How I’d make $100k/yr from a laundromat with $0 down

Most people walk past laundromats without giving them a second thought…

And that’s why they’re one of my top businesses to buy..

Laundromats check all the boxes for a great acquisition.

• They’re recession-resistant

• They require minimal employees (often just one part-time person)

• They’re cash-based businesses with recurring revenue

• And the industry is incredibly fragmented, with most locations owned by retiring baby boomers

Almost every laundromat has no marketing budget or strategy, and relies entirely on location and foot traffic…

Which means you can buy one that's been run in a very old-school way, add some basic marketing, and immediately increase the value.

Here’s exactly how I’d buy a $500,000 laundromat with zero out of pocket.

The deal structure

I’d start by combining an SBA loan, investor capital, and a seller note.

The SBA covers 90% ($450,000), an investor gives $25,000 (5%) in exchange for 10% equity…

And the seller provides a $25,000 seller note (5%) on full standby for the life of the loan.

You’re not making payments on that $25,000 for at least 10 years (as that’s the life of the SBA loan), and the bank counts that 5% towards your equity injection.

This means you only need the $25,000 from the investor, and the total out of your pocket comes out to zero.

How the math breaks down

This $500,000 laundromat generates $35,000 per month from three revenue streams:

1. Self-service machines bring in $25,000 per month

2. Vending machines add $2,000

3. And wash-and-fold services add another $8,000

Your expenses run about $20,000 per month, including:

• $5,000 loan payment

• $4,000 in utilities

• $5,000 rent

• $4,000 in labor

• And $2,000 for maintenance

That leaves you with $15,000 per month in profit, or $180,000 per year.

Since you own 90% of the deal (your investor has 10%), you’d take home around $160,000 annually.

Not bad for putting zero money down!

What to look for

You want to find a laundromat with at least $10,000 a month in existing cash flow, and the location should be over 5 years old with equipment under 10 years of age.

Look for lower to middle-income areas where people don’t have in-home washers and dryers…

And make sure there’s low competition, meaning, don’t buy where five others exist within a square mile.

Finding them

The best way to find off-market deals is to drive around your area, walk into locations, and talk to owners.

(Direct mail letters to all the laundromats in your area, expressing your interest, can work too).

For on-market deals, your best bet is smbmarket.com.

Your time commitment

Plan on 5 to 10 hours per week, especially in the first six months.

You’ll be setting up remote monitoring, updating the space, coordinating maintenance, and managing your part-time attendant.

After that, it can become truly semi-passive with the right systems in place.

Now, finding deals that meet these numbers and structuring them creatively isn’t easy.

But it’s a lot more attainable than you might think.

If you’re interested in buying or investing in a small business, I occasionally share vetted small business opportunities with this email list.

If you want to get those broadcasts, just fill out the short survey below:

👉 I want to buy or passively invest into a small business (2-minute survey)

Or, if you’re thinking about selling your business and are actively looking for buyers, let me know below:

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Onward,

— Ben Kelly