Need help! Newbie.

[mittrip]

Hi everybody.

Am glad I found this forum. I would like to ask you for your opinion since I am a newbie in this business. Am planning to buy new existing mat. I actually found one that looks interesting. Here is the information that I got from seller.


Operating hours: 6: AM to 7:00 PM
Sale price: - 140k
Gross profit: - 70k
Net profit: - 37K to 39 K
Condition: Four year old machines (Maytag). All in working condition.
Employee: Unattended
Rent: $1750 (includes electric, water and sewer)
Gas bill: is $550 to $600

I went there 4 times already, talked to customers and guys at the next store, they all say that it is very busy.

My questions are

1) What is fair offered price?
2) What is life cycle for all machines?
3) Is there anything that I have to consider before I make a offer?

Thanks all in advance.

[Kitty]

Need water bills, equip mix, vend price is needed to verify the income stated and to see what the mat is approx doing. List the expenses the owner gave you.

Rent 1750 including water and sewer?? This doesn't seem correct

[mike]

Kitty is right, more info needed......

By "gross profit", I suspect you mean sales.

We have to know how big the store is, and exact breakdown of equipment
(sizes and types and numbers of washers and dryers)

If un-attended, WHY does it close at 7:00 pm ? (bad neighborhood ?)

[Jim]

Mittrip

Something is not right with your numbers....

Your expenses are only $1750. per month and you are grossing 70k...very unlikely....gross should be more like 55k on those bills... and net is 55% of gross ?????

What is the rent ??? ......something doesn't seem right.

do your due diligence.......verify what the owner is saying

In answer to your questions:
1) Must know the truth about the income...
2) All equipment is different...there is no standard life cycle
3) Consider that the current owner may not be telling you the correct numbers.

breakdown the numbers for us....

[mittrip]

Kitty, Mike and Jim thanks for reply and sorry for incomplete info.
Here is all number that I got in fax.

Maytag MAT12PDAAW TL Washer 9
Maytag MAH20PDAAW HE Washer 12
Maytag MFR35MCATS 35LB Washer 3
Maytag MFR50MCATS 35LB Washer 3
Maytag MDG32PC4AW 30LB STK Dryer 7
Maytag MDG30PC2AW 30LB Dryer 5
Standard Change EC200 Bill CHGR 1
Standard Change SC62 Bill CHGR 1
Vendrite Royal 200 SOAP VENDOR 1
SOLOMATIC TLL-3048U 4
RB WIRE 100-E 58 CART with RACK 6
Machmount steel base 6” 6 unit HE 3
Machmount steel base 6” 3 -35 1
Hamilton HE399-350 Water Heating 1
Machmount steel base 6” 3-50 1
Machmount steel base 6” 1-80 1
Duncan Bulkhead 1


Operating hours: 6:00 AM to 11:00 PM
Space: 2000 Sq ft.
Sale price: - 140k
Total Sale: - 57k (2002) and 70k (2003)
Utility and maintenances: $850 average/month (includes Gas, insurance, cleaning and miscellaneous)
Condition: Four year old machines (Maytag). All in working condition.
Employee: Unattended
Rent: $1750 (includes electric, water and sewer)

I do not have separate water and electric bills, Seller says that does include with rent.

[Kitty]

26 washers and 20 pockets of dry, that produce a meager 70K in sales, I bet he wants 140K for the lot!

Tell the owner you want to see the water bills that the owner/seller/landlord has, if he cannot provide you this information pass...........this is a 3 year old store? How many landlords would rent to a laundromat and include the freaking water, unless it is on a well! Then if that is the case, check the sewer....could be septic???

Still need the vend prices of each machine. How about a break down of expenses.

[Jim]

That is extremely low rent for that much space and then to top it off, it includes electric, water, and sewer ??? How is this possible ??

Find out why the mat is for sale...This is either too good to be true...where as you want to grab it as fast as you can or they are not telling the truth about the numbers...

This could be a gold mine.....but be careful...

The concerns I have are:
1) The bills seem too low for the income...
2) The net seems to high for the gross...55% (that is great if true).
3) Not enough dryers.


After checking out the numbers, if everything that they are saying is true...I would go for it...good luck

[mike]

Be sure that the electric, water and sewer
are actually being PAID with the rent.
Be sure YOUR lease says so.

They may be being paid by a landlord who doesn't know it, (it happens)
or by other tenants who don't know it, (as in a mall or shopping centre,
or large building)

So, is closing time 7:00 p.m. or 11:00 p.m. ?