Closed Laundromat For Sale

[Jordan Berry]

So I have an opportunity to buy an off market zombie laundromat that has been closed for a few months but has been around for 30 years. He closed the doors because of a gas leak that he can’t afford to fix, $5000. HThe current owner, young guy, is selling the laundromat $100k, as an equipment purchase and not a business. He said he bought it from previous owner a couple years ago and he can’t keep up with it because he works a full time job, he thought it was an absentee business. The current owner isn’t willing to provide financials because he says he didn’t keep too many records because he didn’t want to report the money to the IRS. The place looks like it is in good condition but the equipment seems a little older. The laundromat has 30 washers (10 top load) and 36 dryers that are an average of 12 years. The landlord is willing to do a long term lease prior to purchase. The concern I have is that there are two other larger laundromats within one mile but are not that great with similar equipment. And, I have no way of knowing how successful this place can be. Any ideas on how I can find out what the past performance was or how I can get it back to a profitable business? This will be my first laundromat.

[David Rawlings]

Do a good lease (under a $1 a SQ Foot) and it’s yours. The landlord will have to deal with the currant operator. Equipment is old and probably only worth shred at the local scrap yard. Retooling plus incidentals will cost around $125 a SQ-FT.

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