Goose Hummock B+T

[fishweewee]

Originally Posted by partsjay

$ 3.9 Million......that's it?

Don't know how any bait shop could pay for that rent.

I don't see how anyone could get a reasonable return on investment with that kind of purchase price.

The largest tackle shop in my area (CT) grosses about $2 million annually (that's SALES dollars). Margins are probably thin - let's be generous and assume 25% (adjusting for product mix). After paying for merchandise, you've got $500,000 to pay for overhead like employee salaries, utilities, property taxes, repairs and maintenance, and mortgage.

Let's dissect the mortgage payment here for a second.

For a $3.9 million mortgage, you'd probably have to put 20% down ($780,000).

Let's assume we're financing

$3,120,000

over

30 years (360 months)

at

7% annual interest

Your monthly mortgage payment would be $20,637.06, which would come out to $247,644.66 per year. That's a whopper of a payment.

Getting back to your down and dirty cash flow ... gross profit of $500,000 less $248,000 annual mortgage payments = $250,000 to pay the rest of the bills. I'd hate to see the property tax bill, if assessed values are anywhere near the pro-rated purchase price, it's gonna be steep.

I dunno guys, doesn't sound like a lot of room for error here, especially when you consider how sensitive this business is to the weather, is primarily tourist-driven, and the fact that the season isn't that long.

-WW

[Nebe]

Originally Posted by fishweewee

Your monthly mortgage payment would be $20,637.06, which would come out to $247,644.66 per year. That's a whopper of a payment.

especially in jan through april

[piemma]

yeah, but the real estate is worth that and who ever buys it will not operate it as a tackle store. My bet is that they knock the building down and build a revenue producing entity such as a hotel, resturant, condos, bed and breakfast or some other commercial enterprise that would make more than the 5 or 6% net a tackle store makes.

[vineyardblues]

It's da land it's on water front to great fishing, not sure of the size of the lot? LOCATION LOCATION LOCATION....

Funny about the waders, On the vineyard they have them on at church..lol
Only kidding but just about every other place does not think twice

Was that before Clinton F** It up ? ...lol
VB

[Karl F]

piemma, local and state laws regards to septic would kill any hopes of that type of business, the Inn next door to it has some serious septic issues, and the bulkead in front of their parking lot is collapsing into the water at a rapid rate.. town hall is after him all the time to fix stuff/bring stuff up to code.
The back building on the water that is full of the kayaks.... hate to tell you how many times that has been flooded over the years. parking issues/entry/exit... nothing but headaches... location, location,location... yes... issues/headaches/regulations... as well.

[fishweewee]

Know what?

Orleans needs a Hooters. Yeah, the folks at Wendy's across the circle would bitch, but if the OBX has its own Hooters, why not one near the Outer Beaches?

[capesams]

someone will pick it up[with more money than they know what to do with][tax right off] and give something a try.When u have 20-30- 60 million, what's 3.9....Mike doesn't need money,,he just bought it for something to do.The first big mistake they made was dumping Paul so Shaun could take over, who didn't know his a$$ from his elbow about tackle,but thought he was better than the rest,,then ripped Mike off an flew the coop...then they put Mark in charge who didn't like people..talk about going a$$ backwards.

[Karl F]

Shaun is selling commercial RE now... maybe he can dip into the goosewell one more time....
They tossed Bruce way back too, that was a mistake (he did OK up at MacSquids for a spell,, till he left us).... Paul, Bruce, Mark (he's as grumpy as you) , but they knew what they were sellin', (and Mark did treat the locals better ) and that's been lacking in there for tooooo long.

[vineyardblues]

Shaun does know fish If it's the same one who lives down the street from Harrys ?? GREAT guy. And his brother 2.......
fishing every day!

VB

[capesams]

even I couldn't hold a candle to Bruce

[Mr. Sandman]

The real estate value is the problem. There is not a lot of money in selling fishing tackle for a few months a year...face it, you guys are always looking for a cheap way out. If I had 3.9 mil I would not buy a tackle store.

He is looking for a developer to buy it for the REvalue and put up condos.

[Karl F]

Dunno about that... according to the article in last Fridays Cape Codder, he turned down 2 full cash offers, because they were not going to continue the tradtion of the Goose Hummock Shop, he wants to see a Marina/tackle/kayak shop go on there.....

[jeffsod]

Stopped in Goose Hummock this weekend and as you would expect this time of year they are well stocked. What seemed to be lacking was knowledgeable help. I needed line and the guy overspooled it and had to back off 20 yards and then tried to overcharge me for the 20 yards he had to take off. Sorry I bothered.

If you go be prepared to PAY dearly for your lures. I was thinking of picking up a Yo Zuri Mag Darter for a friend and there were only 3 lures of 5" models (and those weren't even the best colors) hanging amongst the many yo-zuris and I took a look at the price tag and could not believe my eyes. It was priced $15.99!!!!!!!!!!!!! Then I looked closely and noticed these were last years lures and had been ticketed over and you could clearly see last years price was $9.99. At that point I took the one lure I was considering buying and put it back on the wall and left.