Buy or pass

[Anonymous]

I need help evaluating this mat. SOmething seems to be fishy here. What do you think this mat is worth?
This is from owner's profit and loss statement.

Aug Income
Coin: 7766
WDF: 3884
Vending Machines 353 Total 12003

Expense:
Rent: 2832
PSE&G: 2205
Water: 223
Product(vend): 212
cable: 60
Payroll: 2526
Insurance: 200
Misc cleaning supplies: 86
Miss office suppplies: 60 Total 8404

Total income: 12003
Total expenses: 8404
NET INCOME: $3599


Sept Income
Coin: 6794
WDF: 4011
Vending Machines 312 Total 11117

Expense:
Rent: 2832
PSE&G: 1975
Water: 223
Product(vend): 334
cable: 60
Payroll: 2526
Insurance: 200
Misc cleaning supplies: 64
Miss office suppplies: 75 Total 8289

Total income: 11117
Total expenses: 8289
NET INCOME: $2828

Oct
Coin: 7810
WDF: 4041
Vending Machines 254 Total 12105

Expense:
Rent: 2832
PSE&G: 1654
Water: 223
Product(vend): 180
cable: 60
Payroll: 2526
Insurance: 200
Misc cleaning supplies: 80
Miss office suppplies: 85 Total 7840

Total income: 12105
Total expenses: 7840
NET INCOME: $4265

Nov Income
Coin: 7263
WDF: 3895
Vending Machines 215 Total 11373

Expense:
Rent: 2832
PSE&G: 1862
Water: 223
Product(vend): 145
cable: 60
Payroll: 2526
Insurance: 200
Misc cleaning supplies: 107
Miss office suppplies: 90 Total 8045

Total income: 11373
Total expenses: 8045
NET INCOME: $3328

Dec Income
Coin: 6396
WDF: 3855
Vending Machines 352 Total 10603

Expense:
Rent: 3020
PSE&G: 1952
Water: 223
Product(vend): 145
cable: 60
Payroll: 2526
Insurance: 200
Misc cleaning supplies: 150
Miss office suppplies: 60 Total 8336

Total income: 10603
Total expenses: 8336
NET INCOME: $2267

What other expense am i missing?? Seems to me the owner is hiding info from me.

[Anonymous]

A little more info.

# and type of machines
sq ft of store

asking price?

The pseg seems low and its funny how in the winter the bills are lower when rates went up and the heat is on.

[DuboisLaundry]

A little more info.

# and type of machines
sq ft of store

asking price?

The pseg seems low and its funny how in the winter the bills are lower when rates went up and the heat is on.


maybe there is air conditioning. in many areas A/C is more expensive than heat

[Anonymous]

A little more info.

# and type of machines
sq ft of store

asking price?

The pseg seems low and its funny how in the winter the bills are lower when rates went up and the heat is on.

The store is aproximatly 2500SF
There's 34 washers (variaties. I dont think it really matters to tell u)
26 dryers

Ignore the asking price. I'm asking you how much would you offer the mat if you're to buy it.

[pete f]

mats are sold on cash flow. The multiplier varies widely, from 2 to 7, all dependent on a basket of factors from lease terms to how close it is to your house. There is no way anyone here can give any kind of guess without having much more info. I have posted in the past many of these formula, as have others. You might find them using the search feature. Yoy just do not have enough info to get a good answer.
As to your question of what else, it seems the owner has the major expenses down. Utility, rent, insurance, payroll, supplies, repairs?
I have appraised many mats, it is a bit of an art and science.

[Anonymous]

mats are sold on cash flow. The multiplier varies widely, from 2 to 7, all dependent on a basket of factors from lease terms to how close it is to your house. There is no way anyone here can give any kind of guess without having much more info. I have posted in the past many of these formula, as have others. You might find them using the search feature. Yoy just do not have enough info to get a good answer.
As to your question of what else, it seems the owner has the major expenses down. Utility, rent, insurance, payroll, supplies, repairs?
I have appraised many mats, it is a bit of an art and science.


according to the owner the lease has 12 years left. but i still need to talk to the landlord.
how close is it to your house?? why should that matter how much it's worth. you said it yourself it's sold based on cash flow. I've been reading books and i know the formula, but im just curious what others think. (i mean this is a forum right.) everything to you is a business petef. I'm curious, Do you have an appraisal lisence?

[Tonymatz]

Some people don't deserve help!

[Von Hef]

according to the owner the lease has 12 years left. but i still need to talk to the landlord.
how close is it to your house?? why should that matter how much it's worth. you said it yourself it's sold based on cash flow. I've been reading books and i know the formula, but im just curious what others think. (i mean this is a forum right.) everything to you is a business petef. I'm curious, Do you have an appraisal lisence?


Petef... I would take the following statement as a compliment :
"everything to you is a business petef."

[Anonymous]

how close is it to your house?? why should that matter how much it's worth.

Because this is a business that requires a lot of hands-on activity, and you just might be willing to pay a bit more for one that's a mile from your home, vs. an hour's drive from your home!

[mr_soap]

Can this income be verified with deposit slips
or tax records?

If the owner is telling you and you cannot verify
do a water analysis read previous posts

If your income is off your expenses will be based on wrong
information. You net profit will be reduced greatly.

[Anonymous]

Sounds like a dog. based on the limited info you provided.

[pete f]

according to the owner the lease has 12 years left. but i still need to talk to the landlord.
how close is it to your house?? why should that matter how much it's worth. you said it yourself it's sold based on cash flow. I've been reading books and i know the formula, but im just curious what others think. (i mean this is a forum right.) everything to you is a business petef. I'm curious, Do you have an appraisal lisence?


Re: Von Hef.. thanks! I am lucky to have a wife that thinks the same way. I once had an employee I fired ( never showed up on time, sometimes missed days,etc, tell me MY problem was I was just to responsible!~ She hurt my feelings so much I could not stop laughing for a month.

JJoven-- Search my posts, about 3000 of them, and you will see in many I, and most others highly recomend buying a mat within a short distance to your home. My first mat, which i still own after 10 years is about 2 blocks away. I can walk down to check it out. The furthest one is 7 miles, or 17 mins away. It is almost to far away at times. I run unattened, so my needs are different than those attended. Still, When your attendant calls with trouble, you have to go. Do I have a license to appraise? NO. I did have a real estate license for 10 years, and evaluating a business is not a real property issue, so I do not believe a license is required, or even available. Your accountant may be able to provide this service for you as well. I advise you gather to more info and post it, or pay someone to review it. I am in the process of buying another mat now, and the "books" from the owner are unbeleiably terrible. For asking of many documents I get about 2, and they don't make any sense. But I got water bills from the city, so I already know what the gross is even of the owner does not.

[kbc747]

according to the owner the lease has 12 years left. but i still need to talk to the landlord.
how close is it to your house?? why should that matter how much it's worth. you said it yourself it's sold based on cash flow. I've been reading books and i know the formula, but im just curious what others think. (i mean this is a forum right.) everything to you is a business petef. I'm curious, Do you have an appraisal lisence?


When I take advice and I have the choice between years of experience and a piece of paper I am always going to side with the experience, no piece of paper has ever been able to replace experience. Then again, you can always hire that accountant that has never used a mat and have him tell you all about the business. It will likely only cost you a month or so revenue, but if you respond like you did to your free advice, it will likely cost you an extra months income.

[Anonymous]

This is somewhat off-topic, but in the engineering world that I have inhabitted for the last 16 years, the most useless turds I've ever run into also invariably had a 4.0 grade point in school.

Go figure.

- John

[SuperMat]

When asking for help, it is generally a common practice to not piss people off when doing so. That being said, it is worth whatever you would pay to have a $40K a year job. Personally, I think you could probably get a job for that much working much better hours for free.
I would probably pass.

[pete f]

When asking for help, it is generally a common practice to not piss people off when doing so. That being said, it is worth whatever you would pay to have a $40K a year job. Personally, I think you could probably get a job for that much working much better hours for free.
I would probably pass.


If you only work 10-15 hours a week then it may not be a bad 40k a year job!. as saiid, not enough info.

Ps to JJ. you talk to the landlord AFTER you put down a deposit and sign a contract. the lease terms you want should be spelled put in the contract for you to negoatiate accordlingly. Going to a landlord before doing this could get yourself sued for breech of confidentiality..

[TLR]

Pete,
You are too kind to this guy. After dissing you - a response was not warranted from you. I guess it is true - kill'em with kindness - even if they are arrogant "know it alls"

TLR

[Kitty]

You guys say woman are bad....you guys crack me up! :)