He should get one! :)

I appreciate that!

Thanks Dave! Your KZfaq series on free laundromats is awesome!

yeah, having a partner can go terribly wrong for sure.

Not even. I’m a high networth individual that will go 💯 financed on the right deal. Meaning I’ll put up all the money for the buy, renovation, and opening. You just have to meet the terms of the contract for collateral and repayment. Why will I do this? Because I am not interested in running businesses, just owning them.

@@acedeadeye2052 Really Have you ever opened a laundromat building it out and seller financed

@@acedeadeye2052 Hey, I'd be interested in taking. I have a great credit score and am looking to purchase one with an SBA while financing the down payment myself and running the business as well. Maybe we can find something to work together on.

Awesome idea. Here’s an older video I made about that. Probably time to revamp and update it but I think it will give you the info you’re looking for at least: kzfaq.info/get/bejne/pZqCaq-gxJepYKs.html

😂

That doesn't work for you? ha!

Smart man! Glad to help anyway I can!

Hi Ed, I completely and totally agree! Very smart, my man. Be well and keep going! ✈️

obviously you've got plenty of money to spend you're not what they call the average Joe

@@LaundromatResource thank you. I like no doing things behind people's back. But thank for all information you put here. I am in Victoria Australia. My friend and I are looking for laundrymar business at the moment here Thank you again. Maybe I will join in your club .

Thanks, I appreciate it! Glad you are getting value from the videos!

Completely agree! Jordan is great

Glad it was helpful! Check out the Laundromat Millionaire's series on free laundromats. It's awesome!

You can hire a lawyer to create an LLC, or you can do it yourself with a tool like Rocket Lawyer. It's not too tough to do, but can be involved. For the business permit, you need to talk with your city. Just google "[city name]" and "business permit" and you should find a page to tell you what to do. Again, not too tough.

The Laundromat Millionaire has spoken! Haha, but seriously, Dave is mostly right. I would say that there are some situations where it might make sense, but I don't believe franchises make sense in most situations.

Thanks Tim! Let me know how I can help along the way!

Learn how to raise capital. Bring in a few small investors. $10k-$25k minimum investment.

hmmm, shoot me an email and I'll take a look for you. Sorry about that. jordan@laundromatresource.com

@@LaundromatResource for some reason it fixed itself. Thanks.

thanks for this. I owned a couple of laundromats. Got burned on one and did ok on a couple of others. Back then there wasn't any KZfaq. This is really cool to watch now.

I got Danny's DVD and he seems genuine. Not shaddy. New to the industry, but seems to me that the owners may be looking for a way out also- if the place is rundown.

U didnt pay attention and he probably bought the course

Danny may be the King, and his experience may be unmatched, but he is an egomaniac and totally unwatchable IMHO.

​@@JAK3080yeah i find his demeanor pretty low class. With a bit of better people skills he can do much better

Not a stupid question. Chances are they own through an LLC so you may not know who the owner is. You'll have to try to catch them at the laundromat or drop off/mail a letter letting them know you're interested in buying the laundromat.

Yep! laundromatresource.com/coaching Looking forward to talking!

Not necessarily. I think there are advantages to buying from a broker, but buying direct from a seller is possible, too. I think the method is usually less important than the deal

Great question! Obviously a higher interest rate makes it more difficult to make the numbers work. The way I think about it is I focus less on the interest rate when making my decision to buy a business and more on can I get the return on my investment given the current interest rate. If interest rates were 15%, for example, but I bought a laundromat that still gave me a return of 25% after I made that loan payment then I would still consider moving forward even with a high interest rate. Long story short, whatever the interest rate is, high or low, the numbers have to make sense and if they don’t then I move on. Hope that helps some

Thank you!!

We no longer offer free consultation calls.

​@LaundromatResource even if we bring a deal?

I bought my first laundromat all cash and retooled it with new equipment with a loan. I did teach myself how to operate a laundromat but I don't recommend that. I made some very expensive mistakes. I recommend doing some more research, listen to the podcast where I interview all-star owners, and dig around on the Laundromat Resource website. There's lot's of great, free information there!

Free hug next time I see you :)

Depends on your financial situation and what you're looking to get out of it. Buying is going to be more time-intensive for you but a larger upside. Investing with someone else will be more passive but a smaller upside.

There are lots of reasons people sell laundromats. Often it’s because business is going down and they don’t want to reinvest the time and money to bring it back, but there are plenty of other reasons people sell them, too

Yes and no. I agree, nothing is free. But you can set it up to where your customers are paying for your business, which makes it free to you. No money out of your pocket.

I disagree. I got my laundromat for free.... completely free. It cost me nothing to buy my laundromat. No loan. No seller financing. No cash out of my pocket. I signed the lease and got the keys. Free laundromats are out there. Its not just word play.

@@HotDoggingwithDan So dang true. Have that loan payment in your income pocket. I would much rather pay rent which is a tax line item. This guy is buying the guts of a building he does not own.

I have 3 of them. I paid nothing. No deposit on the lease, free rent upfront... and money from the Landlord (known as tenent improvement money). My income pays for my re-tools. You don;t like the word "free", that's okay, sir. You go on believing that. I will keep doing what Danny taught me. I'm eyeballing the 4th store now... Guess what I will pay for it?

@@benjo4011 so you just used Danny D'Angelo method??

Furniture, fixtures, and equipment. The “stuff” that makes up the business

Depending on the size, location, etc. your average monthly expenses will probably be anywhere between $5,000 and $10,000 per month. Your laundromat should be making more than that to cover those expenses, however. Hope that helps!

Hello brotherlogic. One of the guys who makes a big play for this strategy is Danny (the laundrymat king. he's very entertaining but his negotiation tactics can sometimes feel a bit on the nose. - If the landlord is collecting 3,000$ a month in rent, Danny wants to lease the place for 1400$, Danny will tell the landlord; "No you're not collecting 3,000$ in rent, because your current tenant is going under, and he's going to lose everything. So don't expect me to make an offer competing with 3,000$ because that number is not 'real'. When the tenant fails, you'll be collecting 0$. I'm happy to start with paying you 1400$ now! :D - If the landlord is operating the laundrymat as well, Danny says: "You're trading your time for money, slaving away in there for x amount of hours every day. I'd like to lease the space from you, but I can only pay you a rate of rent that's commensurate with a laundrymat. You're making X amount of money per month? Doesn't matter. You shouldn't be slaving away there for that. You should be a 'landlord' again. Give us the space, we'll operate it, and pay you a check on time every month for 15 years. What rate of rent? Well here's the thing, all your equipment is trash, it has to go. We're looking to spend a few hundred thousand dollars on new machines. We have to wait a year for them to arrive from China, so we'll need rent abatement. The amount of money you're making doesn't justify taking my offer? Well that's because you don't understand any better. You shouldn't be working 9-12 hours a day there. (or...) your hours of operation are lowering, we can tell that you can't keep up with the place, you're not making any money, we want to pay you a rent check every month. - And here's the real beauty. if the Landlord tells Danny that someone else is willing to buy the business from the current tenant, and will inherit the lease, Danny tells the landlord; "Be very careful about who your new tenant is.If they buy a failing business, it's proof that they're a schmuck. They won't survive, they'll fail and you'll have a tenant who's a mess. I'm smarter than that. I don't buy failing businesses, I just want to lease the space, put in new equipment, and pay you a rent check commensurate with a laundrymat. You can get more money from a non-laundrymat venture? Well... damn. Danny's point (that I take issue with and I've really been enjoying binging his videos) is that he tells the landlord that if someone else is willing to buy the business... it's proof of them being someone who 'doesn't know what they're doing' because according to Danny if you buy a business that is failing, you are going to fail too. Danny believes you should let the business fail, then swoop in and pick up the land with a low lease rate. Then you use 'other people's money' to re-equip the place and run it profitably. This ignores the fact that some people 'can' buy a failing business, turn it around, or are willing to 'overpay' for the space relative to what Danny is offering. Danny says he doesn't get into bidding wars so 'call him if the operator gives up the ghost or fails'. When someone makes a better offer, Danny says that that offer makes no sense and the landlord should be suspicious of it. It just feels disingenuous on his part. Again, the chess player in me understands why he says what he says, and understands the moves he makes, but it can feel a bit manipulative when you see him bulldoze landlords with conversations. When they tell him they don't need his money, he laughs and tells them they're failing. When they tell him they're happy doing what they do, he says they don't know any better, etc. If however, they jump on the bandwagon, trash talk their current tenant, and ask Danny about what he'd do different for them, Danny is very happy to make his pitch, then he'll say: "Of course, I'm not doing this to throw your tenant under the bus. I'm sure if he's fine... God bless America... but hey, I just wanted to talk to you, maybe we'll do business together, with me there... you've got someone with 36 locations across 3 states... and you have someone who's been in this business for almost 20 years. etc.

Hello theonlyalexoliveira. You make a good point here. There's another prominent Laundromat channel who phones landlords on behalf of his clients and very basically put... he'll say to them what you said here. He'll say: "If they're ready to give up the ghost, I'd like to discuss lease terms with you. I have no interest in buying someone's failed business." However-- He tends to go a step further. He says: "If someone else is willing to buy this business from the operator, you now have an idiot for a tenant. You have someone starting from behind the 8-ball. You shouldn't want that." He also says: "If you are happy with your current tenant, God Bless America. But... I've been in the place, it's awful, it's shoddy, it's nasty, we would do a better job with it. I want to pay you what (I consider) to be commensurate for a laundromat. It's not like a nail salon or a restaurant." So all in all, while I agree with you that if you go to a landlord and the business has failed, I think that's one thing. But I think it gets to be something different when you start talking down the current operator, or you tell the landlord they should not want the current operator to sell the business.

Both can be great. Couple of benefits of laundromats over car washes imo: 1. Laundry is necessary, washing your car isn’t, 2. Usually with car washes you have to purchase the land too and that can drive up the entry price. You can get in with $50k, it just might take a little time and work to see enough income to replace a w2 job

Yeah, thanks for letting me know. Our site is down right now. I’m hoping to have it back up later today. Sorry for the inconvenience

Yep, you can laundromats buy sub-to. Awesome 3-legged stool analogy, too!

I see you didn’t finish the video 😉

@@LaundromatResource can you link a video of possibly opening a laundromat in a area where theres already one.?

Hello there. I think he points out the issue with some of Danny's videos? When Danny says things like: "We don't talk to the laundry owner, or the operator, we basically want to talk to the landlord, see if we can convince the Landlord not to renew the lease with the existing operator so that we can get our foot in the door instead. One of the things I find really weird about Danny's course (though I find his videos entertaining-!) Is that he'll say things like: "Anyone willing to buy the laundrymat is a schmuck. You're going to have a schmuck for a tenant." Or when a landlord tells Danny that they're collecting say, 3000$ in rent and Danny only wants to offer 1400$ or 1500$ Danny's response is: "Well you won't be collecting that 3,000$ for long" or "Whatever you're collecting now is coming from a failing operator, so don't expect me to offer the same amount. I'm going to be your operator for 15 years and I want to pay as little as I possibly can. I enjoy Danny's content but I feel like his approach boils down to this: - I don't want to pay for the existing business. - I want the lease and the space. - I want to have it for the low price I'm offering. - If someone is offering you more, it's because they're going to re-sell the opportunity to someone who doesn't know what they're doing. - If someone is buying the business and getting the space because of it, well that person is a schmuck. You'd be better off leasing it to 'me' because I'll be a better tenant. But because of that, you'll also have to take the low-ball rent I want to pay. Everytime a landlord tells him that they are getting a better offer, Danny tells the landlord any 'better offer' is 'not real' because it's coming from someone stupid enough to make that offer (and so shouldn't be taken seriously) or it's coming from a 'distributor' who will pass the opportunity on. In one case Danny deals with a Landlord who recycles the laundrymat operation selling it to 'new operator' after 'new operator' who's willing to pay for the business, who fails at it, then the Landlord retakes the business and sells it again. It works for the landlord who's able to collect. In other cases, Danny tells the Landlord: "We'll pay you a rate of rent commensurate with a laundrymat" and when the landlord tells him that he can earn a lot more, Danny basically says: "Well when that tenant is a flop and that operator fails, when they 'give up the ghost' call us and we'll lease the space. Danny is very entertaining to see, but his negotiation tactics kind of feel shady and the reason for that is the tongue in cheek content of conversation with the Landlords. He says: "I don't even communicate with the operators. I don't know the operators, maybe they're perfectly fine. But hey... on the off chance you really want to get rid of them, I'd love to lease the space." And he gauges the reaction fo the landlord. If the landlord is frustrated with the operator, Danny is in his blissful space. He loves to hear the Landlord explain the shortcomings of the operator because Danny can then explain: "We go in, I have relationships with all the distributors, I use Alexa systems in my Laundrymats, 'hey we use them in our homes so why not'? etc. If the Landlord is not on board with throwing their tenant under a bus, Danny reverts to: "Well I just wanted to reach out, these are problems the location is experiencing, we've been in the store, we take notes, we walk through, and I can tell you you're going to have problems. I can be an answer to those problems. I will sign a 15-20 year lease and I/my client/my student will be a great operator. There was a conversation where Danny's client was suspected of leaving a bad 'yelp review' to criticize the laundrymat in the space he wanted to lease. This person told Danny he'd rather put in the new equipment himself and operate it properly. His words were very gripping and telling: "I just don't understand what I did so wrong that I have to take so little to nothing for a business I spent years building up." Danny pitches from the prospect of 'letting these operators go free to live their life and never have to worry about the laundrymat anymore.' but sometimes people just want to operate it. When that's the case, Danny looks to report less-than-flattering facts to the landlord to drive a wedge. he's very careful with his wording, don't get me wrong. He'll often say: "I don't want to step on the bones of these operators. I don't want to hurt anyone's feelings or get anyone in trouble, but ... this is what's happening there and we can do much better. Maybe you and I can do business together, I'd love to lease some space." Whenver the landlords encourage him to buy the business, he refuses, he says he made that mistake once, costing him 250,000$ and now he never buys the operation. He waits for the operator to fail, and then he wants to swoop in just on the lease at his terms. There are some calls where this works perfectly. There are some calls where it doesn't, the landlord sees past the threat and basically explains he gets better offers from others. (Danny proceeds to say: "Careful because your new tenant won't have a clue what they're doing, they're starting behind the 8-ball. They're stupid enough to make this purchase) Danny is basically taking an assymetrical bet. He's making phone calls armed with evidence 'against' the current operator. Pictures, notes, personal scouting, and he basically hopes the landlord will talk to him, be scared by what he hears, and think: "Maybe I can let this Danny guy and his client take over, I'll have consistency there." - If he clicks with the landlord, perfect. - If the Landlord wants to give the current tenant time to fix the operation, Danny basically says: "Well when they give up the ghost or fail, give me a call." - If the landlord expresses that the current operator isn't doing as bad as Danny signifies, Danny basically says to his partner: "Keep visiting and scouting the location. If the hours of operation drop, or more equipment breaks, we now have more ammunition with which to contact the landlord and say: "See? It's already going downhill." Again, I get Danny's play, and it's interesting to see. It's just that... like a master chess player, when you understand the game, you can see the board from both perspectives entirely. Danny's technique is great for instances where it works. He compares it to "not blaming the bank when your car is repossessed because 'you' missed the payment. He doesn't see it as throwing the current operator under the bus, he sees it as 'saving the landlord a headache' but he'll badger the landlord to be 'concerned' about other offers that are better than his. Then he'll tell his clients or students: "We never commit to any 1 shop and say 'that'll be ours'. So keep going out there, keep finding other struggling laundrymats, bring them to me, and I'll call the landlord for you. It really is a volume game.

Exactly. I Don't want to pay for a Laundromat.

Hello@@peterguerrero3459. It's perfectly fine to not want to pay for a laundromat. You don't need one. It's one thing to go to a landlord who has a laundromat where the operator has failed and if the space is vacant, to ask about leasing it. It's another thing to tell the landlord: "If your current operator manages to sell their laundromat, you have an idiot for a tenant." And to go to the landlord and say: "You shouldn't give this opportunity to someone else, give it to me instead. Also I want abatement and Tenant Improvement, I also only want to pay what I consider commensurate for a laundromat and so if you can get a better deal from someone else, they're an idiot (or) you're lying." Danny can say that if someone tells him they have interest in their laundromat, he won't get into a bidding war, so call him when the deal falls through. It's also different than calling them a liar or saying 'they miss out' on a deal by not taking his rock bottom offer. When you say you don't want to pay for a laundromat, know that that's perfectly fine. But never bully or badger or bombard a Landlord over the phone into giving you their space for free when they could sell it to someone else and recoup some of their investment or realize some value.

There are other videos who use the same title so I suppose to compete against them he has to use the same deceptive title.

Ha! Thanks, and I’ll work on that. That’s annoying, sorry lol

Low margin? Most laundromats with decent/new equipment make 25% to 35% net off of the total gross receipts. That is better than restaurants, and most self-service businesses. You need a long term lease that you negotiate that is below the 'market value' as laundromats can't pay that. Closer to $1.00 sqft as possible. Then the lease is great. You need to then use the lease to get financed new equipment on a 7-year term. New equipment doesn't break often in the first 5 years. AFter 7 years retool, and do it again. Yeah you have debt service. But you are still walking away with 25 to 35% net. It is NOT HANDS OFF. It is a dirty business, it is messy, and often the customers are very messy.... but if you make 6k + a month profit from a 2000 sqft store, that is gold. You just need to set it up right. As the owner, you should only be in your stores about 4 hours per week. Your contract employees are there beyond that. 4 to 6 hours per week for 6K a month.... easy.

Glad to help however I can