How to Buy a Laundromat: Where to Find the Best Listings

Laundromats represent a unique and exciting investment opportunity. If you’re wondering how to buy a laundromat, you’re in the right place. Not many other business types experience a 95% success rate and 30-40% profit margins. Buying a laundromat is a profitable investment if you know where to look. Industry-wide revenue has risen at a CAGR of 0.9% over the past five years, totaling $6.7 billion.

However, how do you find a laundromat deal with a strong ROI? Let’s dive into the best strategies for how to buy a laundromat successfully.

Our guide to laundromat ownership provides comprehensive insights into purchasing and managing a laundromat effectively, ensuring you make informed decisions that lead to long-term success and profitability.

Between promising laundromat market trends, an industry offering savvy investors recession-resistant revenue, healthy margins, and even opportunities for passive income, you can see why laundromats are an attractive option. Keep reading to learn all the tricks and tips how to buy a laundromat and find the best deals.

Where to Find Laundromats for Sale

With proper preparation and a good handle on your budget, you can start searching for laundromats for sale. Luckily, there are many places to look and you’d be well-advised to leave no stone unturned!

Here's a detailed list of all the places you can find laundromat listings so you can secure the best deal:

1. Commercial real estate websites:

Start by searching some of the top commercial real estate platforms such as LoopNet, CREXi, and RealtyTrac. Not only do they list available properties but also provide valuable information like price, size, location, and operational details.

These websites offer advanced search filters, allowing you to tailor your search to specific regions, price ranges, and property types, making it easier to find listings that match your investment criteria.

2. Business sale marketplaces:

Websites like BizBuySell, BizQuest, and BusinessBroker.net specialize in business sales. Searching these you’ll find laundromats for sale, complete with insights into financials, customer base, and growth potential.

These marketplaces give you visibility into the business's history, performance, and asking price, giving a whole picture of what you're getting.

3. Craigslist and online classifieds:

Online classifieds like Craigslist can be a goldmine for local deals if the timing is right! Platforms like these often list laundromats directly from owners, potentially opening the door to more flexible negotiation terms.

While these opportunities may be sparse, regularly monitoring Craigslist and other online classifieds will allow you to catch them when they arise. You can even set alerts for new laundromat listings to stay ahead of your competition.

4. Social media groups and forums:

Join laundromat or small business investment groups on Facebook and LinkedIn to find valuable leads and networking opportunities. Also consider keeping up with relevant Reddit threads for insider information from fellow owners.

Engaging in discussions, sharing your interests, asking questions, and connecting with members could lead you to new listings or, at the very least, valuable advice.

5. Local networks and industry contacts:

Start nurturing connections with local business owners, real estate agents, and industry experts. Networking can often lead to fateful tips about unlisted laundromats or upcoming sales.

Make a point to appear at local business events, workshops, or seminars related to commercial real estate or small businesses to expand your network.

6. Traditional methods:

Laundrymap

Broker discovery via Google: This is a lesser-known pro-tip! Google “laundromats for sale near me” and find the brokers who own the listings you see in your search results. Reach out to them and share your investment goals with them. If you establish rapport they’ll send you exclusive listings for investors.
Door knocking: Visit laundromats in your target area. Conversations with owners can reveal unadvertised sale opportunities and offer uncovered insights into the local market.
Direct mail campaigns: Personalized letters to laundromat owners can demonstrate serious intent and may open doors to private negotiations.

How Can I Buy a Laundromat? Financial and Market Preparation

1. Assess your financial situation and set a budget

Familiarize yourself with the list of the initial costs involved in starting a laundromat, including equipment, location, permits, and miscellaneous expenses. Commercial washers, for instance, range from $3,000 to $10,000 per machine, and dryers from $2,000 to $8,000 per unit.

Additional costs to account for include vending and change machines, renovations, security installations, and more.
Make a list of ways you may be able to reduce your entry costs, like opting for a franchise.
Factor in ongoing expenses to maintain healthy cash flow for long-term success.

2. Understand your local market

A strategic location may play the biggest role in attracting a steady customer base. It should be accessible, highly visible, and be situated in a densely populated area. Major bonus points if it has dedicated parking.

Compare rent or lease costs in your target area, the potential renovation needs, and the cost of implementing security measures.
Research local zoning and environmental regulations and their associated costs to ensure compliance.

3. Navigating permits and licenses

Find out what permits and licenses are required of laundromats in your area, such as zoning permits, business licenses, and environmental permits. The cost and requirements for these vary depending on your location.

Step-by-Step Guide on How to Buy a Laundromat

1. Find and Evaluate Listings

Use online platforms, brokers, and networking to identify laundromats for sale. Compare multiple options to find the best fit.

2. Conducting due diligence

Laundromat due diligence is an integral part of the buying process. Once you have interest in an investment, now it’s time to dive into the business health, and ensure that the seller is reporting on their laundromat correctly.

Financial health: A thorough analysis of the laundromat's finances can’t be skipped. This includes reviewing income statements, utility bills, and tax records
Operational costs: Assess expenses such as utilities, staffing, maintenance, insurance, and taxes. This is essential to accurately predicting your profitability
Legal compliance: Confirm all necessary permits and licenses are in place and transferable

For more detailed information and a complete due diligence checklist, download the Laundromat Due Diligence Checklist.

3. Secure financing

Don’t stop at one financing method; put in the time to research all your options, weigh the pros and cons, and choose the one that best aligns with your business goals. Here’s a high-level overview of the laundromat funding options you should explore:

Traditional bank loans: These come with competitive rates but stricter requirements.
SBA loans: Small business loans carry lower interest rates and longer repayment terms, yet complex and lengthy application processes.
Alternative lenders: Private lenders and other alternatives have more lenient eligibility criteria and faster approval, ideal for those who may not qualify for traditional bank loans. With this option you’ll likely face higher interest rates.
Crowdfunding: This is a creative way to raise funds while building a customer base, but with no guarantee of reaching funding goals and an unpredictable timeframe to reach your goal.
Cents Business Financing: Don’t forget to explore a financing solution specifically tailored for the laundry business, offering flexibility and expertise that you won’t get from traditional lenders.

4. Legal Review and Negotiations

Before finalizing your laundromat purchase, it's crucial to conduct a thorough legal review. Hire a lawyer to examine all legal documents, including lease agreements, financial disclosures, and any existing contracts. This step ensures you avoid hidden liabilities and potential legal pitfalls. Use your due diligence findings to negotiate the best purchase terms, securing favorable lease conditions and identifying any necessary contingencies before signing.

5. Close the Deal

Once negotiations are complete, it's time to finalize the purchase agreement. Work with legal and financial professionals to ensure a smooth transaction. Transfer ownership, obtain the necessary permits, and address any required licensing updates. After closing, focus on implementing operational improvements, such as upgrading equipment, refining business processes, and executing marketing strategies to attract customers and maximize profitability.

Before you buy: Assessing a laundromat's potential

You may find your dream listing and it can look perfect at first glance, though these opportunities still demand careful scrutiny. A smart investment requires a detailed assessment of its potential. Here are the factors that determine a laundromat's viability:

Location: Consider the laundromat's accessibility, visibility, and the density of the surrounding population. Evaluate competition in the area and the demand for laundry services
Condition: Inspect the state of the equipment, the building, and other facilities. Determine if the premises needs renovations or upgrades and what it may cost
Existing revenue: Understand how the laundromat makes money today, what revenue streams have opportunities for growth, and calculate the ROI
Customer base: Asses the existing customer demographic, their preferences, and loyalty. Talk to current customers for feedback on services and find areas for improvements

Conducting due diligence

Financial health: A thorough analysis of the laundromat's finances can’t be skipped. This includes reviewing income statements, utility bills, and tax records
Operational costs: Assess expenses such as utilities, staffing, maintenance, insurance, and taxes. This is essential to accurately predicting your profitability
Legal compliance: Confirm all necessary permits and licenses are in place and transferable

For more detailed information and a complete due diligence checklist, download the Laundromat Due Diligence Checklist.

Seeking expert advice

Don’t rely on data alone. You should also consult with accountants, lawyers, and industry experts who can give you valuable insights into the financial and legal aspects of the laundromat business. Connect with existing laundromat owners, too, for practical advice and industry-specific knowledge.

FAQs: How to Buy a Laundromat

1. How Can I Buy a Laundromat with No Money Down?

Explore seller financing, partnership investments, or SBA-backed loans to acquire a laundromat with minimal upfront costs.

2. What Should I Look for When Buying a Laundromat?

Assess location, equipment condition, revenue, and customer base before purchasing.

3. Is Buying a Laundromat Profitable?

Yes, laundromats have high success rates and steady cash flow, making them a solid investment choice.

4. How Do I Find the Best Laundromat for Sale?

Utilize online marketplaces, brokers, networking, and direct outreach to find laundromat listings.

5. What Is the Process of Buying a Laundromat Step by Step?

Set a budget and secure financing.
Find and evaluate laundromat listings.
Conduct due diligence and review financials.
Negotiate and finalize the purchase.
Obtain necessary permits and implement improvements.

Laundromat investors stand to benefit from a growing market, high success rates, and attractive profit margins - making it clear that laundromats are an attractive investment. Armed with the knowledge of how to find a laundromat for sale and the best practices outlined in this guide, you're well-equipped to tap into these recession-resistant opportunities and position yourself for long-term success in a growing global industry.

How to Buy a Laundromat: A Step-by-Step Guide to Finding the Best Deals