Free Laundromat reaction
Summary
TLDRIn this video, Kevin William discusses the concept of acquiring a free laundromat, referencing Cara Hamilton's video for a clear explanation. He shares his decade of experience in the laundry industry, critiquing the idea of 'free' laundromats, often abandoned with old equipment. He advises that while taking over such a business might seem cost-free, it often requires significant investment for repairs and marketing to revive its reputation. William also touches on the risks of seller financing, suggesting it's typically offered by inexperienced buyers or desperate sellers, warning of potential hidden issues.
Takeaways
- 😀 The video discusses the concept of acquiring a laundromat for free and critiques common strategies found online.
- 🎓 The speaker, Kevin William, shares his decade-long experience in the laundry industry to provide informed feedback on free laundromat strategies.
- 🔍 A 'free' laundromat often refers to taking over an abandoned business, which may come with hidden costs and challenges.
- 💡 The video features Cara Hamilton, a laundromat owner and SBA loan broker, who explains the process of acquiring a laundromat with no money down.
- 🏭 'Free' laundromats typically require significant capital for upgrades, such as new equipment and repairs, negating the 'free' aspect.
- 📈 The reputation of an abandoned laundromat can be damaged, requiring substantial marketing efforts to attract customers.
- 💸 Seller financing is presented as a potential route to acquire a laundromat, but it comes with risks for both the buyer and the seller.
- 👨👩👧👦 Kevin suggests that only inexperienced buyers opt for 100% seller financing, which can lead to business failure.
- 📖 The video emphasizes the importance of due diligence when considering a 'free' laundromat, including understanding why the previous business failed.
- 🗣️ Engaging with the community and previous owners can provide valuable insights into the reasons behind a laundromat's abandonment.
- 👍 The video is praised for its straightforward and concise explanation of the realities of acquiring a laundromat for free.
Q & A
Who is the presenter of the video and what is his experience in the laundry industry?
-The presenter of the video is Kevin William, who has been in the laundry industry for about a decade. He has experience in various aspects of the laundry business, including laundry care, laundromats, pick-up and delivery services, and dry cleaning.
What is the main topic of the video?
-The main topic of the video is the concept of obtaining a 'free' laundromat, as discussed in many online videos, and the reality behind the strategies used to acquire laundromats with little or no money down.
What does Kevin William say about 'free laundromats'?
-Kevin explains that while it's technically possible to acquire a laundromat for free by taking over abandoned locations or negotiating leases, it often comes with significant challenges such as old equipment and the need for expensive repairs or marketing efforts to rebuild the business.
Who is Cara Hamilton, and why does Kevin mention her?
-Cara Hamilton is a laundromat owner and SBA loan broker. Kevin mentions her because he found her video explaining the concept of getting a free laundromat clearly and without a negative tone.
What are some of the risks of acquiring a 'free' laundromat according to the video?
-Some of the risks include dealing with old, broken-down equipment, potential infrastructure problems such as rotting pipes or clogged drains, and the need to invest heavily in retooling, marketing, and repairs to make the laundromat operational and profitable.
What does Kevin say about Danny D'Angelo and his influence in the laundromat industry?
-Kevin mentions Danny D'Angelo as a major figure in the laundromat industry who teaches the method of acquiring laundromats for free. Kevin acknowledges that while this strategy is possible, it comes with significant challenges and costs.
What advice does Kevin give about investigating abandoned laundromats?
-Kevin advises doing due diligence before taking over an abandoned laundromat. He suggests asking the landlord, tenants in the area, or even the previous owner why the laundromat was abandoned to understand potential problems with the location or business.
What is seller financing, and what are the risks involved according to the video?
-Seller financing is when the seller of a laundromat allows the buyer to pay them directly instead of taking out a loan from a bank. The risks include the buyer's inexperience possibly leading to business failure, and the laundromat becoming even less valuable if the buyer cannot run it successfully.
In what situations does Kevin think seller financing is appropriate?
-Kevin believes seller financing is appropriate in two situations: when selling to a trusted family member or when the seller is desperate to offload the laundromat. However, he warns that there are risks for both the buyer and seller.
What are Kevin's final thoughts on getting a 'free' laundromat?
-Kevin concludes that while getting a 'free' laundromat is possible, it's not without significant challenges. The equipment may be old, the infrastructure may be faulty, and it will take a considerable amount of money and effort to turn it into a profitable business.
Outlines
🧺 Free Laundromat Possibilities
Kevin William, an industry veteran, discusses the concept of acquiring a free laundromat. He mentions that while it's possible to take over abandoned laundromats with no initial investment, it often comes with hidden costs. These costs can include repairing old equipment, addressing the laundromat's poor reputation, and potentially significant expenses for marketing and equipment upgrades. He also touches on the idea of seller financing, where the current owner finances the sale, which can be risky for both parties.
🏭 Challenges of Free Laundromats
The paragraph delves into the potential issues with taking over a free laundromat, such as the need for extensive renovations, plumbing inspections, and the possibility of inheriting a location with a poor reputation. It also addresses the concept of seller financing, where the seller allows the buyer to pay them back over time instead of through a bank loan. This approach can be risky, as the buyer may not have the necessary experience to run the business successfully, leading to potential failure and the seller taking back a less valuable business.
🔍 Due Diligence for Laundromat Acquisition
In this paragraph, Kevin advises on the importance of due diligence when considering a free laundromat. He suggests researching the history of the location, including talking to the landlord, neighboring businesses, and previous owners to understand why the laundromat was abandoned. He also encourages checking online reviews and conducting thorough investigations to uncover any hidden issues that could affect the business's success.
Mindmap
Keywords
💡Laundromat
💡Free Laundromat
💡SBA Loan
💡Lease Takeover
💡Seller Financing
💡Due Diligence
💡Equipment
💡Reputation
💡Infrastructure
💡Piping
💡Abandoned Laundromat
Highlights
Introduction to the concept of 'free' laundromats and critique of common strategies discussed online.
Mention of Cara Hamilton's video as a fair and clear explanation of acquiring a laundromat without initial investment.
Kevin William's background in the laundry industry and his experience in various aspects of the business.
Explanation of how 'free' laundromats often involve taking over abandoned laundromats with the landlord's permission.
Discussion on the potential hidden costs of acquiring a 'free' laundromat, such as old equipment and the need for renovations.
The importance of understanding why a laundromat was abandoned before considering taking it over.
The possibility of negotiating a reduced rent with the landlord as part of taking over a 'free' laundromat.
The role of Danny D'Angelo in teaching strategies for acquiring laundromats with no money down.
The potential issues with the infrastructure of an old laundromat, such as piping and sewer problems.
Cara Hamilton's discussion on seller financing as a method for acquiring a laundromat.
The risks involved for sellers in offering 100% seller financing and the potential for the business to fail under new ownership.
The benefits for sellers if the new owner improves the laundromat before defaulting on payments.
Advice on only considering 100% seller financing in specific scenarios, such as selling to a trusted family member or in desperation to sell.
The necessity of due diligence when considering a 'free' laundromat, including researching the location's history and speaking with the landlord and neighbors.
The importance of understanding the reasons behind a laundromat's abandonment to avoid inheriting unresolved issues.
Encouragement for viewers to engage with the content by commenting and sharing their thoughts.
Transcripts
welcome to laundry's question answers
where I commentate and critique
everything that regards to laundry and
in the laundry industry so uh today's
video we're talking about free
laundrymat if you look on YouTube there
are tons and tons and videos of quotquot
free
laat uh content out there shout outs to
Big Danny D'Angelo uh I actually got my
own laun M for free qu
uh but today I actually found the video
of a female named Cara Hamilton I'm
going put it down in the link in the
description I actually thought this
video really explained it fairly well
without any uh nasty negative tone
behind it just kind of La it out plainly
for a person to listen to so let's talk
about it oh wait a minute again my name
is Kevin
William I for the past maybe about a
decade or so I've been in the laundry
industry learning the ins and outs of
all actess to laundry care to laundry
mats to pick up and delivery dry
cleaning I I've done it all except for
maybe rental service so within that
decade I've learned and failed and
succeeded in so many aspects of the
laundry industry so that's why I can
give my feedback on a lot of these
topics I see on YouTube regarding
laundry so let's let's dive into this
video there's a lot of information
online about how to get a free laundr
mat or how to get a lat with no money
down technically these strategies are
possible there are people who acquire
lats without but you that's kind of cool
she is a laund m owner and SBA loan
broker so she must have gave out a lot
of loans and realized like let me try
this whole laundry thing and see if I
can get in here too since I'm getting a
lot of clients who are trying to step
into the laundrymat industry it's got to
be easy to get money
right all right let's continue putting
any money down but what you have to
consider is that if you are getting
something quote unquote for free
probably going to cost you something
later often times when people are
discussing these strategies they're
talking about taking over a laundromat
that's been abandoned so the owner who
is running it left for whatever reason
the landlord has the space you take over
the lease you got facts that's exactly
how I obtained my few laun Ms that I got
essentially the launchs I got were
abandoned and the landlords were looking
for someone to take over the space uh
which had older equipment into it so
technically that's free because you can
just slap on lat on the outside and
start operating will you start making
money right
away that's another thing's Contin free
laund matat but you've got to think why
was that laund matat abandoned to begin
with chances are the equipment is old
there was some reason that operations
weren't going well and you can easily
spend tens or hundreds of thousands of
dollars opposite side of quot getting a
free laun mat like she said typically
when you're going in and negotiating the
lease you're taking over a space that's
been run down or ran through and you as
you get in you'll realize why it was AB
abandoned to begin with and majority of
the time it's old equipment broken down
machines if you're handy it'll be easy
to fix but the reputation already for
that closed down lar matat is still in
the air of the neighborhood so it's
going to take a lot of money to Market
it and bring it back into where people
want want to come back and do laundry
there so she's right especially if
you're G to you know retool the place
it's going to cost you about six figures
just to get new equipment or even use
equipment just to kind of get the place
up and going so that's the part where
it's not really free anymore so so if
you're getting something for free you've
got to think about why it's for free
also if a seller is willing to provide
100% seller financing all right um she's
about to go into something totally
different when she mentioned the whole
seller financing thing that's only if
you're planning to buy the Lun mat from
a current owner um the whole seller
financing thing that's now she's kind of
going in a different direction but uh
let's continue with the free lement
aspect so getting a free
lement is possible by taking over the
location lease and negotiating that
there's still money that's going to come
out of pocket now what you can do is uh
negotiate a abated rent for a Time
period with the landlord depending on
where you're at some landlords are
sticklers like N I need my money when
you get in I need my money all right but
uh you can get a beta rank now the big
guy in our industry who's kind of taught
this method is Danny D'Angelo and if you
go on YouTube You're Gonna if you just
put free laat he will pop up and there
are their naysayers out there who will
say this is BS is not really a good idea
to do because you're getting a space
that's essentially old and run down and
it takes a lot more to do to kind of get
get it back in up and running um also
with an old place or that's abandoned
typically what you don't see is the
behind the scenes the infrastructure the
infrastructure may be good but because
it's maybe an old place and old spot
most times the piping is probably rotted
out or even the the sewer drain is
probably bad
you may have a good one so which means
you got to put a little bit more money
into getting a plumbing company to do a
surveillance with a cam to go through
the piping to make sure everything's
clear there's no iron buildup especially
if they have iron um uh drains or piping
going out to the Sewer versus PVC is
going to be Iron buildup so um that's
just a little more extra information in
regards to some of the woles of getting
a free lunat per se right but uh let's
see what she's talking about this whole
seller finance financing meaning they're
willing to sell you the business and
then you are paying them back rather
than taking out a loan from A bank you
have to think about why they would be
willing to do that it's actually a
pretty risky situation for a seller
because if you take over the business
and you stop paying them sure they can
take the business back from you but what
if you hadn't been running it well what
if you didn't have experience and the
business has now tanked what they're
taking back probably won't really end up
being that valuable I can tell you all
right so
sell financing because she's kind of
negating from the free LA M sell
financing is like a double-edged sword
so in your contract you can put it where
if the buyer does not pay the money INF
full at a certain period of time you can
now take over the space again now what
she's saying is correct typically who
people who are doing that AR aren't
experienced in regards to uh the L
industry typically they're newbies which
is fine um but a lot of times in the
Contracting you can give them training
for a week or a month or do Consulting
feed for them so they kind of get them
up in their feet but what I've noticed
in the industry those who bought and did
selling findings from another owner a
lot of them do fail which is the honest
truth and the plus side for the seller
is that new buyer or new owner may have
retooled the whole lat and now you have
a new retooled uh location so you know
already know as an owner you kind of
know what to do uh to update and bring
more customers in so they already spent
the extra money you don't have to spend
that anymore because you know they did
it for you uh so that's the double edge
sour it can be a win or a loss um for
the seller it sucks for the buyer
because you know it didn't they didn't
come in and make you money like they
thought it is easy to do in the launch B
industry so let's continue I would only
do 100% seller financing in two cases
one if I was selling to a family member
someone I really trusted and who I
wanted to give a leg up I wanted to help
them get into the industry or two I am
desperate to sell myrat I've got to get
it off my hands so when you hear people
talking about no money down laundr mats
or getting laundr mat for free they're
usually talking about assuming the lease
which is likely going to require some
Capital upgrades revamping the space
putting in new equipment or they're
talking about getting 100% seller
financing and you've got to think if
someone is willing to do that deal what
problems are waiting for you on the
other side of that
acquisition again she's right in that
sense uh which is why I kind of like
this video to make it simple and plain
and it's short a two-minute video
um you can get a free launch mat and I'm
me saying that and a bunch of other
YouTube videos are going to say yes it's
possible it's not a triggering or scam
but there are downsides and things you
need to beware Ware of when you get a
laun m that's been abandoned or uh the
landlord is looking for someone to take
over release you gotta kind of do your
due due diligence to figure out what
happened prior which is good to ask the
question to the landlord hey why did
this place get
abandoned some may be upfront others
won't if you're in a plaza or something
like that go ask the tenants do you know
why this place closed
down a lot of times they will be willing
to actually give you that information
but if it's a standalone location that's
a little bit different then you need to
do your Googles to find out ay what
happened here look at the
reviews ask the neighborhood hey this
location here what happened go to stores
that maybe cross the way to find out hey
do you know the owner from that previous
location do you know what happened so
you got to do your due diligence
sometimes you can actually find the
previous owner who just uh left it
abandoned the find out hey what happened
they'll give you a Horror Story saying
hey the landlord the property manager
company that owns it terrible the rent
was terrible they didn't help with any
fixes etc etc or the town was terrible I
had to get out of there so I wasn't I
mean I made some money but I'm not
enough to want to deal with the issues
so uh Kara Hamilton great video
uh I'm going to keep doing more of these
uh if you like what you saw share it use
it for valuable information uh I'm going
keep doing these and let me know what
you think please comment uh the more you
comment and engage helps me better these
videos um again I'm starting off so
please be nice a little bit but uh thank
you for watching have a good one
5.0 / 5 (0 votes)