First Laundromat Financing ?

[Amanda Mancilla]

Trying to jumpstart my dive into my first laundromat. I’ve been looking into some already established and for sale and just wondering if I should contact brokers for one that I’m interested in first or if I should secure SBA or other type of loan first ? I have some cash to put down but know would need financing for the majority part of purchase and renovation

[Heather Medaris]

I am curious about this too. I have heard getting a loan for a cash business like a laundromat is harder, but Im not sure.

[Fernando Campos]

I had the same question what comes first the chicken or the egg, the broker or the financing?
Don’t quote me on this but I’m finding that because it’s a cash business, SBA loan may not be an option since it’s difficult to prove gross income and most loans require 35-50% down.
What is a good loan option where I can put down 25% or less considering the closing cost and the first month of the lease?

[Matt Mahoney]

RIght,
25-50% down is ridiculous. Investors need 10% down options.

thanks!

[Jonathan Robinson]

How can i get connected with a Broker?

[Juan]

Brokers will charge a few. Similar to buying points on real estate. That equates to more money that basically goes to the broker for… brokering the deal.

Better option, Come up with the funds on your own however possible. But if and when you do, you have to be extra sure about what you are purchasing and getting into. You want to purchase a money maker not a money pit. Once you do it is on you to make it trend and keep in in the right direction. Not doing this or missing the mark and you will end up in financial ruin with no business, lost $, and or more debt.

Seller financing is another fair option. They’re out there but can be a little illusive at times. Keep in mind that just because on seller says no one day / month that he / she will not change their mind. Life happens. I’ve know several business owners that would “never” sell that are now doing so. Baby boomer generation is in high gear. From a timing perspective, said timing is on your side due to baby boomer generation retiring, the pandemic, economy, current situation. Think about it? How many folks or business owners have you spoken to lately or had general conversations with where they are tired of not being able to find people that are willing to work? I know of at least half a dozen (different businesses) that are burnt out discouraged and now ready to sell or do something else. Timing is key. Just be sure to keep in mind that there experiences (i.e. people not wanting to work) will be your experiences as well. You have to have a plan.

Good luck.

[Jahi]

Well said, solid information. Super helpful. Thank you Juan

[Dale Glave]

Love this.

[Rufino Polanco]

great info , thanks

[David]

Good stuff, thanks!

[Byron Davis]

I’m not sure how this works. I have an opportunity to buy a zombie mat and the current owner told me she may be closing soon because she’s run into a lot of bad luck. She purchased the mat in 2020 and got the revenue up to $10,000 per month then covid hit and business went down then she had a fire then asbestos was found under the dryers. She went back and forward with the landlord and was closed for a year. Half of her machines aren’t working and the hot water tank broke among other things. I haven’t gotten the numbers yet but I’m sure I can get it for next to nothing. I need to talk to a finance company and a distributor?

[Author]

Posts