If the gym owners didn’t invest in cosmetic appearances, there’s a huge probability they didn’t invest in the more expensive hidden issues, like plumbing or electric
I would think electric and plumbing would have been taken care of but they probably wouldn't have money leftover for cosmetic stuff. But it would be wise to get someone to inspect the building to be sure. There's a lot of cosmetic stuff in my building I want done but stuff comes up so it gets pushed back down the list.
@@hankwells2637 probably why 80% of businesses fails in the first two years. They run fast and loose with their numbers and don't account for everything they should. I've had a real estate investing business since 2005 and we learned some hard lessons early on, but we learned fast and got better... still here killin' it today!
Tax Returns don't always tell the truth, but that's usually working in the Buyer's favor because if someone does cheat on their taxes, it usually means they show LESS revenue and HIGHER expenses, which means you should be able to get it for a cheaper price. Some folks don't realize that under reporting income and over reporting expenses is only a short-term gain, but then you lose at sale time because your business looks "poorer" than it really is. Honest is the best policy when it comes to business and life.
Don't settle for a loss when buying a business. He sounds like he was gonna take a really bad deal. Glad he called in to get some clarification about expectations in legit business dealings.
