November 29, 2020 at 5:17 pm #2579Ty StewartParticipant
I aquired a “Free” laundromat a few months ago taking the advice of a video. Not to get into much details about the video, it said that getting new equipment shouldn’t be an issue (NOT) and I repeat not true.
Unfortunately this industry has been So secretive, it’s been very difficult to find reliable information so I Dove in head first. I have tried every distributor and every finance company I can find online but to no avail.
I have poor credit and a first time owner so there are NO options to get financing for a retool. Nobody ever talks about this prior to this being on Jordan’s podcast. I have spent all my savings and 401k to buy used equipment. Has anyone had issues like this and how were you able to overcome it?
December 2, 2020 at 7:09 am #2626Jason DodgeParticipant
This is a tough one dude. In the future you want to have a letter of intent with the landlord of the leased space stating that you will lease if and when you get financing. You then have 30 to 90 days or whatever you can negotiate to secure financing.
Lets focus on the future. You took the plunge, every business has challenges as you just learned the hard way. I also learn the hard way, education is expensive any way you look at it. If you already tapped your 401K and savings, I’m hopeful that you have a space with washers and dryers at the moment that are running. Other options, a line of credit on your home if you are a homeowner. If not, private money may be a option but you need to find the money. On the BiggerPockets forum there is probably a large group of people seeking hard money loans, they are short term high interest rate loans for flippers. Stay away from those, but start reading their forum for advice on finding private money. Do you belong to a church that you can run an ad in a church bulletin seeking a financial partner loan secured by a business? They may have rules against that, I don’t know.
Run a ad on craiglist that you are seeking a financial silent partner for a business opportunity. Have a business plan that is easy to follow that shows you know this location will work. Whatever the reasons are, good demographics, poor competition, great pricing, low turns to break even, sample proformas showing a road to profitability. Present this and sell it. There are people with money and rates on CD’s suck right now. You could offer 5% and someone may think thats a awesome rate of return.
Some of best business ideas come from when we are backed in a corner and need to fight to stay alive. It sucks and I have been there many times. Embrace the fear and find a solution. If you are up and running, make this place shine that best that you can with what you have. Make all the machines work, paint the walls, improve signage, shine up the floor, replace all the bulbs and start a marketing plan. Facebook, instagram, google business(should have listed that first), and a website to push people to for info. You can run a facebook ad, they call boosting a post, for $20.00 and run a tight radius around your store, maybe 3 miles and have a message or a special.
You will figure this out.
Let me know if you have any other questions.
December 2, 2020 at 8:00 am #2627Ty StewartParticipant
Jason I think that’s the best set of advice I’ve received in a long time lol. I have decided to sell off the equipment I purchased to recoup some of that loss and put the store back to the way it was with top loaders and a few 80lbs washers.
I’m going to purchase some used dryers, and clean like hell to make it nice and shinny. Thanks
December 2, 2020 at 1:05 pm #2636Jason DodgeParticipant
What did you buy? I’m not necessarily telling you to sell what you bought. I figured you had bought and installed already. And I’m not sure what loss your referring too, is it the 401k? Or are you saying the equipment purchase was a loss?
February 2, 2021 at 4:31 pm #3682Ross DoddsParticipant
It’s February now so not sure where you are since December in all this but what’s on your personal credit… I’d tackle that… doesn’t take too much to qualify for equipment loans.
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