PDA

View Full Version : Where to begin


owants2know
10-24-2007, 03:21 PM
I'm the laundromat journey, just can not get a handle on where to begin.


There is a building for sale including a small neighborhood laundromat. 15 topload washers, 5 front, and 14 dryers. It's an old paneled walk up on the corner...a parking lot is about 100 yards away.I can obtain financing for the building, but the owners are non communicative. It has a dryer conveyor and they do wnf.

I'm trying to understand how the deal should be structured. Should I buy the building with an LLC and have separate llc for the business and pay rent to the first llc? How do I do the demographic research and put together a business plan, when I don't really have a site yet or any info about the business? My real estate broker does not know much about laundromats, how do I protect myself in this transaction to make sure that the building and laundry business are conveyed to me properly? I am considering a consultant to structure this deal...I've called some attorney's but none have laundromat experience.

The building will appraise for the asking price without the business. But they are advising that they gross 130k and net 50 k annually

any recommendations would help.

laundryboy
10-26-2007, 12:05 PM
Yes, buy the building in one LLC and the laundry in another. Pay market rent. You may hold the building longer than the laundry. Nice exit stratagy.