How FREE Laundromat Made Me Poor
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- čas přidán 22. 07. 2024
- While the infrastructure might be "free", everything else is not. In this laundromat video I describe how not being prepared to start a business would cost me my savings and time. Nevertheless, I will recoup all my money and find a way to turn this laundromat into a money making machine!
thx for this man. I hope you can dig yourself out of this situation pretty quickly.
So theres a lot to unpack here.
You say that you watched the video and you did it right but one detail that you missed, which was a VERY important one, is that you need to have an "open house" get all the distributors in the store together at the same time. Let them know theyre in a competition. You ABSOLUTELTY CAN get the equipment without any money out of your pocket, but they need to know theyre in competition. I PROMISE you that if you had called one of the other distributors right before you bought your equipment and said "I decided to go with the other guys. But i might change my mind if you figured out a way to finance the whole purchase", they would have changed their tune real quick.
Four months of abatement isnt bad, but you might have had better success by asking for 4 months abatement "post retool". Or by asking the landlord to leave the equipment in place during the retool and making it available for the landlord to pick it up as the new equipment replaced it. That would have allowed you to begin collecting money right away so that you could have created a little working capital for after the abatement ended. While Dannys consultation might look like an unnecessary expense, he would have suggested one or both of these ideas during your landlord calls (in addition to probably getting you a better rate once the abatement ended). Better to not be pennywise and pound foolish. Paying professionals like lawyers and consultants will save you a lot in the long run.
Lastly, and i think this is the part that others need to hear, to stated that you're going to get this one going, then expand until you can quit all your jobs. KUDOS on your ambition. I did the same. Go for it!!! But... how will you get the other 3 or 4? If you buy them, you will either be throwing away a little money (if you consider 100 or 200 thousand dollars a little) and buying a train wreck. Meaning you will STILL need to retool immediately and run into ALL of the issues you had with your free laundromat. OR you will spend A LOT of money (Million+) to get a store that is running well and operating at substantial profit. Thats fine, but those scenarios wont generate much more return than investing in the S&P and theyll require a lot more work).
Dannys system is the sweet spot where you can control an asset (the leased space) which you obtain for free and then use other people's money to add value to the asset. Its not a get rich quick scheme. It requires work, but if you put in the work you can create outsized gains that you cannot earn if you're wasting money on buying someone elses failure.
Congrats on your first location. It might be bumpy at first but you're better off for taking the leap!
I appreciate the comment, I'd like to point out a few things.
1. All the distributors know that you're talking to the other ones. I told them this. They're only 5 in my area. Trust me they will not screw over the other guy by much. It's in their best interest to not play that game. If they all hold strong to a price they have the power.
2. No money out of pocket. I tried this and the distributors were not having it. In this market everyone who offers loans for the equipment wants 20%.
Even with a lease in hand they don't care. At most you might argue I could of taken a person loan for 80k but few banks offer that. And the interest rates are 15% for me. Btw I had a 800 credit score.
3. There is no guarantee the landlord will give you any free rent. They certainly don't have to leave their machines for you to use. This landlord had multiple people, trust me I know for a fact.
4. Danny negotiating the lease WOULD of been better. I knew this before hand. But I want the program, his course, to stand alone on its own. To see if we could really get a free laundromat with JUST the use of his program.
5. Overall Danny's program does work. And I would never buy a laundromat. He gives good tips but it's not the end all be all. You'll need more help beyond the program.
6. Thank you for your support. I make these videos to hopefully help other people.
@joekling391, are you Joe with the 5 laundromats in LA? Is it possible to connect? I'm one of Danny's clients.
Ive been watching his videos on these free laundry mats also. I figured you would need good amount of cash to open. Thanks for sharing
Thanks, you're already off to a better start than I was figuring that out. I actually got to talk with the Free Laundromat King Danny. Video coming soon.
Thanks for sharing your story Claudio. Wishing you much success on turning your laundromat around.
Thank you! I enjoyed your interview on the laundromat podcast.
@@justinvestclaudio you're welcome and thanks for watching the episode.
Dude you can do it. The most successful people don't have an option.Let's see an update every month.
Thank you! I will make it no matter what!
Hey Claudio - I just wanted to thank you for taking the time to make videos like this so it gives all of us a chance to see what it really is like, especially at such an early stage. Its nice to finally see and hear about what a new owner goes through, instead of most of these other videos that kind of gloss over specific things. Would definitely appreciate any time you had to pick your brain on other things you've experienced and any advice you would share. Take care and keep your head up.
Thank you, please if you have any questions now or in the future ask in the comments.
I make these videos so that others can learn from my mistakes and avoid them but also to learn from any success I have and copy them.
@@justinvestclaudio What are some things you would include in your next Letter of Intent when you get your next laundromat? What exactly even goes into it?
Thanks for sharing your story. Hopefully you will get this thing turned around quickly. I see how nice the place is, and the machines look good. Hopefully you are opening soon?
If everything goes smoothly, I'll be opening later this week.
Outstanding!! looking forward to watching your journey!!@@justinvestclaudio
Congrats Claudio! We are all rooting for you! I can’t wait to be where you are. Would Danny have negotiated the equipment cost and interest rate too? Or would he have just guided you on it? I imagine most of the manufacturers know him already.
Thank you! Keep learning all you can about this business and soon you'll have a great laundromat.
Danny negotiates the lease NOT the equipment cost or interest rate.
The best he can do is make you sound confident when you speak to the distributor.
And yes they know who Danny is. The more educated you sound when you speak the less they will try to take advantage of you.
Think about it like this, if your car breaks and you know a lot about cars. Then the mechanic will be less likely to try and scam you. Cause you can pick apart his lies.
Man I negotiated with that landlord she didn’t budge a bit.
My idea was to open the windows at the front and kick out that food truck because you don’t have much parking.
Did you get those A/Cs moved to the roof or were they even hooked up?
Also love the sign “WashEteria”
Did Danny negotiate for you?
@@justinvestclaudio he has but I ended up getting my own by trying by myself. 9m abatement $0.85/psf
Houston area has been pretty locked down recently, though I haven’t been looking as hard as I was.
You did a great job on the remodel, I need to swing by this week and check it out in person.
Cool video, bud. I'm sorry to hear things are rough.. I'm currently working on getting Danny's one on one time, aka his number, to start talking about what i need to do.. i got the course, but there's few things thats not mentioned, but his CZcams videos clear up a lot. You got this brother, don't stress, and stay focused.
Thanks for your encouragement! I hope you get your laundromat soon. If you have any questions in the future just ask ☺️
It may or may not help you, but you might want to claim start up on taxes.. do research on schedule c.. I'll love the help when I get there, and if you need someone to bs with hit me up.. stay strong and focus on the bigger picture you got this.
I hope it works out you need to get those beautiful machines turning.
Thank you!
you put the bar that goes across the top on your carts backwards. you want the edges to catch so people can hang stuff
You're absolutely right! Thanks for the info☺️
lol i came here for this comment ! I have put to many damn carts together
Congrats on the lease and infrastructure!
While working with the distributors, how much effort did they put into winning your business before you told them you couldn’t afford 20%? For example, did you work them on pricing first before getting to the 20%?
The other thing I have heard is distributors want to feel confident you know how to run a laundromat. You understand things like Turns Per Day and Demographics. And, it helps to know about how many pounds of wash-dry ratios. Danny’s course is the great, but there are others channels that can supplement your knowledge before talking to distributions.
Hang in there! You are almost there!
So when the distributor shows up he'll check out your store and make recommendations on what to get.
You should note most of these guys DO NOT own a laundromat.
They are sales people, like the same kind you find at a car dealership.
I told them what machines I wanted and then a few days later I got a quote in my email.
I then sent the quotes to the other guys.
This did bring down the price a little but nothing of significant value. Maybe total 10k?
They do try to compete for your business somewhat but don't expect a miracle.
Once a distributor found out I didn't have the 20% he tried to sale me old machines from another laundromat... In hopes that the other guy would buy new.
That info is good to know but they will ask how many mats you own. And when you say zero they'll know you're green.
Also they don't care if you're confident. Once they sale you the machines you're on your own. If the business goes bad they take back their machines and keep your down payment. If the business is good, then perfect they get paid with interest.
My best advice is to yes be knowledgeable but have money on hand. That way if you do have a 15-20% down payment you can afford it. Maybe you'll get it for less than 15 which is great but cash is king. Have it just in case.
I learned nothing is for free, thanks for putting out this video so others can learn
Wise people learn from the mistakes of others
What is included in your gross lease? (i.e. insurance, taxes, utilities?)
I've been looking into it but I knew that FREE was just a marketing gimmick, it cost money to start any business, good luck and you're making progress so you'll get there
Thanks! Hopefully this month I'll be ready to open 🙂
It's not a gimmick. Most existing businesses want you to pay the owners for the business in it's existing condition. Imagine getting a house for free, now you need to fix it up before you can rent it out. Same thing as this.
Exactly, @@commercial_service people are so afraid to spend a few hundred dollars, that they are willing to lose a few hundred thousand to spite themselves. danny's realness is what comes through most.
If you’re an entrepreneur not making mistakes then you’re not trying, We all learn from our mistakes.
Absolutely. You can learn a lot from courses and reading forms but nothing beats learning from actually doing it.
Great insight man. Thank you! Really appreciate your time and effort you've put into these videos.
Thanks, I'm glad to hear that 🙂
What city is the Laundromat located in.
Thanks for posting your experience. I have many questions about the whole free laundry mats. Wondering if you considered hiring the course producer as a consultant? I know he charges some money for his services, but it sounds like it may have been a good investment to prepare you for entering a business that you didn't have experience in and how to get your business running.
If you have the money to hire a consultant, you differently should.
That would be an investment as the upfront cost of doing that is a few thousand. But in the long run it will pay off.
I'm already at the point that I don't need a consultant with this mat. When the time comes for a 2nd laundromat I will probably do it.
With all that said, it's not free. You'll pay somewhere. So my best advice is to have money on hand. Don't go in thinking you need 0.
Thanks for sharing. Did you get any consulting from the person who you bought the course from??
No, I used only the information that was provided in the course. I do recommend that other people find consultants or mentors.
How long did you have to wait for the machines to be delivered from the day the order was placed?
Not long at all, it was about one month.
I love the cold hard truth.. thank you for your story
What city/state are you in?
Thank! The laundromat is in Houston.
Bro you and Danny need to have a meeting. You need a lot of financial help. A laundrymat that size can easily cost 300k! Should have found a smaller store.
You're right on the money with your valuation. I should have it open this month hopefully 🙂
Rooting for you!!!
Thank you
Hold my beer…
Here's your beer 🍻
U just had me n tears maybe u should be a comedian 😂... but ur definitely gonna get ur return!!!
Thanks! Hopefully the next video will be of me opening the store ☺️
Right below your video is a "FREE LAUNDROMAT" video 😂 dang youtube algo messing with us just trying to hustle
If it sounds to good to be true, it is.
This is a saying I find to be me truer and truer the older I get.
Can i ask you whats stopping you from opening the doors to customers, do everything you can to clean things up get some tables, and chairs and let people start using the space.
All that's left is to figure out how to program these machines and clean up. As you know the instructions aren't very helpful. Also because I have 2 jobs I can't be there as much as I need to. 2 jobs due to having to pay rent.
But if all goes well I'll be open this week. 🤞🏼
@@justinvestclaudio I understand I went through all that but I got to a point that I just said fuck it and opened the doors. Whatever went wrong was just going to go wrong. 2 months in and I am getting rent paid, bills paid. Stop what your doing call off work for a weekend and open. It will change your perspective on things.
Danny D’Angelo’s system can work. You need to get some customers. And coin drops. And clean that place up and open.
It did work for me. I got a laundromat but it wasn't free.
20 percent? I was just about to sign a lease hoping my good credit would get the machines. But I don't have 20 percent. Thanks for the heads up.
Good credit alone won't get you the machines, I had a 800 and still had trouble.
Id recommend doing some online research and see how you can afford these machines.
Or start saving before you get that lease.
Good luck!
nope. you need to listen he didnt do wahta Danny says. he jumped into the first deal. ALSO he has a free laundrmmar - he's crying about to make his own bisniess work I O I do call you ignrnat.
@@Brokerfordecades where did I say I jumped into the first deal? And how did I not listen to Danny?
Get bids from distributors. If Huebsch is the lowest, go to their website and find financing.
I watched his video with yu, that's "how"@@justinvestclaudio
That was awful. Painful to listen to.
Claudio Claudio Claudio. I hope it works out. You have accomplished a lot. The place looks good , just get it open and people coming in. Keep us informed.
Thanks that means alot!
When your back is against the wall you see who you really are stay humble and work hard it will work for you
Hard times create hard people 💪🏼
If you hired Danny, he would’ve shown you how to avoid this problem, and the solution is in the course. I think you missed that part. Watch the course again, and it will show you what you could’ve done differently
I've seen the course.
So Is hiring Danny a must? Because then the course wouldn't be able to stand on its own.
Also the thing about bringing in all distributors in at once doesn't really change much.
They all know that they are competing with the 4-5 other distributors in your area.
They also all know each other and won't screw over the other guy. They will go down a bit but not deviate much from what they deem "market price".
All that to say, having Danny helps but if a course can't not stand on its own it isn't much of a course.
Danny D'Angelo. Say the name.
I talked to him on the phone, video coming soon.
Yeah, I watched it haha.
I am in a same boat. Pray for me. For sure dream come true but now..,i am a begger.
You'll make it stay strong 💪🏼
You don’t think u did it wrong? What?!
How did I do it wrong?
The course is supposed to be all your need.
Also if the course requires that you follow everything 100% perfect and ANY deviation from that results in a catastrophic outcome... then what kinda deal is that lol
Don’t get down bro. From zero and minus you can only go up and get better once your laundry opens and makes money that business will be worth a lot that you can sell for a profit or expand from it. Will be much better working for yourself than going to a job.
Out of interest why did you choose Electrolux machines ?
Thank you, I do appreciate it.
I went with Electrolux because their team gave me the best deal.
Every brand thinks they have the best and honestly they are all pretty close in performance. There is not one that stands head and shoulders about the others.
I liked the financial team Electrolux has and I'll keep using them for laundromat #2 one day.
Continued Success! As a current laundromat owner I can tell you f*ck the comments that all these randoms who don’t have a laundromat say on here. Even though Danny doesn’t tell the complete story, you still took action to make a better life for yourself. And that makes you better than all the ppl on here who have comments about things they know noting about
Thanks for the support
God Bless You 😢😢😢
I'll make this laundromat business into a success. I have to! 🙏🏼
You can do it. I'm looking for laundromat myself too. I might buy an existing one.
@@ADCY1987 Thanks and good luck! I hope you succeed at getting your first laundromat soon. ☺️
Bro. You need to take a second and pause. You really seem like you're rushing into things and you are very new to all of this.
Not trying to bash you bro but you got to use OPM! Get your credit right! And get some business funding bro! I was able to get OPM for many of my business. Including a laundromat!
I had a credit score of 800. When I started talking to the distributors they all say the same thing, " you need to have skin in the game."
I hate that over used salesman saying lol.
But I'm glad you got it done. Hopefully I'll be there soon .
Everything is negotiable bro. You need at least 8-12 months rent abatement. Also interest and down payment is negotiable with the manufacturer.
What rate did you get from the manufacturer
No this is all on you. You didn't know that you need at least a year or 2 years of money to carry you through in case the business did not make money those first 2 years. You went in thinking it was "Free" when nothing in life is free. You didn't think, what you needed to do to get this mat running. You purchased it, leased the space and then what? Thought you would get the machines for free? Installation Free? Permits Free? Nothing is free. You need working capitol to run these things till they start making you money. Danny D is known in the laundromat industry as being scammy.
I did get myself into this I never said I didn't. I'll also get myself out of it 😄
^ Tell me you know nothing about Danny in one sentence.
@@Brokerfordecades If your comment was directed at me... your wrong. I know enough to know about Danny to know you can't get a "free" laundromat. Nothing in this world is free. He sells his book. Sells his help to get these "Free" Laundromats. But what people don't know, because they believe the grifter, is that you have to pay a lawyer, to incorporate, you have to pay other fees, like deposits and such to buy a laundromat. So you really don't get anything for free. And then when you get a zombie mat, you have to finance to get new equipment or pay repairs. Talk to any real laundromat owner and they will tell you what's involved in getting a laundromat.
That's HILARIOUS. I wrote; "you know nothing about Danny" and you start some "book" about what's free. Why is that funny? Because Danny has NEVER sold a book. point proven. @@Gryphyn3
@@Gryphyn3evidently you don’t know much about Danny D. What he teaches is that you deal directly with the landlord on the laundry space WITHOUT paying the operator for their failed business. NEVER BUY A LAUNDROMAT. Then get as much rent abatement as possible. Of course you will have other expenses along the way.
What is SCAMMY is that operators try to sell failing businesses for $50-$300k+ and they find suckers to buy them.
Do Bankruptcy! Talk with an attorney my friend!
Do whatever you need to get your CO AND OPEN THoSe DOORS. Don’t let painter D’A-go-lo one rob u. He is waiting for you to fail REMEMBER You did nothing wrong but get scammed. And you paid someone to do that to you. They are waiting for you to fail and know all the landlord details because they keep those fOR A REASON. You hate what that Google spreadsheet is for.
Lol your supposed to keep the old equipment unitl you get new machines and 4 months of rent abatement isnt sht 4 months after doors open maybe. Your supposed yo take yout lease agreement to the bank to get a loan your doing thing bass ackward and your crying about it ive never even seen the course only his videos and know more than you. Whose in the wrong here click baiter. Video should be titled how i half caulked pulled thr triggered. Also if you didnt hire him and went off on yout on whose fault is this failure really.
Well... Where is your Laundromat?
@justinvestclaudio I don't want to look like a clown an post a video on why I didn't make it like you. I journey out for sheet metal in 3 years during which I will learn service for hvac units so I will not need help me service my business. I don't have fomo like you because there will always be someone like you who rushed in and didn't succeed so when I'm making Doctors money 50 plus an hour I will than send my wife to scout stores and hire Danny to get me a proper lease with the proper way to open a store and the proper rent abatement. Never made it to the end of your video maybe I wrong an you owned your mistakes and didn't blame the system for you trying to short cut it
@@TRUmedia-qr9pf That sounds amazing
@justinvestclaudio your damn right it dose.