In November, @michaelnerby closed on 2 laundromats in CA

Used $25k cash to close on assets worth ~$1 Million
- 4,200 sqft w/ 114 washers & dryers

A thread on creating $250k in boring biz cash flow: (WARNING - no NFTs were used in the creating of this deal 🤣)
Got the property through a broker referral. ( @BizBuySell)
Followed up to get the financials.
Financials looked good (aka clean and profitable)
Both locations bringing in 46k gross and approx $23k net.
Arranged a visit to walk the properties.

No branding. Terrible flooring & green paint job 🤢.
Hardly any marketing.
Absentee owner.
No credit card.
No drop-off services.

No website = GOLD.
Lots of room for improvement... Start getting excited.
Asking price $1,250,000
Meh - no thx.

COVID headwinds, another location being remodeled nearby, the seller being absentee, they had some wiggle room.

He put in an offer at $900,000

Seller to carry 50% at 5% for 8 years (read that again)
Terms: $975k (pending DD)

Raised the rest of the capital from investors for the ~50% equity.

Ran the due diligence. Sat and counted coins (riveting)
Financial analysis aka checked w/the tax man on their filings

Turns out they didn't lie. So we signed on the dotted line.
DD = ways to bring the price down & make sure no shenanigans.
Countered to $900k again. (Old equipment, more repairs)

The seller countered to $925,000. Yup! BOUGHT.
Here's the financial skinny:
Private capital = $575,000 (extra $100k for renovations and start up costs)

Seller = $450,000

Final purchase price = $925,000

His own $25k. That's it.
Renovation plan:

- Change signage
- Rebrand
- Website and online presence
- Internet and print marketing campaign
- Flooring
- Paint
- Replace machines that needed it
- Wifi and Wifi add-ons
- Increase prices
- Implement drop off services
Projections for year 1:

$550,000 = gross

$270,000 = expenses

$280,000 = NOI (~30%)

$68,328 = interest and principal

$211,672 = cash flow
The plan is to hold for 3-5 years. Implement the take-over strategy. Seek out options to refinance to take out the seller finance and return a portion of the investor capital.

Then hold long-term for cash flow
You can follow @Codie_Sanchez.
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