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If your business model is based on a large portion of your audience being college students, you probably need to adjust your projections. Transient students, rather than dorm housed or on campus housed students go to class, go to the library or study area, go to class then home. How many admissions based on an average ticket price of $2.00 and a concession percap of $1.75 does it take to service a $500K mortgage, at even 5% interest, along with insurance, maintenance, utilities, and labor? And pay you what will be...about $3.75/hour wage for the time you spend there? Then there is an additional large chunk to update your sound, projection, and what ever else needs to be either repaired or replaced.
my observations
lance

its about 2.30 per cap on concessions with about 8000 people (not being college students) going to the theater. I know by getting it renovated will have a huge impact on how many people go, as well as the name change i am doing.

I probably wont buy, but I just got a weekly contract for someone wanting to rent a theater room from me. So that is basically paying the rent.

Do you have all the money to invest, because I'm pretty sure a bank won't loan to you if you don't have an asset.

Banks are eager to loan any other business money except a theater.
There explanation if they foreclose and have to liquidate your theater items are not easy to sell off!
That is why they give high interest deals and want all types of leans and high down payments mostly over 50%!
Most theaters when buying and you get there papers for the last 3 years show the theaters are in the red. But when you look between the lines you see all the expenses and Managers salary (Which is you) would bring the totals in a profitable margin.

Yeah, but if that's all it is... the manager's salary (not normally very high) and a few expenses, the place is likely to stay marginal... making you a slave to the business, because you can't afford to hire enough people to run it right AND make you money.

I suppose some people look for deals like that, but it seems a shame to tie up all your resources (including yourself) for a business that few will really appreciate. That is... unless you're looking to build a business to keep you busy through retirement.

I just seems pretty risky to bet the farm on a slim margin like that....

Just me though.

If you feel that there is room for growth and improvement I say give it a shot. You are young and energetic- better to try now than to regret forever. In 1987 I puchased a single screen cinema from Hoyts-I was 23 years old and had no money-but was willing to work hard. Sell your idea to a local banker and make them believe in you-if you can do this and prove that the business will work the banks will eventually lend you money. Be creative with financing and don't stop at just one bank-you will have to shop-Good luck

Now that you mention it, I am 23 as well (but I am by far not a kid).

I learned that someone wanted to rent a theater room once a week for a year to hold church services for the college campus nearby. This practically pays my rent and keeps everything running smooth.

I am eager to see this place running, and so does about 90 percent of the people in town. However, I dont have any assets, but I might have an investor. Still working on the business plan.

Do they really want to pay you $3000 per month or were they thinking in the range of $100 per week rental as is somewhat closer to the going rate for space rental especially for church groups.

500 - 600 a week. Remember its more than just an hour or so. We are talking about 3 - 4 hours.

And its a whole lot cheaper than renting property thats for sure.

The state of maine chief economist is a ripe old 26! You go 23! Don't let us old foggies get you down.

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Michael Hurley
Impresario

Heck yea! But you all don't get me down, I have learned so much from this site, it is amazing!

Here is the deal (or what I have left to do). Finish business plan and make the Profit and Loss report. I gotta work fast before someone else steals this treasure from me.

If I needed to find out if there were any articles published about this theater, where could I go? I want to find out what the place originally looked like so I can restore it.