Sewer Charges?

[astro_h]

I have been looking to buy a mat for the past year with no luck. Until a month ago, not many mats were available for sale. However, in the last couple of months, I have noticed a huge jump in the number of mats for sale in southern california.
Anyone knows why? Does this has to do with any new laws and sewer charges?

Thanks.

Shawn /ubbthreads/images/graemlins/confused.gif

[Steven04]

astro_h,

I haven't noticed any changes in my bills, although its been a little slower compared to last year, but I figured its because of the economy and that my prices are on the higher end. I'm looking for a 2nd store myself so its probably a good time to buy when its flooded with stores for sale. It'll be easier to negotiate on the price. Be careful what you buy tho, I've seen a couple of crappy stores selling for cheap and its not even worth renovating them because of bad location and lame lease terms.

[epic02]

You should do your home work if you buy a mat in So Cal The ones within 3 miles of me change owners every time I turn around. At least 3 of them have changed ownership 3 times in a period of about 2 years. One in fact has been bought and is now being sold in less then 6 months. About the sewer charges as of now I don't see that much of a difference The utilities go up and down depending on the amount of customers you have. The thing that can be hard on you, in the laundry business are all the fixed expenses along with maintenance and upkeep. Lots of time your going to need deep pockets to build your laundry up so that it starts to make money that cold take few years or longer. And if your up against a strong competitor maybe not at all. and might end up just breaking the bank.
Kenny

[astro_h]

Steven04,

Thank you for your input. After so many mats went on the market, it got me worried! The Store I am looking at, needs to be completely rehabed. The machines are in very bad shape and out of order. The location is not too bad and the lease is for 15 yrs.
The worry is that I may lose all the customers during the renovation.

[astro_h]

epic02,

Thanks for the advice. Do you know why the store you mentioned is going through so many cycles and hand overs?

[Steven04]

Do you plan on closing down the store when you remodel? I would rather keep the store open and work overnight or during the day when its slow instead of closing down and doing everything at one time. When you rush projects like that your bound to run into problems later.

If you've got the cash to invest its a good business to be in. Be advised washers/dryers are not cheap and I wouldn't recommend putting zero down, 100% financing on new machines. Laundry salespersons have their own opinions.

[astro_h]

Steven,

The broker told me that it will take twice as long (~6 months) to renovate the whole place, if I kept the store open. I read one posting in this forum that suggest using the home equity to purchase the equipment/store as oppose to biz financing. What is your take on this?

Thanks again for the help.

[SEFlaundry]

Depends on the interest rate that is offered. If you can save a good chuck of change on a euity loan then go that route. If there is not a big diffence on the interest rate go the other route. This is where being a corparation can come in handy assuming you do not have to personnally guarentee the loan.

[jamesbond]

just be careful when you use your home. if you have to fold your business, you don't want your house go with it.

[ QUOTE ]
Steven,

The broker told me that it will take twice as long (~6 months) to renovate the whole place, if I kept the store open. I read one posting in this forum that suggest using the home equity to purchase the equipment/store as oppose to biz financing. What is your take on this?

Thanks again for the help.

[/ QUOTE ]

[Howard]

[ QUOTE ]
just be careful when you use your home. if you have to fold your business, you don't want your house go with it.

[ QUOTE ]
Steven,


If you take out a loan for the business you almost always will have to personally co-sign for it -- so if the business fails you would most likely loose the house also.
The broker told me that it will take twice as long (~6 months) to renovate the whole place, if I kept the store open. I read one posting in this forum that suggest using the home equity to purchase the equipment/store as oppose to biz financing. What is your take on this?

Thanks again for the help.

[/ QUOTE ]

[/ QUOTE ]

[Steven04]

I believe home equity loans are lower. Biz loans also usually requires large 30-40% down payments and/or collateral to your home.

[astro_h]

Thank you all for the good advice. /ubbthreads/images/graemlins/grin.gif

[epic02]

There just not making money even after a complete remodel.
and because when they closed for remodeling I took advantage of it and kept there customers happy, In my clean full time attendant store with every machine working among other things. By the way where abouts in California are you going to be located? Send me an email if you dont want to post to much information.
epic02@gmail.com
Kenny

[BrianBB]

6 Months to remodel is ridiculous! To completely remodel my store in Oakland last December, which included 59 washers and 28 stack dryers it took only 2 months and we were open the entire time with the exception of 3 days for the replacement of the water heater system. This time line included all of the carpentry work as well and was done by a crew of 4.

Brian

[petefritz]

[ QUOTE ]
6 Months to remodel is ridiculous! To completely remodel my store in Oakland last December, which included 59 washers and 28 stack dryers it took only 2 months and we were open the entire time with the exception of 3 days for the replacement of the water heater system. This time line included all of the carpentry work as well and was done by a crew of 4.

Brian

[/ QUOTE ]

I agree, the work process should be less than 2 months. The whole process could be 6 months. You need engineering, architech, submit for plan review, permit, landscaping, etc. That could take 2-4 months to complete, which does not affect the operation of the store itself.

[astro_h]

Sorry for the late reply.
The store is in long beach area and I am concern that I may lose customers after the remodeling. The store is not in a good shape and majority of machines are old and not working. So the customers may have already migrated to another mat. The store may be too small (1500 sf) to keep it open during the renovations.