Brokers and Landlords

[Thomas Walker]

Hey! I was introduced to the idea of owning a laundromat a couple of weeks ago and it is an exciting idea for me. there’s a ton of things I have questions about.

But for now I wanted to ask about brokers and landlords. Specifically, how common or unusual is it for a broker to also be the landlord? I am asking because the laundromat down the street from me, which I catch the bus in front of everyday is for sale. It asks $290k and advertises a gross income of $460K. The current owner is willing to train the buyer on the business. Here’s why I’m posting ; and this comes directly from the listing: “Please note that the Seller’s Designated Managing Broker (name of broker here) has an interest only in the building as the Landlord and not the business.” Rent is $13K/month with a lease agreement till 9/1/30.

I’m not sure if this means the broker is the current landlord of if he intends to become the landlord with the new owner. This location is in Chicago.

[Ryan Allen]

Rent is 13k a month??

[Chris Schultz]

I know what store you are talking about. You’re likely looking at replacing all of the equipment. What is there is not usable to make any sort of profit. Also, to justify $13k/mo the store would have to gross $625k. I’m not saying this isn’t possible, but the investment would be quite large to get it there. $290k for the store plus $600k for new equipment, and then probably figure $100k as a low figure for renovations and rebranding.

The landlord is the landlord for quite a few stores in Chicago, and he is the largest broker in Chicago for laundromats. This is a normal situation for him.

[Author]

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