Is This A Good Deal?

[KevTransAm]

I saw some other posts here with people selling places for $30,00 so I have to ask.

The Mat's asking price is $150,000.00

Yearly Gross Income Is $150,000.00

Says yearly Cash Flow is $44,590 (I am assuming that is net profit)


1800 Sq. Ft. Building with 32 washers and 28 dryers..


Just based on the numbers you see, would that be a good investment to get into. Many of the place I see have similiar ratios in terms of Gross Income/Net Profit so to someone untrained in the coin op business it seems alright.


This might be a pointless question, when buying a laundromat, is the asking price ever negotiable and how much lower is an acceptable bid when negotiating a selling price?


Thanks in advance

[MSKLAUNDRY.]

Everthing is negotiable.

Looking at it from just the #'s, its looks good but I bet that # isn't including payroll, is it?

Can you break down the expenses for us if you know it.

Age of equipment? Lease terms? Give us whatever you got.

[MSKLAUNDRY.]

Kev, from your profile you state that you are a financial consultant. Shouldn't we be asking you for advise? LOL

[KevTransAm]

LOL that looks pretty bad doesnt it. I can handel investments...when its something industry specific such as this, im here to ask the experts.

I'm still working on getting more information about the business thats for sale. All I know is that it has 2 employees. Does that include maybe the owner and his wife...I dont know. So you may be right that they are not included in the payroll. I would hope they are :)

It does say absentee ownership..Which is good, because I plan on keeping my day job. This is something I would like to supplement my income and give me a sense of pride.

[MSKLAUNDRY.]

So far it sounds good but get the info so we can analysis it better.

[KevTransAm]

Oh i will. I have to contact the guy which probably wont be until friday sometime. But thanks for the help so far!!

[ajay]

question for your kev, how do you feel about the net profit? After you pay operating cost, what is the bottom line that will end up in your pocket. are you comfortable with that money? If so, start digging into even more to see why they are selling, competition. Is there a potential for more business? Can you sustain growth if another competition opens? Check with the town to see if there had been any permits issued. Take a drive within 5 mile radius of the store, identify potential threats.