TOP DOLLAR INVESTOR

STARBUCKS: INVEST IN THE REAL ESTATE, NOT JUST THE COFFEE

Starbucks alone sells more than 4 million cups of coffee a day. Americans are hooked on coffee.

Rather than implore you to cut back on your caffeine intake to save a few dollars per day, would you consider that there might be a viable investment in the coffee chain to cover your addiction and then some?

What Does It Cost To Buy a Starbucks?

For simplicity, let’s say you’re able to find one to purchase for $2,500,000. The bank will require a 20% downpayment, which means you must come up with $500,000.

While this is certainly a lot, keep in mind that you can find Starbucks investment properties for much lower prices. Consider looking in more rural markets and hire an experienced commercial real estate agent to help you find a good deal.

So you bought the property for $500,000 down and a $2,500,000 total sales price; how much can you expect to receive in rent?

How Much Does Starbucks Pay in Rent?

Investment properties are purchased on what’s called a cap rate, which is expressed as a percentage return on the investment.

Starbucks properties are currently trading at an average cap rate of 6.5%, which translates to $162,500 per year in annual rent ($13,550 monthly) on the $2,500,000 purchase price.

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