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Profiting from poor [Commercial] Real Estate decisions

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I've been kicking around how to profit from poor commercial real estate decisions I've seen in my area, but short of buying properties at a discount (which I do not have the finances for or wish to be involved in) can't figure out how if at all this would work in my favor.

For example, there are several locations in my area that have had a "revolving door" of restaurants that last 6-12 months - only to be closed, and a "new" restaurant opens in the same place.  I'm not a real estate person by any means, but to me, the locations chosen are terrible (limited parking, on one side of busy street with jersey wall barrier limiting incoming traffic, poor concept, etc.) and this seems to contribute to their demise.  One location in particular was a McDonalds for the past 15-20 years.  The McDonalds closed (which is a bad sign if this corporate Franchise can't make it work) and the next occupant was Melt Down - a grilled cheese place (an inane concept for food).  Following this was some sort of Falafel/Mediterranean place that lasted for 6 months.  Now the store is a Snap! pizza place, which is the Chipotle concept applied to pizza where the make it in front of you and it takes a few minutes to bake.

I know generally restaurants have a very high failure rate [80-90% in the first year] - any way to profit from this?  I'm not sure other than hubris why the new owners think their idea is any better than the last one.
 

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You don't know that there are poor decisions being made, at least from the purchasing perspective. What if the location only sees enough traffic to realistically be worth $5k/month and was being sold at an appropriate value to match. An investor realized that even though the location was only worth $5k that they would have an unending stream of people willing to rent at $7k/month for their pet projects?

As for how to profit from this, I think your best bet would be to open up a place that specializes in restaurant foreclosures and reselling the equipment

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Buy and resell restaurant equipment and furniture.

You can buy for cheap when they fail and sell at a profit to the next future failure.

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Profiting from businesses that come and go? Be a commercial real estate agent and earn a commission repping the landlord of the buildings.

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Czechmeout said:   You don't know that there are poor decisions being made, at least from the purchasing perspective. What if the location only sees enough traffic to realistically be worth $5k/month and was being sold at an appropriate value to match. An investor realized that even though the location was only worth $5k that they would have an unending stream of people willing to rent at $7k/month for their pet projects?

As for how to profit from this, I think your best bet would be to open up a place that specializes in restaurant foreclosures and reselling the equipment

  
You're right, we don't know this information.  But OP did point out one detail I thought was important and that was the parking situation.  If such a location has bad parking, if OP were in a position to buy, I'd wait for it to sit for a while and try to grab it up at a discount.  Use that savings to really improve on the problem areas and resell for a profit.   Of course, making a successful sale also is hoping that the location will still see enough traffic to get noticed, and we all know what realtors say about location.

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FrankDooley said:   
Czechmeout said:   You don't know that there are poor decisions being made, at least from the purchasing perspective. What if the location only sees enough traffic to realistically be worth $5k/month and was being sold at an appropriate value to match. An investor realized that even though the location was only worth $5k that they would have an unending stream of people willing to rent at $7k/month for their pet projects?

As for how to profit from this, I think your best bet would be to open up a place that specializes in restaurant foreclosures and reselling the equipment

  
You're right, we don't know this information.  But OP did point out one detail I thought was important and that was the parking situation.  If such a location has bad parking, if OP were in a position to buy, I'd wait for it to sit for a while and try to grab it up at a discount.  Use that savings to really improve on the problem areas and resell for a profit.   Of course, making a successful sale also is hoping that the location will still see enough traffic to get noticed, and we all know what realtors say about location.

  You just stated the one thing OP said he didn't want to do.

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Is there a way to buy a policy that a certain business will close within 2 years? Sorta like how they did the CDS policies in the Big Short?

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Walk in a newly opened establishment and tell the owner you specialize in turning around failing businesses, over the course of the next few months give him a follow-up call. He might be more receptive during the follow-up.

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I know someone whose business is liquidation sales. He does very well.

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