ltaylor

She said she's trying to help me out. 50K down & owner finance the remaining 25K and she would not start her payments until busy season. What's wrong w/owner finance?

parrot head

Other than the Uwe cobra, the other equipment doesn't have much value. The Sunsport is a thirty minute tan and a good bed other then it's old. I wouldn't pay $75,000, especially when income can't be verified with actual tax returns. I might be a skeptic, but computers can be messed with in order to show numbers that aren't actual. Have you checked actual customer count to see how many are active and what the trend has been? Will the seller let you see the bank deposits and checkbook register to verify income and expenses? Don't believe income numbers they say they might have made but not deposited. Hope this helps.

engfant

As long as none of your bills are THOUSANDS A MONTH I say do it. If you think they are good people then finance the other $25K. You can at least yell at them when something goes wrong.

Parrot head is correct but only in a fire sale situation. NO tanning bed is worth anything at auction or on the after market. This is not that. I have a 20year old bed that makes more money than some tanning salons. REMEMBER it's what it COSTS TO RUN that people forget. IF it costs NOTHING and you charge $5 then you made $5. If you have a bed that costs $5 to run and you only getting $5/visit then you are screwed.
It works fine. Has 4000000000x10^22 hours on it and all I gotta do is relamp, reacrylic and it's good to go.

5 year plan. Figure where you want to be in 5 years (not ARUBA) and then see if the numbers even work.

$75K for a fully functioning tanning salon is NOTHING when compared to starting from scratch.

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ltaylor

she has 227 active packages right now. Per her report. I about to ask her about the bank deposits. etc.

missmojorising

And you know this how?

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Gidget

I agree on this one and also due to the fact that the tax returns have not been filed you should be very careful. Get an accountant if needed to check all the books so you dont get yourself into a lot of unpaid stuff.

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missmojorising

Owner Financing usually means no harm no foul for the owner -- not for the potential buyer.

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international

Sounds like an ok deal to me.....imo this salon holds more value in the reputation, "name recognition" -since its been around a while, and goodwill. I bought a older salon for more money than that and am glad I did. The beds where old but I had an exsisting client base and it made the money to warrant the sale, also I was in the running with 3 other potential buyers.

Get a good lawyer and accountant and they will help you! good luck

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KnxTan

If you don't have any credit and they promise not to harm your family, 300% interest ain't real bad. Now,Crazy Paulie, that's another story.

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cannie

lol thanks, I'm actully the one selling. I do own another salon. A fairly big one. the return on investment was fine. I also own a cosmetics company and am going to school to further my education a bit more. Taxes were filed perosnally, and everything was paid for in cash . No fat tony's or anything of the sort. It actully is a good deal. i'm doing owner financing b/c I can, and know most people can't come up with the cash up front. Nothing fishy. :)

The beds arn't the most crazy fancy, but nothing in the town really is....and ltaylor...it's good you're are doing your research and getting other opinions. Ask me about that other salon tomorrow. You know I won't talk bad about anyone/place, but I can give you some helpful info based on location, namesake, etc. Considering I have been their competitor for 6 years.

The place does do well with just the 7 beds, there are 2 more rooms that I havn't gotten too yet. Maybe you guys can give her some advice on what to add. Other than touching the HP. There is no other HP for LITERALLY 30 minutes, so please don't tell her to go spend tons of money. Its got fresh lamps, and get's 30 a pop no problem. People are use to it and like it and until she has everything paid off, the store just needs to keep making money.

But she will need some good advice on other units to add for those 2 rooms. It can't hold another HP. Not size wise, air nor amps. I've given her some advice on what I think should be added and what I would do. (mostly b/c I know what my town can handle, and what won't kill the owners pocket too much) But maybe you guys can throw somthing else at her and I can give her a little deeback on if I feel it would work for this area.

LOL, and I guess I should thank most of you for picking mine as the best deal.

Anyways, L...you know you can ask me anything else, even if the tantalkers come up with something else. :)

TTYL

PS. L...the rent on the other is over 18k, if expenses are only 25k. They don't pay employess, don't have an electric bill, insurance, and can't possibly stock lotion. On the real, I don't feel its my place to talk about it. but for her sake and from people who are in the industry as well. Walk her thru how much BS 25k in expenses are. I refuse to talk about places in a negative light, b/c I try an be as uplifting as possible. But really L, if you want to talk to me about this...I'll be straight with you on this issue.