January 9, 2021 at 12:44 am #3001
Through some recent local real estate listings I became intrigued by the prospect of running a laundromat. I noticed my local self serve was rundown and decided to reach out and test his interest in selling. I’m about to submit an offer of roughly $80k for building, equipment, business, everything. The county accesses the building at $60k while its most recent sale price was $90k in 2007.
I’ve estimated this past years net income at $20k after seeing the buildings water consumption for the past 4 yrs. The owner says financial statements are forthcoming but he’s got another interested party so I feel I’m on a tight time crunch. I’ve done what due diligence a can with my real estate broker and he has given me some understanding of areas I’ve neglected research.
I will in all likelihood offer his asking price without seeing financials just because this worst this deal looks to me is break even. I’ll pay cash and have a building that would easily sell for $60k imho and have 26 washers and 20 dryers that would return something if worst comes to worst.
At $60k for the building am I stupid for not being more concerned with the financials? The net return before last tear was trending downward and I know I’ll have some work to recover the image of the store but before last year the net was roughly $25k. I believe a more present owner can overcome a lot of the stores current issues. Any insights or thoughts would be helpful.
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