All Forum Posts by: Adam L.

Say something like this 

https://www.loopnet.com/Listing/1247-Portola-Ave-Livermore-C...

I am originally from SF Bay Area . Have like a dozen houses. All paid off. Probably getting 1-2 cap if that . Some I haven’t raised rents in 10 years . Look more as a retirement play . Don’t need any monthly Cashflow . 

I am a small business owner with like a dozen employees . I have plenty of stress  and headaches doing that . At my daily job , I try to make enough to pay all my family’s bills , pay down 1k debt a day and save 1k a day in savings . That’s why the houses all got paid off .

Hello,

What am I missing. Seems like NNN is a Slam Dunk At 6-7 Cap Rates.

If you can borrow at similar costs to cap rates and put 30-40% Down. Seems like a no brainier.

For Example

$2,000,000 property at 6.75 Cap

20 year corporate tenant . 10% increases every 5 years.

$700k down 1.3m loan at 6.5% amortized over 20 years

You would make $18k a year in Cash flow

Would pay down $31k a year in principal

After the first 5 years. The property value would increase 200k in theory because rents went up 10%.

just looking 5 years out

90k in cash flow

155k in principal pay down

200k in appropriation

446K gain in 5 years.

What am I missing? Wouldn't buying 1 every year or two make sense if you can come up with the down payment?

Obviously the quality of the tenant is paramount . Math looks horrible if they leave after 6 months.

I vote Caitlyn Jenner 

You can try something like this . Just needs to be lower the the fridge door. Get rid of the handle  

https://www.amazon.com/Commercial-Bathroom-Hygiene-Preventio...

@j Scott 

Say you own a plumbing company . On Monday you have 3 water heaters lined up for employees .

$500 material and $500 labor each 

Plumbers get paid $30 an hour in this scenario .

Instead of doing 3 jobs that day . You need him to do water heater at your flip. You cancel 1 job.  Instead of grossing $1500 in labor that day, he only grossed $1000

Let’s say each job took 2 hours .

You need to bill for $500 labor , not $60 … $30 x 2 .

If your paying him $30 an hour and billing him out at $30 your kidding yourself into making a profit on the project . Good for the money partner but sucks for you. You will probably get $50,000 less then partner . 

Hey Ryan,

I think your making it more complicated then it should be . I do see where there could be a conflict of interest dispute from the other partner .

Easy to solve , just get 2-3 bids . If you guy can do the same work for the same price makes sense to keep it in house .

For example , painting exterior . Quotes come in at $6400 , $6700 and $6000.

If you can do it for $6000 and make money , take it . It’s irrelevant if you pay your guy $30 or $75 an hour . His pay has nothing to do with it .

You could also see how much it would cost hourly and do it hourly . In a construction business , wages are usually 30-40% of cost . For example , if paying him $30 an hour . You need to be billing at around $100 an hour. 

Another good resource is the coin laundry association . They have a big show usually every 2 years .

They also have sub chapters , in Bay Area called Golden State . Have a couple meeting a year with guest talkers from the industry or utilities 

Laundromats are probably the most difficult business for a newbie to enter .

In the business, pretty much everyone you deal with also owns store themselves 

Laundromat brokers own them, salesmen for the machines own them, installers own stores and most repairmen own stores or want to . These people plus store owners get the first crack at any store . I get a couple letters a month from people looking to buy stores 

easiest way is buy a strip mall with a laundromat with a short lease. Don’t renew and just take the store yourself 

Hey Noopur,

I own 2 laundries and building a third in the Bay Area.

You can checkout PWS in South City , they sometimes offer investor seminars.

just be cautious . I bet there’s only about a 10% success rate . Probably 75% of laundromats on bizben or anything listed I wouldn’t take for free. Everything listed has been passed on my dozens of laundromat owners . There’s always some diamonds if you look long enough .   always ask yourself why are the other laundromat operators passing. Most own a couple stores . The most logical buyer is a competing store.

San Francisco is tough. More opportunity in East bay or Central Valley . Salinas/Gilroy is also a strong market.