purchase

[kfrank4]

Am closing on a mat that went bankrupt 3 months ago.
IT has 16 maytag TL
3 35# maytags
4 35# milnor
2 50# milnor
1 50# maytag
1 50# wasco
5 juniorw74 wasco
10 maytag stacked dryers so 20 (small 22lb cap)
4 huebsch 30# single dryers
2 newer boilers hamilton 1999
a monster of a holding tank
a couple of coin changers
soap 8 vend machine
6 folding table
eight carts
no power on so can't check machines at this time.
2250 sq ft
lease I hope to get for 1300 gross.
purchase price 20k.
bills show using about 100-130kgallons of water @ 30/1000 gallons.
with vends not known, except for 35# 3.75 placarded
located in the midwest.
my questions are
closest comp is 3 miles away, about 4 apartment complexes in vicinity with about 1000 units total. plus lower income housing.
there is a price war on with the mats 3-5miles away (free dry etc.)
1. is it worth it?
2. ever heard of the purchase contingent on all equip working? or maybe some other solution?
3. there is a dry problem, have lots of room should I go stacked or single.
4. any good security systems and what do they cost?
5. I feel unattended is the way to go with possible 24/7 ops any pros/cons?
6. I figure only about 5-6K max revenue will ever happan for this mat. will it make it on these numbers? don't know all the hidden expenses.

thanks in advance K

[Jim]

To start you say it went bankrupt 3 months ago....Why? would be my first question and concern...Is there enough business for this mat to survive? ..apparently not. and in 3 months why would that have changed?
You also mentioned a price war going on... is this why it closed?

It looks like a good mix of equipment..how old is the equipment because 20K is extremely low for all of it?

As far as your questions:
1) only you can decide if it is worth it..
2) purchase contingent on all equip working...with all your getting for 20k I'm not sure it matters
3) probably stacked...
4) do a search for security systems...we have mentioned them before several times.
5) 24/7 ... you may get homeless sleeping in your mat...depends on the area
6) I hope you are saying 5 to 6K a month ? either way its not much..again you have to look at your finances and determine this answer.

Good Luck...

[MSKLAUNDRY.]

First of all the dryers are most probably the reason it went bye bye. Those dryers are not for a mat in todays age. Since space is not an issue you most definatly will have to get new dryers, 30# stacks. This is by far the #1 reason why people will not come to your store. If your not willing or able to change the dryers then don't bother. The washers are just OK. Perhaps change some of the T/L's (or add since you have the space) for some 18/20 # F/L's.

[kfrank4]

he says the equip is from 1991 can I check?

the guy went bankrupt because of a nasty divorce, it has been verified by other tenants at the mall center.

Is it asking too much for the contingency of ensuring all equip is working? is it an act of congress to get the power on for a day?
thanks!!!

[pete f]

having those apartment buildings close buy will help.
Not sure if checking the machines will really make any difference, the price seems pretty low to begin with. This may be a good remodel mat, you will have to get rid of the small dryers and put real ones in. You need about 10 more stack dryers, they cost around 4k ea plus install.
As far as 24 hrs, it can work, you still have to keep on top of things daily, and will need to spend another few thousand on security, cams, alarm. You may want to consider auto door locks. Unattended only means no employee there full time, it does not mean you can run unattended, again, you still have to work it on a daily basis to keep it clean and everything running, though this should not take much more than an hour or 2 a day.
With another 50k or so investment and time the mat might be a good one, only one way to find out.

[kfrank4]

thanks guys,

I was thinking about going with refurbished dryers, can anyone suggest a name , someone close and reputable in the midwest would be great. Sounds like stacked is the way to go.

K