Hello everyone! I’m looking for some advice about a laundromat I’m looking at. There are 26 washers various sizes and 20 driers. 4 of the washers are down. He wanted $35,000 for it and he gave me his tax returns saying it made $124,000 in gross revenue last year and $15,000 in profit. The problem is he doesn’t have any pay stubs or financial statements to back it up. There is a lot of potential for the laundromat and I think I can add a lot of value to it. so I am still interested even though it’s a strange situation. I was thinking I would make him two offers. Offer one would be a cash offer for the value of the machines. If anyone knows of a good way to go about estimating machine values I’d appreciate it. The second offer would be $30,000 with him holding the note I’d put 10% down and it would be a none recourse loan so if the finances don’t add up I’d have minimal losses if I was to give it back. Any input would be appreciated thank you!
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