Home Forums Laundromats When to ask for more details

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    I recently got some info on a laundromat for sale from a broker in my area. He gave me the address and a simple break down of the income. Here is what he gave me:
    Water/Sewer: 8000
    Gas/Electric: 18000
    Payroll(2): 24000
    Insurance: 1500
    Total Expenses 93800

    Now obviously with these numbers the laundromat looks good but these are very basic number. The asking price is also very reasonable. However i probably will not pursue this laundromat because of a couple factors.

    Location- Its in a very rough neighborhood with alot of nicer laundromats near by. It is also kind of hidden in a side street neighborhood with no real parking etc.

    There are some other reasons but that definitely a big one.

    My question is do you think its worth it to ask for more info on the location from the broker just to better learn how to fully evaluate laundromats? Keep in mind i dont want the broker to think i am just stringing him along. Also does asking for utility bills, the lease, machine make and model, etc constitute me needing to formally enter a “due diligence phase”? If that makes sense. I basically want to window shop this business but dont want the broker to feel duped by me. Maybe i am over thinking this.

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