Restaurant or Trailer?

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Fishfire

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Hi all I own a building on main street in the town that I live in. Its not a big town and it is seven miles from the largest town in the area. I have been thinking of opening a resturant in the building. My family thinks that I should sell the building and put the mony into a vending trailer. I am not sure which would be the best way to go if I go with the resturant I will have over head not much but some if I go with the trailer the mony from the building will pay for it all. Thanks for the help
 
I don't know. Real estate is a valuable thing to have and increases in value over time. Why can't you get an equity loan and put it into a business that caters with a trailer?

Or, put the equity loan into a trailer. If the trailer thing goes bust at least you will still have the building and will be able to sell the trailer to recoup some of your loss.
 
Boshizzle said:
I don't know. Real estate is a valuable thing to have and increases in value over time. Why can't you get an equity loan and put it into a business that caters with a trailer?

Or, put the equity loan into a trailer. If the trailer thing goes bust at least you will still have the building and will be able to sell the trailer to recoup some of your loss.
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No.

Do not borrow money to finance a restaurant. If you go the trailer route, sell your property unless you have the cash to spend. Pay for it lock, stock, and barrel.
 
Cook said:
No.

Do not borrow money to finance a restaurant. If you go the trailer route, sell your property unless you have the cash to spend. Pay for it lock, stock, and barrel.
Click to expand...

Extremely sound advice there.
 
The ONLY reason we tried a store is because it had ALL equipment in it and we had a very short term trial lease. We ran away after a good taste of it. My wife quit her job and we do just fine with a trailer. I'm thinking of a new one, wanna buy it? S&S 18' + FEC500, HD compliant.
 
Boshizzle said:
I don't know. Real estate is a valuable thing to have and increases in value over time.
Click to expand...

:rofl:

With the trailer, if you're in a bad spot for business - you don't have to worry so much. You'll be in a new spot next week. :thumb:
 
Perhaps if you follow your detailed business plan the answer will be obvious.
 
If it was me I would make sure that your going to make a go at it with the BBQ either way you go. Or just start out doing some vending and see what kind of business your going to have. You could keep the building and run some BBQ out of it for a test run and see how it goes............
 
SmokeOCD said:
:rofl:

With the trailer, if you're in a bad spot for business - you don't have to worry so much. You'll be in a new spot next week. :thumb:
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Exactly. While you watch the value of the property you gave Up going higher while you kick yourself in the arse. That's hillarious.
 
Leverage your assets, bro. Don't pi@@ them away.
 
If you are sure you want to make BBQ a business then I vote for selling the building and paying cash for everything you need to take a legitimate shot at it.

For what it's worth, I know that I am very conservative when it comes to financial matters. That being said, I own and run a small construction company with zero debt. I think that alone is what has kept me in business the past couple years while so many are struggling and even going out of business. My simple plan has been to keep overhead at an absolute minimum and grow as I have the funds available to do so. Granted, I won't be making six figures in the near future, but I am also not worried about going out of business.
 
The building isn't a restaurant. It is a tangible asset it can generate rental income while the owner pursues his dream. The rent income cam be used to help finance it. If it fails he will still own something that he won't have to sell for a loss on craigslist .
 
Boshizzle said:
The building isn't a restaurant. It is a tangible asset it can generate rental income while the owner pursues his dream. The rent income cam be used to help finance it. If it fails he will still own something that he won't have to sell for a loss on craigslist .
Click to expand...

That would certainly be an avenue that I would look into before making any decisions. If you can rent that building out and cover the costs of your overhead, then that would definately be one way to go.
 
Boshizzle said:
Are you people seriously recommending trading real estate for a BBQ trailor? Wow, what a bunch of business geniouses you are. That's why you are cooking out of a trailer I guess.
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I'll grant that I absolutely agree with you on the idea that he should leverage the property, assuming it's not currently on loan but is owned or would at least generate profits via lease that would exceed the expense, however the snarkiness about how people aren't as smart as you and owning property is the 'duh' thing to do is uncalled for. Last I checked most property values are WAY down. Will they come back, maybe, maybe not. No one knows if the real estate market will every truly 'return' because it was purposely over valued, which caused the massive collapse.

In addition, there's nothing wrong with cooking out of a trailer. There's a bunch of twenty-somethings with mbas from a lot of fine schools doing it and making good money, using marketing and brand management that many of the 'business geniouses' are taking note of.

It's one thing to have an opinion, or even provide sound advice. It's another to be a douche about it.
 
Boshizzle said:
Are you people seriously recommending trading real estate for a BBQ trailor? Wow, what a bunch of business geniouses you are. That's why you are cooking out of a trailer I guess.
Click to expand...
Not at all. With regard to the trailer comment, If I didn't respect the forum I'd suggest you do something quite disgusting. You'd be shocked at our cash flow (and my real job pays, well, it's none of your business but I think I have perspective).

Anyway, to the point. Start small, build cash and buy a trailer. Find someone to lease your property and win on both fronts.
 
They are making new trailers every day, land/real estate is finite. Property values are down right now but they will eventually go back up.

My .02
 
jbrink01 said:
Good for you. Signed, Trailer Trash and proud of it!
Click to expand...

Take it any way you want. But, I'm glad to see that you finally came around to my way of thinking about it. I gave my opinon and you guys that initially disagreed with me started posting laughing emoticons. I defended my position. Real estate is a better investment over the long haul than trailors. That's just the way it is.

Now, I have often dreamed about owning a BBQ trailor. I envy you guys that do it successfully and wish that I could. But, if I owned property I wouldn't trade it for a cooking trailor. I'd find a way to leverage my property to make my dream come true. Without the asset of property, I'd go about getting a trailor another way.

At this point, I'm trying to figure out a way to just transport my meager little cooker to the local farmer's market to use BBQ pork to sell my sauce. A trailor isn't even in my thinking at this point. Maybe it should be.

Signed - The douche with an MBA.
 
Let me be the first to say (unless someone already said it and I missed it) that a forum like this is not the place to seek financial advice, especially with a significant asset like property, and how to best finance a business. That is something best left for you, your accountant and financial adviser to tackle taking into account all of your financial means, obligations, and individual circumstances.

HOWEVER, if you want to know the pros and cons in restaurant vs. trailer debate, I am certain that the experienced individuals here can provide a great list for you to use as input in your decsion.
 
My $.02...

Lease the property and to generate profits. Work and save until you can afford to buy a trailer (or even take out a SMALL loan to assist with buying a trailer).

Continue to rent out your property to offset start up costs of the new business.

Once you are settled in to your business and generating profits, decide how you want to handle the property.
 
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