Skip to content
Commercial Real Estate Investing

User Stats

32
Posts
19
Votes
Anna Washburn
  • Real Estate Agent
  • Philadelphia, PA
19
Votes |
32
Posts

Anyone have experience in buying a laundry mat?

Anna Washburn
  • Real Estate Agent
  • Philadelphia, PA
Posted Oct 5 2022, 09:52

I'm thinking about buying a laundry mat, but have no idea where to start.  Any tips would be greatly appreciated.  

User Stats

21
Posts
8
Votes
Devon Edwards
Pro Member
8
Votes |
21
Posts
Devon Edwards
Pro Member
Replied Nov 21 2022, 22:04

@Kevin C. owns a couple here in Anchorage. Try reaching out to him via DM.

User Stats

3,114
Posts
2,950
Votes
Henry Clark
Pro Member
#1 Commercial Real Estate Investing Contributor
  • Developer
2,950
Votes |
3,114
Posts
Henry Clark
Pro Member
#1 Commercial Real Estate Investing Contributor
  • Developer
Replied Nov 22 2022, 17:19

A.  Unless your mechanically handy your maintenance costs will eat you up.  Make sure that is part of your deal analysis

B.  If managed by the owner currently and you plan to hire people add in a 30% loss of revenue.  This is a cash business.  Move to an electronic card system even for the soap dispensers. 
C.  Take an inventory by age of all of your equipment. Run every machine with a load in it. If old equipmEnt you need to add $xx,xxx capex costs for the next theee years while you clean things up.  

D.  Check your infrastructure.  Roof, plumbing, hvac, water heater, etc

E. This isnt passive or a side hussle. Quit your job and take this on. Can do your REI while doing this.

IRA Club  logo
IRA Club
|
Sponsored
An IRA Administrator Flat fees. No percentages. Grow your retirement fund: Invest in real estate with a self-directed IRA

User Stats

728
Posts
507
Votes
Joseph Gozlan
  • Real Estate Agent
  • Plano, TX
507
Votes |
728
Posts
Joseph Gozlan
  • Real Estate Agent
  • Plano, TX
Replied Nov 22 2022, 19:37

@Anna Washburn are we talking about buying the building, the business or both?

User Stats

238
Posts
134
Votes
Jerry V.
  • Contractor
  • Richardson, TX
134
Votes |
238
Posts
Jerry V.
  • Contractor
  • Richardson, TX
Replied Nov 23 2022, 06:55

As an example of an "upscale" and/or automated Laundry Mat, check out Zoom Express Laundry in Richardson, TX.  I went there to drop off something for a person working there and, stopped in my tracks!  "Modern" laundry mats are NOTHING like I remember from long ago! hahaha

Oh, looks like they've changed names (owners?) to Revolution Laundromat ... hey, it's a cash business (like car washes), this happens! (no, I have no part in their business or affairs!)

https://revolutionlaundromat.c...

User Stats

1
Posts
1
Votes
Replied Nov 27 2022, 18:03
Quote from @Anna Washburn:

I'm thinking about buying a laundry mat, but have no idea where to start.  Any tips would be greatly appreciated.  

What in particular are you trying to understand?  In the early 2000's I owned the highest grossing (per square foot) laundromat in Los Angeles county.  I learned a lot.