Laundromat or Gas station for an absentee owner? Which one.....

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Laundromat or Gas station for an absentee owner? Which one.....

Katie Johnson
Residential Real Estate Broker · Morris Heights, NY · Member since 2015 · 33 posts · 5 votes
Hello members! I have a question in which I need some advice about. I am considering entering into the investment world but I see that New York real estate properties may be too "rich for my blood" at this time. While shopping around for businesses for sale I see that laundromats and/or gas stations have a smaller investment margin with more of a Cashflow. Would you consider investing in 1 or more of these real estate businesses? What are some pitfalls that I should look out for before making an offer? Thanks for all of your advise on this matter, I look forward to hearing from seasoned investors about this! Best
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Thomas S.
Member since 2016 · 13k+ posts · 12k+ votes
9y

I would strongly advise against anyone considering beginning a new business as a absentee owner. There as so many things that can go wrong when you are not involved on a daily bases it is a recipe for disaster. You can not trust employees you do not personally manage when you have no background in the business.

Operating a business takes years to properly master and can not be done from a distance by a novice. If you want to be successful you must commit.

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  • Account Closed
    Investor · Buffalo, NY · Member since 2016 · 668 posts · 209 votes
    9y

    Look closely at the competition and understand why the owner wants out, it's easy to overpay for a small business. Maybe better to find a partner more aligned with your true goals and skills. Best of luck with your investment.

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  • Matt Faix
    Investor · Carnegie, PA · Member since 2014 · 259 posts · 144 votes
    9y

    @Katie Johnson - Check out this thread from a few years ago that may help - Laundry vs Gas Station

    1Reply
  • Thomas S.
    Member since 2016 · 13k+ posts · 12k+ votes
    9y

    I would strongly advise against anyone considering beginning a new business as a absentee owner. There as so many things that can go wrong when you are not involved on a daily bases it is a recipe for disaster. You can not trust employees you do not personally manage when you have no background in the business.

    Operating a business takes years to properly master and can not be done from a distance by a novice. If you want to be successful you must commit.

    2Reply
  • Katie Johnson
    OP
    Residential Real Estate Broker · Morris Heights, NY · Member since 2015 · 33 posts · 5 votes
    9y
    Thank you for your response!
    0Reply
  • Katie Johnson
    OP
    Residential Real Estate Broker · Morris Heights, NY · Member since 2015 · 33 posts · 5 votes
    9y
    I will make sure I look into the link and consider all of the advise given. This was very helpful for me!
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  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    9y

    I would think a laundreymat would be a dying business

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  • Mike ReynoldsPro Member
    construction · Nacogdoches, TX · Member since 2011 · 2k+ posts · 1k+ votes
    9y
    Originally posted by @Katie Johnson:

    Hello members!

    I have a question in which I need some advice about. I am considering entering into the investment world but I see that New York real estate properties may be too "rich for my blood" at this time.

    While shopping around for businesses for sale I see that laundromats and/or gas stations have a smaller investment margin with more of a Cashflow.

    Would you consider investing in 1 or more of these real estate businesses? What are some pitfalls that I should look out for before making an offer?

    Thanks for all of your advise on this matter, I look forward to hearing from seasoned investors about this!

    Best

    I used to work exclusively for a REI who owned gas stations. Built new ones too. Truck stops and all that. His biggest headache was the regulations. If more than a gallon (maybe more?) of gas split there had to be a trained hazmat crew to clean it up. He had his own crew. But if it got off the property like in a big spill he had to hire a different crew at mega bucks. Insurance was a nightmare.

    That being said, he did rent to own many of the older stores. I don't know how well he made out on this end but he also sold the gas that went into the pumps. 

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  • Katie Johnson
    OP
    Residential Real Estate Broker · Morris Heights, NY · Member since 2015 · 33 posts · 5 votes
    9y

    @Mike Reynolds    I thought I answered this? thanks for the incite, it is greatly appreciated!

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