Updated over 4 years ago on . Most recent reply
Commercial real estate
This might be a dumb question but does anyone know how to determine the value of a restaurant?
To give some context, I went to a seller appointment on a distressed property. They bought it as a house, but began renovating to turn it into a restaurant. They didn’t make it very far (thus the reason for said appointment). I am trying to wholesale this deal but am not sure if I should determine my after repair value based off of residential comps or commercial comps. I also have no idea where to find the commercial comps, or just any idea how to run the numbers on a potential new restaurant. Any advice would be greatly appreciated.
Anyone run into a similar situation?