Laundromat Resource Forums Financing 2584 Square Foot Laundromat

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    • #13309
      Art gonzalez
      Participant

      Hello:

      I have been looking into getting in the laundromat industry over the past two months and met with a broker to look at potential businesses to buy. The one that I am interested is approx 2600 square feet. This project is a redevelopment of an existing store. The free-standing building site meets all store requirements for visibility, signage, parking, and demographics. The interior of the store needs to be thoroughly cleaned and painted and requires a new equipment package.

      This is a premium location with apartment buildings across the street and next door which do not have machines in or on the property. The laundromat has 0 website and does not even show up on google so it is all word of mouth which is astonishing.

      2020 p&L income was 153k and netted 65k
      2021 Q1&2 income was 65k net 20k

      you can see in the reports the store is suffering due to the lack of keeping up with the store. It will need about 85% new equipment which the broker/distributor gave me a break down for around 530k. The owner wants 195k for the business which is negotiable. Do these numbers sound about right? The equipment was a bit of a sticker shock.

      I figure using 2020 numbers a multiple of 3x of net business would put me around $180 but averaging 2021 would be around $120 so my offer could be somewhere in the middle.

    • #13369
      Dan Cantillana
      Participant

      How is this research going? DanCan

    • #13370
      Jason Dodge
      Participant

      I’m curious as to why the numbers have dropped so much. Other than neglect, has there been another laundromat built in the area? Can you buy the building?

    • #13385
      Art gonzalez
      Participant

      I can’t buy the building its in a small strip center. There is a liquor store next door and a hair salon. There hasn’t been any new laundromats that have opened up however their is a full service one 1.5 miles away so I would assume the business has gone there

    • #14391
      Juan Vazquez
      Participant

      While the numbers could improve, I am so struggling with the 530k for equipment. Is this a correct figure and not a typo? This doesn’t make sense as the figure seems entirely too high for a location that is already there resulting in no additional costs for impact fees and the build out still being in place. IF you are luck, depending on what equipment is there vs what is coming in you will not have to buy washer bases etc..

      Any update on this business contemplation?

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Laundromat Resource Forums Financing 2584 Square Foot Laundromat