Make sure to watch Part 2: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-lMeGoiodWMo.html How do you guys feel about Jeff’s story? Would you consider buying a laundromat? Let us know in the comments!
You have great content, and I genuinely appreciated the owner's sharing so much information. Some of them, like Jeff, seem to have real resources/wealth and could enter the business with some degree of scale. I wish I could do so!
My cousin owns a smaller medium sized laundromat in Chicago. It's a 2 flat. He owns the building and lives upstairs. Hes 22. He doesn't do any drop off or wash and fold. But he does have 2 vending/pop machines. And it's a clean place. Lots of people everyday us it. I dont know how much money he pulls but I never see him not smiling.
It's better to lease the land because it can be used as a tax write off. Home depot's buy the land, sell it to the bank, and has the bank lease it back to them. If this guy is not reporting everything he makes, then it makes sense to buy the land.
Yes and no. If it was a bare piece of land, sure. Most ppl avoid laundry mat properties bc they know they make barely any passive. He spent 2 mill buying it and rebuilding it.
Assuming he bought the business at about a 3x multiple ($220k annual revenue @700k acquisition). From him boosting his revenue by $50k (let’s say expenses have stayed constant for simplicity) the laundromat is now worth $800k+ if he were to sell it as it is and it’s only growing!
My buddy had a laundromat for about five years then he sold it. It was not high tech like these, he had older machines which needed constant repairs. He put his son on the payroll so basically he got to deduct his kids college education even though the kid was a hundred miles away in college.
@@dutchmaster1999 because he didnt make any money out of it, i know a guy that got 2 ro 3 laundromats, he didnt make it, 2 of them didnt work out, the last i heard of him he got 1 left, he paid me more to fix his plumbing leak everytime he call, when opening up laundromat make sure you can fix the machines.
That if thou shalt confess with thy mouth the Lord Jesus, and shalt believe in thine heart that God hath raised him from the dead, thou shalt be saved.
Your channel is great! I really appreciate that you ask the questions that most people like to keep to themselves like profit, operating costs, and startup costs. Some feedback... sometimes the camera moves too much and makes the video a little hard to watch, but that might just be me and I am not going to stop watching. Ya'll are doing a great job, keep up the good work.
This page is so underrated! The quality in these videos are so amazing. If you don’t I recommend making a TikTok account and posting this content onto there. Btw I came here from Reyes the entrepreneur ad
That’s brilliant I thought of that as well! Having raffles for customers, An incentives for being loyal customers. What I would also do is have raffles around Christmas and holidays.
I absolutely love the videos, the content is so inspirational and the B-Roll is awesome, the one think I would change is a lot of the time the speaker is on a roll and the interviewer will say something that interrupts the flow of conversation, it would be nice to see the interviewer wait until the interviewee is finished talking before making noise so it doesn't take away from the impact of what the speaker is trying to say. (Example sometimes the interviewer will say something or be like mhm during the sentence and it can be distracting)
Thank you for this video!! I’m considering purchasing a laundromat once I retire out of the military. I’m still researching.......... Appreciate the content 🤙🏽
That if thou shalt confess with thy mouth the Lord Jesus, and shalt believe in thine heart that God hath raised him from the dead, thou shalt be saved.
Hello UpFlip: Interesting I went to a laundromat yesterday (a rare occurrence); but it too had recently been acquired by a new owner with a lot of the same mindset & vision as Jeff's. Odd, how this popped up in my RU-vid feed this morning ... 😉
@@UpFlip dealing with consumers and their complaints. Typically these laundry facilities are at lower income neighborhoods = vandalism, complaining etc. $1M layout for the ROI and the risk seems high I would rather invest in rentals
@@MAchannel2024 That makes sense, for the most part its depends on the location! I know in our city we don't have any vandalism or anything, and we have several successful laundromats, the reason I know they're successful is because we've spoke with the owners.
I am planning to have a business like that here in Canada but Company told me to find a place first to rent and it should cost approximately 3k below and 15 years to pay them for the machines. But I'm still thinking if it's worth it. I don't know I don't have idea. Anyway watching here with friends full support here. God bless and keep safe everyone!
Tentando montar uma aqui no Piauí estado pobre do nordeste do Brasil. Aqui as máquinas tem muito poucas opções e são muito mais caras e menores que essas aí na América o que me faz tender a ter que escolher uma entre as franquias já em atuação aqui no país. Baterias de Máquinas simples 10kg que aí custam 2 mil dólares aqui 48 mil reais. Aqui no Brasil é bastante complicado empreender em tecnologia assim pelo alto custo, zero incentivo e estrutura. Mas vamos que vamos. Parabéns ao canal.👏👏
Or you could work your ass off, save your money instead of blowing on dumb hoes, have a focus and purpose and you will make it, respect self made bud, not using daddys money
I don't understand his final land versus leasing. Here in Northeast illinois, the property taxes go up so owning the land is not going to keep you from paying more of a mortgage note. The best thing about land should be that you can't run out of a lease. But purchasing land in northeastern Illinois just requires so many truckloads of cash compared to leasing the property.
Yeah you sort of lost me when you mistook revenue for profit. If he's making the 36% on the 270k he said their revenue was then that's around a 10% return on investment that he's working 20 hours per week to earn. Not sure if there's something I'm missing here but to me it doesn't look like that great of a deal.
In Norway, Landromat is earning $0 😢 Everyone got one. If the appartements dont have any room for it... then it have to be some in the basements for free.
How long does it take to recoup your cost before the public f up your machine's? Is there insurance or a lease option for those machine I mean 400k is like wow !
I love your videos but a lot of them are not helpful and the owners don't know what they're talking about. For example, the 36% profit margin is it after paying the mortgage? or before? and did he calculate the mortgage for the entire building or only counted what portion of the mortgage the laundromat accounts for? Most of the videos are titles 'how much money does this business make' but 5% of the video is discussing actual numbers in a super unorganized way
@@mikedavis7925 agree, this is literally the most important thing to get right in a video like this- if he paid $700k for a laundromat doing $220k in top-line *revenue* what was the EBITDA/profit? Generally these acquisitions are priced on EBITDA multiples, and market is generally 3.5-5x EBITDA multiple, so I'm guessing his EBITDA was actually $220k, not revenue, which would be a 3.18x multiple, but then with his $300k his all-in acquisition multiple was 4.5x but now that he's increased "profit" to $300k he's potentially yielding at more like a 3.3x. All of that would be market assuming both the host and the owner don't know the difference between revenue and profit, but if those figures are actually based on revenue, then this dude massively overpaid.
great video! you ask the right questions. liked and subscribed! Just one thing you could include is to give the consolidated monthly expenses. Jeff mentioned abt 6k as utility, but total expenses incl. employees compensation, rent, etc. would give a better picture of the actual profit/EBITDA (~270k minus ??)
Great video. Your content is amazing like always. However it would be much better if you ask your subjects the amount of take home profit they make directly as opposed to only asking revenue and major costs. Great work nonetheless. Keep it up 👏
Got it fahdm82! Thank you for the feedback. 😀😀It is important to cover revenue because it reflects the overall income of a business and gives a business owner the ability to grow, build credit, scale back (if need be) and also breaks down the business finances on a more detailed level. Net is important as well especially when looking at a business from a different perspective. Should we cover both topics equally?
@@UpFlip Yes wonderful job covering revenues. That’s of utmost importance. Just a short description about take home net in the first and then subsequent years would do wonders.
Great to hear that you found the information helpful! I would love to know which part of the video caught your attention. Would you mind sharing that with us?
This guy would be making a huge mistake by making it a cash-less business by 2023. One of the biggest advantages to a cash-only business is that you can report whatever income you want to the IRS and they have no clue what you really make.
They can tell by looking at your water bill there's another RU-vid video that talks about this. The IRS really watches cash based business. When you don't pay taxes on income the IRS comes knocking. Don't forget when the IRS accuses you if not paying your taxes your guilty until you prove yourself innocent. That alone has the power to bankrupt most of us. Don't cut corners it's so not worth it.
@@pjt3887 the idea is to still pay taxes but not the full amount that the IRS would make you pay. Say you have a non-cash business, you generate 100k in revenue and pay 30k to the IRS. If the business was cash you could say you only made 90k and get taxed on that amount but not get taxed on the other 10k.
Revenue is not profit. This guy might just never actually recoup the cost of this monster buildout. The portrayal of this story is not how I obtained my 3 stores.
Totally agree. Appart from the purchase of the building, which I would say might be a good move, the rest of the figures don’t impress. 1M$ total investment, if you would take a 10 year loan at 2.5% (which is really low) you would pay 115k a year, + 25% of those 300k of revenue will be utilities, so 75k in utilities, if you add maintenance, salaries and other costs at 300k of revenue he is not making money.
@Brian Gonzales he’s not bringing home that 300k, that’s his revenue, he’s also got expenses to deduct. I find this video little poor made, I still don’t know how much money he gets to keep at the end of the day.
@@troyw8016 well, correct me if I'm wrong, is the 36% profit margin not what he brings in? I would think after he states that his revenue is in track for $300K and his profit margin is 36% that would mean he'll get to keep ~$100k at the end of the year after all of his costs.
Hey Lucas. Thanks for watching and commenting! The owner had calculated his ROI to be roughly 36% after going over his investment into his business. Would you elaborate where you think he got that wrong?
@@UpFlip You guys mention at the beginning that Jeff invested close to a million dollars in the business. Then the question is about initial and current revenue (not profit) and Jeff says it is closed to 270k now and will cross 300k this year (I hope it does). It is possible that the ongoing margin is 36%, which is great, but I think it is not correct that ROI is 36% Or did I misunderstood something? Your channel is great and this video is very informative, I am not trying to complain )
Thanks for watching Riyaz. Nothing wrong with a little competition if you're doing something you love. 😀. We have some great content coming your way. Stay tuned.
I have thought about opening, or buying a laundromat in the past... But, when I see water/sewer bills of upwards of $1000 quarterly for a household of five, living in a three bedroom ranch built in the 1950s, and no grass or garden watering... Just laundry, baths, showers and dishes... I start doing the math... I don't know if you could get away with charging someone $10 to do a load in a commercial residential sized Speed Queen washer. And then throw in every thing else in regards to costs, including the electricity, which is going through the roof as solar and wind are now the in thing, along with the potential from brownouts as the grid is stressed due to its inneficency. Start burning out those control panels in the washers and dryers...
This is bad customer service. When this has happened to me before I text the number they have posted for problems and they immediately sent me my money back via Venmo.
My grandfather had the great idea of owning a Laundromat I'm going to grant his die😅wish I have an excellent few ideas when I run my Laundromat it's a choice way to make cash 💸 of course you have to have cash to put in for a sweet Laundromat
Man theres laundromat for sale on the east side of my hometown for 700,000 everything included basically you just take over the lease, i was close to the owner ( known him for 20 yrs ) and its just too much for the wife to handle on her own I'd love to try to take it over but have no idea who to talk to to or even start any ideas? I would hate to see this turn into another empty building.
Have you tried speaking with the current owner or owner of other local laundromats to see if you can do some shadowing to get a better understanding of the business Kids Zone?
@@reviewsjustcuz1437 well it didnt go as planned but they did give me some info on a broker who was leasing a building that used to be a laundromat and the owners did give me the supplier number so there that i hope i can make something out of this!
I don't get the sewage impact fees. Basically, the laundromat is doing the work that other households would be doing if they laundered at home. It's basically a 'wash'. So it's not doubling the impact to the sewage system...unless someone comes from the laundromat and rewashes their clothes at home. And nobody builds new laundromats because of this. So, the population increases, but the number of laundromats don't because everyone buys existing businesses grandfathered in.
I am thinking about doing this myself so I have been watching a lot of videos, people who think Staff is an expense drive me insane. Part time minimum wage employees seems like a good way to invite theft, I would rater pay full time employees and cover medical it seems like its cheaper than possible employee grift due to low wages.
Thank you for the feedback. 😀Finding the right employees can be a process for lots of businesses. Depending on the business type some may be able to hire many employees while other businesses can only hire 1 or 2 however, a business may have to go through different people before they find the right one. We agree all employees should be paid a fair wage and benefits. Are you currently in this type of industry?
