'Mat 4 sale

[Waxman]

A laundry mat came up for sale near my wash. It's part of a strip mall and the price includes the strip mall as well. It features a hair/tanning salon, the mat, a mechanic and a meat/deli shop.

Owner says mat does $4500/mo. gross and rent receipts add another $2k/mo.

He also says the driers are propane and the expense for propane is high (no surprise).

Besides asking for tax returns/proof of income, what else should be considered?

Is this a business I could run at a profit when also running a wash/detail/car lot or am I asking for trouble? I don't want to spread myself too thin.

TIA/Wax

 

[Bubbles Galore]

I say jump in with both feet...but I'm not nearly as cautious as I should be.

 

[PaulLovesJamie]

do the numbers pencil out?
How are your hiring & delegating skills? (for a manager, not labor)

 

[Whale of a Wash]

The rents sound really low for the three businesses. My daughter pays booth rental at a salon of $600 a mo. Not sure how big the salon is. Around here the strip malls also make the renters help pay for snow, and maintenance.
Let me know when you buy it -- I have some clothes soaked in gas i need washed.

 

[jfmoran]

Rents???

Only $2K a month rent from 3 businesses? Sounds really low. Are they triple net leases??? How long are the leases??

 

[Waxman]

I am going to take pictures today. I have not seen the financials yet.

I am good at delegating. I'd like to know the financial health of the Laundry as well as the renters. I'd like to know the lease terms and the payment history of tenants.

 

[pitzerwm]

I had laundries, the issue is a lot more moving parts and I don't think that you can run one without labor, like you could in the old days. When you factor in labor, you may not have enough profit, to go around. Go talk to another laundry across town or at the next town over. I'd also talk to the two renters to see if they are happy, will they stay, is there any room for rent increases. I'd imagine that the rents are more of a factor of what the market will bear. If the businesses are small they aren't making enough money for more rent. A real fact, when you have a commercial vacancy, its rarely rents in a month or two.

 

[Waxman]

Good advice. Guy next town over is former partners with mat 4 sale, so I'm not sure about him but there are laundries in other areas I can talk with.

 

[I.B. Washincars]

Guy next town over is former partners with mat 4 sale,

First thing that jumps to mind is, why is he not buying this mat? In my mind, if this was a home run the partner would have bought it and it would have never got on the market. I know there may be other reasons he isn't in the picture, but I definitely would want to talk to him. He may not divulge any info out of respect for his former partner, but at least you could feel him out.

 

[Waxman]

Okay I will do that.

 

[Waxman]

Former partner was bought out last year.

7 new triple loader washers were installed.

Place opens itself daily and is closed by a manager who now 20 hrs./wk. It is open 365 days/year.

 

[txheat]

A laundry mat came up for sale near my wash. It's part of a strip mall and the price includes the strip mall as well. It features a hair/tanning salon, the mat, a mechanic and a meat/deli shop.

Owner says mat does $4500/mo. gross and rent receipts add another $2k/mo.

He also says the driers are propane and the expense for propane is high (no surprise).

Besides asking for tax returns/proof of income, what else should be considered?

Is this a business I could run at a profit when also running a wash/detail/car lot or am I asking for trouble? I don't want to spread myself too thin.

TIA/Wax

the numbers sounds weak. whats the square footage of laundry and machine mix/count. secondly like one of the poster said, i be very cautious about the partner not buying it out. As for spread, if it's close i dont see problems with it. We are in process of building washateria next to our car wash. I would also get a distributor to come to check the site out. He usually does the demographics and pro forma.

 

[Waxman]

Stopped by there last night. There are MANY machines out of order; probably 8+ washers o.o.o. and 4-5 dryers o.o.o.!!!

The carpeting in part of it is shot. The tables and stools are junky looking.The mat is clean and well-kept. There was a dryer or 2 in use but no one there at 6:15 pm.

Not sure; my feet are pretty cold.

If it were cash flowing decent, wouldn't they fix the broken machines???

 

[pitzerwm]

When you are not fixing things, you have lost interest and probably no money.

 

[packerscw]

Be ready for a lot of people complaining..and some people come to laundromats just to wreck your washers so they dont wreck there own washer. Over loading, put bad items in washers. Laundromats can be a headache. Is the equipment inside the laundromat old or newer equipment?

 

[Waxman]

It's old. The plaza and laundry mat seem distressed so I have opted out.