Location, Leases, and Analysis: The Key Factors for Buying and Operating Laundromats w/ Jordan Berry

Jordan Berry is a former pastor who made a bold decision to step away from his vocation after 15 years to seek a different path. Unsure of what to do next, Jordan and his family had the idea to rent out their house in Southern California and use the money to buy a condo in Hawaii. However, Jordan's wife had a different proposition – buying a laundromat instead. Intrigued by the concept of generating income that wasn't tied to their time, Jordan and his wife took the plunge and became laundromat owners. Although not entirely passive, the business offered a level of flexibility and potential returns that intrigued them. This unexpected leap into the laundromat business would mark a significant turning point in Jordan's professional journey.Connect with Jordan Berry: https://www.laundromatresource.com/Key Topics and Bullets:Financing options for laundromatsManufacturers and independent lenders offer financing optionsEquipment financing may offer 100% financing with down payment requirementsTraditional financing for real estate requires higher down paymentsSBA options available, but qualifying can be challengingSeller financing is common due to difficulty in securing traditional financingLimited or inaccurate financial records can affect securing financing<br/>Different business models for laundromatsSelf-serve, service-side, and pickup and delivery modelsPickup and delivery services gaining popularity during COVIDLocation important for self-serve laundromatsSelf-serve targets renters with below median incomeService-side caters to customers with above median income<br/>Debate on replacing machines in the industrySome see keeping old machines as a badge of honorOthers believe in replacing for efficiency and customer satisfactionSpeaker suggests replacing around the 15-year markBenefits of replacing include decreased repair costs, lower utility costs, and increased efficiencyShiny new machines attract more customers and allow for higher prices<br/>Rehabbing and marketing a rundown laundromatSpeaker chose not to sell but invested in new machines and rehabbed spaceRehabbing reputation proved more challenging than renovating the physical spaceMarketing strategies used include flyers, Google ads, and Facebook adsSuggestion of organizing a wow event or grand opening to draw attention<br/>Importance of location, lease, and deal analysisLocation crucial and difficult to move once establishedGood lease necessary to avoid business failureAnalyzing the deal and knowing what you're buying is key<br/>Tracking income and expenses in cash-based businessLaundromats mainly cash-based, making tracking challengingKnowledge of tips and tricks necessary for accurate assessment<br/>LA's competitive laundromat marketLaundromat industry historically lacked advertisingMore owners realizing the importance of customer care and promotionNegative industry image due to frequent breakdowns and poor experiences<br/>Focusing on customer satisfaction and profitabilityConvenience crucial for customers, but potential for expansion in competitive areasOpportunities for profitability by filling gaps and providing better experiencesBasics of cleanliness, working machines, friendly attendants, and full coin changers importantLoyalty incentives, promotions, and positive atmosphere enhance the experience<br/>The misconception of laundromats as passive businessesDisagreement with belief that laundromats require little effor