Don't Fall for This SCAM When Buying a Laundromat

It can be hard to tell a good deal from a bad deal and if you buy a bad deal, it can literally cost you tens, if not hundreds of thousands of dollars! This video was prompted by two consulting clients who brought me the same BAD DEAL.

I walked each of them through my thought process on what I was looking for when a broker or seller gave me information on the business and why things weren't adding up on this deal. I thought it would be valuable to share my thought process with you, too.

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[SS-hvkv]

I’ve actually walked this store and your assumptions are correct, the $1800 is for a small ‘store’ inside that sells phone cases, the owners both work full time, the machines are dated with a few that are in pieces. Finally, the store was ran from home, so there are no clear books and expenses are mixed in with personal expenses.

[Realdealhamilton]

I’m interested in buying a laundromat and this video has been eye opening. Thank you for sharing this video & information with us.

[samanthastraight]

Thank you Jordan for this video! Super informative without much jargon! Greatly appreciated!

[robmonroe]

Great video Jordan! Super informative. Learned a lot here…

[mriguy]

Based on their size and utility and maintenance costs, I imagine that they have roughly 30 washers. New washers and dryers (high end) might cost $300, 000. They are offering to sell the business including the equipment at $300, 000. So the equipment is valued at zero and probably for good cause. It might be a good candidate for a turnaround if the facility is run down, but that should be reflected in the pricing.
At this time there are many laundromats for sale and there's no need to buy a dismal property unless you're buying it at the right price with a turnaround plan.

[kanwalsingh]

Thanks Jordan for presenting the financial Summary..
if you add following expenses: CapEx <old machines replacements> + Taxes + loan amortization: the business is basically 'dead capital'.

[popsco]

Thank you for helping us avoid the sharks

[amitgill]

Thanks for the work you are doing. May God bless you. Your videos are Making this world a better place. Learning from your mistakes and knowledge is a blessing. Thank you so much.

[juancdeliotejr]

Great video, so informative, i am still in the beginning of my adventure, wish me luck!

[thefurious]

Hello sir, Thank you very much for all your information. I am a member on your forum. Also, if anyone is interested in a laundromat in North New Jersey let communicate.

[EB-okio]

Great info. Would’ve been nice if you would contact the seller and let us know the answers to your questions. Thanks!

[lander]

Ye the percentage that you have to pay on the rent is way high ...that would be a no go for me

[Mockingbird]

How can I contact you for consulting ? Thanks

[WillLarkin]

That's interesting. Never thought about the owner/operator not including their own payroll despite working a significant amount of time

[altgenesis]

You don't mention the loan cost. How do you pay back $302, 000 with $6000 per month profit. That's 72, 000 x 5 years = $450, 000 and then the lease is over how do you sell the business then? Plus only $800 per month salary? Not.

[bhupesh]

How many years is the life of this equipment i.e. washers and dryers??

[jbro]

15:30 So ironic that I just saw my local Panda Express advertising for $18/hr.

[GYSCOOTERCHAT]

Why would you pay this operator anything? Just wait till they fail and negotiate a new lease with the landlord

[scotthonjiyo]

The benefit of owning a laundromat is that it doesn't require much labor unless you're washing/folding for customers. Why aren't you considering this in your analysis?

[chazsroczynski]

Interested in why you think payroll should be so high for a laundromat. Thinking these are basically unmanned 99% of the time.