Business Overview

This firm offers a full range of property management services for residential rental units. The critical tasks include: evaluating market conditions for rental rates; collecting and depositing monthly rent payments; marketing, advertising, and showing the property; qualifying potential candidates for vacancy placement; managing tenants on an ongoing basis; and working with third party vendors and tradesmen. The firm operates with two full time employees plus the owner/operator.

Financial

  • Asking Price: $425,000
  • Cash Flow: $130,000
  • Gross Revenue: $2,100,000
  • EBITDA: N/A
  • FF&E: $5,000
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 2010

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:1,000
  • Lot Size:N/A
  • Total Number of Employees:2
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The firm leases a professional office space.

Is Support & Training Included:

Owner will train new operator.

Purpose For Selling:

Retirement

Pros and Cons:

The firm is dominant in its region with an excellent reputation. The company covers a 25 mile area, representing almost 200 individual units in 90 buildings.

Opportunities and Growth:

Growth opportunities include entering the commercial property market or expanding geographically.

Additional Info

The business was established in 2010, making the business 12 years old.

The company has 2 employees and is located in a building with approx. square footage of 1,000 sq ft.
The real estate is leased by the company for $800 per Month

Why is the Current Owner Selling The Business?

There are all types of reasons individuals resolve to sell operating businesses. However, the genuine factor vs the one they say to you may be 2 totally different things. As an example, they may claim "I have too many various obligations" or "I am retiring". For numerous sellers, these reasons are valid. But, for some, these may just be reasons to attempt to hide the reality of transforming demographics, increased competition, recent reduction in earnings, or an array of other reasons. This is why it is really vital that you not count entirely on a seller's word, however rather, utilize the seller's solution in conjunction with your overall due diligence. This will repaint an extra sensible image of the business's present scenario.

Existing Debts and Future Obligations

If the current business is in debt, which many companies are, then you will certainly need to consider this when valuating/preparing your deal. Lots of businesses finance loans with the purpose of covering points like inventory, payroll, accounts payable, so on and so forth. Keep in mind that occasionally this can suggest that revenue margins are too tight. Lots of businesses fall under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may also be future obligations to take into consideration. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing agreements with vendors that have to be fulfilled or might cause fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do companies in the area attract brand-new consumers? Many times, companies have repeat consumers, which develop the core of their daily earnings. Certain elements such as brand-new competitors sprouting up around the area, road construction, as well as staff turn over can impact repeat consumers and negatively affect future profits. One important point to take into consideration is the placement of the business. Is it in a very trafficked shopping center, or is it concealed from the highway? Obviously, the more individuals that see the business on a regular basis, the better the opportunity to construct a returning customer base. A last idea is the general area demographics. Is the business placed in a densely populated city, or is it located on the edge of town? Exactly how might the regional mean house earnings influence future revenue prospects?