good business op to make some spare change)

[MSKLAUNDRY.]

What do you guys and girls think about a place that has $1200 rent fixed utilities cost, YES FIXED by landlord at $800/ month. Hot water, sewer, heat, gas and electric. Equipment is 15 washers 12 dryers (6 stacks). One laundry block and a half away, Here in NYC (Bronx) dense residential area. Equipment condition is non important cause hey, I am the man. Needs about 15 k to 20k fix up which includes equipment upgrades. Purchase price=$0, just take over the location. Has been cloded for a while, but was run by previous landlord not present one. New one has no clue about laundries.

[Andy]

sounds like one of those events that happens far too infrequently. Need a partner, I'll overnight you a check for half the purchase price.

[Duane]

Sorry Andy, I am going to send MSK a check for the full purchase price.

Take a good look at it and if there are no gotchas, then do it.

[Jim]

MSK...
If there isn't anyother problems...dive in.

Just be sure to make sure the landlord has a right to the equipment before you sign on the dotted line even if it has been closed for a year, the original owner may come back to haunt you althought it dosn't sound like the case....

[Anonymous]

Marc, I am sending you a check for 12 times the purchase price, for which I only want a 50% stake :)

[Andy]

Make sure you get yourself a good lease like five yrs with three-five year renewals and make it assignable.

By the way, I'll double Kirby's offer.

[mike]

Let us all share in Marcs good fortune !

My experience is Canadian, so you will have to convert,

but, I would get a lease that is registered, that means your rights under the lease would follow the property if it was sold, and not just be a right that you would have to chase the present landlord for.

Get it as ironclad as you can, because the landlord does not realize how the utilities can mount up fast. (especially if you do low prices high volume, to kill your competition with low (no) utility cost to you.)

When he starts to get hurt, he will try to bail.

Unless, of course, you do repairs for the competition, then it is touchy.

[Anonymous]

Marc, I think you got a very good opportunity, but, before you commit yourself to any kind of agreement, I would put an offer to the landlord, with a reserve check for 2 months rent, the reserve to be at your option for, lets say, 30 days, and then start to study the negative sides that can come up.
You have to be sure that plumbing/drainage is OK, that the machines can be fixed (that's the easiset part for you), and another point is to find out why the former landlord closed and sold the business.
If you run the business right, you sure will be making a profit in short time, as it is in a very dense area, and although you have competiton nearby, you have to focus on giving better service and some other reason for people to come to your mat instead of the cometitor's one.
Talk to your lawyer about the utilities included in the lease, because maybe there is a catch somewhere you can't see, and the lawyer should be able to see that, at least thet's why they get paid for.

Good luck with the deal.

Keep us posted about the development.

[MSKLAUNDRY.]

Lets not jump the gun here. To clarify the situation...

First of all someone has already signed a 10 year deal on the place and the equipment is part of it. Don't know what they paid if anything for the equipment. Probably nothing as most of it is junk, IDC dryers (very old singles) and some Dexters washers 10 to 15 years old and 2 dexter stacks. Half of the equipment was/will be junked. I was called in to fix the salvageable equipment, dexter washers and remaining dryers as well as to consult with the owner on how to proceed further. After checking out the place I realized that there wasn't a meter for the premise and that hot water was feed from the boiler for the building above it as well as gas and electric. There is more than enough hot water supply for the washer quantity and let me tell you , IT'S HOT!!!.

I told him that he needs to speak with the landlord about what price they were going to charge him per month for utilities since they were not separate to the laundries premise. Just yesterday he came back to me and said that he had signed a FIXED deal for $800 with the landlord for all.

After speaking with the owner in great length I get the sense that he is tight on funds to going forward. Doing things a little by little at this point. His first month rent will be due starting the end of this month. My thought was to instead of charging him for service which will be many, many hours and days of labor and $1000+ in parts, I would ask him if he would want a partner (with funds) to get the ball rolling fast as no money is coming in and there is at least another month of work to be done in my opinion.

I see the potential there with a little effort and a small investment it may turn out to be a really good opp. So whats 15k?
Better than spending 100k+ to get a real dud laundry, right?

[MSKLAUNDRY.]

If I make just $500 to $750 net a month from the deal I'll be happy. Like I said some spare change.

BTW the place is only about 600 SQ feet.

[mike]

I always thought partners was a dirty word.

It would not work for me, unless the partner was putting in labor,

Is he going to attend the store. (new computer, french keyboard, I cant find question mark or apostrophe !)

[MSKLAUNDRY.]

Yes, well his wife that is.

Note; I haven't approached him yet but was thing of doing so.

[BWJR]

Marc,

Make sure there is no big time mega Laundromat moving into the area. See if anyone has applied for a sewer hook up or check with the planning board and the building inspector. Find out why the current owner is throwing in the towel. Make sure no strings are attached. Do your homework. " Nothing is for Nothing "
Check the lease very closely.


Good luck,

BWJR

[Follow]

Ms..I don't know about your relationship with new owner, but I would think of this ...
If he offers you partnership, it will be great (check out if there will be legal issue that you may have problem with operating this location mat )
If he does not offer you partnership and you go with partner ship offer, he might say "no" this may create different working condition for you and him..he might think some of your work is taking too much time, overcharging him..etc..( if he does not, his wife may think of it) so, I would be careful about it..(you don't want to lose $2,3K etc.work over there)

well, I might sound negative for you, but thats my $2 worth..

good luck, I hope you get it and work out nice for both of you..