Looking at a mat in souther cali

[mj420]

Looking for some help with a mat that im considering. I've been studying this business for sometime now but i still need a lot of help. this is what i know so far

EQUIPMENT
TOP LOADER MAYTAG WASHER X-LARGE 12 $2.00
TOP LOADER MAYTAG WASHER 2 $0.75
TOP LOADER SPEED QUEEN 18 $1.50
FRNT LOADER MAYTAG #30 6 $3.00
FRNT LOADER SPEED QUEEN #30 4 $3.00
FRNT LOADER SPEED QUEEN #60 1 $6.00
MAYTAG DRYERS 27 $0.25 / 8 MIN
WATER HEATER (pretty Old) 1
SODA MACHINE 1
CANDY MACHINE 1
PAY PHONE 1
CHANGER MACHINE 2
# OF CARTS 14

WATER BILLS (8 MON) $479.78 aver
ELECTRIC BILLS (11 MON) $395.40 aver
SEWER (10 MON) $476.04 aver
GAS BILL(11 MON) $1,417.35 aver
MAINTENANCE $500.00 aver
PAYROLL (2 employees total, 1 is pt) $1,200.00
INSURANCE $140.00
MISC SUPPLIES $400.00
LEASE (including cam) $3,610.00
BUSINESS LICENSE $116.00
TAXES $340.00

the mat is 2,000 sf. its located in a low to middle income area. the owner has no proper paper work to verify the net earnings of about $35,000 annually. there is 2 larger and newer mats about 1 block from this one. the asking price is around $200,000. I feel that it is a bit high....the equiptment is about 10-20 years old with an exception of the speed queens. the lease is 8 years with a 5 year option. it has a wash and fold...don't know how much it generates yet...owner is selling for personal reasons....do you all believe this is a good buy....i was thinking of asking for much less...do the numbers add up to earn that much annually? any information would be greatly appreciated. thanks to all

[geaston]

Looking for some help with a mat that im considering. I've been studying this business for sometime now but i still need a lot of help. this is what i know so far

EQUIPMENT
TOP LOADER MAYTAG WASHER X-LARGE 12 $2.00
TOP LOADER MAYTAG WASHER 2 $0.75
TOP LOADER SPEED QUEEN 18 $1.50
FRNT LOADER MAYTAG #30 6 $3.00
FRNT LOADER SPEED QUEEN #30 4 $3.00
FRNT LOADER SPEED QUEEN #60 1 $6.00
MAYTAG DRYERS 27 $0.25 / 8 MIN
WATER HEATER (pretty Old) 1
SODA MACHINE 1
CANDY MACHINE 1
PAY PHONE 1
CHANGER MACHINE 2
# OF CARTS 14

WATER BILLS (8 MON) $479.78 aver
ELECTRIC BILLS (11 MON) $395.40 aver
SEWER (10 MON) $476.04 aver
GAS BILL(11 MON) $1,417.35 aver
MAINTENANCE $500.00 aver
PAYROLL (2 employees total, 1 is pt) $1,200.00
INSURANCE $140.00
MISC SUPPLIES $400.00
LEASE (including cam) $3,610.00
BUSINESS LICENSE $116.00
TAXES $340.00

the mat is 2,000 sf. its located in a low to middle income area. the owner has no proper paper work to verify the net earnings of about $35,000 annually. there is 2 larger and newer mats about 1 block from this one. the asking price is around $200,000. I feel that it is a bit high....the equiptment is about 10-20 years old with an exception of the speed queens. the lease is 8 years with a 5 year option. it has a wash and fold...don't know how much it generates yet...owner is selling for personal reasons....do you all believe this is a good buy....i was thinking of asking for much less...do the numbers add up to earn that much annually? any information would be greatly appreciated. thanks to all


I would offer much, much less. And I wouldn't get your hopes up about the owner saying yes. It's pretty old stuff, and with the competition so close..... I'd try to get a bargain or keep on looking.

[pete f]

I did not take the time to do an apprasial based on utility bills, but you have all the information right there to verify his gross. net 35k with old stuff, more than 3x does seem high. Unless I am missing something he appears to be asking much more than what it is worth

[Breeze]

I don't know about everyone else's electric bills, but I'd look deeper into that. Do yourself a favor and look around the building an see how many meters are on it for that store. My example: the mat i'm looking at buying has 2 separate services on 2 separate bills. One bill for the single phase meter (basically the lights, HVAC, etc) and one for the 3 phase panel (all the equipment). The bill I was shown was for the single phase panel and was avg. $300/mo. With this bill in hand, I called the electric company who confirmed there was indeed a second monthly bill that I was NOT shown averaging $700/mo. I asked the owner about it, "let me look....oh yea, there is another bill. I forgot all about it" And you're looking at a larger store with more machinery...

My potential mat: 1600 sqft, 20 tops, 11 stacks, 4 single dryers, 2 18lb, and 4 30lb. Total yearly gross machines + WDF is about 100K.

I would agree with pete f's opinion, based on what I've read in the past few months here and elsewhere, as well as talking to other mat owners in my area.

It would also make me leary, no it would make me run!, not seeing gross sales and "selling for personal reasons". I would assume there is a "certain amount of slush" in this business with some owners but you need something that's ballpark. Ask for the last 2 years of P&L statements he used for his taxes on it and see what he says.