10 Reasons Laundromats Are the Best Investment You Can Make!
10 Reasons Laundromats Are the Best Investment You Can Make
If you’re an investor, chances are you’re looking for an investment to help you build wealth. You need an investment that maximizes all 3 legs of your Wealth Tripod. You may not realize it yet, but you’re looking for a laundromat investment. Below are 10 reasons why laundromats might just be the best investment you can make! Watch the video for more details!
You can achieve an unleveraged 25-35% Cash on Cash ROI (Return on Investment). This is an amazing return on the money you invest and will help you compound your wealth at a rapid rate!
Many laundromats have various ways to improve the business. There are also many ways to buy a laundromat at a discount to gain instant equity in your business. This, similar to real estate investing, makes laundromats an attractive investment for the savvy investor.
Since the laundromat industry is an inefficient market, there are many opportunities to both purchase a laundromat under market value and to improve the business and build equity through increasing the Net Operating Income (NOI) of the business.
Disclaimer: I am not a CPA and I encourage you to speak with one to maximize the tax advantages of your business. With that said, there are multiple ways that laundromats can provide you with tax advantaged income. If you purchase the laundromat correctly, you should be able to depreciate your equipment. Also, you will be able to write off some of your expenses as business expenses, which are taxed before you claim business income.
Laundromats are a business where you are paid up front, in cash. This makes it very simple. There is no dealing with bounced checks or chasing invoices to try to get paid.
With laundromats, customers pay you to do their own laundry. When you own a laundromat, you’re in the business of leasing out equipment, not providing the service. (Offering a Fluff ‘n Fold is an exception, although it usually won’t be the bulk of your business). With laundromats, you have little to no inventory.
Availability of Financing
There are many ways to finance your laundromat purchase. From traditional bank financing to private financing and more, the availability of capital to fund your next laundromat purchase makes this asset class an attractive option for leveraged investing!
Multiple Income Streams
Aside from the income from washers and dryers, laundromats have the potential to make money from a variety of sources. From services offered to products sold and more, there are a plethora of ways to increase income in your laundromat. See the video for more specific ideas!
Passive or Side Gig
Laundromats are an extremely attractive investment vehicle for the busy investor who wants a high yield with low time commitment. From being run on the side to being nearly passive with a managed laundromat, the flexibility of this business model allows those with careers or other investments to manage to benefit from the high ROI with an even higher ROTI (Return on Time Invested)!
Use the Laundromat to Acquire and Increase the Value of Real Estate
Use your laundromat to help you purchase the real estate that it sits on. From single units to strip centers, real estate is a great way to invest your money. And when you invest in real estate with a laundromat you own on it, you have an opportunity to dramatically increase the value of the property with your business.
As you can see, investing in laundromats can help you dramatically increase your wealth with relatively little time put into the business.
If you are interested in learning more about how to make a laundromat investment, sign up for a FREE coaching call with us! We’re committed to providing you with free coaching until you get your first (or next) laundromat investment under contract! We’ll answer any questions you have and walk you through a proven, step-by-step process to help you get your first (or next) laundromat under contract!