View Full Version : Brokers / Lease agreement
10-01-2005, 10:47 AM
I was wondering how many people that have purchased mats have gone through a business broker for their purchase? (Because the seller does not want to go through one).
I'm assuming that if you do not go through a broker, you just have to rely on your own due diligence and gut instincts.
I was also wondering if people here (mat owners) negotiate the lease agreement with the landlord? (For those that do not own the building)
Or do you go through a business/real estate attorney for the lease? I know that the lease can be fairly complicated and a bit tricky at times.
Thanks in advance, Glenn
10-01-2005, 12:21 PM
its always a good idea to get a good lease attorney, even if you are educated in leases, a good attorney will point out things you may have missed. also search through the threads on this site for more helpful info. . im confident youll find all your answers here. i did. good luck.
10-01-2005, 07:17 PM
If you're shopping for a mat, a broker will introduce you to owners who want to sell. That is the broker's job. Don't expect more than that.
The broker typically gets 10% or so of the selling price, and so is motivated to get a higher price. Do your own due dilligence, your own demographic research, etc. Negotiate with the seller on the price, or with the broker if the seller insists, but remember: to the extent that the seller is your adversary, the broker is too.
If you have found a mat for sale, you don't need a broker. You probably want an attorney to represent you when dealing with the seller and with the landlord.
10-01-2005, 10:49 PM
Thanks for the info guys. (I actually ran a search on 'broker' but did not find the info I was looking for).
I spoke to a business broker that specilizes in laundromats and he mentioned that very few were for sale in my area. I have noticed that nothing has been advertised in the local paper or on business sites on the net.
So, I went looking around and calling mats on my own. Well, I found one but the owner does not want to go through a broker due to the commisions. I have to run 'comp' sales around this area and within the state for him to realize what his store is worth. (He is asking too much IMO)
Just an FYI: Based upon some general analysis, I figure that the stores around here have a cap around ~18.1%. Selling for ~5.59 times annual net income.
Anyway, I'll be chatting with the owner again to verify his expenses as well as income / tax returns. Based upon that, I may start looking for a business attourney........yikes.
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