STOP! You MUST do these 3 things BEFORE you buy a laundromat!
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- čas přidán 26. 02. 2020
- If you're thinking about buying a laundromat, you have to watch this video first! Laundromats can provide you with an unparalleled cash flow return on your investment with minimal time commitment. They are one of the best investments that you can make!
Get the FREE e-book, The Keys to Buying Your First Laundromat here: laundromatresource.com/free-e...
But before you buy a laundromat, there are 3 crucial things you HAVE to do first! This video is packed full of information and resources to ensure you make the right investment for you and get what you're paying for. Don't miss it!
Resources referenced in this video:
Question (leave a comment below): What is your biggest question about laundromat ownership?
Buying A Laundromat
Here are 3 ways that you can get a laundromat for FREE!
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Here are 9 different strategies for financing a laundromat purchase!
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Here are some of the true expenses to expect when purchasing a laundromat.
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Help buying a laundromat
If you want to talk with Jordan (from the video) and ask your questions about laundromat ownership in person!
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If you're interested in buying a laundromat!
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If you have a laundromat to sell!
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Free resources
If you want the free e-book, The Keys to Buying Your First Laundromat
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Downloadable resources
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Free value add checklist (direct download link)
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Infographic on the 4 questions to answer during due diligence (share it!)
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If you want to be a guest on the Laundromat Resource Podcast
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This was an incredible video. Thank you. Thank you. Thank you.
great content! thank you!
My pleasure!
Really considering going into the laundromat business, thank you for your videos!
Best of luck! Let us know if we can help in any way!
great video and info to starting with.
Thank you so much for this video, very informative and helpful. Looking to purchase my first laundromat in the Bay Area
I used to also fix my equipment. I think it saves a little money. Most of the time it's just a small fix. I don't do the big jobs though. I ended up making a lot of friends at my laundromats as well because I spent a lot of time there. I usually just read a book when I hang out there. Thanks for being truthful about how much money it actually takes. I bought a laundromat for $500k then spent another $40k to get it going.
Great info! Thank you for all of the resources you provide!
Glad you like them!
Just subscribed - enjoying so far.
Thanks!
Great info on starting up. Looking forward to building my first laundromat next spring.
Awesome! Keep me posted on how it goes!
How is the business going?
This content is great!!
Thanks!
Good video thanks
Preparation is often the key to success. Opportunities are everywhere but we miss them if we aren't prepared. ✈️
🙌🏼
Just subbed! I am about to buy a laundromat in Colorado. I find your videos very helpful!
Awesome!! Congrats! Let me know if there’s anything I can do to help!
I clicked the button to try the evaluation tool, and it said thank for trying the evaluation tool! Would have like to actually give it a try.
Congratulations 🎉I’m also buying in Colorado!
I am also in Orange County. Thank you so much for the video and sharing your knowledge and experience.
Is it worth even having a bathroom if you don't have employees? Starting my investigation into is this the right business for me. Your channel has been very helpful.
It depends on the location really. I did end up shutting the bathroom down in one of my locations. But there are other bathrooms available in the shopping center, too.
I would like to see a financial breakdown from owning a stand alone building to a lease place. Just what to look for when talking to an owner who has a lease and weather if one can make money with a loan plus a rent payment..
Good questions. I'll see about making a video on this. The main difference, financially, between leasing the location and owning is that your laundromat rent payment goes to you when you own, and to the landlord when you lease.
Ive never owned a business or have no experience with any ownership. I do want to buy one and learn as I go. I have my stepdad that Im planning to team up with for repairs. No experience is what is holding me back, but Im willing to take the risk.
Thank you so much 😊
You're welcome 😊
i been thinking about get a laundromat i been looking at your video i want to do it i been looking at a lot of resource and u been helping me a lot
Awesome! Let me know if I can be of any other help
Love you channel! Amazing resource!
My main question is why do laundromat fail?
Thank you sir, very informative....
Glad it was helpful!
My question is where to start from the moment you decide you want to do this and how to plan out a way to support it.
I'm here from school but worked at two different laundromat owners. it's great for retired men and women part time but I am full time student, it was becoming too much stress!
I’m very interested in knowing A lot more about this laundrymat business either buying one or even better getting one for free. 😀
New subscriber here. Great content! Thanks, Jordan. My question is, "What is your opinion of a store that operates on dollar coins and tokens?" I am not interested in operating a card store at this time.
Thanks! Great question . I don't personally own a dollar coin store or token store but I can see some of the benefits. It does take a while to use quarters in some of those larger machine and a dollar coin would make that much simpler. I don't think I, personally, would be as big of a fan of tokens. I don't think customers would like it very much, I wouldn't want to buy the tokens (and continue buying them to replace the "float" tokens that go missing), and it just doesn't seem to be as good of a experience for the customer in my opinion. But that's just my opinion. There's nothing inherently wrong with them.
Very helpful
Glad you think so!
My biggest question, and what made me click on this video is how to pick one out.
I appreciate your contents. I have a question that I would like you to answer if possible. I have found a laundromat for sale which is making 6k a month currently. It caught fire in covid time and they completely built it from scratch, it's working normally now. Before the fire accident, it was making about 9k a month and the owner said that the profit is gradually increasing, means people are again coming back to the place. Now I am unsure if a laundromat that caught fire has a different value in the world. Does this affect the business or the re-sale value? I am a real estate agent and I know for fact that burned house will have a higher value since everything has been built from scratch. But I am not sure about laundromat. I would appreciate your answer to my question.
What is the good vs bad amount of money to pay for a lease on a place? in a big city and in a smaller city.
Thanks for the info. I’m trying to find funding for a laundrymat. What are some sources for funding to buy a laundrymat?
Jermaine Privott great question! A couple of great sources are family and friends, machine distributors, and partnering with real estate investors. I wrote a blog post that will be helpful. Look it over. If you have any questions, let me know! laundromatresource.com/81-proven-ways-to-finance-a-laundromat/
You may have already answered this question. My biggest concern is financing the 1st laundry mat. I am actively looking. I already formed a company and I have money saved in the business account. My job takes care of all my needs. My long term goal is to build passive real estate income. I know its not 100% passive but I plan to leverage the time of others to free up my time. I want to dedicate about 3 months to run it myself to learn it then put others in place to manage the day to day. I want to understand the numbers. I just want to get in the game like yesterday. I am ready to do this.
There are a bunch of different ways to finance a laundromat. Most common ways are to use a bank, use a laundromat-specific lender, or use seller financing/private money
@@LaundromatResource What is a good interest rate range for financing on a laundromat? thank you!
Have you made a purchase? How are you coming along?
Hey I just found out ur channel and it is very interesting. you really make me think about this business. I went straight into googling laundromats nearby for sale. Some questions pop up in my mind though: do you think it is still substantial during this pandemic? how is the industry affected by it and if I were to buy one, should I wait til like summer where people like to spend more time outside?
Awesome question! Different laundromats have been affected differently. The general picture is that laundromats have remained essential businesses and have been able to stay open pretty much throughout the whole pandemic. Many have been down 20%-40%, however. While many have bounced mostly back, the world is still volatile right now so we'll keep monitoring it for now.
Can a COMMERCIAL lease can declared void simply by the owner of the building selling? My understanding is that that was/is true...broadly speaking...without specific provisions. Since Lmat business is very capital improvement intensive in the build-out phase...what's to prevent the new building owner from demanding a new lease knowing the LMat is at an extreme disadvantage. " You could relocate your LMat and take a loss or pay me _________" I mention this because I've seen so many successful businesses get squeezed this way on lease renewal. Most businesses fail, they leave behind all sorts of valuable improvements and the ones that survive get squeezed...hard. The bitter irony is that the very existence of the successful LMat in that location drives up the purchase price of the structure/land.
Great question. It depends on the lease. I would specifically look for wording that requires the lease to be honored upon transfer of the property, because you’re absolutely right, it’s tough and expensive to move a laundromat. Usually prohibitively so. I always recommend consulting with a lawyer when looking over a lease you are assuming or negotiating for reasons just like this. Another potential “gotcha” is I’ve seen leases that have a clause that allow a landlord to give 90 day notice (or however long) if a new anchor tenant signs a lease in the building. You definitely want to avoid that, as well.
Hey so what’s a good budget to start with?
What advice can you give on leasing vs buying.? Also what us a good deal?
Leasing vs buying the laundromat location, or equipment. I wouldn't personally lease equipment, although you certainly can and still make money. Leasing the location is just fine, although in many circumstances if you can own the property it is beneficial to do so!
A good deal is any business that performs as good or better than you anticipated it would. The key to the business is buying at the right valuation so that you get the return you want.
I just went back & started watching your old LM videos?...& so I was just wondering....I get the vending machine collections of Bill's & quarters...I get the bill collection from the change machine?... what I dont understand...is after you or I are done collecting all of the quarters from EVERY THING?... besides putting quarters back in the hopper in the change machine?... once the hopper is full?... where do u put the rest of the quarters?...in a spare bucket in the back?....& save it for the change hopper for Next week?...or do you take them to the bank?...thanks...
I usually end up with less quarters than I started with, so I end up buying quarters from the bank. I never have to roll quarters or take them to the bank. If you had an excess I guess you would have to roll them at that point. I wouldn’t keep too much cash in a back room. If word gets out about that somehow it could pose a problem, depending on your area.
@@LaundromatResource Oh ok sounds good...thanks...so you just take the Bill's to the bank?....also...there is this laundromat for sale in Vegas?....its listed at $175k...its 2250sqft., it's a really clean place....it has a 5 Star Rating on Yelp... it is a leased space...I am really considering buying it...I just emailed the owner back my signed NDA's- what, where do you think I should go from here?...thanks
Many of the newer apartment buildings in my community are in the city where parking is a concern. I wonder if a laundromat would suffer with limited/no parking? Perhaps the pick-up/drop-off service would be best to service this demographic?
Pick up and drop off comes into play here (if you have a service). Also, most corners in the city don’t have a choice but to use a shopping cart or carry.
What about existing competition? How to determine if another laundromat can succeed.
Ih Jordan I really enjoyed your You tub video. I want to know if I can get all this things on the east cost as well?
Yep!
What are a few sources to find investors, limited and financial partners to provide the equity down payment and operation experience?
I think the best two places to find investors or partners are with people in your social circle and also real estate investing meet ups!
Heyo Jordan! What’s your educational background? Would you recommend schooling beyond high school? Thank you for all your help!
I went to college. I don’t think you need college to own a laundromat, as long as you’re a self learner and are determined.
I have an existing laundrymat nd I want to moderndize and replace equipment not working, what is needed?
Awesome Nate! Your first step is probably to talk with a couple of equipment distributors to get an idea of what equipment to replace, how much that will cost, and what financing options are available for that if you want to finance them.
New subscriber and very interested in owning a laundromat. Do you guys provide training for laundromat management and machine operations?
lol if you can’t do a bit of research yourself… not going to own one big guy.
hello Jordan, the video is so good for new people thinking about it. can you pls suggest genuine broker, consultant as you mentioned in your video.
Hey Jordan,
So glad to discover your resources today!
I think it's very unlikely I'll happen to find a laundromat for sale near me so it seems long distance ownership is inevitable.
1. Do you have a video offering tips for long distance ownership?
2. I assume it's critical for long distance ownership to have someone else collecting from the machines and therefore have Wi-Fi enabled machines to collect sales data. If a laundromat that I find won't have state-of-the-art equipment, is there an add-on device for older machines that enable Wi-Fi connection and allow monitoring sales?
Thomas Landenberger (czcams.com/video/qq9guyT6sLo/video.html) you can search him on my channel if the link isn't clickable lives in Italy and owns laundromats in Florida. He gives some good tips on remote ownership! Most of the card readers bolt onto the machines. Some of the newer machines can keep track of sales out of the factory, but if the machines aren't brand new the card reader systems are the way to go
@@LaundromatResource
I'll check the link on long distance ownership. Thanks!
Ohhh...the card readers bolt on! If I was a customer that would be the only way to go. As an owner, the card readers seem so necessary to conveniently monitor sales, but especially for long distance owners. But isn't it also necessary for the machines to always accept coins so not to discourage some customers? Or, is it common for modern stores to have only card readers?
@@all4fitz more and more newer stores are going all card. There are also a lot that accept both coin and card.
service school! great
Awesome resources!
Hi what’s better card or coins laundromat your best honest opinion? I am in California and I’ve been looking at laundromat to get into do I need to have experience can you run it by yourself.
I prefer card if you have a choice, but the downside is that they are expensive. You can run it by yourself for sure if that's the way you want to run it. It would definitely help to have someone with experience in your corner though.
Awesome video!! How much cash reserve would you need?? 2 months of total gross income??
I’d shoot for at least 2 months but it also depends on the state of the laundromat you’re buying. If it’s run down and not profitable you may need even more to get to profitability
I’m wondering how to determine & evaluate a laundromat to determine the correct purchase cost?
We have a free tool on our site to help analyze deals, but I'll make a video on it, too!
@@LaundromatResource how do I find this? Where do I find the Brokers that you have that are trustworthy? Thanks in advance
@@LaundromatResource I can’t find this resource on your site
Their tool is legitimately amazing and they’re doing some of the best work in the new owner education that im seeing anywhere
You can do creative financing like have them sign their deed over to you using a title company like American Title.
Coin, Swipe Card or Visa...the laundry mat at my vacation codo uses credit card no coins
Curious to know what financing options work best for someone with a modest income, as well as challenges to buying or opening a laundromat in a smaller market.
My biggest question is how do I properly evaluate a laundromat to ensure that I am not over paying and have some sort of idea what shape the equipment and boiler and such are in.
I happen to be teaching a free live webinar on how to evaluate a laundromat deal next Thursday (8/11/21). I do a free live webinar every week and that one gets thrown into the mix semi-often. It's very popular!
@@LaundromatResource are these recorded for posterity? 🤞
Can you do a video on starting up a laundromat from start to opening day. LLC or s quote, buy assets or shares and the difference, website, finance, LOI, due diligence period or no. Do you need to look at their books, utilities exc. Should you have a mentor or equipment distributor? What order does all this go in. Do you need it all. Should you have a mentor before you jump into owning something if you have zero experience.
How do you value an unopened laundromat & dry cleaners & ironing business 80% built out in a new multi story mall w residential units as well? thX
My biggest fear is the seller is not giving the correct information on the sale and at my age I don't want to loose money.
Hey Jordan. Love the CZcams channel and all awesome content.
Where’s the best place to find a laundromat Operator? How much cash do I need in reserves if I do seller financing? Is there an SBA loan prechecklist that’s available?
Hi Jordan
I love your CZcams Chanel How can I get in touch with you on where to get information on owning a laundromat
I want to know the price of the Laundry machine and the supplies
What business loan/grant i can apply for to buy the laundromat?
This is a great interview that will give you some options for financing! czcams.com/video/Jopba-41wKw/video.html
How much money do I need to get started?
What is considered a long term lease? 5-10 years? More?
Also I’d love more info on all the ways to qualify for financing as a beginner in the industry.
10 years bare minimum, 20 is better. Qualifying is usually a function of if you have the down payment (25-30%) and then the laundromat has to qualify.
@@LaundromatResource is it better to just get a loan and pay the total then owe the mortgage. I guess it’s a mortgage, not familiar with commercial
How do I determine the best communities to open a laundromat?
Typically you're looking for solid, blue collar neighborhoods. A high population of renters tends to be a good demographic. Lots of families means lots of laundry, so that is good, too. There are, however, different markets. For example, focusing on students near a college or university, or higher end communities where you focus on drop off or pickup and delivery services.
How much starting capital does one need to either buy or start a laundromat from scratch?
Awesome question Henry. It really depends. You can get them for free (kind of) or they can cost up over $1 million and everywhere in between. You typically need around 25-35% for a down payment but there are creative ways to finance them with less money down. I have a blog post about ways to finance a laundromat at Laundromatresource.com/blog that might be helpful for you
How much should you be paying for equipment and do the distributors install it for you?
Equipment pricing is a big sore spot with me. There is no price transparency in this industry so you won’t get quotes until you talk with distributors. And the quotes will vary so talk with more than one distributor. Distributors don’t install for you but they general can connect you with installers. That is an additional fee
Hey! Thanks for the great video. Im a new subscriber and have a deal on the table for a laundromat.
My concern is time. I don’t have much. Own 3 other businesses and have 5 kids we homeschool. Serve on a few Boards as well.
Are there management companies everywhere? I’m in laredo TX and even if I had time, I wouldn’t be able to fix a thing because I’m pathetic with a screw driver!🤷🏼🤦🏻♂️
Jesse Kuhns congrats! Sounds like you're busy! There are management companies, although not many. It might be a good idea to check with any laundromat brokers in your area to see if they can manage your mat for you if you can't find a management company
It doesn't sound like you should buy it. If you have no time to manage it, repair anything. Laundromats aren't a completely hands off business.
Unless we're talking about a million dollar laundromat with staff that does everything.
how long does the equipment last for and what do you look for as far as how old the equipment is before you buy a Laundromat
Great question. Front load washers are good for around 15 years, dryers can go a little longer, and to load washers last 10-12 years (sometimes less). I use equipment are as one of the primary determiners of value but will adjust the strategy depending on the age of the machines. So the question isn’t necessarily “What age of equipment am I looking for?” It’s more “What is my approach considering the age of the equipment?”
I’m in Tampa Florida
Thank you so much… How do I become part of your community…? I’m very interested in buying my first laundromat…
LaundromatResource.com/join
Also, I’m doing a free live Q&A on laundromats today at 4pm pst/7pm est here on my channel. Join us if you’re available!
Do you need a business license? And how much is insurance generally going to run on a laundromat(i know this probably varies from laundromat to laundromat but just a estimate or example)Thanks!
You do typically need a business license. Good have to talk with the city to get details on that since they vary so widely. Insurance tends to run a lot of money. It's one of the biggest expenses. It definitely varies A LOT but you can guess around $150-$500/month. Usually a pro forma will have that expense on it for a particular laundromat so you should have a better idea of the cost going into it.
Laundromat Resource thanks for the reply man! Its awesome what your doing helping people out like this I really appreciate it and I know lots of other people do too! Looking forward to doing coaching program with you but i am going to get some more money saved up and do more research(aka watch more of your videos lol) but will definitely reach out to yall once I am geting more serious about purchasing one. Thanks again your awesome!
I have multiple questions. 1. How do people operate a laundromat business out of state? 2. I am building my credit at the moment trying to get a 850 credit score somewhere next year to get a big personal loan to be able to buy a laundromat 3. Is getting a permit enough to buy a laundromat or do I need the license as well to be completely good? 4. how soon should I form an LLC since I’m not an entrepreneur yet?👨💼
1. It can be tough. Usually it requires a combination of technology and trustworthy boots on the ground help. 2. Somewhere around a 740 credit score is all you’ll need to get the best rates. There’s really no benefit once you pass that. 3. You don’t really need a permit but you’ll probably need a business license in the city you operate out of. 4. You don’t need to form an LLC until you already have an offer accepted and you’re in escrow
Hey new sub here! Looks like you’ve got some great info here thanks for putting it out. My question holding me up is this. How do you know when you’ve found the right laundromat? I’m worried because some of the deals I’ve seen are to good to be true. Living in Southern California the cost to buy the business I’m looking at is 370k! That’s an awful lot of money to not be 80-90% sure. Any advice would be greatly appreciated!
Thanks for the sub! Great question. Here are a couple of thoughts but I'll probably make a video about this because I think it's really important.
1. Know what you want out of your business before you buy it. How much do you want to earn? How passive do you want it? What location do you want it in? We have a free download on our Resources page that can help you think through that.
2. Don't buy it alone. Hire a consultant (not the broker you're working with) whose paycheck doesn't depend on you buying the laundromat to advise you. Experience in the industry is incredibly valuable.
3. Do great due diligence while in escrow. Download our free e-book for some info on how to do that.
4. Have the broker, consultant, and /or a lawyer structure your deal in a way that limits your risk.
Hope that helps a little. I'm in Socal too and know how tough it is. If you want to jump on a phone call at some point you can schedule one free at Laundromatresource.com/coaching
Ronald Morris, Laundromat Resource just gave you some fantastic tips for your question. Take your time, but be diligent.
instablaster.
How do you know if a laundromat for sale is really making what they say it is making?
Utility bills
Hire someone who can fix equipment or just hire when they break down
Awesome content! Do you help/consult with Canadians or Americans only? I want to get into this industry and buy my first laundromat!
I definitely do quite a bit of consulting with Canadians. The currencies (and a few business terms) are the only differences. Fundamentals are the same.
A question to the community.i am starting to look for a laundry mat. Does anybody give a strong suggestion for a financial institution that you guys go to , or recommend for laundry mat financing? I'm being serious.
I would check out Eastern Funding and Prime Capital
do u think in the future the business will die down because home laundry machine are more affordable ? thank u very much
I don’t think so. For most of our customers, affordability of the machines isn’t the primary issue, it’s access to the utility hookups. Most apartments and older homes don’t have the water, gas, drainage, and electrical needed to run the machines
Love your content Jordan! Do you happen to know of a laundromat management company in the Phoenix or Tucson, AZ area? I live in Phoenix and have an opportunity to lease a spot with fully usable infrastructure, no machines, in Tucson that is a 2 hour drive from my house at 126 mile each way. I will be retooling the whole store with new gear as there is currently no equipment but all infrastructure is in good shape with the bulkheads even usable. I wish this were in Phoenix but you can't always control where the opportunities present themselves. I am a little hesitant on this space though as it is only 1680 sq ft of which, 80 sq ft is a mechanical room, so 1600 sq ft for the machine space. Does this sound viable? It also has a small wash and fold area that can be completely locked down so it can be unattended. I am going to go card only, Laundroworks, no quarters. I have a layout designed comprised of 26 washers and 24 dryers. At some point I will be looking to include WDF services but want to get the store profitable with self serve business as the anchor. Your thoughts would be very welcome. Keep up the awesome content!!
Wow! Cool opportunity! I don’t know any management company in AZ but you can check with brokers to see if they will help you manage it maybe? Some do that here in LA
How to choose the right location for your laundromat?
I would be afraid to fail, I have residual rental property and getting tired of renters
It definitely can be scary. It's important to have good people on your team to make sure you don't fail.
@@LaundromatResource tell me more about good people on my team, did you do a CZcams on that ?
@@GALTIZER2003 I didn't but I'll put that on the list. Good video! Off the top of my head, you need a good broker (if you go that route), a good distributor, an accountant & lawyer to help you structure your company to maximize tax deductions while minimizing liability, and I always recommend a good consultant (whose payment doesn't depend on you buying a laundromat).
I have bad credit. Working on it to get a higher score. No money to buy. Veteran. Just divorced. No life. 53. Desktop support. Do you think someone like myself can get help to open a laundromat?
You can. Honestly though, I might take a little time to take a breath, regroup, and decide what you want life to look like going forward. 53 is young and you have a lot of life left to live. It's probably worth while thinking through what you want life to look like going forward and then develop a plan on how to build that life. And, of course, I'm happy to help however I can if you decide laundromats fit into that plan for you.
Thank you for your information. How do I get in touch with you for broker reference?
No problem. Laundromatresource.com/sell or Laundromatresource.com/buy
Or just drop me an email telling me where you're located and what you need! Jordan@laundromatresource.com
Here’s a CZcams video that could’ve saved me 400 bucks!
How do I set up a consultation with you
Hey jordan, name is leo. My question is, how do I know what multiple to use when evaluating a laundromat?
Hey Leo, great question. It's a little involved and to get a more in-depth answer, catch the next "How to Analyze a Laundromat Deal" free live webinar (The next one is Thursday, 9/30/21). We go into a lot of depth on it. But a quick overview is a longer lease and newer machines make the multiple go up, and a shorter lease and older machines drop the multiple.
@@LaundromatResource Awesome thanks jordan. Everything your doing is very helpful, keep it up!
I actually submitted an offer a week ago, verbal was accepted im just waiting on him to sign the letter of intent to purchase so i can submit to escrow.... im super excited for the future.
Thanks again!
Overall, should you talk to the owners first, create a dialogue, then once you ask about if they want to sell and you ask basic questions on revenue ect- should you then bring in a broker and lawyer? Just curious what point of the process you should bring in the A Team for securing the deal and getting that part going.
Yeah, talk with the owner first and gather some intel. Then when you're ready to make your offer you can bring in a lawyer or escrow company. It's up to you if you want to bring in a broker or not
Just curious if the past two years are a good reflection of the business considering the pandemic?
I think laundromats showed how great of a business they could be during the pandemic. They stayed open unlike most businesses and while revenue did drop some when everyone was on lockdown, most didn’t drop much and recovered quickly
Ownership of a laundromat is a great challenge
If there ain't one to buy wat boyt buuldung 1 ?
Hi Jordan! I joined your CZcams channel and signed up for the free ebook. it's a blessing that I came across your channel and signing up for the membership. I've had a desire to get into the laundromat business but my biggest barrier was not having the knowledge. I can already see that the tools and resources are going to answer a lot of my questions. One question I do have in mind is when having it financed through a lender what percentage of a down payment they typically asked for?
God bless!
Thanks Jerry! Good question. It really varies depending on the loan, your financial and credit situation, your experience, and the location. But, if I had to put a number to it, usually between 25-35% down for a traditional lender. I recently did podcast episodes with Chris Michalek (czcams.com/video/iQsVXjgvBgE/video.html) and Marc Stern (czcams.com/video/Jopba-41wKw/video.html) who are both lenders in the laundromat industry. They are definitely worth a listen!
I need to buy laundromat
Is it best if you're already working a job to slowly transition into buying a laundromat, or "jump off the deep end" so to speak and go all in?
There's a whole lot of "it depends" in the answer to that. But if you don't already have enough money to buy a laundromat that will cash flow enough to support you then I suggest buying a laundromat as a side hustle initially and transition out of your job over time.
Thank you for the reply and information. I am unsure on how to access the difference in good and bad deals so far. I've done probably 6 months of research but still not confident in knowing whether to execute or not. I look forward to you speaking at the event in March.
What questions to ask seller when purchasing a laundromat?
What to look for in a inspection?
What information should I ask for?
@@mroctober3583 what do you mean link a video?
I would like to get your free ebook
The best way to get it is at laundromatresource.com/free-e-book
What percentage does an avg laundromat pay for expenses?
I seen a laundromat for sale for $88k in Redondo beach should i buy it i work at Northrope grumman and i want to own my own business while working you think its a good idea
I think you’d need to find out more information about it before you buy it. If you want to talk it out, book a free coaching call at laundromatresource.com/coaching
What are typical profit margins?
20-30% unleveraged
If you lease a building and build a great business, what stops the building owner from NOT renewing your lease & continuing a laundry business w the clientele & business you have built?
1. You need a long lease (preferably 20 years). 2. The equipment still belongs to you, so the landlord would have to invest hundreds of thousands of dollars to put equipment in there. 3. Most landlords don't want to run a business. That's why they leased the space to you in the first place.
How much do you think is a good monthly return?
The dollar amount can vary dramatically and it depends on how much you want. But a 20-35% return is a pretty good range to shoot for.
Do you prefer card or coin laundromat? What happens if some loses their card with money on it?
Ty Easy card stores MUCH easier to manage and you have a lot of control over promotions as well as data from customers. The downside is that it is expensive to install the card systems. As far as what happens if someone losses their card with money on it, that's up to the owner. Some systems have ways to cancel a card so you can reissue a new one. However, some don't. Many owners communicate that customers are responsible for their own cards.
@@LaundromatResource thank you!
I need your help to determine if purchasing this laundromat make sense. What is the best way to make this happen.
You can download the ebook free on the website or set up a free phone consultation at LaundromatResource.com/coaching! Exciting opportunity. I'd be glad to help if I can.
Do it
Update, he did it and it looks awesome! Way to go Kevin!
How to renegotiate the lease successfully? Can you give some advice please?
I'll make a video on this, but my general strategy is to figure out a way to get the landlord what he/she needs (needs, not necessarily wants) and figure out what terms you can create to be able to give it to them in a way that doesn't hurt your business. Also, lay out the benefits to the landlord for having a laundromat as a tenant. For example, a laundromat is a long-term, stable tenant. Laundromats stayed open during the pandemic (they're essential). Laundromats draw customers to other stores in a shopping center, etc.
@@LaundromatResource I did promote the benefits including a stable long term tenancy but the landlord said having a long term tenant decreases the value of his property especially when he's selling to developers. Developers want short term lease 2-3 years. Have you come across that before and what would your advice be?