Updated about 2 years ago on . Most recent reply
Salon Suite franchise
Investment Info:
Retail commercial investment investment.
Purchase price: $1,200,000
Cash invested: $1,200,000
Have a salon suite which is a different type of commercial real estate investment. We leased a space, built out 40 individual units, and rent those units to hairdressers, estheticians, etc.
What made you interested in investing in this type of deal?
The business eventually becomes fairly passive after getting the right people and systems in place. Is a recession proof business. This is the evolution of the salon industry.
How did you find this deal and how did you negotiate it?
A commercial real estate agent found the location.
How did you finance this deal?
Family money
How did you add value to the deal?
Personal family deal
What was the outcome?
Salon has been 100% booked for 6+ months now.
Lessons learned? Challenges?
Build out is difficult. Trusting general contractors is not enough. You have to actively manage them.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
We used a commercial real estate agent that specialized in retail leasing.