How much does it cost to buy a laundromat is a question with a price in it and four costs around it. The price is what the seller wants; the costs are the buyer's cash on the day, the working capital the store consumes before the coin boxes fill, the closing costs the deal generates, and the interest paid over the notes' terms. This page puts a worked figure on each using the free acquisition cost calculator on this site, and explains which of them the buyer can move.
The day's cost
On the worked example a $450,000 store with the bank at 80% and the seller carrying 10% needs $45,000 of the buyer's cash on the price. Add $40,000 of working capital and $25,000 of closing costs and the cost of the day is $110,000. Working capital is not optional in a laundromat: utilities are billed in arrears and machines fail on their own schedule.
The cost over the term
The SBA note of $360,000 at 10.5% over 10 years, the longest 7(a) term for a purchase without real estate, costs $4,857.66 a month and $582,919.20 over its life, so the buyer pays $222,919.20 of interest for the bank's share. The seller note of $45,000 at 6% over 5 years adds $7,198.80 of interest. Together the two notes cost $68,731.68 a year while both run.
The cost the buyer can move
The seller's share is the buyer's lever. Raising it to 20% with the bank at 80% removes the buyer's cash on the price entirely, but the payments rise and the coverage falls from the example's 131%. Lowering the price moves every line at once, which is why the sheet is run before the offer and not after.
Questions people ask about how much does it cost to buy a laundromat
Does the store's revenue change the cost?
It changes whether the cost can be met. Earnings after your pay must cover the notes; the sheet returns that coverage as a percentage.
Are the machines in the price?
They are the price, mostly. Their ages decide how soon the buyer pays for them again, which is why the equipment schedule is on the diligence list.
What is Keysvo Pro for here?
Keeping each store's costed stack, the seller's figures and the diligence items in one register for $14 a month.