All Forum Posts by: Mark Gibbs

Hey Ameer-

It really depends what your plan is. I’m no expert in the land buying front by a long stretch.

There are some guys out there whose business model is to buy land that the current owner once had plans for but now just wants to unload the property or has stopped paying taxes on the land.

For me I tend to look at land that has a higher zoning use on it that isn’t being recognized by the current owner. I’ve had some pretty good luck that way but I’m not out doing it 24/7. Just some that I happen to come across and I’m pretty sure has a path of progress opportunity or a great opportunity to do some basic entitlement on. Hope that helps.

Paul-I think they have a system issue. I noticed that the link wasn’t working as well. 

Lights out job. Looks great.

The advice above is completely solid and trying to find out her motivation for wanting to have nothing to do with it to begin with might be a touchy subject so you might need to ease into it a few times. One thing I would say is don't wait until it is up for auction, if you need to look into paying the taxes that are longest outstanding so that the county can't put it into foreclosure before you have a chance to work something out with the aunt. You are closer to the drivers seat on this than any other potential buyer, take advantage of that. 

I didn't see @Ken Barrett s post above. Listen to him, he knows what he is talking about. He also has a pod cast that might be of interest and you might learn a few things from that .

Kera-

I have been evaluating this business for a few years and have been looking for the right opportunity. There are a few things that I have learned that might help you in your decision making process. 

1) It isn't passive in the way that real estate can be. With a rental, once it is up and running you can expect your monthly check without much ongoing effort and maybe a yearly turn over. With the coin laundry you need to expect to be at the store a minimum of 2 days per week picking up money. More often if the store is busy. 

2) You will need an employee to clean and handle WDF unless you intend to do it yourself, if so plan on being their daily. 

3) You are on the right track with pricing. Another way I have see them priced is 1x gross or 3-5 x net. In either case you need to verify income; meaning tax records, monthly receipts, utility bills etc. Because it is a cash based business some owners will say I made "X" but only reported "Y".

4) Make sure you have a long term remaining on the lease. You not only need to have enough time to make back the money on your investment but if the landlord decides not to lease to you any longer there is virtually no value in the business. You can take the equipment but where are you going to put it and how much is it going to cost you to move it? These are huge issues to consider. 

5) Demographics are important and you need to run your business better than everyone else in the area to grab business from every other laundry you are competing with. 

6) Lastly, and I haven't dealt with this but I have seen the numbers. This is a capital intensive business. If the machines are old you may need to upgrade them. Think $4000 per washer for the smaller units and closer to $14K per unit for the larger units. Dryers run $3500-7800 for single vs. double stacks. Financing is available for equipment but as with any investment make sure your numbers work. 

Distributors are good people to talk to but remember their business is to sell you equipment so they see things through the rose colored glasses. 

Good luck

Thank you everyone for the feedback. 

Hey BP- 

Can anyone recommend a CPA who is familiar with notes to help me sort out an issue I have on a note? 

800 notes in 30 days is an eye popping number. I guess that goes to show you if you take the business seriously there is product out there to be had. 

I am curious, would you put a greater emphasis on having an equity cover or on the asking price as a % of unpaid balance, especially in a changing market?

@johnathan a I haven’t even read this entire thread but it’s apparent you mislead your partners. You may “win” on paper if you go to court but what did you cost yourself? Three potential future partners? A boatload of money if a lawyer gets involved. Credibility. You are in short term thinking mode.

Yes, you have expenses that come along with being a general on the job. You should have been able calculate those as part of the project, or at least stated clearly how those expenses would be accounted for on top of all other costs. 

As another poster said, your wasting time dealing with this rather than working on your next deal.