Hello Ralph Cabrera,
I understand your lease concern; two area gyms closed due to rising rent costs. My husband told me to buy a building, also; I chose not to; because, of small gym participant numbers. Make sure you have a solid client base, preferably signed up, to make this worthwhile. Do your homework and go with your gut instinct. Please let us know of your decision.
I guess you are correct, I just have worry with leasing it. Who is to say once you lease it and make it a thriving business they cant simply not renew your lease and try to kick your business out or take it. As well, having to pay 9500 a month and never even own the building seems foolish to me. So im still debating.
Is it even possible to purchase the building? I would guess that since it’s commercial real estate, you’re going to find a purchase of the land and building would be prohibitively expensive because they’re going to value the present value of the lost revenue over many years.
If you’re going to borrow equipment, you might be better of leasing the space.
Not to be pessimistic because half of gyms survive, but gyms have out-paced restaurants in terms of percentage of businesses that go out of business. You would want a really solid business plan before even thinking of something like this.
…and an LLC or C-corporation to purchase and maintain the gym. Put something between you and your personal assets.
Hello Ralph Cabrera,
Wow, good for you. It depends on your real estate area and what you already have as to what needs purchasing. I am thinking about speaking with a realtor for you. You want to find a gym business manager to speak with, also. How much will you do and what will you hire out? How many employees, if any, etc.? I can’t give you a number, this requires much thought and homework. The largest expense is the building. Are you handy with installing fans or have friends who can help you? Have you looked into www.SCORE.org for help from retired entrepreneurs?
You could barter services for training services.
I wonder if there are gym owners in your area who may like to network with you.
This is exciting; good luck and enjoy the process,
Natalie aka NAPS 2 B Fit.