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Old 11-07-2019, 09:41 AM
 
Location: Colorado Springs
4,943 posts, read 2,186,389 times
Reputation: 3759

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I am potentially interested in diversifying some of my holdings I primarily make money off of real estate and a few mutual funds as well as p2p lending platforms. However I could potentially purchase a laundromat for cash I wouldn't be doing any loans. The business intrigues it seems to be low intensity and if its in a good area almost guaranteed to be profitable. Granted I have no experience with on the ground operations of running a business like this and I am sure there are things that can make owning a business like this less than ideal. So my question is should I go ahead and pull the trigger and buy this business?
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Old 11-07-2019, 09:50 AM
 
7,669 posts, read 3,618,981 times
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Seems like a declining market as more and more people live in apartments with provided washer-dryer either in the unit or common.






Or, you'd be in rough neighborhoods where vandalism and crime would be common at an indoor facility left unattended many hours at a time. Then you have to pay for at least an attendant, or maybe even security, and it starts to eat up your profits.


Granted, I'm not in the business, but from the outside it seems like a poor long term bet unless you are experienced at running businesses in rough parts of town.
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Old 11-07-2019, 10:09 AM
 
Location: East of Seattle since 1992, originally from SF Bay Area
32,350 posts, read 58,970,925 times
Reputation: 35383
I agree, in fact I couldn't tell you where there is a laundromat anywhere near us any more, they have all closed. Last time we had our washer break down about 2 years ago I searched and the nearest was several cities away, about 40 minutes drive from us.



For a low intensity business with major growth potential, look at storage units.
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Old 11-07-2019, 12:25 PM
 
Location: VA, IL, FL, SD, TN, NC, SC
1,185 posts, read 330,411 times
Reputation: 2566
They are a goldmine in the right area. In my city they are money machines, but we have the demographics for it. A huge population of illegal aliens, a moderate population of 3rd world refugees, and a huge population of people with temporary work visas. Boarding house abound, legal and illegal as well as sleeping shelters.

Best moves are to find a repairman that services in the area, slip him a few bucks, and ask him what the best equipment, often he will have an inside track on it.

Make sure you understand the regulations and pending regulations in your area, new greywater requirements can kill you financially. They took out a number of once profitable car washes in my area and impacted some laundromats.
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Old 11-07-2019, 12:48 PM
 
7,879 posts, read 3,832,182 times
Reputation: 20746
Ohhh my! As a business venture...go for it!!!
I say this as the average consumer who visits such places.
Here are the facts.

New machine's are now apple pay initialized. Or the consumer loads a laundry card with funds.
You as the owner don't touch a coin it's all deposited to your account immediately.

Repairs? Yeah like that ever gets done. But yes an alert is sent to your contractor and it's documented on the machine what repair code was done. Bill sent and bill paid.

But I digress. As the consumer a power outage electric short happens. I am now forced to pay another machine to finish the clothes or go elsewhere. You ...the investor won't refund the consumer because there is no on site way to refund . Ohh you do have water/sewer/electric . Plus your building insurance. But that's pretty easy to figure against your profit . At cost of 60 cents a load and you charge 3$ and up your 2.40 to the good per load. That doesn't include if your dryers are gas or electric. Ours use gas..and man are they quick to dry! 75c. Your cost is 40 . When I use cost that includes all maint/lease machine and utility.

So let the community use this necessary machinery. Youll take us to the cleaners soon enough. I can't imagine an easier venture then this ..except for selling invisible ink. good venturing I sincerely think you'll do very well.
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Old 11-07-2019, 02:05 PM
 
232 posts, read 53,617 times
Reputation: 157
I read that studio apts are much sought after,one article said fancy hi rise in NJ ,they built more studio and they are all taken,like WEWORK office,folks prefer to use the facilities in the building,lounge,pool,exercise ,and they save a few hundred dollars in rent.
why not buy some studio units and rent them out,in NY a fancy one would rent for $2800.
Students also prefer studios
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Old 11-07-2019, 02:07 PM
 
232 posts, read 53,617 times
Reputation: 157
may be vending machines,or has that gone out of style as well
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Old 11-07-2019, 06:56 PM
 
Location: The Triad (NC)
30,230 posts, read 66,756,813 times
Reputation: 35707
Quote:
Originally Posted by BornintheSprings View Post
The business intrigues it seems to be low intensity and if its in a good area ...





https://www.youtube.com/watch?v=iMjnbrvmwKc
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Old 11-07-2019, 08:38 PM
 
232 posts, read 53,617 times
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good area,people may get their own machine
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Old 11-08-2019, 10:45 AM
 
988 posts, read 1,086,892 times
Reputation: 665
I was thinking about a laundromat as well but dealing with low income element for the most part doesn't sound palatable. The business I was looking at is in a remote area of the city. That gives me pause. The building is only 10 years old. The current owner keeps the place open until 10 pm. If I owned the place, I would close at 7pm for safety reasons. Even that is pushing it. The consumer using the card instead of coins to wash and dry piques my interest, though.
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