Eviction oppertunity. TELL Me what you think.

[blackblock]

Hey guys,

I like to share my recent findings in Hispanic location in Oakland.
This location was forced to evict by owner owned, the 24 unit apartment building was foreclosed upon. The new owners evicted the previous owner from the building due to a fake lease. Rent, which is negotiable is currently 3,600. There is approximately 1 laundromat every 1.5 blocks in this neighborhood. Its in the middle of the block with limited parking, But the area pretty is densely populated with (3-4 unit buildings). Has
about the site 2000sq ft. room for 46 machines (loaders and dryers) with room to expand. Closest competition just opened last month with 15 machines and looks like crab. Everything is ready to go. water, plumbing, exhaust, electrical wires may need to be extended. and some concrete would need to be poured to stabilize the machines.
I visited the site today here are some pictures for you guys.

Questions:
This is would be my first laundromat should i buy new or used?
How much should the machines be off the ground?
How tall do the stabilizer beams (to hold loaders) have to be. and how deep into the ground do they have to go?
Is the property worth it?
Should there be raised concrete under loader with a stabilizer?
how much does the stabilizer have to be separated and sticking out?

https://picasaweb.google.com/1148688...eat=directlink

[alesser738]

Give Western State Design a call. 1800 633-7153.
They are probably the largest distributor in Northern Ca.
Ask for Bryan Maxwell.

[blackblock]

Originally Posted by alesser738

Give Western State Design a call. 1800 633-7153.
They are probably the largest distributor in Northern Ca.
Ask for Bryan Maxwell.

called he is out of the office. what does he specialize in btw?

[blackblock]

I was wondering if i could get a couple thoughts from you about my recent find in a Hispanic neighborhood.
This location was forced to evict by owner, the 24 unit apartment building was foreclosed upon. The new owners evicted the previous laundromat owner from the building due to a fake lease. Rent, which is negotiable is currently 3,600. There is approximately 1 laundromat every 1.5 blocks in this neighborhood. Its in the middle of the block with limited parking, But the area pretty is densely populated with (3-4 unit buildings). Has
about the site 2000sq ft. room for 46 machines (loaders and dryers) with room to expand. Closest competition just opened last month with 15 machines and looks like crab. Everything is ready to go. water, plumbing, exhaust, electrical wires may need to be extended. and some concrete would need to be poured to stabilize the machines.

MY friends boss is willing to sell me 10 Whirlpool Top load washers, 9 Dexter frontload washers (one 50 pound unit, two 35 pound units, and 6 16 pound units) for 10k, i think they are a couple years old. i think thats a pretty good price.
I visited the site today here are some pictures for you.

https://picasaweb.google.com/1148688...nk%5B%2Furl%5D

[bodman]

Sounds sweet, If you were my brother I would tell you to take your laundry to the competitors mats wash a load and write down the sizes of their machines, and Qty. you will have to go several times and different days. What you are looking for is what you can do different from theirs. ie are their largest washers getting used or are they just one load washer customers. equipment mix 3 different sizes, ie. 20s 40s 60s. Down here my 40s get the most play The 80s bring in the most revenue per machine but they cost a lot 10 to 14k each. Dryers you could buy used. if their fronts are tired looking scuff and paint and buy new face plates It would be ok to use 30lb stacks and 30lb singles. I did not see if you are thinking of going attended. If unattended figure 5k to put in security cameras and alarm the machine lids and coinboxes. From what a good friend tells me about southern california he owened 7 ,mats there EVERYTHING must be bolted to the floor. One of his mats had 2 fellas walk in with a torch in hand cut thru the coin changer grab the cash and leave TOOK 90 SECONDS FOR THEM TO DO THAT they were on camera. I am a coin guy but out there a CCT debit card system might be best. That way you only have to secure the card /cash unit. If you decide on 2 80s skip the 60s, put in more 40s . forget about tops. You are looking at around 200,000 to do this . I love having the ability to do time of day pricing. also. that is myUSP.

[bodman]

The lack of parking (kiss of death) and the rent is my main concearn at $3600 high for me my most profitable mats are $1300 for 1800sq and 1600 for 2400 sq, though every area is different .looking at expenses Most on the board try to get rent under 13% of expected gross. your utilities at 30% and under. loan . wages, insurance . cable ,security, repairs. garbage. phone. accounting. tangible tax. intangible tax, fees, wages payroll taxes. If you add up those realistic cost and you can make a profit go for it. You may have read on here TPD that is used as a guide to project gross income by washers. TURNS PER DAY I was taught to use 2.5 washes per machine per day to come up with a break even number plus add to that figure 40% of washer for dryer income . If I can pay all my bills using that formula the mat is worth considering.

[jh]

It was a good sign that the previous owner didn't want to leave -- There was money to be made.

It was a bad sign that the previous owner had to leave -- The new landlord and the mat owner didn't come to an agreement. One has to question if it was due to the rent.

[rbh]

How well do the machines you can buy match up to the current plumbing/venting configurations?

Lack of parking may mean nothing in your particular market. I have none and do very well. My area is lots of foot traffic. Yours may differ but you should know what you are dealing with and whether its a real disadvantage or not.

Is the landlord willing to work with you on a creative lease which limits your downside but provides future stability if it works out? Like a series of 1 year leases with your option to renew the first say three years, then some 3 year options after that. That's what I'd look for. The rent number is steep no doubt don't know your market to know if its above market or just what the area calls for. If its just the market, you should be able to price for it.

[blackblock]

Originally Posted by bodman

Sounds sweet, If you were my brother I would tell you to take your laundry to the competitors mats wash a load and write down the sizes of their machines, and Qty. you will have to go several times and different days. What you are looking for is what you can do different from theirs. ie are their largest washers getting used or are they just one load washer customers. equipment mix 3 different sizes, ie. 20s 40s 60s. Down here my 40s get the most play The 80s bring in the most revenue per machine but they cost a lot 10 to 14k each. Dryers you could buy used. if their fronts are tired looking scuff and paint and buy new face plates It would be ok to use 30lb stacks and 30lb singles. I did not see if you are thinking of going attended. If unattended figure 5k to put in security cameras and alarm the machine lids and coinboxes. From what a good friend tells me about southern california he owened 7 ,mats there EVERYTHING must be bolted to the floor. One of his mats had 2 fellas walk in with a torch in hand cut thru the coin changer grab the cash and leave TOOK 90 SECONDS FOR THEM TO DO THAT they were on camera. I am a coin guy but out there a CCT debit card system might be best. That way you only have to secure the card /cash unit. If you decide on 2 80s skip the 60s, put in more 40s . forget about tops. You are looking at around 200,000 to do this . I love having the ability to do time of day pricing. also. that is myUSP.

I am your brother!!! That sounds like a good strategic move to go into the closet competitor. Mark down peoples usage habits. As for the area, this area was once a very crime filled area but it has completely changed in the last 10 years. so i dont know if i need to rely on the cct system. I do intend to install security cameras and an automatic door lock/opener. (any brands suggested) Do you suggested i buy all the machines new because i really was leaning to buying the machines used. to keep the initial cost down.

[blackblock]

Originally Posted by bodman

The lack of parking (kiss of death) and the rent is my main concearn at $3600 high for me my most profitable mats are $1300 for 1800sq and 1600 for 2400 sq, though every area is different .looking at expenses Most on the board try to get rent under 13% of expected gross. your utilities at 30% and under. loan . wages, insurance . cable ,security, repairs. garbage. phone. accounting. tangible tax. intangible tax, fees, wages payroll taxes. If you add up those realistic cost and you can make a profit go for it. You may have read on here TPD that is used as a guide to project gross income by washers. TURNS PER DAY I was taught to use 2.5 washes per machine per day to come up with a break even number plus add to that figure 40% of washer for dryer income . If I can pay all my bills using that formula the mat is worth considering.

3600 is pretty high for me too, parking isn't really there and foot traffic isnt splendid. but this area is pretty dense and it is on a main street. The average rent in this area is probably 1800 per 2 bedroom. I recently spoke to the owner he is willing to get creative. suggesting i come up with some ideas, my idea was to lower it to 2000 a month and he pays for copper pipework, electrical, the infrastructure, so i would just have to bring in the machines and boiler. He said no. and he would do the build out for 3200. He believe that the previous owner was grossing 10-13 a month, I told him with out adequate proof i cant take that number into consideration. i followed up by asking old tenant if it was busy in there, and grounds manager if it was busy there. they both replied yes. grounds manager was working in the old laundromat part time, he said sometimes all the machines would be used. but i really dont see how it could be so full with out superb foot traffic and parking.

Originally Posted by jh

It was a good sign that the previous owner didn't want to leave -- There was money to be made.

It was a bad sign that the previous owner had to leave -- The new landlord and the mat owner didn't come to an agreement. One has to question if it was due to the rent.

I think it was due to rent. because i asked myself that question many time, why did they evict out the previous owner, he said they faked a lease. i assume they wrote a lower rent and gave them selves a long time. I'm actually thinking about asking the grounds keeper for the old owners phone number and calling her. because the grounds keeper used to work for the owner. im sure he has her number.

Originally Posted by rbh

How well do the machines you can buy match up to the current plumbing/venting configurations?

I think they had (and i dont know what these machines are, this is what the grounds keeper told me) 2 -750s, 4 -650s, 6-550s, and rest 450s? they bought all new machines, i dont know if i can afford new dexters, i was considering buying used and upgrading later.so i dont really know if they will match the same.

Originally Posted by rbh

Lack of parking may mean nothing in your particular market. I have none and do very well. My area is lots of foot traffic. Yours may differ but you should know what you are dealing with and whether its a real disadvantage or not.

Is the landlord willing to work with you on a creative lease which limits your downside but provides future stability if it works out? Like a series of 1 year leases with your option to renew the first say three years, then some 3 year options after that. That's what I'd look for. The rent number is steep no doubt don't know your market to know if its above market or just what the area calls for. If its just the market, you should be able to price for it.

I know it is a disadvantage but to the extent it is not grave. most of the laundromats in the area do not have parking and they are about 1.5 blocks apart from each other.

the landlord is willing to work with me for a creative lease. i don't know how a 1 year lease with options would fly with him, because there is some work that still needs to be done, some surface copper water pipes still need to be ran. doors, cabinets, fold tables, electrical conduits and breakers need to be installed and i want him to incorporate some of that into the lease but if he could lower the rent i am willing to do some of that work myself.


thank you all for responding. i hope to hear more of your great imput. this forum is much better than others. imo