July 14, 2021 at 6:37 pm #6396Ari BayvertyanParticipant
I am 26 and have been running an Amazon book selling business for a year. I don’t have any business experience prior to that. I have been looking into the laundromat industry as something new to try and also invest for cash flow.
My wife who is 23 has taught high school English for a year. She has now joined me in my business ventures. I am fully confident in her abilities to help me manage the business.
She has a credit score around 750. I do not have a credit score. I did not realize the importance of building a credit history until 6 months ago, so I got my first credit card then. If we apply for a loan, it would be based on my wife’s credit score.
I am really driven and have confidence in our abilities and work ethic. My wife and I will be pooling resources, from cash to time invested, into making this project a reality. The book business we also run will be able to comfortably sustain us. Laundromat profits will be reinvested into the business as long as necessary.
We want our store to be attended. My wife will be the first attendant before we hire help to work with us. We also want to implement wash and fold as well as pick up and delivery over time. Once we get comfortable with the first store and have built a good team, we will move on to purchase more stores.
Can someone more experienced chime in about the likelihood of us getting traditional financing in this situation? Would we be better off putting the project on the back burner for a while? Is an SBA loan something to look for?
I really want to do this! The project excites me, and I think it will be tons of fun!
August 21, 2021 at 3:00 pm #6724DannyParticipant
Hello Ari, I’m studying to become a mortgage loan originator and one of the things I’ve learned is that the credit score that will be used to qualify you for the loan is based on the lowest of the co-borrowers. I don’t know if this is the case for SBA loans, however, but I imagine it might be. Are you planning on just having your wife apply for the loan? I think that would be your best chance of getting a loan, but this unfortunately won’t help you build up your credit score. Ask some lenders for advice and see what they say, wish you the best!
September 12, 2021 at 11:22 am #6844Jason DodgeParticipant
Just start looking at Laundromats and talking with lenders. You could honestly have a dozen banks say no, then this little no name community bank says yes. Or you tie up a laundromat in contract, then secure owner financing if nothing else works out. My first deal, I was unemployed, I cashed out my 401k, used credit cards, borrowed from my parents, had a loan from the seller and maxed out my line of credit on my house. It was crazy but I just jumped in.
Best of luck in your search.
October 17, 2021 at 12:48 pm #7165Brad TaylorParticipant
Is $50k from a HELOC even remotely enough to get started?
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