How to Value a Laundromat! | Following Keenan !

How Much is a Laundromat Value? In this video I discuses how to evaluate a laundromat with no paper work. Some owners will be less than forth coming with financials for you to determine value. Hope this can help others not make any mistaking when buying a laundromat. This mistake can cost you for some time to come. Starting a business is not easy so i hope this can help others.
If your still are trying to figure out what Following Keenan ! is? Well my KZbin channel is a combination of my money investment. How I run my passive investments and behind the scenes of what crazy thing happen. Some just typical days in life of laundromat stuff as well. Repairing machines, buying equipment, dealing with customers and buying more property. If you want to see what I've learned over the years in my life. Want to be entertained like MrBeast and other free laundromat, reality shows. Or need a good laugh. Then hit the subscribe button sit back and get a cold drink show about to start!!! I just love making fun and different KZbin Videos!!!!
I wear a Gopro chest camera for a lot of my footage. I shoot the rest with a Canon M50. Nothing fancy just good one on one contact with people, day in the life type content. I will also add advice of thing to do when owning a business. Mostly based off what I have learned doing it.
Meet in VEGAS at my "Roundtable Summit!" Meet and hear from @Investment Joy , @Hot Dogging with Dan , @The Williford Brother's , @Splash Em Out Laundromat , @Chock Full of Quarters , @Following Keenan ! , @Car Wash Chronicles , and many more! 📞 (JAN 2023)
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[@rodneycobb9190]

This helped me tremendously! Looking to purchase a laundromat, I'm doing research and due diligence to lessen the chances of regretting my decision.

[@blakebondurant7663]

Keenan is Always making great content and giving great "real world" advice!

[@livinwithlt]

Thanks for this video! Looking at buying my first one in a few years. Been following your channel for awhile. Great content.

[@freeetosaywhatilike7473]

Your right if they don’t have their paper work in order it not right to buy it at what they asking (call water,Gas,and electric company give them the address and you have all the information on that place put your number together and you know what it make ! Same way here but not just laundromats other business too👍🏻 Jing Jing Jing like that sound money 💰

[@MegaHinga]

Love this mate would love to see more videos on this

[@cameronbales7454]

First one! Love Your Channel!

[@FollowingKeenan]

Thanks!

[@ZeeaaQuadri]

This is brilliant! I'm looking to evaluate a laundromat to purchase and this will really help. Thanks!

[@FollowingKeenan]

Glad it was helpful!

[@davidoutdoors74]

It’s amazing how handy you are with those machines

[@kb93_]

Hey Keenan, love the breakdown. I always believe if the numbers make sense it's worth the investment. At times it may even make sense to either breakeven or run a small loss at the end of the year (this is when the land you're on has incredible future value and if already have a high income). My question is about the expenses you're running. Do you not have hired staff on sight? Would wages not be factored into the equation? I guess it would depend on hours of operations and wages in the area.

[@dariocaligiuri4442]

This is fantastic!!!! Great job.

[@Smokecheck7]

This is a great video. I never thought of that. The water usege won't lie

[@berylwhite2983]

You always have a good message. But one has to wonder did you leave the dog in the dryer too long? That small dog this is not look like kind of dog that would go with you. LOL

[@omarjvillasenor]

This was the information I needed! Thanks.

[@maurosouza8035]

Love your videos!! Specially your intro LOL!!! I'm looking to open a laundromat with a partner at a really good location a couple of blocks from the beach. Problem is that it has no gas service. Is it worth installing LP tanks? What are your thoughts? Thanks in advance.

[@FollowingKeenan]

Are there any other laundromats like down the road? So you can see what they are doing. Electric dryers can be super expensive. So i like gas, lp runs about the same.

[@MikeWilliams-fj7nh]

I know I have a lot of questions but I really like your videos an u really explain very well so I'm just looking for the right help that u r providing

[@FollowingKeenan]

I dont mind. Question help me come up with video ideas.

[@jeremeolson5555]

thanks for the information im looking at one right now. i will use this promptly

[@dlawman21wilson76]

Amazing video bro

[@thomassnew1053]

Excellent video Keenan

[@MikeWilliams-fj7nh]

Good morning my friend hope all is well if I wanted to purchase washers from Dexter Or speed Queen how would I go about it do I call and tell them I want a certain amount Of washers and dryers because I remember you saying that certain things that they don't do when it comes to purchasing in bulk

[@JohnShapiro-yk5un]

Thank you. I'm curious why do you opt to buy the real estate rather than rent it?

[@FollowingKeenan]

Long term value. Say when I'm 50 i want to retire. If my laundromat doing great sales. Equipment only 10 years old. I can sell just the business for 2.5 to 3 times. Then rent the space. Win win for me.

[@trojanette8345]

Dear Keenan: Have another question for you. This is only my 2nd of, one of your videos I'm watching. Wanted to run something by you because I'm not getting ANY help from city officials to 'sus' out water usage info due to change in some municipality laws. Would love to get your thoughts on gauging water use Vs. square footage / to (possible) profits of a particular location. Just sort of want a gauge as, to whether or not I am thinking in the right direction. Then, I'll follow up with a question. Here goes: There is a location near me: Square footage is an insane (approx) area of 5,500 sq feet (although I've seen another approx estimate of supposedly 7,700 sq ft). The location has roughly 80 machines!! 60 of those machines are all WASHERS of varying sizes and capacity loads, at different price points. Sizes range from an 8 or 10 pound (baby clothes size) load for about $2.40 on the lowest end....all the way up to a gigantic 60 or 65 lb load which I believe sells loads for roughly $6.80 or $7.00, per cycle. (Sorry I can't remember which). The location is in a heavily trafficked vehicular corridor.... it's slightly side corner adjacent, to a major intersection, with high visability on the side of the building for signage. You want to take a stab on either how much water such a location uses or how much such a large location, COULD have the potential to generate, in revenue? Any guesses are fine with me. Thank You for your consideration of the above.

[@FollowingKeenan]

Water usage guess 80,000 to 110,000 gallons. Based on how busy it is. As for what it could make based on what i do. All depends on location like demographic of customers. But my guess i could do $35,000 month, with that size place. But i think the vend prices you have are low. My 60lb washer are $8 and $9 in my places. Also my little machines are $3.50 and $4.00. Hope that helps!

[@trojanette8345]

@@FollowingKeenan Demographics -- ab't 90 % Latino, with a Chinese partner / owner / operator. Which could account for Y prices are low. When this operator came into the area he had the highest prices IN the area. Nobody was charging $7.00 / wash at that time. Now he's on the low end compared to other LATINO owned laundromats that are frequented by THEIR own people. The little machines are definitely no more than about, $2.40 with only 1 of them for some strange reason priced at, $3.40. Thanks for the insight.

[@johnc8112]

Great video and keep up the awesome work you do. We have to teach others.

[@kordin113]

Awesome, this is evergreen content

[@法克-f3x]

great!

[@billjohnson6300]

Thanks Keenan! Great advice!

[@anigermontes2472]

Thank you for the valuable information.

[@williampineda1841]

Thanks for the tip. Good thinking

[@firebeppo]

Keenan, I follow a few laundry ppl & is it best to buy or lease a laundromat?

[@jeffpratt605]

Hi Keenan How much was your water bill / quarter when you did this calculation I am trying to calculate profit of a laundromat using the water bill amount

[@moonmanhennessey]

thanks for the tips. I would like to start up a laundromat here in Australia. Bit scared and not sure whether to start new or buy an existing one. Thanks

[@theonlyalexoliveira]

Appreciate you

[@oliverwilliams6873]

Great, thanks

[@yc6817]

Best video ever! Thank you so much

[@jesusnotcaleb5220]

Keenan I greatly appreciate your assistance. However, the water company will not release information if it’s not “your laundromat’s account”

[@jenniferyoung4305]

Hi Keenan, I've been watching your channel for a long time, I'm attempting to value a laundromat that I'd like to buy. I'm having trouble understanding how much water front loaders use per full wash, not cycle, on average. Would you have any tips on determining this so I can use your method for income statement validation? Thank you, Eric.

[@FollowingKeenan]

Divide total gallons of water use by 30. Then multiply by your average vend price. Then that with 10 percent of what they are making. 30 is average water used by your washers.

[@jenniferyoung4305]

TY, Merry Christmas to you and your family!@@FollowingKeenan

[@terencewalls5894]

Great info. Thanks for the advice.

[@nuttsizzle]

At 2k/month of profit, how did you come up with an offer of 70k for the laundromat? Also, what was the initial selling price of the laundromat? Great info in the video, I’m in the process of looking for a laundromat to buy here in CA and this info helps a lot.

[@FollowingKeenan]

70,000 was for laundromat and real estate. I mainly bought it for the commerical real estate. Laundromat I kept just to see. Once I realized what I had just kept it running. If you lease a space your value is just the equipment and buisness itself. So be careful on old stuff

[@bradschmittling8118]

Yea yup California did you say that right Good luck

[@MikeWilliams-fj7nh]

I have a few questions I would like to get your input on what should I do 1st once I find the building that I want to turn into a laundromat

[@FollowingKeenan]

See if the area is good. On a busy street, near a McDonald's, dollar tree, family dollar, dollar general and a auto parts store? One way to do that is find a locale laundromat dealer. See if they can run demographics on area. Most can do it very quickly. See if it wven worth opening a mat.

[@MikeWilliams-fj7nh]

It's actually in a perfect place surrounded by many of those businesses that you named

[@FollowingKeenan]

@@MikeWilliams-fj7nh find a good dealer. Go look at the nicest laundromat around that area. See what equipment they use. Normally the nice places use the good dealer. So you'll have greqtbdealer support if need be.

[@MikeWilliams-fj7nh]

Ook So what do you recommend do you think it's a good idea to have card using machines or quarter machines are both for people who are not computer savvy

[@FollowingKeenan]

Card are easier for owners, quarters can be a pain. But some areas people will not use a card store. Unless all mats change. My area card stores tend to fail. Crazy. So that will be totally dependent on your type of customers. I would see what your competitors are doing. If your buying new equipment i would get touch screen, apple pay, etc. If need be also have a quarter accpetor. But really if customers will buy into card system. You can leave out quarter accpetors.

[@Ajp167]

Great video buddy. Thanks

[@jeffreygrullon2962]

That sounds like a $50k discount. 👍

[@randallewebb]

This was a great video.

[@bob4q]

The water company will just give me the information upon asking? Did you just call, request online or have to put something in writing? Thanks 🙏🏽

[@FollowingKeenan]

Yes some will. I just called and asked for monthly gallons used. That not really very privileged info. Most city's that have there own public works water department is even easier to get info. Hope that helps!

[@DrPatrickHelps]

Great video. How did you come to a 70k purchase price? Thanks.

[@FollowingKeenan]

I was just going by the condition and age of the building. In 2008 value was low. I also knew the owner was in a hurry to unload it. She was asking 130,000. I started at 70k. Realtor told me I was nutz. 1 hour after I made the offer it was accepted.

[@edward88n]

what if the state you are in the company can not share that info without a legal form.

[@robertlaird6746]

Thank you so much for answering my question and so perfectly. Now I can move forward and try to find a laundromat with confidence. Question, I'm a carpenter by trade and have built several homes from the ground up with my own hands and without hired help. My question is, do you recommend building a brand new laundromat if I have those skills and I can't seem to find the right deal to purchase an already existing laundromat?

[@jesusfelix2605]

Great question I had the same

[@juliocalafat6177]

Thanks for the video really helps me out

[@AquelloSuperNatural]

Thanks alot for this info!

[@babowantedgaming]

How and what kind of loan did you get?

[@griffinryan4890]

Thank you great info!!!!

[@johncastillo7264]

So what if they don't give me any Bank statements and tax returns and just want to give me p&l's for the last 6 months, utility bills, and a copy of the lease?

[@TheMroldtimer]

How would you determine how much a laundromat is worth? 40-50x the monthly net?

[@FollowingKeenan]

Value of equipmnet your buying. And figure in income it makes. In my area most people like a 5 or 6 cap. So a laundromat net 36000 a year figure 170,000+/-. With good equipment. Over pay and your working for free.

[@TheMroldtimer]

@@FollowingKeenan Thanks Keenan. I’m currently looking at one. Price is 150k. It does about 40k net annually. But it is a very small mat. Only has 12 washers and 13 dryers. All working. My concern is the bank will look at the 40k net as really marginal. Since payments on a 150k loan will be around 3k a month.

[@FollowingKeenan]

What the loan terms? I usally get 15yr loans at 4%. Laundromat i built cost 270,000 with building my payment is $1840 Also how old the equipment. The price for new on 12 washers and 13 dryers. Should be around $120,000 to 140,000 new. So if equipment over 5 years old not worth much.

[@TheMroldtimer]

@@FollowingKeenan Well. Owner is willing to carry with 40k down. 5 year term 5-6%. Equipment is 8-12 years.

[@zrivera4950]

Have a location up for sale over my with an asking price of $200,000 Claims 47 Dexter washers and dryers, but that's not true... In that number are 5 top loaders that aren't even in service. 2 top and bottom dryers. There is no utility sink, 1 basket for clothes. Some other issues with some of the machine like water flow. Claims Gross revenue is 150k, but rent in a plaza $3,625 monthly. Directly across the street from a Burgerking as well as other business nearby Lower income neighborhood No Financials, which is worrisome. I really like your water usage method.

[@MikeWilliams-fj7nh]

How do I go about finding companies the sell washers an dryers. So that I can do my business plan an have the numbers I need for how much the washers and dryers cost in order to show the bank wut I need the money for

[@FollowingKeenan]

Look up speed queen, huebsch on web. Should have a locarion for entering a zip code. That will give a dealer in the area your going to build.

[@alirezashirazifard8990]

Small 20 lb washers are over $7 K 30 lb $8.5 K 60 lb over 12 K 80 lb over 20 K These are based on Speed Queen washers The 30 lb dryers are over $7K 45 lb. $ 10K You need base to install them figure around $500 & up for each machine plus installations Bill changers 2 - &4K and up Boiler around $10 K plus installation Tell your bank minimum $200 K This guy was giving u a good advice but building a new laundry in Northern California will cost you over $500 k easily

[@247coinlaundry8]

Love the dog 🐕

[@a2rproducts756]

is it worth building a new laundromat or getting one built and upgrading

[@a2rproducts756]

good you didn't fall asleep in stats class, lol

[@FollowingKeenan]

starting out buy one run down, in good location!

[@Mustang-mike302]

Thanks !

[@Connor018]

Is the coin shortage giving you any problems?

[@FollowingKeenan]

No problems so far. Bank I use is still able to get me quarters. We do have a lumber storage I'm going to talk about.

[@davidoutdoors74]

How many laundromats do you own

[@FollowingKeenan]

3

[@redelstein2000]

Looking at buying a laundramat that is for sale. I need some help putting a value on it. If you could answer some questions it would be appreciated. If so, reply to me and I will give you my contact information. This video helped me a lot.

[@xinyanxu8273]

I will buy when you’re selling! [e-mail]