How close was your reported income vs reality?

[talkative]

Hi guys...

Been looking and reading about landromats for about 6 months. I am curious what your sellers claimed income was versus reality after having purchased.

Being a person that is honest to a default, I can't imagine lying to someone about something so important, but I realize that many have no problem doing that.

Actual numbers would be nice..
Claimed 70K, actual 55k or a percentage of the claimed income.

If you want to throw in other expensis that the owner 'forgot' or under reported, that would be cool too.. :)

Regards,

John

[pete f]

I just bought another mat a few weeks ago. After a couple collections, the stated income appears to be very true.

[Sunflower]

I'm also wondering how true the sellers statement/tax records were. We just made a purchase so we shall see! (It seems hard to do a gas or water anaylsis since there were some leaking issues and coin-op showers. Also, there were 18 propane leaks. ;) I'm curious what others will find...

[DuboisLaundry]

I think my seller was very honest and without confronting her I have viable explainations for very minor discrepancies. for instance I let the car wash freezeup very hard and it was closed 2 months last year, so of course it earned zero during that time and I suspect that some customers may have permanently gone to the other carwash. Also the single biggest WDF customer, the kids summer camp, built an OPL when they moved to a new place, so that subtracted $8000 from the summer.

I suppose some sellers might be less honest, especially if they don't still live 3 miles away and have a daughter and grandkids in my upstairs rental apartment.

[laschmove]

I don't know what the deal is, but our income was actually quite a bit better than what he said. Granted it's only been 5 months, but so far so good.

[talkative]

Thanks to those who replied. Of course I guess there aren't enough replies to make a factual conclusion, but it is encouraging at least. :)

[Anonymous]

Just pay for what they can prove with a tax return !

[pete f]

Just pay for what they can prove with a tax return !

tax return? that is for paying as little tax as possible, it has nothing to do with the value of a business.