Buying a bar? I just don't get it. How can you sell wot don't belong to you?

[johnnybgood]

As an example, the much published Mobi-Bar[aka The Terrace] on Siam CC road has been sold for the umteenth time. ......Some say 1 mill baht !!

The buyer still has to pay rent to the Thai owner.

The buyer still has to pay for the inevitable facelift to the Thai tradesmen.

The buyer still has to pay tax +licences to the Thai Government and Thai police.

The buyer has to payetc etc.........

I mean I can rent a car, why can't I sell it on to some one. They can drive it and pay the rental...........

Or I can rent gogo girl, same thing.... why can't I sell her? The 3rd party can take care of her expenses.*

I can't understand it. Maybe I'm thick? What does the new bar buying foreigner get?

*(levity)

[petercool]

A new "owner" takes over a lease, compensates for any original or new "tea" money and buys any goodwill value, stock and maybe fittings not belonging to the actual owner.

And your quoted price for Mobi's bar is way outside the reality of that "sale".

[paddyjenkins]

Rent a girl from a gogo bar...why can't you sell her, have you tried? Try it, I'm sure if you choose a nice girl you will find a ready buyer to pay you to take her off your hands for the night.

Rent a condo...at a good rent and require a fee for another renter to move in and take over the contract....why not? It's called novation.

Etc etc...

[johnnybgood]

ok

PeterC, if you take over the lease does that mean no rent is paid monthly.......... ever?

Still a lot of cash for a pool table and a big TV.

[johnnybgood]

Rent a girl from a gogo bar...why can't you sell her, have you tried? Try it, I'm sure if you choose a nice girl you will find a ready buyer to pay you to take her off your hands for the night.

Rent a condo...at a good rent and require a fee for another renter to move in and take over the contract....why not? It's called novation.

Etc etc...

Thanks, good post

Novation is good when you have something tangible, rule of law and a monopolistic licencing environment...... etc

[ATF]

Mobi's has been sold now someone wedged up his price.

[petercool]

ok

PeterC, if you take over the lease does that mean no rent is paid monthly.......... ever?

Still a lot of cash for a pool table and a big TV.

Not at all, a lease agreement would have monthly rents applicable but payments will pass to the new lease holder.

[davethailand]

What a strange pointless topic.

[wooloomooloo]

What a strange pointless topic.

Indeed. A college course in business management wouldn't go amiss.

[LennyW]

"Maybe I'm thick?"

No doubt about it !

[pegman]

Why not take out a lease on a shophouse and do your own bar renovation. A guy I know did this in Jomtien and has the busiest bar on the Soi without having had to buy a bar?

[stoli]

Rent a girl from a gogo bar...why can't you sell her, have you tried? Try it, I'm sure if you choose a nice girl you will find a ready buyer to pay you to take her off your hands for the night.

Rent a condo...at a good rent and require a fee for another renter to move in and take over the contract....why not? It's called novation.

Etc etc...

It is not called novation. It is called illegal.

[CHdiver]

I guess the renovation was for free? Btw. its not easy to find a empty Shophouse in a good Soi with a lot of possible Customers. If you do this, you have to calculate in the time of the renovation (you pay rent, but you generate no money out of the Bar), build up of the customer base and good Staff. But what do I know, I have no intention to have a Bar anyway.

[paddyjenkins]

Rent a girl from a gogo bar...why can't you sell her, have you tried? Try it, I'm sure if you choose a nice girl you will find a ready buyer to pay you to take her off your hands for the night.

Rent a condo...at a good rent and require a fee for another renter to move in and take over the contract....why not? It's called novation.

Etc etc...

It is not called novation. It is called illegal.

Nope, I'm pretty sure it's called novation....a legal term for a legal activity....

[pegman]

http://en.m.wikipedia.org/wiki/Novation

[Chivas]

Why not take out a lease on a shophouse and do your own bar renovation. A guy I know did this in Jomtien and has the busiest bar on the Soi without having had to buy a bar?

Too simple.......

[Pinot]

Don't try and run a business in Thailand. Starting a new business is always a gamble and the odds are stacked against you. In Thailand, the chances of starting a successful business are slim.

Every bar in Thailand is for sale. They rarely make money.

I always suggest anyone wanting to own a bar in LOS just stand in the middle of the road and hand out your cash. Same financial results.

[NanLaew]

Mate of mine on his second Pattaya bar in about 20 years. The first one was a foot in the door to the business and was sold on at a small profit. The second bar he acquired was already a good going concern and ended up as a cash cow. It is a passive money maker these days as the property it sits in is worth millions. Mind you, him and his business partner were savvy enough to buy the whole shophouse when the going was good and prices weren't silly.

The property is now the gold mine whereas the bar has been well milked and is mostly now just for amusement, meeting his mates and preventing boredom.

The bars you see flipping regularly on Walking Street, Soi 6 and elsewhere are probably money laundering ventures more than bad business planning. The open air beer bar 'malls' are for low-end local money laundering and lubbed up foreigners with more money than sense but in reality, very little of both.

[davethailand]

Why not take out a lease on a shophouse and do your own bar renovation. A guy I know did this in Jomtien and has the busiest bar on the Soi without having had to buy a bar?

I know a case of that also, used the name and everything.

[petercool]

A lot depends on locality. Only a few designated entertainment areas exist in reality and unless you in one of those 'zones' the permits and licences for a bar are troublesome and often not that legal to begin with.

[petercool]

A troll post using profanity was removed.

Another post using crude language was removed

[ezzra]

Rule of the thumb here in Thailand, if it doesn't look kosher and doesn't make sense... walk away

and forget about it.. don't wonder, no much make sense in this country...

[thaidel48]

Why on earth would anyone want to by a bar?

In reality the only way to make money from a bar is to sell it for more than you paid to the next idiot.

[henksteeghsth]

The New owner get nothing more than a venue that he need to pay for,

Some old furniture, maybe a good pool table and a T.V.

Go there on evening time and look what the bars have on customers.

New contract with the owner that means pay the deposit and the key money and its give the owner

the possibility to ask more rent.

Most of the staff will leave??

You don`t get customers because the only came for the old bar not for you.

First 6 months you don`t make money only wen you are lucky you survive.

Good luck on that location

[davidmann]

its the same world over you buy a key ,hopping it make money ,could also loose money

[louse1953]

Why not take out a lease on a shophouse and do your own bar renovation. A guy I know did this in Jomtien and has the busiest bar on the Soi without having had to buy a bar?

Spot on mate.As a friend of mine says'i'm not here to make other farangs rich".

[Torrens54]

ok

PeterC, if you take over the lease does that mean no rent is paid monthly.......... ever?

Still a lot of cash for a pool table and a big TV.

Are you serious?

[poweratradio]

Your buying the business assets IE: the contents of the bar, furniture appliances and all the stock. The assets are taxable and the liquor licensing cost go to the new owner. For the business itself you would buying good will only. There is likely no accounts list that generate income. Warning! No-one sells business that makes money. No-one should ever pay for good will. Buy the assets create your own business and take your time even to the point of moving the assets to a better location if you manage to buy only the assets.

[johnnybgood]

ok

PeterC, if you take over the lease does that mean no rent is paid monthly.......... ever?

Still a lot of cash for a pool table and a big TV.

Are you serious?

No not really, just passing a quiet day.........

I'm just trying to find out what the buyer is paying for. All I see is foreigners handing over money to Thais......

Likesay before...am I thick?

[Cent]

ok

PeterC, if you take over the lease does that mean no rent is paid monthly.......... ever?

Still a lot of cash for a pool table and a big TV.

Not at all, a lease agreement would have monthly rents applicable but payments will pass to the new lease holder.

In some cases the rent/lease is paid up for the year. Here in Surin many leases call for an annual payment up front for the full year's rent.