Opportunity to purchase existing mat + property from parents
This board has been a great learning tool for me over the years. I grew up in and around this business with my parents. Long story short: My Dad who owns an existing Laundromat is looking to sell. The family dynamics are that I'm an only child and there are no other beneficiaries for his estate other than me.
What was once a thriving and profitable mat is now barely holding on and breaking even. He's had his run and is looking to sell. In order to protect my investment and for him to not sell in a down market I'm looking to make an arrangement with him to purchase it.
The specifics:
Laundromat sits on 2 acres of non developed commercial property that's connected to an additional unit that could be rented as multi-use. The potential rental space that sits beside it has been vacant for 5-6 years Property was purchased in the early 80's and has remained in the family since. I intend to keep it that way until there's several profitable businesses occupying the space.
Financials- Barely breaking even. However, machines are broke, there's been no advertising since day one. You know the story. Had a loyal customer base until about 2-3 years ago when my father could no longer maintain it..
This deal is primarily about protecting an investment and not encouraging my dad to sell a property to someone outside our family who would do the same thing that I would do, that is, fix it up and have profitable businesses on the property. He has offered to allow me to purchase the land free and clear in exchange for monthly cash-flow to him to support him in his retirement years. He's in his mid 70's.
In addition, part of the deal is that I've asked for initial capital to start turning a profit again. I'm estimating 50-75k which is available on hand. This would relieve him of the responsibilities of daily management of the facility and allow someone who actually cares to invest back into the business.
My question to you all is if this is even worth me trying to salvage. With this limited amount of information it's hard to give clear advice. I realize that. I think this is a valuable piece of property and this laundrymat has the ability to turn a profit again. I have a full time sales job that is very flexible once monthly quotas are hit. IN short, I'd have some time to dedicate to this as well as use this as a vehicle for my own retirement for my wife and I (27 and 30 respectively). Please feel free to push back on any of this. I'd welcome it.
If anyone is passionate about wanting to give mentoring advice then feel free to message me and we can connect in a skype session or offline.
Again, you folks are amazing at what you're doing. I knew this time would come a few years ago and that's when I started tuning into these boards to get some help from this community.
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