Reply To: Financing mix for a new mat?

[Dave “Laundromat Millionaire” Menz]

Hey guys, In my opinion paying all cash is foolish (due to record cheap money and the devaluing of our currency), however I do believe you can be overleveraged too!

I recommend that you put together a complete master business plan for the first 5 years of ownership. If it’s an older mat that’ll need new equipment, a renovated interior, etc then include those budgets. From there work your way backwards to the beginning and plug in your available cash on hand.

Keep in mind that it’s tougher(not impossible) to finance certain things than others. Not too many lenders will finance payroll or a buildout of your space. However financing equipment and commercial buildings is much easier to obtain.

I recommend you put yourself in your lenders shoes and use the old common sense test. If you default on said loan, do they have any collateral? If so, the loan will be more easily obtainable. If you have specific questions, feel free to shoot away! Best wishes to you guys!