Will My Laundromat Make $$ During The Upcoming Recession?

"I would rather buy one at a discount um I bought this this laundromat that I bought was listed for a hundred and thirty five thousand dollars I bought it for 80 000 well let me put the let me roll it back 135 000 and they wanted to get a bank loan when I ended up acquiring it using my my other methods of don't buy on the market I ended up paying 85 000 for it the seller carried back seventy thousand no Bank involved and I only had to put fifteen thousand dollars down for it so we took a deal from the market that they wanted a hundred and um 135 000"

"Keenan says a lot of income increase in recessions 09 to 2013 which is crazy good you'll see keep crushing it and that's where we're going to go over um if you would look at Keenan's right based on individual laundromat income and laundromat income as a whole recessions don't really hurt laundromats and they don't hurt trailer parks and they don't hurt a more affordable uh rentals they don't hurt Farmland generally speaking unless there's like some you know like a blight or something on crops"

"and if you want to get in business there's no better time than recession because so many people are dumping assets it's it's mind-blowing how many people are getting out of businesses and if you have the right kind of mind and you know how to structure deals you've got the right people in your your corner you've got good people giving you advice you've got local mentors local investors helping you the this is going to be one of the best times ever to go and acquire a business go out and acquire some real estate go start a business go start a business of acquiring distressed assets"

"so a lot of stuff's about scalability and that's why uh vending machines are one of those odd things it's harder to get scale with vending machines I mean you can do it like um a guy in OC he's it's 64 vending machines he's looking in one go cool that's decently scalable he's got we we did we did a long conversation oh I did my 30 minute call with him last week my 30 minute upfront call I do with everybody um we did my I did my 30 minute call with the guy and he's got a viable path that sounds like 100 vending machines so it's like okay cool and he can do probably 100 vending machines by the first quarter next year cool that's great"

"what I want to do next year is just open an investment fund so these guys that are bird dogging deals and finding these crazy Car Wash Laundromat uh real estate deals for me that I've coached and they're like right at that point but the bill Deal's too big for them it's hard to go from never doing never buying a piece of real estate to buying a 10 million dollar apartment complex"

"so for me in real estate in laundromats car washes whatever industry that I want to get into because this can work for Brick and Mortar business is very easy I want to figure out how do I do this in the easiest cheapest way I want to I talk to people all the time and this is wildly work this is wildly successful it they want to start an arcade so they want to go out and go to an abandoned shopping mall and buy an abandoned shopping mall to start an arcade is that a terrible idea I don't think so I think there's ways they could do it but they they spend all their time traffic out how to get a million dollars to buy buy part of of an abandoned mall to put arcade in yet I've run into people they've gone and this is where I come up with my uh ax throwing trailer they went out and bought a ratty trailer painted it up so it looked nice went to Harbor Freight got a cheap crap generator one of those Honda inverters for 299 bucks during Black Friday and they stack reward cards off of it they sign up for the credit card to get that 10 off and they get that Harbor freighter engine inverter generator for like 200 bucks and then they put that in they put their arcade machines in a trailer and they take it to birthday parties and bar mitzvahs and parties and stuff weddings uh corporate events and I talked to this guy kid you not 2500 to 3 500 a day off of a mobile arcade because he takes the arcade to you it was the cheapest easiest quickest way for him to get his arcade startup"

"so this month and we still have some checks to clear at this rate um we did five thousand I'll do this five thousand six hundred sixty four dollars in Revenue but the bad news is we had five hundred seven five thousand seven hundred twenty five dollars and Thirteen Cents so this month we have lost uh what sixty dollars I want to say on my laundromat but um I'm gonna go scroll down and show you why it doesn't bother me the way shape or form so we look at it well what happened this month uh that normally doesn't happen we had these I'll italicize it we had these I spent and we upgraded some crap in the laundromat because once again I don't need my laundromat money I'm more interested in upgrading it um but do I want to be transparent with you guys and like show you what happens when you kind of nickel and dime a laundromat and just kind of um you keep going with a um you kind of keep going with a um spending money on what's coming in on it but we're on the increase for income and we got that apartment upstairs that's almost done so I'll be another 600 bucks a month so we're down like 50 bucks a month and then but we had some really decent weeks in here this was a two-week total on the 16th then the 22nd then the 30th and then I think we've got another one another some more income that came in"

"and that I mean gosh it probably probably doubled the value of the laundromat because of it and then I've got this equipment that's still working great um it's worth eighteen thousand dollars look"

"so the big thing is like as far as the laundromat's concerned we've generated kind of a lot of equity when we took it over you know it's a seventy thousand eighty five thousand dollar location and um I made an offer to a guy asked me if he could buy it um two or three weeks ago and I told him that I would consider it I probably want three hundred thousand dollars for it and he was he didn't bulk it the idea he thought it was probably worth three hundred thousand dollars which is cool"

"syndications and funds and for those you have to be something called an accredited investor which means you have to have a yearly income of over two hundred fifty thousand dollars or have a net worth of over a million dollars I didn't write the rules the SEC did so those are something some things that I would like to do someday preferably last year and um try package it with some tax advantages for um accredited investors"

"so the money that I would make off of one 277 unit absolutely blows away anything else I've done up to this point not on a per unit basis of course but on individual cash flow and the equity gain like the equity I would gain off of in the first year would wipe out when the first year of being a participant in one of these Investments with other people would wipe out my gains and my real estate full-time investment career in real estate probably three maybe three years worth just in one go and my time involvement is going to be a small fraction it's going it's going to be probably equal to buying three houses so"