I know your video is 2 years. I have wanted to own my since my early 20. I am in my 50"s and I still have a burning desire to still pursue my dream. I will continue to listen to your videos. I know I'm in the right place.
I've been thinking about owning one for a while...then I come across you awesome amazing info...I want to learn how to get started...I see financial freedom
I am 79 & very interested in increasing my cash flow. I ran a car wash for over 14 years which is a similar business, Keep machines at peak, do the vending, & buy the RE if at all possible. I am under the impression that a business can be bought for low or no down payment with seller financing at around 6% interest. Tax benefits & continued monthly income for the seller.I need to improve my cash flow ASAP.
I just came into some money from my father's estate and was looking into passive income sources. I had a bed bug scare (not real) but that forced me to spend a lot of time in my Southern CA laundromat, which was under new ownership and being 100% refurbished. After hours and weeks washing everything I thought to myself, this is a great way to have passive income. Then I spoke to the contractor and he filled me in. I am thoroughly convinced that this is the right business to be in as a RU-vidr who is still building my channel.
Jordan, you are spot on with this information. I purchased my first store in 2012 after retiring at the age of 50 and this would have been very helpful information back then. I am now a regional sales rep for Alliance. It's videos like yours that are opening the eyes of many corporate types like myself to get into the industry and generate life changing wealth. Keep up the good work!
I've wanted to break the 9-5 rat race for a long time now. I see a laundromat as my ticket to achieve my goal.. Thank you for your help and advice. I've subscribed to your podcast and I am reading all materials on the subject.
My business partner and I have been investing in real estate since 2008, but now looking to diversify in businesses. Since COVID, we realize traditional business like restaurants, bars, coffee shops, etc won’t fair as well (at least here in Toronto) but see laundry as a good stable industry. Look forward to watching more of your videos.
I purchase a laundrymat about 1 month and week ago with 30 dexter dryer and washers combine the laundrymat being around for like 30 yrs lots of work but I think I made the right decision for me and family!!
One more point I wanted to get across is that owning a laundromat we are only owning the business only. Once the lease is over, the business is finished and we need to put this in mind.
You’re absolutely right, if you don’t also own the land. That’s why a good, long lease is crucial and is your most important asset in my opinion. Thanks for talking laundromats with me! Let me know if you ever want to come on the podcast and talk laundromats with me. I think it would be good!
This is such a great video, from a business perspective the best I have seen on Laundromats. I agree about #10, I have a background in real estate and there's no way that I would get into this business without owning the real estate. If the returns are 20-30% without owning the real estate, with it, I would assume the IRR + the laundromat return is 40-50%+ ?
It is my dream one day to put in a laundry machine in my city in Haiti. To this day, ladies with already so much responsibilities to care for the horn has to find a whole day to go to a river or to a water well to get water to their clothes by hand. This would be a two-fold business, service and sustainability through small payment by locals. I do not know how receptive they would be about laundry mat but I think this would be an awesome thing here in Haiti
@@LaundromatResource I believe the biggest obstacles for any investment in a country like Haiti is political instability and also the other guy doesn't want any competition. In this case, In a city of 400,000 people there aren't any laundry mat facility. My dream would be is to start with 1 commercial cryer and 1 washer. I think just starting with a dryer to start off would be a test. Sometime people are afraid to changes, especially when they do not understand the process. To wait all day for your clothes to dry, when it can be done in 30-45 minutes would be a huge time safer for most Haitians. Plus, during rainy season, clothes get washed twice. I guess getting a dryer to Haiti would be the first step, but I need to study and learn about what will it take to put a dryer near a street front in the city to see who will come get their clothes dry. I would love to connect, if you want to chat more please email me: sesthil@gmail.com
I was skeptical before, but I'm pumped now! I just met with the owner of a dry cleaner/laundromat facility. As far as I can tell, the dry cleaning biz is dying or dead. But I sure do see the potential of the laundry side! Who knows? Maybe I'd just shut the dry cleaning side down and put in a coffee shop or something! Thank you.
Can you add bullet points of the topics you went over? Might help people copy and paste basics into business plans! Thanks! super helpful video. Subscribed!
Im currently 17 yrs old and definitely thinking about owning a laundromat in the future. You think its possible to own one in your twenties? I’m going to be studying computer science in college so i can acquire the money to buy one.
It's definitely possible to own one in your twenties. Check out this interview with Mason. He's 21! ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-shQYztFn60w.html
I often found big chains in Raleigh NC and even other places so not sure I agree with that unless it's a smaller city/town. Of course you could maybe compete with them better, lower prices, more personal service.
I guess my point is, not too many customers are looking for a certain brand of laundromat in a similar way to customers look for a McDonald's, for example. There are definitely chains, but their presence in and of themselves doesn't mean single store operators can succeed. But your point is taken
I liked your presentation. I will watch the others in the series shortly. You kept on about net worth. Unless you are looking to get a big loan, isn't that just imaginary worth as it isn't all physical assets or cash?
Hi Jordan, I am form Swaziland a small country in southern Africa. love love your channel it definitley gave me the much needed confidence I needed thank you. I would like some advice on starting my self service laundry here where there isn't a single laundromats just dry cleaners. I am curious on how I could get a hold of you. Thank you
Hi Birdi! Sorry, I just saw your comment. Feel free to book a free call on the website and we can Zoom or Skype and talk if you would like. LaundromatResource.com/coaching Hope to talk with you soon!
This info is great. We are exploring opening a laundromat in a rural small town in Alaska. We would have to buy land and build from the ground up. We are putting together our plan…. We will see if we can get financing to make it happen.
You don't need a business license in most places until you actually buy your laundromat. And when do need to get a business license, usually you do that from the city.
If Laundromats are such amazing investments then why aren't there large chain/franchised laundromat owners? It would seem like if it was such a good investment someone in the past would have bought up more and more until they formed some sort of chain branding and built an empire out of that through franchising. How come no one has done that with those returns?
Haha living up to your name, I love it. There are owners who own 100+ stores. Not many but there are some. But there are also some difficulties in this business that have prevented that from being feasible in the past. But a lot of those issues are being solved. For example, most laundromats are still cash businesses so collecting quarters for 100 laundromats is impossible for one person. Technology and more savvy owners/investors is making it more possible to manage more stores. We’re also seeing more franchises trying to take root than ever before. This industry is changing rapidly right now and I think larger portfolios will be more common going forward
I would say in general you don't need to be worried about that. However, there may be specific locations where self-service laundries aren't as in-demand as they used to be, such as gentrified neighborhoods. However, in that situation drop-off and pick-up and delivery opportunities may be lucrative.
This is the first time seeing one of your videos, I subscribed before watching. I am only 8 minutes in and unlike other videos, I keep zoning out and doing other stuff on my computer and then having to rewind again and again. If you had some kind of visuals, (bulletpoint lists?), breaking things up instead of only one shot, it would help impart more information and provide more visual interest to hold an audience's attention. Your information is good, but the way it is presented is not as compelling as it could be.
I am moving to a town of roughly 2,000 to 3000 people and I have noticed there are not any laundromats in that town or that County. Could you give me some guidance on where to go to look into starting a laundromat from scratch?
I would recommend finding a good machine distributor that will service your area and work with them on what you would need to do in your area. That's a small town so you definitely don't want to overbuy or over-build.
Sorry, I just saw this. The basics of choosing a good location are that you generally want to be in a visible, easily accessible place where the people who need your services can find you. For a self-serve location, that generally means being near renters, so apartments, colleges, etc. Visibility is a huge deal so on a main road is better. Good signage is crucial. Plenty of parking is important. And, depending on where you are, population density can be key. I have a blog post a while back on the website that breaks a good location down a bit more if you're interested.
should I buy an existing one or learn how to start fresh? the only thing about starting one is idk where to get the laundry equipment, leasing place, and keep it legal and safe
If you could go back in time to your first laundromat purchase, what would you do differently or what are some of issues/mistakes that you would avoid? Also, what are some tips for someone who is looking into purchasing their first laundromat? I'm currently working a full time job and was hoping to buy an existing laundromat as a side gig and would love some pointers. FYI i recently subbed and will be going over your other videos. Great videos so far. Thank you.
How about if I just want to do a hands off approach? Love my job and don't want to quit but want to invest in a side business where I can create more wealth and get more tax advantages.
Raul P. Great question. You can find used machines on Craigslist sometimes, but you’re probably better off working with a distributor. Speed Queen, Huebsh, Dexter, Continental are some of the major brands in the US. You can google them for your area and find them.
I'm finna purchase my first business in a few months How much should I expect to be making from my 24 hour coin laundromat as a first timer if the cash flow is $153,750? In how many times weekly should I be collecting my quarters? And what option can i get for my lease if I want it for five to six years?
This is quite interesting. Is there any way of calculating if your town or area needs more laundromats? I know there are some laundromats in my town, but I'm not sure if more are needed. Then again, I know I'd make an even better laundromat than any that currently exist in town.
Awesome question. In terms of if your town needs more or not, it comes down to population size. I'm in LA so we look at the population density within a mile of the laundromat. We like to see 10-15,000 people within a half a mile and 50,000 people within a mile of the laundromat. If you are in a smaller town or more rural area, that radius will probably expand quite a bit and the number of people could be drastically less. But, like you alluded to, putting in a newer/larger/nicer laundromat that keeps the customer in mind first could be very successful even if there are technically enough laundromats in your town already.
@Laundromat Resource. I am fresh out of college and I don't have the finances for the initial downpayment. Is there any other way to structure the finance with zero downpayment?
OK here's a channel I can relate to. I have thought for years this would be a spectacular way to make money WHILE KEEP THE NEIGHBORHOOD TIDY 😎 Laundromats give people a place to gather while being productive in their most incredibly ridiculous "laundry day" attire 👽 Yeah they make full on Spiderman costumes for adults..... ask me how I know.
@@LaundromatResource One of my room mates would wander around the house in full costume, head to toe, every once in awhile. I can tell you seeing this before you have had your coffee.... is a bit shocking 😱
It really does depend on the laundromat you buy, what the down payment terms are, what kind of laundromat you want (fixer upper, turn-key, etc), and more. You CAN get one for zero down, but you'll likely still need money for deposits, improvements, etc. I hesitate to throw out a number because it can vary so wildly. I know that's not super helpful...
I do a free live webinar every week that you can join. Sign up at laundromatresource.com. The signup form is at the top of the page. This week's topic is How to Buy Your First Laundromat!
Ryan Keenan I work an average of maybe 3-5 hours per week at my laundromats. I don't currently have another full time job but I have had a full time job while owning both of my laundromats in the past. It's definitely doable
It’s generally not recommended that you lease machines for laundromats. Financing terms make it more profitable to buy with financing than to lease, plus you have an asset to sell and a limited payment term on the loan.
Why don’t some of us just form partnerships. Put together laundromat syndicates … form an LLC and get 3 to 4 people to bundle their cash to make a purchase. Then we split the CASH FLOW … or we leverage that to get another. All parties would have to be vettted. That’s SOLVING THE MONEY PROBLEM
Hey, I was looking into buying a laundromat myself but the spot I'm looking at is asking 175k but willing to offer seller finance with 30% down, 10 year loan. just wondering if that was a good offer. Still no counter offer yet just looking at it. It's also my first time dipping my toes into this kind of business.
It could be, it's hard to know without more information. You could try using the analysis calculator on the Laundromat Resource website to see how good of a deal it is!
Hey Jordan, I am in the process of trying to purchase a building to turn it into a laundromat. They bank is asking for a Business plan. Do you have a sample of a business plan for a start up laundromat? Also if one of your videos can help me can you link it to me? Thanks Mike T
Sorry, I missed your comment. Google "commercial laundry card payment systems" and you'll have some options there. There are mostly just 3rd party systems right now, although some of the new machines do have an app payment system.
Electricity water rent gas etc would be around 10K+ or - where I live (most expensive city in the Us). hard to see how it how be a good investment here
I don't know about that in particular. Great question though. I do know that everyone needs laundry done, but I would assume business would be pretty seasonal there. Might be good to ask on our forum and see if anyone else knows! Laundromatresource.com/forums
Awesome question! The answer to it is that it's very difficult to do. Doing proper due diligence is critical. I would say just as critical is having someone on your team who knows the business and who knows what to look for, what questions to ask, and what the red flags are. It's impossible to say if 16,000-18,000 CC water per quarter is good. It's going to vary on location. And honestly, the cost of water only plays a factor into the vend price of a wash, not on whether or not a laundromat is profitable.
You can if you have the money to put down for both. I would speak with the specific lender(s) to see how the loans will affect each other. My guess is that the home loan will be more affected by the laundromat loan than vice versa so you may be better off buying the home then the business.
I got a question….. with most people (owners or renters) having a washer and dryer in their own homes or apartments…. How are laundromats still profitable? Everyone I know has their own.. ????
Count yourself blessed! Many people don't have them still. A lot more than you think. And many people who do have them still use laundromats to washer larger items. And wash/dry/fold and pick-up & delivery services are growing rapidly right now. Lots of ways to make money in this business!
quick question if a laundry mat got 3 too 4 years old new machines is it better too finance a new machines or ride oout the 4 year old machines for a coupe of years
Thanks for the great info. How is the laundromat business during pandemic? Is there classes teaching you how to repair the laundromat machines? I’m very interested to start this business but I don’t know if it’s the right time and also I have no experience in this business. How can I contact you? Thank you.
Laundromats have remained open pretty much everywhere during the pandemic. While many businesses have decreased, most are still able to operate and support themselves. They are relatively stable businesses. Many machine distributors host free classes to teach you how to repair machines! It's definitely worth your time to go to those if you're planning on repairing your own machines. Best way to contact me is through my website. Book a free call at: laundromatresource.com/coaching Hope to talk with you soon!
I'm 25 and I'm thinking of buying a laundromat. This sounds like a great way to get some good money. Just a question. What would you do to keep crime/homeless out of the laundromats?
If it has a full time attendant that will take care of 95% of your problems (assuming your attendant isn’t attracting problems). If not, remotely monitored cameras with 2-way audio helps. Strategically timing cleanings & collections so someone is there when there’s most likely to be trouble. Posting your phone number so customers can call/text to let you know when someone is there who shouldn’t be. Calling the police every time communicates to the people who you don’t want there that they aren’t welcome and communicates to the police that it’s better for them to drive by every now and then on their own so they don’t have to hear from you all the time haha
@@LaundromatResource Awesome. That's good. Well I'll try this out. I'm new to all this and I'm hoping I can do this. I would probably need to get loans and have the money first before I talk to the owner and make a deal right?
@@josephpalacios7535 it helps but there’s no harm in talking to the owner before you feel like you’re ready to go. Worst case scenario is you can’t do the deal yet
If coin laundromats are so easy to run and they make great cash flow why do I see so many of them for sale? I have seen the same laundromats for sale for the last 3 years in places like Chicago? why? For example, one unit selling for 325K and cash flow is 87k... Why sell it, it's like saying no to free cash flow? Why is the unit on the market for 3 years? what am I missing here? “The old adage, 'If it sounds too good to be true, it probably is'" I am interested in buying a passive income side business, however, I feel that the awesome laundromat business story is not very clear to someone like me?
Great question! There are a lot of reasons people sell. I wrote an article about why people sell. Here's the link: laundromatresource.com/top-10-reasons-people-sell-their-laundromat/ It's likely one of those reasons.
Hi, i am in discussion with an elderly laundromat owner and purchasing the business - what financial information can i ask him for? He currently rents the location and the equipment is old, with good locations
Hi Kim, you can ask for any financial information you want. I would suggest monthly income and expenses, the lease, utilities, and any other expenses he has. related side note, I'm hosting a free live webinar tomorrow (Thursday, 8/12) on How to Buy Your First Laundromat. It might be a helpful one to check out. You can sign up on the home page of the website at laundromatresource.com
