Are there any thoughts on purchasing a liquor store?

Question

Does anyone have any thoughts of buying a liquor store now? How does one know if a store is a good purchase or not?

Steve Morris · Answer

Does anyone have any thoughts of buying a liquor store now? How does one know if a store is a good purchase or not?

Going to assume it's for investment purposes and not personal use.

Like any property, you need to read the lease which is what you're buying.  Maint thing beyond rent and your NOI, what are the tenant's "outs" of the lease.

I guess, in case they leave, the ability to re-purpose the building (ie is it good location, parking, multiple uses?)

As a business, since COVID liquor stores are doing crazy-good business.

Filip M. · Answer

Yeah, I agree with @Steve Morris, liquor stores are killing it right now. Make sure it is in a decently populated location, though. Quick peak on google maps can give you a general idea, then looking beyond that on demographics of the zip code - I can help with that if you are thinking numbers game like me. I would say larger concentration of younger people in the zip code would be a decent positive indicator for success...

John C. · Answer

@Steve Morris

Sonia, Steve has good points, I can't speak for the business itself.  But I would get a good CPA and audit the business thoroughly.  Good luck and keep us posted !

Sonia Tal · Answer

@Sonia Tal I meant store not door

Sonia Tal · Answer

@John C. Plan on just buying the door. We do have the option to buy one of the two properties with 2 apartments on top. This location is in Carlstadt,NJ.

John C. · Answer

@Sonia Tal

Are you buying the real estate that the liquor store rents from or just the liquor store?

Are there any thoughts on purchasing a liquor store?

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