View Full Version : Buying a laundromat --have questions
Jenna
09-21-2005, 11:39 PM
I am looking to buy a laundromat near my house in Bronx, NY. One concern I have is the rent seem very high 2K/month. The owner told me he is making 5-6K (gross) per month (wash & fold services included) and all his utilities bills are about 1K/month ... My questions for you are: beside the ultilities bills & insurances, what are other cost ??? If there is no other costs is this a good business to buy ??? Any opinions are appreciated .. I am a stay home mom and now my kids are starting school .. I need to get back to work and this seem like a good deal to me.
azkid
09-22-2005, 01:25 PM
Can't tell you if this is a good business for you to buy, but by looking through these posts you can get an idea of the business for starters. You need to understand if the lease is reasonable on a per sq foot basis for your area, and how long it runs. Also, consider the age of the equipment and whether you will have significant maintenance expenses.
galaga
09-22-2005, 01:31 PM
Can you fix your own machines?
If you can not and can not find some handyman cheap,don't get in this business since the repaire bill will kill you for such low gross store.
kiwi66
09-22-2005, 05:00 PM
If you dont have much experience with business or laundries I would hire someone to help you do the due diligence. If the seller is on the level he wont mind giving you a couple of years utilities bills to back his statements up. The more information you can get the better, dont accept a nod and a wink. Verify everthing. You should also read the lease agreement and make sure you understand EXACTLY what it means, once you sign there no going back. Ask yourself how many hours will you be working to make that profit?
Sounds like net will be thin. I say estimate how much time you'll have to put into it and get a good handle on the net, then determine if its worth your time.
Sounds like your rent is a bargin. Mines twice as much as yours. But the sales are higher too. Good luck
todd_351
09-28-2005, 06:31 PM
If you are borrowing money to buy the store, make sure you figure in your mortgage. Your loan can quickly eat up your profits.
Also, consider machine and store maintenence. Half of my machines are brand new which require near zero maintenance. The other half are 15 years old and many of them require a lot of time and money to maintain. Mops and cleaning supplies add up too if it's a big store.