Marvin Graves Needs Help

[kuethstheman]

Well, if Michael Graham can wish Andre Hawkins happy birthday on Facebook anything is possible!

Did that happen?

 

[Ozcuse]

His first mistake was renting the building. If he rented the building to see how the business would go before buying, that was his first mistake. I have owned a restaurant so I know what I am talking about. If you don't buy the property, don't open a restaurant, rule of thumb.

There are some advantages to leasing a building- more up-front working capital, tax write-offs, less debt. There are also some
disadvantages like less depreciation to claim, less equity/assets, lack of long term control over location, less stable costs, etc. I would say your rule of thumb is definitely not typical for an urban environment.

In some markets it's next to impossible to purchase the building such as the first floor of a busy downtown office building.

Restaurants also have the highest failure rate of any major industry but it's not because of renting vs owning.

 

[CuseTroop]

I'm always down to help a cause, and to me this seems more like "Help me continue to pursue my dream/goal" instead of "pay my bills for me".. idk.

A concern I do have is, say we chip in, and he raises $30k. Still $20k short of his goal, and he gets evicted. What happens to that $30k?

 

[JeffCuse]

Marvin Graves Needs Your Help

 

[Nahson]

I'd like to point out that he's raised $44 so far...

 

[MSOrange]

Did that happen?

It appears they are Facebook friends. Andre appears to be a really good guy and looks good too. I think I remember at one time he was just a bit above his playing weight.

 

[Consigliere]

Did that happen?

 

[kuethstheman]

View attachment 86151

Awesome! Thanks.

Does this mean I should stop hating Graham?

 

[orange79]

Awesome! Thanks.

Does this mean I should stop hating Graham?

no

No

NO

NO

 

[Jeepers]

There are some advantages to leasing a building- more up-front working capital, tax write-offs, less debt. There are also some
disadvantages like less depreciation to claim, less equity/assets, lack of long term control over location, less stable costs, etc. I would say your rule of thumb is definitely not typical for an urban environment.

In some markets it's next to impossible to purchase the building such as the first floor of a busy downtown office building.

Restaurants also have the highest failure rate of any major industry but it's not because of renting vs owning.

I think his point still stands though. If you can't buy, don't open one. Renting is only going to work out if you have a business that's trendy and will have a shelf life.

 

[Consigliere]

Awesome! Thanks.

Does this mean I should stop hating Graham?

Only if you want to relinquish your standing on this board!
Seriously I came across this article a while back. He's lived an interesting life.

The Troubled, Tormented, Surprisingly Lucky Life of Michael Graham | Washingtonian

 

[orangeinjersey]

Restaurants also have the highest failure rate of any major industry but it's not because of renting vs owning.

This.

It seems anytime someone has a little cash to invest, they think...I LOVE FOOD, I LIKE TO EAT...let me open a restaurant!!! Grand opening...grand closing

 

[W'boro'Cuse315]

This.

It seems anytime someone has a little cash to invest, they think...I LOVE FOOD, I LIKE TO EAT...let me open a restaurant!!! Grand opening...grand closing

 

[AZOrange]

Damn that place is tiny...must missed a lot of rent

 

[Stern]

He should go on SHARK TANK!

 

[AZOrange]

Pretty harsh, guys. He states there were circumstances outside their control, that there is optimism based on development in the area and that he is committed to success of the business. I respect the effort to make a small business successful and was a huge Graves fan back in the day. Met him at the PSU game at MetLife a couple of years ago and enjoyed meeting him and his family. If throwing him a few $$ might help I'm in. Call me naive and very likely a shortfall in business acumen may have played a part here but he's one of ours and is asking for help.

Not to be callous but if you're doing this to save them you're wasting time. If they can't raise 50k in capital they're probably done. This is just. A straight up donation.

 

[Consigliere]

Not to be callous but if you're doing this to save them you're wasting time. If they can't raise 50k in capital they're probably done. This is just. A straight up donation.

No thought that a small donation can save the business. Didn't mortgage my house or blow my kids inheritance by any means. Doing it to show appreciation for his contributions to Cuse football and because someone is asking for help.

 

[DoctorBombay]

This.

It seems anytime someone has a little cash to invest, they think...I LOVE FOOD, I LIKE TO EAT...let me open a restaurant!!! Grand opening...grand closing

When I worked near Wall Street back in the day, the favorite pipe dream of every Trust fund or Bonus Baby was a restaurant.
I counseled literally dozens of clients against it but they all had the "perfect idea" for their restaurant, along with "lotsa friends and families" who couldn't wait to eat there!
I saw so many of those things die on the vine after thousands of dollars were wasted. It became a running joke with our firm; "When all else fails, take the next step and open a restaurant"!

 

[tipphill]

i pretty much donate to many issues albeit a small donation. i do have a monthly donation to st.judes and cystic fibrosis. i would make a small donation to him with no questions asked. the arguments against it are legit as well as the advice given. what he does with it going forward is on him. so i guess the bottom line is its his responsibility. good luck to him, and thanks for the contribution to su football

 

[billorange44]

There are some advantages to leasing a building- more up-front working capital, tax write-offs, less debt. There are also some
disadvantages like less depreciation to claim, less equity/assets, lack of long term control over location, less stable costs, etc. I would say your rule of thumb is definitely not typical for an urban environment.

In some markets it's next to impossible to purchase the building such as the first floor of a busy downtown office building.

Restaurants also have the highest failure rate of any major industry but it's not because of renting vs owning.

Like I said, there is no advantage to renting. None. You are at the mercy of the landlord. If the area he is located had no properties for sale, then look elsewhere. There are so many questions that need to be answered before you put your business plan to work. As you said the failure rate is extremely high in this business. Lots of people go into this business and they realize after the first week of operation that they made a mistake.

 

[Scooch]

If Marvin has a charity he'd like us to donate to I'm in. This is silly.

 

[SU2NASA]

Marvin Graves is my favorite SU player of all time, and my hero when I was a kid growing up a Syracuse football fan. But I'd like to know WHY the rent hasn't been paid. Has the business been failing? Has the money been squandered? What's the debt posture on the business?

My biggest question is, why doesn't he sell equity rather than asking for a handout of almost $50K?

I just started paying off fertility treatment costs of $40K for my wife and I'm not putting out a GoFundMe.

 

[Orangejet]

If Marvin has a charity he'd like us to donate to I'm in. This is silly.

Totally agree here and also would assist if it were a charity. Something seems fishy and I hope there isn't more to this story. Best of luck to one of my favorite Cuse players of all-time!

 

[MSOrange]

If Marvin has a charity he'd like us to donate to I'm in. This is silly.

I agree or if there was a documented family medical situation or hardship truly beyond his control, I'd feel more comfortable. For example, the Pearl's situation.

 

[orangefog]

Marvin Graves is my favorite SU player of all time, and my hero when I was a kid growing up a Syracuse football fan. But I'd like to know WHY the rent hasn't been paid. Has the business been failing? Has the money been squandered? What's the debt posture on the business?

My biggest question is, why doesn't he sell equity rather than asking for a handout of almost $50K?

I just started paying off fertility treatment costs of $40K for my wife and I'm not putting out a GoFundMe.

I see what you are getting at here. And, reluctantly, I will give you a hand with getting your wife pregnant. Normally I wouldn't, but you are a good poster.