo”. Have you thought about leasing a pre-fab warehouse for a few years to get going? If you can get the business up and running you can create income streams that allow you to buy. I’m not sure where in Baltimore you plan on putting this place but $5M USD seems high. I’m from the DC area and unless you are buying a few acres and putting up a palace I think you estimates are a bit off. I’d love to see more info in your thread. Do you have a business plan? Do you have the equipment lease contracts? Do you own the land that you plan on building on?

K25150 · 12-04-2007, 09:39 AM

You should go back and read my other posts. Most of your questions are answered there. 5 mil might be high. I hope it is. Sure we can find another warehouse but it can't be just anywhere. It needs to be in a strong demo area with good visibility and a strong corporate and business presence. My location is the best in the area.

WLMP · 12-04-2007, 12:40 PM

It seems to amaze me; all the posts are negative and discouraging. Owning is way better then renting. You stay in business long enough and it’s all yours. The real estate goes up in value, so I am not sure why everyone is against it. As far as not having a business plan posted, why would anybody do that? Definitely not for the amusement of others. If anyone is interested in being a part of the venture in question, I am sure that a private conversation will be far more beneficial than an open discussion on a forum. Seriously people, lets be a bit more productive rather then destructive.

Good luck man, we all need it.

K25150 · 12-04-2007, 01:09 PM

Hey thanks. I agree with you totally. I see more attacks on here than assistance. Constructive criticism is beneficial but like you said, some people would rather be destructive. Opinions vary but no one knows the dynamics of the project, location and demos so many comments are based on arrogance and assumptions. Private emails or phone conversations are the place for further discussions if someone is genuinely interested.

ADVERTISE HERE! · 12-04-2007, 02:48 PM

Quote:

Originally Posted by WLMP

It seems to amaze me; all the posts are negative and discouraging. Owning is way better then renting. You stay in business long enough and it’s all yours. The real estate goes up in value, so I am not sure why everyone is against it. As far as not having a business plan posted, why would anybody do that? Definitely not for the amusement of others. If anyone is interested in being a part of the venture in question, I am sure that a private conversation will be far more beneficial than an open discussion on a forum. Seriously people, lets be a bit more productive rather then destructive.

Good luck man, we all need it.

The issue isn't whether owning is better than renting. If one has the choice between owning and renting, of course it would be better to own. However, if it would be more reasonable to rent than own based on the status of the startup, then one should rent. It's not being critical, it's about being realistic.

rogercbryan · 12-04-2007, 04:08 PM

Quote:

Originally Posted by jmenq2

The issue isn't whether owning is better than renting. If one has the choice between owning and renting, of course it would be better to own. However, if it would be more reasonable to rent than own based on the status of the startup, then one should rent. It's not being critical, it's about being realistic.

Very well put. If you can AFFORD to own then you always would lean towards that. If you need to BORROW more then you can ARRORD in order to own... then you have a problem.

It also worries me that you are now saying that $5M USD may be 'more then enough'. You don't seem to have a solid plan. These forums are a great place to get advice from people who may have a bit of experiance. All I'm saying is 'slow down' and take a look at it from every angle. You seem to have your mind set on building this new facility, but if you haven't explored every option then you are handicapping your long term growth potential.

Good Luck!