@@donjohnson1416 well he does a radio show this is just recording his radio show and posting it on a different platform so I'd say it's mostly passive but I do see your point
I'm a business owner and my neighbor is a laundromat owner. Current issue is a homeless guy sleeping there. There are endless issues that crop up over and over.
With that said, I own a midsize remodel biz and my taxable income (profit after all expenses), is over 230k. So businesses are GREAT, and they’re more “passive” (higher income for less time) than a job is. But PAY CASH for it
Whenever somebody mentions wanting to start a business for passive income I already feel like the business is likely doomed. It immediately says they think some business is going to take off from jump without doing anything to establish their business. If you want to make money without taking active efforts to earn money just throw money into safe investments and move along.
Yep. And the most successful laundromats are going to be in urban areas with lots of lower income apartments - and unfortunately those neighborhoods are almost always crime ridden. In Cleveland it sounds like a nightmare. I sell snacks to gas stations in inner city Milwaukee, I see this stuff every day.
Unless you have money set aside to pay your bills: rent, mortgage , food, phone bill, electricity etc. It's going to take awhile to establish a laundromat.
Business is not done for convenience it's done to earn money and you have to work hard,most people think once you setup the business you are free the reality is roller-coaster of stress starts. BUSINESS DOSEN'T SET YOU FREE IT TIES YOU UP PHYSICALLY AND MENTALLY
In business you work more than a job generally speaking. And speaking to my accountant, most small businesses do not make much more than I make in a job. Business has its advantages but working less is not one of them.
I run a bunch of claw machines and toy bulks, it's awesome this stuff sits there and makes you money but there is alot of work and massive amounts of work on the set up end!
@@tracym8952 You still have to read the reports and analyze the business environment periodically to know if that particular stock is still a good investment. It's not a set and forget thing.
While I generally agree with Dave’s sentiment about debt. There are a lot of businesses where it would be extremely difficult to save enough to start the business. It may take him 10 years to save $200K. It can be worth taking the risk of borrowing the money with the hopes that he will make more over the period of time it would take him to save. The fear of not borrowing can cause people to lose out if you only look at the risk.
My late wife and I had a ironing and laundry service out of our home. That was back in the 1990s and it paid over $600 week or more. You get regular weekly customers. It was hard work pushing that iron.
"I wouldn't use my own money - I'd take out a loan" 🤦♀️ We own a small Home Business, no-one wants to give you money to waste so you won't "feel it" if you lose it. Oh my gosh! X
Hey Spencer thanks for the comment..There’s a lot of things I left unsaid on the phone call, would you be willing to talk to me about the whole idea of a laundromat business
@@saulgoodman2018 Just think about when you go to the laundry mat. Something happens, you need someone to look into it for you, etc. That someone is the owner. When you have a lot of people coming in, the chance of people needing your attention increases. How is that passive?
bro in law bought a laundry mat in 2006....worst investment decision of his life. The location wasn't great, he didn't own the land, just the building, so his rent was increasing. Everything was always breaking down. He lost hundreds of thousands.
Personal experience: Laundromat is not passive income. It's a fair amount of work. Breakdowns, breakins, vandalism, theft. Plus frequent trips to collect the money, clean the facility, empty trash, clean bathrooms. People are pigs. And power / water / sewer bills are astronomical. And the floor gets gummed up with spilled soap and softener. Not to mention the licenses, insurances, permits. My stepfather had a couple of them and we did the work at odd hours when it was closed or few customers. Have to be careful with the money to avoid getting robbed.
@Bruce Bobtrotter assuming if you have small levels of asset to generate that passive income. Bigger assets is required but normal people don’t have it
Lol, a laundromat is definitely not passive income. Dave’s initial answer was correct. Forget about the financing entirely, this guy has no idea what the heck he’s talking about and shouldn’t do it.
A laundry mat is a basically a vending machine; but with dozens of wet & dry vending machines; which break, are broken into, and come w/ security risk w/ all those shiny quarters.
Anyone who wants to be lazy needs to think about their goals. Dave should have asked about what "being free" means? Dave has a ton of money, yet here he is, working.
Passive income doesn’t mean lazy. If that were the case, everyone who is retired and living off of an investment account that’s passively producing income is lazy.
He watched a few "influencers" on TH-cam bragging about how easy it is to make money and boom, he wants to own a laundromat. Guaranteed this is how it happened.
This dude watched a TikTok guy who bought a laundry mat saying it is passive. The dude post about how me nets $9k per month. People would believe everything online.
And stupid easy prices for part too, right? Love to know how you get parts for commercial machines if your not an authorized dealer or service center. The companies that make them , lease them as part of their business model. I am sure any repairs made outside of their authorization voids the warranty.
@@alinatamashevich3354 if you had a laundromat you would just buy the parts in bulk off the Internet or local parts dealer nothing special it’s just parts they are not hard to get plus those commercial machines basically don’t have warranties they know they are being used 24 hours a day most have 30-90 day warranty so no one cares about the warranty
Also caller never presented income/profit for his outrageous $200k buy-in. Noob. Energy expenses will eat him alive, and unless he owns the real estate (he doesn't), then rent will crush him. No bank would even approve this clown
Thank you. I see idiots in the comment sections saying that the loan idea is good. This guy does not know the numbers. He should go work part time for a laundry mat to learn the business.
Depending on the quality of the underlying leases and the locations per se, $200K could be reasonable assuming a combined EBTIDA cashflow of about $5.5k to $8.3k per month; but that may not account account for location rent. Also, when conducting due diligence, the laundry mat seller's tax returns will likely not match their P&L; so the buyer will need to rely more on audited financials, banks statements including cash deposits, etc., if available.
If you never transverse the poorer side of town, you probably haven't seen one in 10 years, but yes, they do exist and technology hasn't phased them out. They serve an important need for apartment dwellers who don't have in-unit W/D hookups.
We watched a video that shows how "easy" it is. Guy says he only works 2-3 hours a day, makes loads of money, easy to do. He probably saw the video and never really looked into it.
Telling this caller not to go 200k in debt was good but borrowing money is very good if you know how to crunch the numbers. I would never use my own cash if I don’t have too.
all these people obsessed with "passive income" don't realize most wealthy people got there by selling their TIME and expertise. doctors may make 300,000+ but they work 60 hours on the low end
Paying payments on your failure...that will piss you off twice a day! Damn! Thats me! Considering i'll probably finish paying it off in a year and a half, its infuriating!
Because there is a major difference between then & now, I must disagree. The cost of labor has skyrocketed so high, vending machine businesses make real sense. Grocery stores wouldn't be transitioning to self-checkouts if vending machines weren't viable. Our local gas stations are installing food vending machines left & right.
It's better to create a service or invent something 🤔 😉 😏 . I've got Bipolar II, ADHD, PTSD and I'm going to create a business to help others like me to make money 💰
the problem with young folks today they're out there to make fast buck with no experience or knowledge. that mindset is definitely not that easy and it will not work out after a month tried. failure will kick in.
200000 isn't even close to what equipment costs would be on a leased space for a laundromat...he would need another 300000... from a laundromat owner...not a laundromat TH-camr
People see these ideas and think they are so easy. It's literally idiots selling courses that make the money. Like Dave said the risk is so high it makes no sense. There are a billion other ways to make money. If you have some experience in the industry that gives you a leg up on everyone else it may make sense, but high risk for anyone else.
lol. He doesn't realize how he has to get up early morning around 6am to open up until 10pm. hiring someone to open may eventually quit. machine breaks down and it will take a tech to fix it and may charge you as high as $600 per machine. there's goes your profits. get yourself a rich gf and consider that a passive income. if she breaks up with you you lose nothing better than losing 200k.
Like the heart but I feel as if this guy doesn’t know what he’s talking about. All I heard was I want passive income and I’ve seen a ton of TH-cam videos of cash cow laundry Mats. On top of this I don’t want to “risk” my own money so I’m going to borrow from the bank because there’s no risk in that. Then once he’s in business once the unknowns charges come in he will either quit early or just throw money at problems and this will turn into i made a1/2 million dollar problem call. Passive income is for the winner of the race, not for the ones who are just in it.
The best way to make passive income is to tell people how to make passive income
lol even that is not passive. You have to make a lot of videos
@@lvluptoaverage52 lol true true
🤣
Maybe an infomercial on how to create infomercials...
How is that passive?
Passive Income is us watching Dave on youtube….. while Dave is having dinner with his family…..🤷♂️😂😂😂
😂
That's for most TH-camrs...
Oh, you think it was passive for him to make that video? 🙄
@@donjohnson1416 well he does a radio show this is just recording his radio show and posting it on a different platform so I'd say it's mostly passive but I do see your point
@@austintomkewitz3981 pretty passive for him cause he has people who do the whole rest for sure
Barely a minute into the call and we know this was going to be a bad idea. There is nothing passive in running a business.
I completely agree
Like bubblegum machines. passive
Only passive income for regular folks is index funds and stocks.
There's a sucker born every minute. PT Barnum
Dave is talking from a place of wisdom and age. I appreciated that air machine story
This guy sounds like he met a guy at a party who told him all this stuff and he got excited.
They were probably both high too!
I'm a business owner and my neighbor is a laundromat owner. Current issue is a homeless guy sleeping there. There are endless issues that crop up over and over.
This guy sounds like he saw one youtube video about a laundry mat business and got convinced on passive income 🤷♂️
😭🤣😂
Exactly what I was thinking.
With that said, I own a midsize remodel biz and my taxable income (profit after all expenses), is over 230k. So businesses are GREAT, and they’re more “passive” (higher income for less time) than a job is. But PAY CASH for it
If the guy doesn't know that a laundromat isn't a passive business, he hasn't done nearly enough research.
Whenever somebody mentions wanting to start a business for passive income I already feel like the business is likely doomed. It immediately says they think some business is going to take off from jump without doing anything to establish their business. If you want to make money without taking active efforts to earn money just throw money into safe investments and move along.
But these businesses sell the allure of making a ton of money versus the unsexy returns of things you invest in and don’t pay attention to
It's more passive than saying, a restaurant.
My friend bought a lauromat in Cleveland for like $10k. Hated it, lots of theft.
Yep. And the most successful laundromats are going to be in urban areas with lots of lower income apartments - and unfortunately those neighborhoods are almost always crime ridden. In Cleveland it sounds like a nightmare. I sell snacks to gas stations in inner city Milwaukee, I see this stuff every day.
6:45 “cats chasing lasers..” I’m dead 😂😂
While not passive. Laundromats have an extremely high success rate. He can also hire staff in the future to do most the work
Unless you have money set aside to pay your bills: rent, mortgage , food, phone bill, electricity etc. It's going to take awhile to establish a laundromat.
Business is not done for convenience it's done to earn money and you have to work hard,most people think once you setup the business you are free the reality is roller-coaster of stress starts. BUSINESS DOSEN'T SET YOU FREE IT TIES YOU UP PHYSICALLY AND MENTALLY
In business you work more than a job generally speaking. And speaking to my accountant, most small businesses do not make much more than I make in a job. Business has its advantages but working less is not one of them.
The best way to make passive income is through compound interest.
Yep. Dividend stocks, mutual funds, and ETFs.
That is against the bible
I run a bunch of claw machines and toy bulks, it's awesome this stuff sits there and makes you money but there is alot of work and massive amounts of work on the set up end!
"Passive income" is the absolute worst mindset to have when going into business.
Agreed. Dividends are passive
It is a sales tool on late night cable TV
@@tracym8952 You still have to read the reports and analyze the business environment periodically to know if that particular stock is still a good investment. It's not a set and forget thing.
@@sblijheid for sure. I treat business reports like the newspapers my grandpa used to read. Treat it like a hobby and it's passive enough
And yet, time is something to consider when starting a business. How many people open a restaurant and basically live there the rest of their lives?
While I generally agree with Dave’s sentiment about debt. There are a lot of businesses where it would be extremely difficult to save enough to start the business. It may take him 10 years to save $200K. It can be worth taking the risk of borrowing the money with the hopes that he will make more over the period of time it would take him to save. The fear of not borrowing can cause people to lose out if you only look at the risk.
My late wife and I had a ironing and laundry service out of our home. That was back in the 1990s and it paid over $600 week or more.
You get regular weekly customers. It was hard work pushing that iron.
"I wouldn't use my own money - I'd take out a loan" 🤦♀️ We own a small Home Business, no-one wants to give you money to waste so you won't "feel it" if you lose it. Oh my gosh! X
“Think about how stupid the average voter is, then realize half of them are stupider than that” -George Carlin
its funny because its true
That's real wisdom!
I own a laundromat. It’s a great business. This caller doesn’t have the experience or captiol to be successful based on his conversation with Dave.
Do you spend a significant amount of time/money to maintain the machines as Dave suggested?
@@David-wo9un No but he generalized something with a wide variance. Old machines and bust store, good luck. New machines and busy store, ding ding.
Hey Spencer thanks for the comment..There’s a lot of things I left unsaid on the phone call, would you be willing to talk to me about the whole idea of a laundromat business
@@saulgoodman2018 Nope, the caller like you are cluless
@@saulgoodman2018 Just think about when you go to the laundry mat. Something happens, you need someone to look into it for you, etc. That someone is the owner. When you have a lot of people coming in, the chance of people needing your attention increases. How is that passive?
bro in law bought a laundry mat in 2006....worst investment decision of his life. The location wasn't great, he didn't own the land, just the building, so his rent was increasing. Everything was always breaking down. He lost hundreds of thousands.
The other risk is if you buy the building and go out of business, then find out no one wants the building! Happens in small towns.
Personal experience: Laundromat is not passive income. It's a fair amount of work. Breakdowns, breakins, vandalism, theft. Plus frequent trips to collect the money, clean the facility, empty trash, clean bathrooms. People are pigs. And power / water / sewer bills are astronomical. And the floor gets gummed up with spilled soap and softener. Not to mention the licenses, insurances, permits. My stepfather had a couple of them and we did the work at odd hours when it was closed or few customers. Have to be careful with the money to avoid getting robbed.
Thank you for the reality check this guy needs.
the term "passive income" is completely overused and honestly doesn't really exist.
Dividends and book royalties
Ok buddy 😅😂
Tell that to grant Cardone
@Bruce Bobtrotter assuming if you have small levels of asset to generate that passive income. Bigger assets is required but normal people don’t have it
@@hihaters2004 He's running a buisiness. that's not "passive income." but keep drinking the kool-aid
You can make money with a laundry matt but you better know how to fix these machines. You don’t make money until you own all your machines
I don't agree with all of Dave's mute button decisions, but 2:14 was appropriate. That noise, whatever it was, hurt my ears.
Sounds like he was laughing to me. Troll call maybe
Lol, a laundromat is definitely not passive income.
Dave’s initial answer was correct. Forget about the financing entirely, this guy has no idea what the heck he’s talking about and shouldn’t do it.
His bank would laugh him out the door and save him the trouble
@@saulgoodman2018 yes it would be passive but then no income.
There's an episode of the Andy Griffith Show about Andy opening a laundromat and it wasn't going to interfere with his sherffing.
A laundry mat is a basically a vending machine; but with dozens of wet & dry vending machines; which break, are broken into, and come w/ security risk w/ all those shiny quarters.
If you want to buy a business, go work in one just like it and see the truth. Find out the truth.
Anyone who wants to be lazy needs to think about their goals. Dave should have asked about what "being free" means? Dave has a ton of money, yet here he is, working.
Passive income doesn’t mean lazy. If that were the case, everyone who is retired and living off of an investment account that’s passively producing income is lazy.
Self-repairing robot washing machines... Lol
My dude just finished watching Reyes The Entrepreneur and called in
Dave is on fire today with the humor - I'm ROFL!
As soon as I heard Laundry business, I was like.... TIKTOK
Some laundromats are open 24 hours, some are not. More problems with 24 hours
I agree re not going into debt to do it.
He watched a few "influencers" on TH-cam bragging about how easy it is to make money and boom, he wants to own a laundromat. Guaranteed this is how it happened.
Anyone who think anything is "easy money" needs to think about that, in a corner, for a long long time
This dude watched a TikTok guy who bought a laundry mat saying it is passive. The dude post about how me nets $9k per month. People would believe everything online.
Those clowns are all over the place.
Air used to be free lol. Actually ours is, many places . Plus, we can't pump our own gas. And our gas prices are pretty low. Vacuuming is $ yes.
😂😂😂😂 asking Dave to take on dept😂😂😂😂
Debt
yes 'its cool to be stupid" lol
I fix appliances for a living those machines are stupid easy to work but in a bad area they are also stupid easy to steal the cash box out of too
And stupid easy prices for part too, right? Love to know how you get parts for commercial machines if your not an authorized dealer or service center. The companies that make them , lease them as part of their business model. I am sure any repairs made outside of their authorization voids the warranty.
@@alinatamashevich3354 if you had a laundromat you would just buy the parts in bulk off the Internet or local parts dealer nothing special it’s just parts they are not hard to get plus those commercial machines basically don’t have warranties they know they are being used 24 hours a day most have 30-90 day warranty so no one cares about the warranty
@@alinatamashevich3354 I don’t even do warranty work at all not worth the hassle to me
Wow! Very enlightening!
I already knew the answer when I saw borrow lol
Also caller never presented income/profit for his outrageous $200k buy-in. Noob. Energy expenses will eat him alive, and unless he owns the real estate (he doesn't), then rent will crush him. No bank would even approve this clown
Thank you. I see idiots in the comment sections saying that the loan idea is good. This guy does not know the numbers. He should go work part time for a laundry mat to learn the business.
@@sblijheid that's actually great advice. he can work for someone else, learn on their mistakes and then go out and do it better
Uncle Dave, love ya👏👏👏👏👏
What in the actual French fries is this guy thinking? 200k loan for a laundry business lol
Depending on the quality of the underlying leases and the locations per se, $200K could be reasonable assuming a combined EBTIDA cashflow of about $5.5k to $8.3k per month; but that may not account account for location rent. Also, when conducting due diligence, the laundry mat seller's tax returns will likely not match their P&L; so the buyer will need to rely more on audited financials, banks statements including cash deposits, etc., if available.
Laundromats are also recession-resistant
Buy a franchise business better odds of success.
Laundromat! what year is it? I haven't seen one of those in 10 years
Lots and lots of them in populated cities. I take my comforters in sometimes
If you never transverse the poorer side of town, you probably haven't seen one in 10 years, but yes, they do exist and technology hasn't phased them out. They serve an important need for apartment dwellers who don't have in-unit W/D hookups.
@@scarpfish Poorer side of town is another risk of laundromats...........
You must not live in the hood!
@@scarpfish Bingo. !!
The funniest thing is to hear Dave say “a Vibe”
80% of small business's fail because people thought they were "Passive Income" 😅🤣😂
I understand not taking out debt to buy liabilities such as cars but i will never understand not taking out debt on assets that make you money.
Well, a business that loses money kinda doesn't make money.
@@scarpfish if i can get anywhere between 6-12% cash on cash return in real estate why would i not take out a loan?
Haha.. so true!! Tiktok lies!
We watched a video that shows how "easy" it is. Guy says he only works 2-3 hours a day, makes loads of money, easy to do. He probably saw the video and never really looked into it.
YT is full of these clowns.
Telling this caller not to go 200k in debt was good but borrowing money is very good if you know how to crunch the numbers. I would never use my own cash if I don’t have too.
What about owning a franchise? Is it worth getting a loan?
all these people obsessed with "passive income" don't realize most wealthy people got there by selling their TIME and expertise. doctors may make 300,000+ but they work 60 hours on the low end
It’s cool to be stupid lol 😂😂😂
Paying payments on your failure...that will piss you off twice a day! Damn! Thats me! Considering i'll probably finish paying it off in a year and a half, its infuriating!
Carlton Sheets has entered the discussion.
You can buy a laundromat for less than $100k, but it will net less than $50k.
Because there is a major difference between then & now, I must disagree. The cost of labor has skyrocketed so high, vending machine businesses make real sense. Grocery stores wouldn't be transitioning to self-checkouts if vending machines weren't viable. Our local gas stations are installing food vending machines left & right.
He didn’t say the business sucks. He said don’t borrow for it or think it’s passive. The only passive income are stock dividends, reit, bonds, etc.
My parents neighbor made millions owning a car wash…
The caller is so lacking in any basic knowledge of investing and entrepreneurship he will be taken to the cleaners.
I see what you did there! 😆😂
It's better to create a service or invent something 🤔 😉 😏 . I've got Bipolar II, ADHD, PTSD and I'm going to create a business to help others like me to make money 💰
the problem with young folks today they're out there to make fast buck with no experience or knowledge. that mindset is definitely not that easy and it will not work out after a month tried. failure will kick in.
What if I want to put in the work of a laundromat and I have the money to pay for it in cash should I open one
200000 isn't even close to what equipment costs would be on a leased space for a laundromat...he would need another 300000... from a laundromat owner...not a laundromat TH-camr
People see these ideas and think they are so easy. It's literally idiots selling courses that make the money. Like Dave said the risk is so high it makes no sense. There are a billion other ways to make money. If you have some experience in the industry that gives you a leg up on everyone else it may make sense, but high risk for anyone else.
Passive income is where you wake up, take a shit, go back to sleep and still have cash flow😂
lol. He doesn't realize how he has to get up early morning around 6am to open up until 10pm. hiring someone to open may eventually quit. machine breaks down and it will take a tech to fix it and may charge you as high as $600 per machine. there's goes your profits. get yourself a rich gf and consider that a passive income. if she breaks up with you you lose nothing better than losing 200k.
George is hilarious 😂
Dudes been watching Investment Joy TH-cam channel
i was thinking the same lol
Can we talk about these businesses cleaning more than clothes most likely in communities lol
lol dude probably watched two youtube videos and decided to go all in for it
Like the heart but I feel as if this guy doesn’t know what he’s talking about. All I heard was I want passive income and I’ve seen a ton of TH-cam videos of cash cow laundry Mats. On top of this I don’t want to “risk” my own money so I’m going to borrow from the bank because there’s no risk in that.
Then once he’s in business once the unknowns charges come in he will either quit early or just throw money at problems and this will turn into i made a1/2 million dollar problem call.
Passive income is for the winner of the race, not for the ones who are just in it.
Its great how they diss social media giving financial advice but yet they are on social media giving financial advice
The difference is Dave has knuckle meat on hard work to make a business successful. These others are broke joke, fakers.
He should look into MLM’s like PHP and Primerica
No, he shouldn't. MLM's are all garbage.
200k? Just take that and invest in stockmarket
You can tell this guy has never listened to the Ramsey show before.
the best way to make passive income is to work for 40 years saving 5k/mo and retire living off of interest :)
Lol Dave crushing stupid dreams.😅
Sell the laundromat
Brother I heard the story all my life The tortoise beats the hare brother speed of cash just like George said
TIK TOK Has taken the place of the 1980's Infomercial for getting rich quick
He will collect so many quarters he will have to pay someone to count his money.
Everyone wants money. Nobody wants to work for it.
@J L it’s a measurement of value, not work.
I say go for it
Passive income, pshhhhh. Put in work!
Mullets are coming back too Dave
I’m in the air machine and atm business. It’s great money for the amount of time I invest but you still have to work some
don't go take out a loan to start a business
This is a HUGELY stupid idea. This guy watched a video and thought it was cool. DON'T DO IT!!
Look up investment joy on TH-cam this guy has a laundry mat and he’s there like every week doing stuff and collecting money and other.
But never shows the bills he has to pay, or the licenses and insurance.
Passive-active 🧐😂
We all know this guy took that loan out the next day lol he's going to do it anyway
Funny how everyone "thinks" the bank will dole out hundreds of thousands of dollars to someone with ZERO business experience.
People are succeeding and failing in all businesses. I know someone who has a successful laundry business
Paying for air. :)
And yet, Dave puts quarters in them. So it's serving a need he has even though he is telling everyone else never to get involved.