10 Reasons Laundromats Are the BEST Investment You Can Make
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- Опубликовано: 24 июл 2024
- Have you ever wondered if Laundromats are a good investment? In this episode of the Laundromat Resource show Jordan is going to try to convince you why Laundromats might be THE best investment you can make. He has 10 incredibly compelling reasons that you should buy your first (or next) Laundromat!
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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 RUclipsr who is still building my channel.
I missed this comment but awesome! And go your building your channel!!
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.
Awesome goal! Let me know if I can do anything to help! This is your year!
Go for it Catherine! You can do this
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
Really helpful! You have mentioned some reasons that was not in my mind. Like the last one. Thanks a lot!
Been looking for information about the Laundromat business... looking forward to view all your videos!
Let me know if I can answer any questions for you!
I am seriously considering purchasing my first laundromat. I just subscribed to learn more.
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%+ ?
I’ve been thinking of opening/buying a laundromat, glad I found your channel
Welcome aboard!
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.
Let me know if I can be of any help!
Hey Terry, did you ever end up buying one? If so how is it going?
@@LaundromatResource how do we get in touch?
I 100% agree Jordan! Very well done video and information. ✈️
Much appreciated!
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!
Thanks Norbert! I appreciate that! Hope to run into you at some point in the near future
So I think I can buy the real estate when I sell something else using a 1031 exchange
Norbert, do you still own shops yourself?
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.
Awesome! Let me know if I can be of any help!
I’m curious if you’ve made this a reality?
SoCal representing! Nicely done video and great info - seems a great investment.
Represent! Haha, thanks
This was perfect for me. A long time goal of mine. Thank you.
Great video and lots of value!
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!
Great idea! I’ll add that!
You’ve got me motivated, Im 76 and happy, healthy, eager to buy a place Ive been watching for years. Its ripe now..
Keep me posted on your progress and let me know if I can do anything to help!
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!!
Hey congrats! Love to hear that! Keep me posted on how it’s going!
How much money did it take to get started up? And how much are you charging per machine? I'm thinking of getting starting one up?
How much did it cost to get you started . It's my dream investment plan but having it work in Africa takes years to Achieve but I won't give up
Well hello there! I hope you busy counting your profit. We’d appreciate a real life check in. How’s it going?
@@stefaniaolivier7489 it’s hard work nothing it’s easy in this business don’t be fool..
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.
Yeah dry cleaners got hit hard this past year, but laundromats generally held up pretty well! The coffee shop is a great idea!
Maybe instead of the dry cleaning business you can turn that into a pickup and delivery business? Could compliment the self serve laundry side well!
@@jamesberry3586 yea some places charge per pound and have a few ladies folding all day
Great video - did you have any videos or resources on how to verify the revenue of a laundromat you are looking to purchase?
Just wrote this bad boy last week! laundromatresource.com/the-definitive-guide-on-laundromat-due-diligence
Super informative and inspirational
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!
Let's talk sometime from Capetown South africa ⁉️
hey Jordan new to you page but so far very excited. i do have a question on what the downfalls are.
Great information!
Thanks For this Keep Up The Great content Good Sir Student Here From South Africa 👍🙏❤️
Awesome! Let me know if you get a laundromat in South Africa!
Love it!!!!
Thanks! Me too!
thanks for this information sir...
but can you explain that tax part again
Thanks for the advice,buying or starting my own laundry which one should i go for??
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!
Thank you for your invitation!
I'm only good at what I do and my business approach may not be good for everyone.
Continue with your success!!
@@kennethw853 let me know if you change your mind! Thanks for the conversation on here!
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
This is an awesome goal! Stay in touch. I’d love to hear more about this and what obstacles there are to making this happen
@@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
The women will become depressed.
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’m in Raleigh suburb. Wash house is everywhere. But, there are still opportunities around Wake county
Awesome video… thank you!
💯
Thank you too!
This is really interesting and I want to explore the laundromat industry.
Let me know if I can be of any help
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
Hiii I like your video just have this question what do I need to what requirements I need to own a laundromat?
Great info.
Thank you!
very informative, thanks
Glad it was helpful!
Your video is very helpful ❤
Glad it was helpful!
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.
Very good insight
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!
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.
Why are you telling people about this?
Awesome video
Thank you
Thx!
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.
Wow! Keep me posted if you end up doing it!
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.
Would it be more beneficial to lease the property and write it off as a business expense?
Well, I’ve watched them all now. Going to read the free ebook now. I got questions 😌
caidwi211 bring 'em on!
Can you please list some distributors for the machines in Midwest
Explain buying in cash will have a high percentage on return vs getting a loan.?
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
Second video learning so much already
Glad to hear that!
Nice
What is best lease or buy a laundromat??
How can you vet out real profit of an exisiting laundromat? If it is uisng 16,000-18,000 CC water per quarter, is that good?
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.
Can you do an update on this for the current economic conditions?
Great idea! I’ll work on that!
Hi great show! I worry about the rising cost of utilities how has this affected your business? Thanks
I think it will hurt a lot of owners who don't respond accordingly but it's important to keep your prices in line with those rising costs
Good info
How do I start? What kind of business license do I need to buy a laundry mat?
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.
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!
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! ruclips.net/video/shQYztFn60w/видео.html
@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?
Awesome! Seller financing or partnering up with a family member/friend or a real estate investor are probably your best bets
Best of the best
Thank you!
thank you for your video!! i was wondering is there a special loan company that specializes in laundromat business? thank you.
There are. I have interviews with Chris Michalek and Marc Stern on this channel that both have companies that lend specifically on laundromats. Check them out and feel free reach out to them!
i will thank you so much!
Do you know how well laundromats do in Anchorage Alaska?
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
What would be the difference in buying over leasing laundromat machines?
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.
Thanks for the great info! How many hours would you say you work at your laundromat? Do you have a fulltime job also?
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
You Rock!!!
Cash business is great. My last job was literally to track down delinquent clients for the owner and get them to pay. What a nightmare
What are your thoughts regarding competition and how close a competitive laundromat can safely be? I am looking at a laundromat to purchase but realized a brand new laundromat opened up two years ago only 2.5miles away
Hi Jeff, sorry, I missed your comment. The answer to your question is "it depends." There are laundromats across the street from each other that both do well and others that can't compete over 5 or more miles. There are 6 laundromats within a mile of one of my laundromats. You'll want to look at population density and see if there is enough business for both. My guess that the new one coming in is playing a part in the seller deciding to sell the one you're looking at.
Jeff, if you are interested I would recommend reaching out to a local distributor. They can provide you with a wealth of information to assist you in making that decision. I am a Regional Rep for Alliance and Alliance will run the demographics for you and generate a Financial Porforma that can tell you what kind of revenue you can expect to generate at your location. Another thing I didn't know when I purchased my first laundromat was that Alliance will finance your store purchase through an Acquisition loan so you keep even more money in your pocket. Good luck in your search.
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?
How well does a ATM machine do in laundromats?
It really depends on so much, like the amount of traffic coming into the laundromat, the location of the laundromat (is it busy enough around it that people will come just to use the ATM?), the demographics, the fee to use the ATM, etc. etc. You should be able to clear a few hundred bucks at least in most locations, but, again, there are so many variables. Like anything else, traffic is king. The more traffic there is, the more transactions you'll have.
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.
Because I want a laundromat for people who wants to use maybe their debit card and people who are old school who still want to use quarters
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
Your machines should last around 12-15 years so there is still time left on those machines
What is initial start from zero ?
Loan
Location
Space
Equipments
Thanks
Not sure I understand the question. Are you asking how much money you need to start?
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 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.
Thanks for the feedback
Get a Bluetooth headset and occupy yourself with something that you can do without thinking while you listen.
I wanted to get into the ATM business business more than I wanted to get into the laundromat business but now I really wantna do both but I don't know which way to start and I'm nervous as h*** to even take that jump
Buy your 'mats first than put your ATM's in your 'mats.
Am looking in to buying my first laundromat. Need some help to where to start.
There are tons of resource and lot's of free information at laundromatresource.com
Is there any schooling I should consider?
What have you learned about choosing locations for a laundromat?
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.
I am thinking of opening up a laundromat in Africa. Where do we buy the cheapest machines?
Awesome! I'm not sure where you'd buy machines in Africa. I'd probably start with Google...
I want to do this in san Diego
Do it!
What kind of machines do you have or recommend
I have Speed Queen and Dexters. I’d recommend both
What's a good website I can look into purchasing Washers and dryers that take coins and cards?
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.
Honest opinion do you think it would be good to have coin and the option of a card?
Where do you go buy new machines?
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.
@@JordanBerry Awesome!!! Thank you.
How much money do I need to save before starting up a laundromat business?
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...
How many hours a week/month do you spend on any single laundromat? Whether it’s thinking about it or working in one?
5-10 hours per week now. More when I first started though
@@LaundromatResource how long did you have to spend a lot of time in your laundromat before you was able to spend less time ?
@@shareefisblessed4338 probably about 6 weeks
@@LaundromatResource thanks for your response and willingness to share information.
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.
How do you know? :)
How do you 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 😱
@@kennethmulongo6341 See above reply
🐬 Haaaa!
What was your initial investment into your first laundry mat? Did you have to buy the business from these mom and pops or did you buy a space and buy all of your own machines?
I bought a mom and pop laundromat and put new machines in it. Bought the laundromat cash and financed the machines 100%
@@LaundromatResourceIs there a site to find mom and pop shops? Or just have to hunt them down?
Please assist me on how to start one
Stocks are a 100% passive investment
Buy apple stock and Walmart stock and Amazon and watch your $$$ grow!!
Or Tesla or Bitcoin
Please share with me something new about laundry
Did I just hear you say you charge to use the bathroom??
Haha, it's pretty common in laundromats, especially unattended ones.
Should I be worried about the growth of this business as most homes have washers and dryers? Please convince me that it is not the case. Thanks
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.
how much are laundromats?
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
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
Hello Kim, im in your position too. Has anyone contacted about this or have you gotten any guidance on how to go about it?
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
See my response to Kim's comment
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!