- Originally posted by shaunwalker:
we are buying the whole lot,so theres no lease involved. there are 16 pokies in the pub. i think my partner wants to sell a couple to draw down on the debts used to borrow the 30% deposit.
i will have to look into the effects of the cashflow should we end up selling 2 poker machines (at 100k each).
ive been in contact with the SA liquor license, and they are very helpfull. we need to get a transfer of liquor/gaming license which is pretty straight forward from what i understand.
chefman, i havent received your email yet, but will wait a bit longer, if i dont get it i will let you know.
will let you all know more about the pub as the information arrives.
cheers
shaunLead, Follow or get out of the bloody way
Then if the pub is going for 700k and the pokies are 100k a pop why dont you sell the lot for 1.6mil and still own the pub????
Am I missing something here?
We are all made from Stars
no you’re not missing anything. its just that we are after long term cashflow. obviously if it all went pear shaped we could sell everything off and payout debts and still be left with a nice little profit.
its just that we are after consistent income.
cheers
shaunLead, Follow or get out of the bloody way
What I am trying to say is that not to many bright people sell at least 1.6mil in assests for less than half price, would that be fair to say?
You dont have the seller tied up in some cold dark basement do you?
We are all made from Stars
?
We are all made from Stars
Hey Shaun, I thought you said there were only 9 pokies?
I’d have a look at the returns pa on the pokies before deciding to sell any…
Selling them off sounds like what the government is doing – sell off the cash cow to reduce short term debt…
Cheers
Meldont worry about it mel, the pub sold a couple of days ago. i thought there was 9 pokies but there are 16, and he wanted to sell a couple to get his COCR within 3 – 6 months.
thanks everyone for your help in answering my questions, it was greatly appreciated.
oh well onto the next deal
cheers
shaunLead, Follow or get out of the bloody way
[rolleyesanim]Yep Shaun,
On to the next deal!!!! If you want i have a folder with most brokers of pubs in vic & qld so if you want it just let me know.Chefman
Shaun,
Looks like you have got some really good advice on your matter, I think you are looking in the right areas the only other suggestions I would add is that if this is the best looking pub in town then the figures I would suggest are at there peak for some time as the last owners may have done the hard work to pick the place up. This can be good but it is generally a cycle within a town of who is the flavour of the month. Be aware that if the other publicans upgrade or improve there setup then it may impact heavily.
Being from a beverage back ground the main areas for improving the turnover apart from your pokies layout and who yuo attract there would be to audit the GP% on products sold, this compared to what the pricing structure is set at will tell you very quickly about theft or incorect margins.
Take into consideration that in NSW (is the pub there) the pokies entitlements is amajor part of the value in a pub. Your partner sound experienced in this area, the safee gard to this set up is that your income depends on his abilities and willingness to run it like a business not a place for him and his mates to socialize.
I hope you enjoy this venture if you go ahead and I would be only to happy to answer any questions you may have, feel free to PM me or email on [email protected]
Its agreat industry to be involved in when done right.
Rod[party]
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