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Laundromats are easy to operate...I know this lady you mentioned. I bought a laundromat from a friend many years ago who retired overseas. Repairs are costly. Try to at least learn the basics. I have bill acceptor machines to exchange for tokens, much better than counting and hauling quarters . My locations are near low income housing and apartments, which are very good for business.

I owned 3 laundromats in SF. The biggest 3 issues? The Lease, the lease and the lease. Got screwed by two owners that didn't renew the lease. If you own the building, different story. Probably, it will not be bad to work with your advisor

thanks for talking about your situation. Definitely helps a young and desperate poor guy like me to stay encouraged in striving to achieve my first ever owned business ... 240 gr. < - electric, water, mechanical, supplies, janitorial, city taxes, county taxes, insurance, business license heat, cooling costs & misc.. = ? . these taxes really want to make me work with a CFA. so that i can know how to joggle my way through. how do i reach her

I appreciate this. After curiously searching her name online and reviewing her credentials, I'm quite impressed. I've contacted her as I could use all the help I can get

The thing is people often doubt the prospects of financial advisors like Julianne Iwersen Niemann in business/markets today.

I decided it was a good time to sell. Yes, it was profitable.

Equipment replacement can be a big expense, so you are right to consider that. I always recommend getting a quote for a full equipment replacement when the machines are 15+ years old. I would also consider any other reasons why the laundromat "seems to be on its way out". Is there competition in the area? Are the demographics changing? Ultimately, will this business be worth the time, money, and effort you would need to put in to turn it around?

@@Keira_Hamilton So the owner is 2nd generation and looking to retire. Does own the building, but doesn't want to put in the time anymore and looking to sell. Just so happen I caught him before he even put it on the market. But I don't think it is worth the price. I'm not in need of it, but do want my first one to be as good as possible. Thanks for the comment!

@@PremierLeagueTactics Ultimately it comes down to what level of cash flow you need for the acquisition to be worth it to you. Best of luck with your search!

@@Keira_Hamilton Thank you and thanks for the content!

Glad we were able to connect yesterday! Thanks for commenting.

That's a great question! I break that down in this video: th-cam.com/video/_arh3JNSqqY/w-d-xo.htmlsi=zRaaahGANOaeCkC8 Essentially, SDE is net income + some add backs. For example, a P&L may show a non-cash expense such as depreciation, which is added back as part of the SDE calculation. Interest payments are also added back, as another example. Both depreciation and interest and legitimate business expenses and can be written off on your tax returns, but they are added back to get to SDE.

@ thanks a bunch! Love your channel, it’s a huge help!

@@jorgethibodeau9617 So glad to hear it! Feel free to let me know if you have further questions.

Hey! You can have a non-US citizen involved in the transaction, but the business must be owned 51% or more by a US citizen or green card holder.

Thank you!! 🥰

Thanks for your question! As long as you can bring 10% of the total project cost to the table yourself, thereby covering the cash injection requirement, then if there is a seller note it would not be subject to the same rules as it would be if it were needed to cover the cash injection. That being said, the seller note is not exactly "separate" from the SBA loan. The lender will need to understand the terms of your note and may still require certain terms (even if it's not being used towards the cash injections) depending on the deal. It really comes down to cash flow. Even though the seller will be in second position, the lender still wants to be very confident you'll be able to pay both them and the seller back comfortably. They may still end up requiring a certain level of standby. For example, some lenders don't need to count the note towards their cash flow analysis if it's on a 60 month standby, so that can help when the DSCR is tight. Let me know if you have further questions!

Congratulations!

That’s great! Let me know if you have any questions. 😊

Thanks for commenting! We posted an ad for our laundromat, and that's how the buyer found us. Although we did have someone reach out before we had posted an ad to discuss a possible sale. Yes, the commute was really tough at times! Especially when issues came up unexpectedly. There's a lot I love about San Francisco, but my husband and I just decided it didn't make sense to move there. It was more of a personal decision about where we want to live than a decision about where we want to run a business. Housing is expensive and finding a place with two parking spots is nearly impossible. 🤣

Appreciate the honest reply. There is a lot of “pie in the sky” being pushed about this business, so refreshing to hear your perspective. Thank you.

Check out the link on my homepage to sign up for my Office Hours! I hope to see you there! :)

Hello! I'd be happy to chat with you. Please see the link on my homepage to sign up for my Office Hours. Hope to see you there!

Congrats on your third mat!!

@ thank you 👍

I really appreciate that! Feel free to let me know what other content you’d like to see. 😊

Thanks so much! I’ve got links on my channel homepage to check out my Office Hours or schedule a consultation. Hope to connect with you soon!

How much you can buy a functioning laundromat for really varies by market. I bought mine for $190k. Good luck on your laundromat journey!

Thanks for commenting! I agree that owning a larger business is going to take up more of my time than owning a laundromat. And I agree that laundromats are more hands off than many other types of businesses. But laundromats still require regular attention, especially when you have a wash & fold service. It may not actually require that many hours in a week, but those hours can happen unexpectedly and at unideal times (an employee calls out last minute, or a customer calls in the evening to let you know a machine is leaking). Larger businesses are still work for the owner, but the work often looks different than in smaller businesses. One of the big challenges I had with my laundromat is that there was really no way for both my husband and I to travel internationally at the same time. And that was one of the reasons we sold it-we want more flexibility to travel before we settle down and start a family. With only one laundromat, we didn’t have the cash flow to afford a manager, and there could have been a lot of problems if there wasn’t someone close by and on call to fix problems. With a larger business, there are usually more layers of employees between the owner and the actual labor. I love to work, and I plan to work plenty when I buy my next business. But I plan to buy a business with a management team in place so that I’m not required on the ground so much, such as being the one who has to go cover a shift if an employee calls out. I’ll also wait to buy my next business during a period of my life when I’m ready to be more settled down and am willing to spend at least the first few months being deeply involved in the day to day to make sure I intimately understand operations.

Correct! You add back the interest payment but not the principal of the loan because the principal cannot be written off as an expense, therefore there would be nothing to add back.

So glad to hear it! Thanks for watching 😊

Thanks for the question! Typically at least 1.2 for the last 3 years.

Absolutely! It's really important to assess your own experiences and skillsets and determine the business that you're going to be best suited to operating.

Thanks for commenting! I focus more on financing for business acquisitions than I do start ups, although you can use an SBA loan for a startup. Feel free to stop by my office hours (link in show notes) or ask me a question here.