going to buy a distressed salon

[StauntonRayz]

You guys are awesome. I'd like to add that AC can be a HUGE issue. I am struggling with it myself right now, a pricey issue at that. I start in the A.M. at 65 degrees and by Noon it is 85 and the AC is not keeping up, and I have a 7 ton unit controlled at the back and a 5 ton unit up front. I am running 16 rooms though. If you are going to add on rooms then that potentially means an upgrade for your (or the landlords) existing electric capacity as well.

P.S. JustTans....... used furniture/tanning? Did you make use of the exra seating? I would have had steam coming out of my ears!!!

[JustTans23]

Haha, it was my day off and I was on my way to celebrate my Nana's birthday when my employee called me and told me about it. I went down there real quick and got it taken care of...the antique guy said "she (meaning my worker) said I could put it there" (which she didn') but I just said "she isn't the owner of course you can't do that" anyway, the antique guy is co owners of the business with my landlord, so I cant do much about it, they don't put it in front of my store, but they go right up to the doors.

Just the other day even my mom walked right by my salon because all the furniture threw her off. But there is nothing I can do, which proves my point that shady crappy landlords can put you through more hell than cheap rent is worth. Sothat is my biggest caution. You never know how bad this landlord will make things for ya.

[Din]

The laws are always in favour of the tenant. Don't think the landlord can have his way. You have way more rights than they do.

Landlord is going to make your life a living hell ...how? You have a binding lease, he can't do Squat to you or your rent! That's the only way he affects you.

I'd throw the chairs in the middle of the parking lot in pieces.

[StauntonRayz]

Lol, I deal with shopping carts....all day, EVERY day. Kroger is right beside me, but it keeps the business coming. I had one guy leave one blocking my door one day..... grrrrr.

[hiii98]

Originally Posted by SandiGirl

Ooooooh just found report I didn't know about. Visit Comparison by year. It gives you the total tans for each month, every year. I'd down tanners. But if my money is the same or up, that's good.

do you want me to run this report and give you respond with the details?

[hiii98]

Originally Posted by JustTans23

which proves my point that shady crappy landlords can put you through more hell than cheap rent is worth. Sothat is my biggest caution. You never know how bad this landlord will make things for ya.

point taken. i saw that picture and didnt want to respond with a offensive comment. I thought it looked super tacky and wasnt sure why you posted the picture. Now i see, yikes i'd be FURIOUS!!

[SandiGirl]

Sure. But it's good for you to see how the tanners fluctuated year to year.

[Tanning Queen]

that would be great! Go back as far as you can. And post the results of each year.

[SandiGirl]

Mine automatically put all the years I've had the software...didn't even have to plug in any dates.

[hiii98]

Originally Posted by Din

The laws are always in favour of the tenant. Don't think the landlord can have his way. You have way more rights than they do.

Landlord is going to make your life a living hell ...how? You have a binding lease, he can't do Squat to you or your rent!

I'm in the landlord business myself, and never truer words were spoken. Its irritating how much the law IS in favor of the tenant... irregardless of how irresponsible or how many missed payment the tenant makes its like the law protects them. The lease is a decent shield. The building is all on one meter is my understanding and that is why electricity is not seperate. The mini-mall building is 6 years old and looks nice, but i'm sure it was slapped together cheaply. I visit with my realtor tommorow to write an offer or to walk on this deal. Any suggestions on what to offer? I will try to get pictures too. Also if things just wont work out i could open my own store from scratch.... but honestly i dont want to and would rather remodel. Feels to me like less risk , less up front capitol (but also less reward)

[SandiGirl]

Hahhaha the usual amount suggested on this board is $10K.

Tell him it's too iffy for anything higher. And you'll only buy it when the a/c upgrade is done.

[Tanning Queen]

NOt having your own electric scares me. No clue on how much you can do in there with equipment and shit. What if you add just a floor fan? Will it blow out the entire building from overload? Simple things like that can totally screw you up. And really, get more ac in there!

Hell, the beds are barely worth $10k. I wouldnt offer more but honestly i would even say $5k. LOL! I got my salon for $10k and that included the deposit on teh building. So I really got teh salon and contents for $7400.

[Brian Oshman]

5K or just assume the salon and lease, nothing out of pocket. Beds are junk, A/C and power is marginal, room fro growth is nill and demographics will not support it as they have not all of this time.

Tell him you will just take it over and he will make money on the rent or he can just junk everything and gut it.

[SandiGirl]

So where is the panel? Maybe it's a good thing that it's not divided up and then he can use more space if other units don't need it.

[hiii98]

Originally Posted by Brian Oshman

demographics will not support it as they have not all of this time.

I disagree the previous owner was grossing almost $80,000 a year.

[Glowtanning530]

Oh my I am going to have to go back and read all ten pages.

[BIG AL]

What Brian is saying is there have been 2 owners before you that didn't make it. If the salon was making money, they would still be there. The question you have to ask yourself is what am I going to do, that they didn't do, that will change the out come? If you do the same thing every time, you can not be suprised when the out come is the same every time.

[hiii98]

i completely agree Big Al, i will be sure to avoid marrying a stripper and then getting a divorce to ensure i dont make the same mistake as the previous owner (thats the reason that was given to me).

What other mistakes did they make? I really wish i knew. The previous owner lives here in town but i'm afraid of calling him and/or her. I'm afraid if they hear the place is for sale they might try to buy it back.

[Tanning Queen]

Sure they GROSSED $80k but their expenses were $75k that year. That was back in 2005!!!!!!! 3 years later, the economy is worse, gas prices are sky high, people are watching their pennies, housing in most areas sucks, many forclosures, mtg rates are low now but people are getting the bump in interest from the ARM's they had, food prices keep rising,etc.

REmember, tanning is a luxury item. People will give up tanning in order to buy gas and feed their family. I know you dont want to buy a job that you dont make a freakin penny off of or lose money on. That isnt a good investment. Even the salon I got had a profit of $20,000 or so and they were on the decline each year. This salon has NEVER shown a real profit. I bought a salon that was in business for 10 years. I could see the potential from teh other tax returns from years past. What you showed really scares me. IT will take you a long time to just make back any investment you make, and there will be a TON of money you need to dump into it. Once that happens, you will finally make a profit. But by then, it will be time to dump money back in by changing beds, etc. Is this REALLY worht it?

[hiii98]

I politely disagree with you.

obviously something is wrong if they had expenses of 75k and a rent of 1200 a month and zero in utilities. Hell my taxes show i make 20k a year LOL and you have no idea how i live... (not going to brag about my current lifestyle, but deducations hardly reflect actual profits)