Free Laundromat reaction

Summary

In 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.