Laundromat Resource Forums Financing Timing is everything!

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    • #15762
      Justin Hays

        There is one area I just have not found a good answer for. Say I have found a place to lease a laundromat at, but the equipment is either not there, or needs updating badly. How can I be sure I will get a loan for the amount I need for the equipment/install, and with supply being so backed up, how long can I expect to wait before my equipment order is ready to be installed? I’ve heard as long as 12-18 months??? I’ve been told not to reach out to a distributor until I have the property leased. So am I supposed to just pay rent in an empty building until the equipment can be installed? Is there something I’m not considering? How do you overcome this situation?

        In summary, lets assume I am already leasing a location set up for a laundromat, but with no equipment. What is my next step, or what steps should I have already taken to ensure I am able to open the doors for business within a reasonable time? The most ideal scenario I have in mind is to be open within 3 months of signing a long-term lease. Is this realistic?

        Thanks yall! God bless!

      • #16565
        Dante Roa

          Hello Justin,

          This depends, does the place have already sewer lines hooked up along the permits from the city for each line?
          If no, then I say back out of this, as this would make the process much more complicated and costly. From my understanding each sewer line/permit costs about a minimum of 500.00

          If yes ( I assume this is with your case as you stated the location is set up for a laundromat), we may be able to move forward. 12-18 months is a long time. There are many distributors, make a few calls, tell them what you need, to give you pricing per unit, installation labor and estimate duration for which they can bring the units and install them. Always have 20-30k set aside for unexpected expenses.

          Remember if this place doesn’t have good customers or customers left due to previous owner doing a lousy job of maintaining it… then you need to consider this as well in your decision.

          Always see where your nearest competition is and where the location of the laundromat you’re interested in is located at and what neighbors you may have. These are some of the factors you may need to consider.

        • #19246
          jordan loreto

            You have to make that a component in the lease. Make the case that it will take time to get new equipment, and because of that you need that runway. If there is no tenant in that property right now the landlord isn’t collecting a rent check, and there’s no way anyone can run the store as is and allocate enough for rent (unless its the landlord running the store, then I doubt they are even paying themselves rent). The juice is squeezed out of this lemon. Letting the building sit empty is not doing him/her any favors. The landlord wants a good tenant that will be successful, you have to be the one to give them a picture of what your going to accomplish and that purchasing new equipment is not dipping your toe in the water. Your offering rent every month over the next 15 years (ideally) and the only way you can provide that is being clear with what you need.

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        Laundromat Resource Forums Financing Timing is everything!