Anyone out there Looking to move upcountry and own/run a nice little business?

[Mobi]

I recently came across lovely little Italian restaurant/guest house business in down-town Nong Khai. It is owned by a young Italian cook who has built it up from scratch, and is now quite profitable.

It is in a good spot by the Mekong river and comes with private rooms for the owner/manager. He is only asking for 250K, (reduced from 400k) including kitchen equipment (pizza oven ) and all fittings etc. Rent is 23k per month. He is prepared to train the new owner/cook.

There’s nothing in it for me - I’m just trying to help the guy find a buyer as he has to leave soon.

It really is a great opportunity for someone who may prefer a slower pace of life (and cheaper) than Pattaya has to offer.

PM me for more details

[jpinx]

it's in here, in another thread somewhere......

Looks very nice, but totally out-of-place.

[OMGImInPattaya]

23k rent in where, nong khai nowhere, he's getting hosed. If he hasn't already, put him in touch of Greg at Sun Belt, he'll get it sold for him.

[Mobi]

He's making enough to pay the rent and support himself (I have seen the books).

It's the only Italian place in Nong Khai and the food is good and cheap. Does very well in high season. As I say, it would suit a farang maybe with a Thai wife who is looking for a slower pace of life and the means to get by.

Don't forget he also has 3 large guest house rooms for rent, all fully furnished with fridge, aircon and TV etc.

It is definitely a going concern for the right person and it isn't in the boon-docks. His internet connection is 13mb.

Too small fry to interest Sunbelt IMO. By the time they've taken their cut there'd be nothing left.

[NanLaew]

Nong Khai has grown and provided it's in the right location and not totally landlocked (no parking), it could do well for the right buyer but someone with experience and the right attitude. Don't count on the local expats to do much more than suck some cold beer some nights and a spag bol once a month. If Udon city is anything to go by, the Thai's are really into western cuisine and willing to pay if it is done right and they feel happy afterwards. A fair few farang-operated Udon eateries are either shuttered or for sale because they are missing the local content completely.

[Mobi]

Nong Khai has grown and provided it's in the right location and not totally landlocked (no parking), it could do well for the right buyer but someone with experience and the right attitude. Don't count on the local expats to do much more than suck some cold beer some nights and a spag bol once a month. If Udon city is anything to go by, the Thai's are really into western cuisine and willing to pay if it is done right and they feel happy afterwards. A fair few farang-operated Udon eateries are either shuttered or for sale because they are missing the local content completely.

He does an excellent pizza and his pasta dishes are also good,.Everything on the menu is 150 Baht, and as you say, NL, his business is a mix of farangs (mostly on the the way to or from Vientiane) and local Thais who love pizzas and pasta. He also does a take away business to the other bars in the vicinity.

Nong Khai is much sleepier than Udorn, but has all the infrastructure, stores etc and will suit the right person or couple, possibly someone married to a Nong Khai girl.

Parking is not a problem, and the place is 1 minute's stroll from the river bank.

[OMGImInPattaya]

Nong Khai has grown and provided it's in the right location and not totally landlocked (no parking), it could do well for the right buyer but someone with experience and the right attitude. Don't count on the local expats to do much more than suck some cold beer some nights and a spag bol once a month. If Udon city is anything to go by, the Thai's are really into western cuisine and willing to pay if it is done right and they feel happy afterwards. A fair few farang-operated Udon eateries are either shuttered or for sale because they are missing the local content completely.

He does an excellent pizza and his pasta dishes are also good,.Everything on the menu is 150 Baht, and as you say, NL, his business is a mix of farangs (mostly on the the way to or from Vientiane) and local Thais who love pizzas and pasta. He also does a take away business to the other bars in the vicinity.

Nong Khai is much sleepier than Udorn, but has all the infrastructure, stores etc and will suit the right person or couple, possibly someone married to a Nong Khai girl.

Parking is not a problem, and the place is 1 minute's stroll from the river bank.

Had a nong khai girl years ago, a real beauty, but she ended up marrying a London doctor. I wonder if he'd be interested.

[lemoncake]

23k rent in where, nong khai nowhere, he's getting hosed. If he hasn't already, put him in touch of Greg at Sun Belt, he'll get it sold for him.

Love to hear about any sales made by this company

[bangkokstick]

The problem of NONG KHAI is that it is at 10 mns from Laos, and when people are there they don't stay at NONG KHAI, they just go to laos where pizza are better and grass greener...

[zyphodb]

The trouble with it is... 23K is a lot of rent to find a month out of likely Nong Khai trade, especially on top of 250K layout...

[KittenKong]

The trouble with it is... 23K is a lot of rent to find a month out of likely Nong Khai trade, especially on top of 250K layout...

23K rent for a restaurant and manager accommodation and three rental guest-houses doesn't seem unreasonable. Though of course it does all rather depend on how busy the restaurant and guest-houses are.

But I would be concerned that in true Thai tradition the owner might quadruple the rent if he thinks his tenant is doing well (or even not doing badly).

[PattayaPhom]

40% discount, must be desperate....23k rent???

[lemoncake]

The trouble with it is... 23K is a lot of rent to find a month out of likely Nong Khai trade, especially on top of 250K layout...

Kitchen set up alone would cost close to 100K

[hotandhumid]

Typical of this forum, all the business 'experts' have arrived slating the proposal, not one positive post. A truly cynical bunch.

The OP probably regrets starting this now.

[Mobi]

The problem of NONG KHAI is that it is at 10 mns from Laos, and when people are there they don't stay at NONG KHAI, they just go to laos where pizza are better and grass greener...

But nearly all travellers to Vientiane usually spend at least 1 night in Nong Khai en route and stay at guest houses in the area where the restaurant is located. Indeed these people make up a good percentage of his trade in the high season.

[Mobi]

40% discount, must be desperate....23k rent???

Considering the size of the building which includes 3 fully furnished guest rooms, and the location - which is on the river front, right in the centre of things, plus personal accommodation (which obviously will save the owner money on not having to rent a room outside) I don't think the rent is unreasonable.

Sure you can drive five minutes out along the riverside and find a nice villa or house from 7-12k but you won't get any customers if you tried to open up a restaurant there. Indeed some farangs have tried it and have gone broke. There is only one area that attracts the tourists and locals and that is where the business is located.

'Location - location - location' I believe the expression goes....and you have to pay a premium to be there.

As I have said, I have looked at his books and I believe them. He is not getting rich and low season is a bit of a problem, but he easily covers his rent and other expenses and has a nice little sum left to live on - even a farang. It is a going concern - for the right person, whoi is prepared to work hard. The business has only been going for just over a year and is already doing well, so it has great potential to improve.

[ThaiBob]

The first question one should ask is "why are you selling this business"?

[Asiantravel]

No matter how attractive this business appears, prospective buyers should simultaneously be asking the following questions :-

1. is there a firm lease in place between the existing business owner and the landlord of the premises and does it specifically allow for assignment of the lease to be transferred to another party without any additional charges or penalty?
2. If there is a lease , how many years is there remaining ?
3. How long would the building owner guarantee that the rent will not be increased above 23K
4. if the rent is eventually increased how would such rent increase be assessed and If both parties cannot agree how would any potential dispute be resolved?

Edited July 9, 2013 by Asiantravel

[hotandhumid]

40% discount, must be desperate....23k rent???

Considering the size of the building which includes 3 fully furnished guest rooms, and the location - which is on the river front, right in the centre of things, plus personal accommodation (which obviously will save the owner money on not having to rent a room outside) I don't think the rent is unreasonable.

Sure you can drive five minutes out along the riverside and find a nice villa or house from 7-12k but you won't get any customers if you tried to open up a restaurant there. Indeed some farangs have tried it and have gone broke. There is only one area that attracts the tourists and locals and that is where the business is located.

'Location - location - location' I believe the expression goes....and you have to pay a premium to be there.

As I have said, I have looked at his books and I believe them. He is not getting rich and low season is a bit of a problem, but he easily covers his rent and other expenses and has a nice little sum left to live on - even a farang. It is a going concern - for the right person, whoi is prepared to work hard. The business has only been going for just over a year and is already doing well, so it has great potential to improve.

Nobody is listening.

[Mobi]

No matter how attractive this business appears, prospective buyers should simultaneously be asking the following questions :-

1. is there a firm lease in place between the existing business owner and the landlord of the premises and does it specifically allow for assignment of the lease to be transferred to another party without any additional charges or penalty?
2. If there is a lease , how many years is there remaining ?
3. How long would the building owner guarantee that the rent will not be increased above 23K
4. if the rent is eventually increased how would such rent increase be assessed and If both parties cannot agree how would any potential dispute be resolved?

The guy is selling up for personal reasons, and the above questions can all be answered. (I have met the landlord)

I think I have posted enough info here to attract anyone who may be seriously interested, so I think the best plan is for such persons to send me a PM and I will advise further, to the best of my knowledge.

As I said in my opening post, I am only trying to help out the guy out, (his English is not great and he doesn't have good English writing skills), and it did occur to me that there may be someone in Pattaya who was looking for a change of pace and livelihood.

If not, never mind, at least I tried.

Mobi

[Asiantravel]

No matter how attractive this business appears, prospective buyers should simultaneously be asking the following questions :-

1. is there a firm lease in place between the existing business owner and the landlord of the premises and does it specifically allow for assignment of the lease to be transferred to another party without any additional charges or penalty?
2. If there is a lease , how many years is there remaining ?
3. How long would the building owner guarantee that the rent will not be increased above 23K
4. if the rent is eventually increased how would such rent increase be assessed and If both parties cannot agree how would any potential dispute be resolved?

The guy is selling up for personal reasons, and the above questions can all be answered. (I have met the landlord)

I think I have posted enough info here to attract anyone who may be seriously interested, so I think the best plan is for such persons to send me a PM and I will advise further, to the best of my knowledge.

As I said in my opening post, I am only trying to help out the guy out, (his English is not great and he doesn't have good English writing skills), and it did occur to me that there may be someone in Pattaya who was looking for a change of pace and livelihood.

If not, never mind, at least I tried.

Mobi

I appreciate that but the questions I raised should be part of any regular due diligence

before buying any business situated in rented premises.

During the days I was working I saw so many small business people eventually “do their dough “ because they had concentrated all their efforts on negotiating with the business proprietor but at the same time made all sorts of assumptions regarding their ongoing relationship with the landlord which later turned out to be grossly inaccurate.

The prospects for making money in a business of this nature is only as good as the terms of the lease you are able to negotiate with the building owner. If he or she has devious motives unlike in the West where there are laws protecting tenants against predatory landlords, here you would probably have no other recall than to ultimately walk away.

[Tolley]

23k a month rent for a business and rooms doesnt sound too bad really. Heck I am paying 90k a month rent for a two bedroom apartment admittedly it isnt in Nong Khai.

[MobileContent]

How many years are left on the lease?

I am interested to see his place. When can I have a look. I am based in Sakon Nakhon so it takes me about 2 1/2 hours.

Please PM me for contact details.

[swissie]

The first question one should ask is "why are you selling this business"?

It's ALWAYS for "personal-reasons". 23'000Bht a month rent? How many pizzas you have to sell, just to NET 23'000 ! Where is the customer base?

To me: A typical "unload-situation". = Take out as much cash you can get and then run. For the average Thai, this "unload-situation" is simply too expensive. What's left? A Farang "Investor".

The OP claims to have seen the "Books"!..................................

Cheers.

[ThaiBob]

No matter how attractive this business appears, prospective buyers should simultaneously be asking the following questions :-

• is there a firm lease in place between the existing business owner and the landlord of the premises and does it specifically allow for assignment of the lease to be transferred to another party without any additional charges or penalty?
• If there is a lease , how many years is there remaining ?
• How long would the building owner guarantee that the rent will not be increased above 23K
• if the rent is eventually increased how would such rent increase be assessed and If both parties cannot agree how would any potential dispute be resolved?

The guy is selling up for personal reasons, and the above questions can all be answered. (I have met the landlord)

I think I have posted enough info here to attract anyone who may be seriously interested, so I think the best plan is for such persons to send me a PM and I will advise further, to the best of my knowledge.

As I said in my opening post, I am only trying to help out the guy out, (his English is not great and he doesn't have good English writing skills), and it did occur to me that there may be someone in Pattaya who was looking for a change of pace and livelihood.

If not, never mind, at least I tried.

Mobi

I appreciate that but the questions I raised should be part of any regular due diligence

before buying any business situated in rented premises.

During the days I was working I saw so many small business people eventually “do their dough “ because they had concentrated all their efforts on negotiating with the business proprietor but at the same time made all sorts of assumptions regarding their ongoing relationship with the landlord which later turned out to be grossly inaccurate.

The prospects for making money in a business of this nature is only as good as the terms of the lease you are able to negotiate with the building owner. If he or she has devious motives unlike in the West where there are laws protecting tenants against predatory landlords, here you would probably have no other recall than to ultimately walk away.

Good advice. Another question is about key money. The shophouses by VT7 remain empty not because the rents are that high but because Mrs. View Talay wants over 300k baht every three years, that is the original 3 year lease and then again upon renewal.

[breadbin]

If the business is such a good deal my only question is why hasn't it sold already?

There must be people in his location looking to buy up good businesses.

Personal reasons, we'll never get the full truth anyway.

[lemoncake]

If the business is such a good deal my only question is why hasn't it sold already?

There must be people in his location looking to buy up good businesses.

Personal reasons, we'll never get the full truth anyway.

I do not understand what is the difference why its not sold, why he is selling why this and why that.

If one is a businessman and has the money, one can see the potential and make the best out of it.

Clearly its not a booming business otherwise it would not be 250K, as i have already said, kitchen alone would cost 100K

Rent is NOT high, considering one can live there and rent out rooms as well.

Make pizza, make a bar , sky is the limit.

If i was married or planning to move that way, i would be very interested.

When i opened my first hotel, the building was a dump and everyone could not understand why i would be interested as 2 previous owners were out of business in the first year.

Well its the 4th for me there now and its getting stronger by the year.

[NanLaew]

Good advice. Another question is about key money. The shophouses by VT7 remain empty not because the rents are that high but because Mrs. View Talay wants over 300k baht every three years, that is the original 3 year lease and then again upon renewal.

Why are we prattling about VT6's astronomical key money?

There is NO key money with the business in the OP's post. For around £5300 down and less than £500 a month that includes a roof over your head, someone could have a cracking little business going. Bung in a moderate coffee maker (if not there already) and with the decent wi-fi and a modest pastry case (think cheap as dirt Thai-style khanoms), one could develop a reasonable customer flow outside of the mainstay pizzas. Maybe it could benefit from a license to sell cold beer (if not in place already)?

I mean it's only 5300 quid???!!! If one has to debate a business plan and long term investment strategy for a piddling amount like that, maybe you don't have enough money in the first place.

[kennedy]

Good advice. Another question is about key money. The shophouses by VT7 remain empty not because the rents are that high but because Mrs. View Talay wants over 300k baht every three years, that is the original 3 year lease and then again upon renewal.

Why are we prattling about VT6's astronomical key money?

There is NO key money with the business in the OP's post. For around £5300 down and less than £500 a month that includes a roof over your head, someone could have a cracking little business going. Bung in a moderate coffee maker (if not there already) and with the decent wi-fi and a modest pastry case (think cheap as dirt Thai-style khanoms), one could develop a reasonable customer flow outside of the mainstay pizzas. Maybe it could benefit from a license to sell cold beer (if not in place already)?

I mean it's only 5300 quid???!!! If one has to debate a business plan and long term investment strategy for a piddling amount like that, maybe you don't have enough money in the first place.

250,000 is chump change.

[Asiantravel]

Good advice. Another question is about key money. The shophouses by VT7 remain empty not because the rents are that high but because Mrs. View Talay wants over 300k baht every three years, that is the original 3 year lease and then again upon renewal.

Why are we prattling about VT6's astronomical key money?

There is NO key money with the business in the OP's post. For around £5300 down and less than £500 a month that includes a roof over your head, someone could have a cracking little business going. Bung in a moderate coffee maker (if not there already) and with the decent wi-fi and a modest pastry case (think cheap as dirt Thai-style khanoms), one could develop a reasonable customer flow outside of the mainstay pizzas. Maybe it could benefit from a license to sell cold beer (if not in place already)?

I mean it's only 5300 quid???!!! If one has to debate a business plan and long term investment strategy for a piddling amount like that, maybe you don't have enough money in the first place.

Wow !

if you approach all your business dealings in such shall we say –“ relaxed manner “..........can I interest you in this bridge that I know is for sale