beware of being lied to!!!

[fishmanz]

Made an offer on a cute little mat last week. 1300 sq feet of leased space. Seller claimed a net cash flow of $3,200 per month. Asking price of $100,000, just under 3x's cash flow. Clean and busy in there too.

I made an all cash offer of $95,000 but wanted to review recipts and bills as well as do a mechanical and phycial inspection. They accepted the offer but would not lock up in a P&S until after I reviewed their stuff witch I didn't like.

They show me a tax return instead of bills so I baulk and demand better proof. The tax return included all kinds of irrevelent things.

They tell me I'm not quiaified to do the inspection myself and to hire sombody qualified. Here in R.I. there is no licence for being an inspector nor any law saying you can't do it yourself if your comfortable. I tell them I'm a licenced contractor and already own a laundromat. How much more qualified do you need to be, I ask?

They call me the next day and told me they are going with another buyer and thanked me for my interest. Jerks!!!

They must have found some uninformed sucker to buy it that didn't ask for proof of anything.

If by chance that person reads this and wonders if it's him, my advice is not to trust them because I know they lied about several things. This mat in located in North Providence Rhode Island. Good Luck whoever you are!

[pete f]

there has got to be more to the story than this. youi hit them with a 95% of asking price cash offer, and they sell to somone alse rather than give up some info?
A) the mat was really a great deal , some distrib tied it up?
B) You pissed them off
C)? somebody jumped further, faster.
D) metor piece strikes car and burns a hole in the seat ( happen to me last week)
E) well, maybe you missed a boat, maybe you avoided the Titanic.

[Silent Roo]

Buyer beware. It has long been my experence that any owner in any business who will not answer questions is trying to sell a lemon as an apple. I can point to many owners who overpaid because the owner said it was worth this amount and they thought he seemed honest and he must know the numbers.....

Take the time to value the equipment, check the bills, and don't fall for the Dancing Bear sales person. A distributer was probably well under the 95 you were talking.

Get the new contact number and call in about 6 months... They will probably be ready to sell as it is not producing what they were told it would.

[fishmanz]

I wish there were more to the story Pete. Nobody jumps faster than me! I was the first one to look at it and made my offer the same day. The reason they went with sombody else is because the stated net income could not be verified.

I also happen to know that they bought it only 7 months ago for $70,000.

I'm not sorry I didn't get it because it was not what it was represented to be. I still have my cash and I'm on the prowl.

My backround is in buying and selling rental properties witch is really the same as buying laundries. Not the work part but the evaluation part of it. This many $ in, this many $ out. What's left is the net. Documentation is important. People will say anything and often do.

I offered 95% because based on their provided numbers, it was a fair price. Fair if the numbers were verifiable through documentation, not hearsay.

As a side note,she did try to tell me that she only accepts cash for dry-cleaning and pockets the money. That still does not account for all the missing reveneue.

I knew something was up when they wouldn't sign a contract before my due dilligence period. Who shows their numbers without a deposit and contract anyway? Red flags all over the place.

It was the Titanic allright and I'm happy to be waving from the dock!

It was a cute little place though. My SQ distributer tells me the only dryers older than the orange ones are the green ones. This mat had orange in excelent condition.

[Andy]

Pete f am I gullible or did your car get hit by a piece of a meteor?

[pete f]

Pete f am I gullible or did your car get hit by a piece of a meteor?

Here are the facts;
I get into my car about 7 am, start it, turn on the set heater. I drive out of the driveway turn right to get to the end of the road. I smell something burning. 18 seconds into the ride, I stop, smoke is comming from my seat, about 1/3 up the back rest part, on the outer area. I splashed water on it, put it out. The hole is about 3/4 in deep, the size of a pencil. I thought the electric seats caused it, so I took it to the dealer. it was cool that morning so I put them on. The dealer says no, the seats were not the cuase and told me it was a cigg burn. Well, I don't smoke anything but cigars, and not in my car, and in order for it to be a cigg I would have had to hold it there and try to burn the seat. In the end, no explanation, so I figure a fragment a metor must have come into my car just as I open the door to get into it that morning, the hot rock burried deep starting the smoke, and appreaing to burn up. Any other explanations are up for grabs. The dealer won't replace the seat under warranty..

[Andy]

A few years ago I was driving in my pickup on a nice day with the windows down and I started to smell smoke so I look up and along the road expecting to see something-like a fire.

I see nothing and think must have just passed one and it clears a little so I go about another mile and I start to smell it again and think man someone ahead of me has got to have a fire on-board.

Almost instantly after I have those thoughts I realize I have smoke in the "cabin" and pull right over. I jump out look under the dash-nothing and by now the smoke is getting pretty think am now convinced the fire is under the hood so I pop it-nothing. I proceed to check under the chassis and again nothing.

By now smoke is pouring out of the door and the genius I am I think where there is smoke there is fire - I pull the seat forward and see nothing and the smoke continues to build.

Finally, I see what I am looking for; I happened to have had a powerful tube lens (two adjustable 8" magifying lenses) used for large format image projection, sitting vertical on the seat and positioned almostly perfectly to pickup the sunlight and focus it on the cloth seat below. It burned through the cloth cover and several inches of the foam cushion. It happened to be focused just right to do the job.

I try to remember to cover the lenses up now when I travel with them.

[DuboisLaundry]

I've only been in the laundromat for a year and a half and it didn't take me long to learn to cover anything I don't want coated in lint. Even my cat gets lint bunnies on his coat from time to time!

I supposed this doesn't exactly apply to precision optics left uncovered in the cab of your truck, but still a good idea

[AggieRob]

I wish there were more to the story Pete. Nobody jumps faster than me! I was the first one to look at it and made my offer the same day. The reason they went with sombody else is because the stated net income could not be verified.

I also happen to know that they bought it only 7 months ago for $70,000.

I'm not sorry I didn't get it because it was not what it was represented to be. I still have my cash and I'm on the prowl.

My backround is in buying and selling rental properties witch is really the same as buying laundries. Not the work part but the evaluation part of it. This many $ in, this many $ out. What's left is the net. Documentation is important. People will say anything and often do.

I offered 95% because based on their provided numbers, it was a fair price. Fair if the numbers were verifiable through documentation, not hearsay.

As a side note,she did try to tell me that she only accepts cash for dry-cleaning and pockets the money. That still does not account for all the missing reveneue.

I knew something was up when they wouldn't sign a contract before my due dilligence period. Who shows their numbers without a deposit and contract anyway? Red flags all over the place.

It was the Titanic allright and I'm happy to be waving from the dock!

It was a cute little place though. My SQ distributer tells me the only dryers older than the orange ones are the green ones. This mat had orange in excelent condition.

Fishman,

Good story.

I am still in search for my 1st washateria too. I have contacted a broker and he has placed me in contact with a couple for sale. I got the same lip service from them regarding hard financial documents. Both only had 1 month proformas which is essentially a bill of goods telling you that the sky is blue and will stay like that.

I really had to restrain myself from jumping on either of them but without hard financial documents, it is a tough decision. In fact, one of them was a straight asset sale of $49K for about 30 washers and 22 dryers. Store has been closed for 3 months, is surrounded by tons of lower income style apts, and I only needed to assume the 10 yr lease.

Quick questions:

1. How did you hear of your opportunity? Broker? Seller?
2. What does "SQ" distributor stand for?


Thanks and keep posting. !

[MSKLAUNDRY.]

Fishman,

2. What does "SQ" distributor stand for?



Speed Queen

[pete f]

Fishman,

Good story.

I am still in search for my 1st washateria too. I have contacted a broker and he has placed me in contact with a couple for sale. I got the same lip service from them regarding hard financial documents. Both only had 1 month proformas which is essentially a bill of goods telling you that the sky is blue and will stay like that.

I really had to restrain myself from jumping on either of them but without hard financial documents, it is a tough decision. In fact, one of them was a straight asset sale of $49K for about 30 washers and 22 dryers. Store has been closed for 3 months, is surrounded by tons of lower income style apts, and I only needed to assume the 10 yr lease.

Quick questions:

1. How did you hear of your opportunity? Broker? Seller?
2. What does "SQ" distributor stand for?


Thanks and keep posting. !

You must wonder why the mat closed, I mean, if it was that easy..
The assert sale may not be true value of assets, but 49k will barley pay the plumbing and electric work of a new mat of similar size.
However, if you like assets buy a bridge.
If you like income buy a toll bridge.
Get past water bills and evaluate them. That is pretty easy.

[AggieRob]

Pete f

Sorry to ask such a basic question, but how do you review a water bill and determine how much money is being made?

Thanks!

[pete f]

Pete f

Sorry to ask such a basic question, but how do you review a water bill and determine how much money is being made?

Thanks!

I multiply the gallons by the profit per gallon.