Problem

Clients needed to sell their laundromat business and building in downtown Toronto. The building was very old and not in pristine condition. Clients wanted a price that was well above market prices.

Strategy

Build multiple scenarios to present to potential buyers that catered to each of their respective needs, to show the real value and the benefits of this unique properties features. I had to be prepared for a long time on market as this was a unique sale.

Solution

I prepared a scenario for business investors who wanted to own a laundromat and manage the rental units. I calculated the net operating income then used my experience as a laundromat operator to suggest changes to the business and rental units to improve net operating income.

For the developer type investor, I commissioned a planning report showing the actual development potential if that buyer chose to demolished the existing building , or substantially renovate and build up to add more rental units.

For the owner operator, I put together scenarios on how to operate the business and renovate the building to make a desirable living space.

I worked the numerous interested buyers over 1.5 years, and negotiated a deal where the seller got their asking price and would hold vendor financing to allow the buyer to make renovations before going to a conventional lender for long term financing. The vendor financing was going to earn the seller an addition $150,000 in interest payments alone!

I was also working with an agent that had a developer client. In the end, we had multiple offers for the property and business and my clients got their asking price and a quick closing.