DH

I’ve come across a space that used to contain a 14 bed (now 7 empty & 7 have beds) salon that is in PERFECT condition. The place is ready to go and the landlord isn’t charging anything for the build out that is in place.

I can go with the current seven beds or buy my own. Currently there are seven beds: four Sportarredo Holiday45 (1870, 1337, 1284, 663hrs), one Sportarredo Extasy (unk hrs), one Sportarredo Blue Moon (1228 hrs) and one Sportarredo Vega Lux Stand up. All beds are 2006 models.

What should I offer the bank for these seven beds??

Any other things to consider?

BTW, I planned on doing this with or without the beds. I think the beds would make this easier and quicker.

engfant

That's nice stuff. Offer em $5k and you will have your gold mine....as long as the rent/utilities aren't out of control

kookyguy

Sounds like they couldn't make it. Why do you think you can make it in the same loc with the same equipment?

Sounds like they sold off half the beds before they went under.
No doubt in an attempt to not go under. It didn't work out for them.

DH

Actually they didn't sell the stuff off. It was repossessed by the bank. The other half is owned by another lender that hasn't repossessed it yet. I plan on offering $5,000 because they need a bulb change and I can use my leverage of forcing the lender to move their beds out of my space ASAP or sale to me.

The original owner invested $400,000 into this place and there wasn't enough business to make it (from what I've gathered). He had a staff of 10 people and he lived in another city as well.

My tanned there and said there was ALWAYS a line waiting to tan. I betting he failed on too much over head and not enough income. That's a dumb statement but how I see it.

I plan on owning it all outright with a rent around $2,500 plus utilities and my wife managing the place. We'll hire as needed but not be absentee owners.

I have a really good job and we don't currently need the income. This will allow 100% reinvestment of profits for a while.

I do want all recommendations.

kookyguy

What did the original owner invest $400,000 in? Did they get jacked on 200k worth of beds? Was it the buildout? Find out what they paid for, then find out how much they SHOULD have paid for it.

engfant

They failed cause they invested half a million! Imagine if they had only invested $5K!

kookyguy

If the loc can't pay the rent, then it will fail with 400k or 5k invested.

What if 300k went to advertising and they still went under! When you buy someone's business you buy their mistakes!

DH

Exactly my point!

It has 14 rooms that is PROFESSIONALLY done, with all lighting, flooring, walls, ceiling, two 15 Ton A/C units and mirrors.

It has two 400amp panels and big green box in that room that hums (not sure what it is but it belongs to the electric company). Seven of the rooms have 50amp plugs and seven have 25amp. All have 15amp plugs in them as well.

It has an extremely fancy front counter with display area for lotions and other retails items.

Heck it still has a cheesy palm tree that died from starvation in the lobby.

Bottom line is, no expense was spared and seems pretty good to me even if we get off to a slow start.

Robert K

Maybe the location could not pay the 5k in equipment lease payments???

Don't lose that equipment even if you have to pay 10-15K. It is worth it. A bed that is hooked up and running is worth 20-30% more than on a skid.

__________________
Robert Klem
Superior UV Technologies
(888) 526-7712 x77
robertk@superioruv.com

DH

That's the info I'm looking for. Thanks!