Need some advice badly

[tlev89]

HI,
I am trying to buy a mat from a large company in the nyc area.I want to enter in a purchase aggreement and they want 10 percent down.My attorney reccomends that the money goes into an escrow account(I agree with him)
The company wants a check made directly to them.
Also, They have a water bill that they havent paid in a few years.(Actually the water compnay made a mistake and never billed them the right amount , so they owe over 100k.Of course they plan on paying the bill before I purchase but how can i trust them.
Is it customary to put money in escrow until the closing???
Thank you

[pete f]

I am selling a mat, I had the buyer make the check out to the lawyer, who will handle the closing. Who is the closing agent or lawyer? You both can use the same lawyer.

When do you plan to upgrade to prem status here at Coinwash? Before or after the closing?

[WhatwasIThinkin]

I think you would be ill-advised to write the check to them. If they have nothing to hide, they should be fine with escrow. As for unpaid bills, you should negotiate escrow to cover this. Mine lasted 3 months. In my case, the old owner owed yellow pages for a previous year and they came after me. I submitted the bill to my lawyer and the seller paid it. Otherwise, it would have been taken out of escrow.
4100k water bill? what is that all about?

[Gary C]

Escrow only!!! Never give a check directly. Once you give it to them it's out of your control

Gary

[tlev89]

HI,
Thanks for the opinions, I agree.I just wanted to see if I was being unreasonable.I Guess they will do anything to get the upper hand.
Im paying top dollar for the store(5x net) , so you would think that would make some concessions.
thanks

[Boxer]

Also, They have a water bill that they havent paid in a few years.(Actually the water compnay made a mistake and never billed them the right amount , so they owe over 100k.Of course they plan on paying the bill before I purchase but how can i trust them.
Is it customary to put money in escrow until the closing???
Thank you

You can't trust these guys.

It's not your problem if they didn't pay there bills.

Don't buy there business buy there lease and machines.

I see a scam.

[tlev89]

They plan on rectifying the bill with the DEP(water company)
They philosophy was, why should we pay the water bill if we never got it?I didnt some checking and they really didnt get the right water bill.They were getting billing for an old meter on the property.
Who knows, seems like no deal is perfect.
Im not giving a big chunk of change to them directly before closing.
They have told me its their policy not to take money in escrow?
Maybe they are used to dealing with people who dont have a good command of the english language.Im not sure
t

[laundryboy]

It might not be their policy, but if they are truly concidering your offer, they will do escrow. If not, red flag.

[Coinwash]

Read these posts they might help


http://www.coinwash.com/mb/showthread.php?t=3623&highlight=buy+machines

[Ken]

When I bought my first store,the guy was going under,owe a lot money,the broker made sure everybody got pay,so I had to make checks for broker,landlard,water depot and a check for the seller.Unless you are 100% sure with water depot,don't buy it .

[SuperMat]

You say your paying 5X net which is "top dollar". First it may be top dollar on a national average, but where your looking, for that size store it really is not. Second, which net are you basing it on? the one that doesn't use the correct water bill, or the one that does? Who's name is the water bill in? Usually it is in the landlords' (read property owner) name in NYC. If it is, this should be a red flag, unless it is completely satisfied before closing. You can get them to make a concession or two, just make sure they are the ones that matter. Escrow Matters. If you conceed, you leave yourself open to losing alot of money. I told you about the deposit in your first post. It is very easy to get caught up in a deal, be careful, and if it isn't right don't force it. Good luck.

[tlev89]

I based the on what the water bill should be.(I took a 2 week meter reading)The net would be alot higher if I didnt deduct the water bill which is around$4500 per month.I also based the net on what my gas is going to cost.They actually pay more because they got locked in when gas was more expensive.
5x net for a large store isnt top dollar?I thought it was!If I get a 20 percent cash on cash return im lucky.Is that worth it with all the aggravation?Maybe I should buy mutual funds and maybe get 15 percent?

[SuperMat]

If you think it is top dollar than find one doing the same numbers, the same size, and age for less. Top dollar to you, doesn't mean top dollar for a particular mat in a particular region or area. If this mat isn't going to give you your desired returns, than walk away. If you are going to proceed, than do it with caution. Understand that they buy, build, and sell laundromats for a living, and they do it well. You are not dealing with novices.

[Walter]

I'll repeat what everyone else is saying, only in the strongest possible terms: ONLY fork over money through the escrow process. That's exactly what escrow is for - to provide a neutral 3rd party to disburse funds as the buyer & seller perform their stipulated contractual obligations during the process of sale.

The fact that this company ( a large laundry company that's held & sold many stores - am I right?) would even SUGGEST that you give them a direct downpayment, would send me out the door in a nanosecond.

IMO, you are about to invest a signficant amount of money & be responsible for a large note: do you really want to tango with these guys? Believe me, other large stores will become available to you in your area...

Can you spell the word "D-I-S-R-E-P-U-T-A-B-L-E"?

Walter

[tlev89]

HI,
Supermat, how do you know which company im dealing with since I never mentioned their name?
Btw, IM not buying the store now because all of a sudden they are asking $175,ooo more for their store because"its peforming better"
So they wasted 2 months of my time and two thousand dollars in attorney fees.
I guess they are looking for a real sucker to buy this store, someone who will pay them way more than it is worth.
IN my opinion they are not a reputable company.
They agreed upon a price, I hired an attorney to leave them a downpayment and now wouldnt take the money in escrow,now all of a sudden they want 20 percent more for the store.
IM pissed off!!!!!!!!!!!!!!

[detlaundry]

I wouldn't lose too much sleep over this deal... Sounds like you'd be in much more trouble had you spent any more time on this deal.

[SuperMat]

I assumed from all your other posts, that you were dealing with the same company you mentioned in the other posts. If not than my Bad. The story sounds the same whether it is them or not. Whatever the reason the deal fell apart is immaterial. That could be the best 2k you ever spent to not buy a laundromat. Sorry that it didn't work out for you. There are other mats out there, the right deal will come.

[Coinwash]

HI,
Supermat, how do you know which company im dealing with since I never mentioned their name?
Btw, IM not buying the store now because all of a sudden they are asking $175,ooo more for their store because"its peforming better"
So they wasted 2 months of my time and two thousand dollars in attorney fees.
I guess they are looking for a real sucker to buy this store, someone who will pay them way more than it is worth.
IN my opinion they are not a reputable company.
They agreed upon a price, I hired an attorney to leave them a downpayment and now wouldnt take the money in escrow,now all of a sudden they want 20 percent more for the store.
IM pissed off!!!!!!!!!!!!!!

This is why Coinwash.com exists.
Do your home work. Remeber it's YOUR MONEY !!
as you said
I guess they are looking for a real sucker to buy this store, someone who will pay them way more than it is worth.
IN my opinion they are not a reputable company.

Welcome to Coinwash.com ;)

[pete f]

So the $29.99 to join coinwash looks cheap!
I wonder what your purchase agreement said. Really, if the seller has terms and you do not meet them they are not obligated to sell to you. Read some posts, there have been other stories!

Sounds like they change course in the middle of the deal..maybe they think you have to much info,, thanks to Coinwash.com!
$29.99! I spent $60 on coils that I did not need, I got an answer in the prem section that would have avoided that step. Even I forget the value of Coinwash.com sometimes..