BigLeo

I have warned people about getting into the indoor tanning salon industry. entrepreneurs, even experienced ones, think they can leverage to the help and come into this industry, sprinkle a little of their magic dust, and they will have instant success and positive cash flow. It just does not work that way. This is a 6-to-7 month business, so there is not a lot of room for mistakes. Losing your house over a tanning salon, ouch. Sounds like that newbie put his house up as collateral. These newbies soon got over extended, could not meet those monthly lease payments on their beds, and voila, the bank foreclosed on their house. it is too bad that so many newbies think they can finance everything. In the heydeys, three years ago, money was cheap, and you could borrow against the equity of your home. And we all know about the housing bubble and subprime debacle. I have a feeling that we will be seeing a lot more of this later this year. Bad business decision-making, bad management and over-leveraged tanning salons. bad, bad combination. Sorry to see someone lose their home, but they should've never used their home as collateral or borrowed against it. So unless you have a lot of equity or net worth, and can afford to lose $250 to $300K, don't get into the indoor tanning salon industry.