help me purchase my first mat

[ntbushwick]

All,

I looking at a mat that is selling for $85K / negotiable. Here are some of the finanicals that I have received thus far. How does this look to everyone?

Income in 2006 --- $156,064

Annual Expenses:
Gas – 18000
Water – 13200
Electric – 8400
Casual Labor – 42000
Lease – 39600
Insurance – 3000
Garbage – 3600
Supplies – 4800
Phone – 840
Alarm – 480
Cable – 264

TOTAL: $134,184
Net: $21,800

I know casual labor and the lease are both very expensive. The lease is for a 4400 sq ft building with 94 washers and dryers. The number of washers and dryers are too many and the building is too large. The unit can easily be cut in half and that half sub-leased.

Any way, I am just looking for your openions of the numbers listed above.

Thanks!
NT

[Coinwash]

Location, Location, Location

Do your HOME Work...

The Financials

Seller’s stated Profit and Loss Statement

Water Bills (last 12 months)

Electric Bills (last 12 months)

Gas Bills (last 12 months)

Parts? Receipts on repairs? Service Contracts?

Tax Filings?

The Assets

Washers and Dryers / Make, Model/Yr/PriceVend

Water Heater(s)

Condition of Floors

Condition of Counters/Tables for Folding.

Vending Machines

Soda Machine

Soap Machine

Candy (Gum/Bulk) Machines

Pay Phone

Video Games

Changer Machines

# of Carts/ Baskets

Alarm System

Which Alarm Company is being used?

What type of service is in place?

Can I see the contracts?

Vending

Which machines are owned?

Which machines are leased?

Vending Lease Contracts/Agreements?

Service

Who has been providing equipment upkeep and service?

Receipts?

Any Contracts/Agreements?

Who has been supplying vending goods? Soda?

Who supplies the video games?

contracts? Agreements? What’s the cut?

Insurance

Liability Insurance

Hazard Insurance

Current Insurance Carrier?

Any problems with insuring the place?

Get the current insurance contract, check for clauses.

The Employees

# Of Employees

Hours and Pay

Contract Personnel? Salaried? Hourly?

Duties

Are they willing to stay on after purchase?

How long have they been contracted/employed?

The Legal and Corporate Issues

Accounting Fees

CPA Costs Annual / Quarterly Reports

Legal Fees?

Business License Cost

The Company's Contracts and Leases

Vending Contracts/Agreements?

Supplier Contracts/Agreements?

Video Game Contracts/Agreements?

Alarm/Security Company Contract/Agreements?

Any Insurance Contracts/Agreements?

Property Lease Contract/Agreements?

Equipment Service Contracts/Agreements?

Property Lease

CAM Fees – cost / what is included in the CAM Fees

How are CAM fees divided amongst tenants?

Who determines CAM fees and items?

What percentage of fluctuations in CAM fees in
the past or foreseeable in the future?

Can I get a breakdown of the CAM/ RE Insurance / RE Tax?

What is personal property tax?

Current Lease

Lease Increase Rate

Lease Expiration/Options

Lease Deposit

The Suppliers
Vending Suppliers? Any Contracts?

There is much more to do.
Read the bulletin board ask questions do your home work,

Good LUCK!!!

*This is only my opinion. You do what you think is right; Follow your business instincts.

[ntbushwick]

I'm going to read and begin working on the outline you provided.

Thanks again.

NT