The TRUTH about Danny D'Angelo and the "Free Laundromat"

[@Jsanc2075]

Being one of Danny's clients (I hired him to get me a lease) I can honestly say he is legit. His system works, but it's super important that you as the client have to do the leg work. I can see how some folks may see Danny as arrogant, but he's not. Like Daniel said, he's super confident in his system. I've been working with him for 4 months and he is one of the nicest and funniest guys I've ever come across. Working with him is an absolute pleasure. When the time comes, you want a guy with his confidence covering your ass when you're in the trenches of lease negotiations. As a client, your most important asset will be patience. Obtaining a laundromat for free does not happen overnight.

[@traekiful]

How much did he charge you

[@traekiful]

I’m Danny dangeleo’s fb friend

[@marklahoud9394]

How long did it take you to find the right laundromat for take over? I just got the dvd. Going to watch it a few more times then reach out to him.

[@Jsanc2075]

@@marklahoud9394 It's been almost a year since I hired Danny and I do not have a laundromat yet. This isn't something that happens overnight. There's a lot of hard work ahead and you will learn a lot of patience. If you want it bad enough you will persevere

[@marklahoud9394]

@@Jsanc2075 thank you for your honest opinion! However Im going to be living in SC for another 3 to 4 years is signing a long term lease for 15 years which is very important Danny says and I get that. But since I’ll only be here for a few years is that kinda pointless?!?

[@jimc12]

Listening to his landlord calls with some of the people on the other line. After he hangs up with the landlord and speaks to the person wanting to take it over, scares me. As someone that owns a business that is looking to change. The pure ignorance of these people worry me, with the lack of personal knowledge they do not have. And that they are willing to get into business and they can't negotiate with potential business partner, because of there lack of knowledge. I started my trucking company after learning as a trucker for 18 years. 2 years of the 18 as a owner operator. The two years I self taught myself business.

[@rudolphg76]

Great video. I actually have his DVD. A lot of useful info there. What has been tripping me out however is this: In Houston, buying a descent average sized working laundromat will run you from 200,000 - 350,000. You have to put up a heafty down payment of course but if you do your research and it is profitable, you are buying an established working mat. If you take over a laundromat for free, you'll only do that if owner's not paying rent. Assuming it's in a good location, then you'd be taking over a "zombiemat" with old, poorly working equipment. Most likely one of the reasons it's run into the ground. If I take over, first thing I'll have to do is replace the machines with new ones (to drive in customers,etc). Equipping a laundromat with all new machines will run 200,000-350,000. So then what is the difference? In both situations, you're taking out a 200K-350K loan. But with the free zombiemat, you also don't know what kind of income it will bring in when you take out that loan.

[@HotDoggingwithDan]

Very legitimate concerns. I cant speak for Danny or how he would address these concerns, but I'll try my best to explain my personal perspective here.... Every business has expenses, and the expenses are generally grouped into 2 different categories. There is "Cost of acquisition", and there is "cost of operating". If you get the laundromat for free, your cost of acquisition is literally $0. You own that business free of charge. You are now a business owner and you are free to operate that business in whatever way you choose. Thats what Danny helps with. As far as cost of operating, you're correct that, more often than not, the free laundromat will have some issues, and the issues are always different with every mat that you scout. A lot of issues outside of the machines can be negotiated in the lease to be fixed by the landlord. In my case, the hot water boiler failed on the previous owner and he couldnt afford the $20k to replace it. I negotiated that, as well as other fixes, into the lease for the landlord to cover the cost, so the landlord paid to get my laundromat operable. There are a million reasons that a laundromat owner might not be paying rent. Lack of interest on the owners part (maybe passed down from parents to kids who didn't want it, which ive seen personally). Poor management. Relocating owners who just had to abandon ship for personal reasons, maybe a sick family member in another state (also seen personally). Personal financial problems of the owner (which is how I got my laundromat)... Poor machines are at the bottom of that list. Laundry machines can be fixed. In my case, all of the equipment in my laundromat is the same equipment that was there when I took it over... Some machines are 30+ years old. There were at least 20 (out of 50) machines not working when I took it over. I paid a local technician $1000 to get them all up and running. Thats a cost of operating. What Danny teaches is to let the laundromat pay for itself. In my case, I was fortunate enough to have the $1000 to fix the machines. Had I not, I still could've opened the doors with the few machines i had working and the laundromat wouldve made the $1000 in less than a month, so the laundromat wouldve paid for fixing the broken machines itself. Danny preaches to REINVEST. Take over the laundromat. Open the doors. Reinvest the income back into improving the business. Grow the business. Let the laundromat pay for itself. Even if you have to get all new equipment, you can get an equipment loan through the manufacturer for as little as $0 down and 3-6 months of no payments. By the time you have to make a payment on the equipment, you'll be open and making money, so again, the laundromat will be paying for itself. Its all about how you operate. Thats the key, and thats why his DVD goes into how to operate after you get the laundromat for free.

[@rudolphg76]

@@HotDoggingwithDan Thank you for your input. (I don't know why this ended up in spam as I just read it.) I understand that there are acquisition costs vs operating cost. But shifting one to the other doesn’t reduce or eliminate it. When you buy a currently established businesses that is already profitable, you pay extra for this convenience. In this case 300K. CON: it’s a lot of money to borrow. PRO: already established with customer base and verified profit. If business is really making 100K /year, you know you can pay off this loan within a few years. If you acquire a failing business or startup - PRO: lower entry cost. Less money to borrow. CON: higher risk. No proven track record. But at least you spent/borrowed less. So that is the tradeoff. This is the case in pretty much any business. With Laundromat, if you buy 300K laundromat, CON: it’s a lot of money to borrow. PRO: established laundromat with proven track record. 100K revenue so you can pay this loan off in a few years. If you however acquire a zombiemat for free, negotiate landlord to repair a/c, heater, windows, etc. CON: You don’t know how much revenue this mat will bring in since it’s essentially a startup. No established customers. You know business was already losing money otherwise you wouldn’t acquire it for free. Pro: should be much lower cost of entry since you didn’t pay for it. But again, we just shifted acquisition cost to operating cost. We moved money around. We didn’t lower it. I still have to borrow 300K from vendors for equipment. So, I still owe 300K that I must pay off. That amount has never changed. But now in this zombiemat scenario, I’m not sure how much revenue the mat will bring or if any at all. Even if it is “profitable” eg: 30K profit a year, I won’t be able to pay off 300K loan with that profit. I would need to generate at least 100K /year to try and break even and pay off the loan. 100K/year is a tall order for a new unestablished laundromat. Whether you call it acquisition cost or operating cost, I still owe 300K that needs to be paid back in both scenarios. But in scenario 1, I’m fairly certain this can be paid off unless I FUBAR the management. Scenario 2: no track record so may not make anything, make too little, or operate at a loss. But I still owe the same amount. Unless I’m just failing to understand something here, I’m finding it hard to see the cost benefit. Also: I say this while at the same time acknowledging my lack of experience, the fact that I may not fully grasp the full concept and may have my own blind spots in this area.

[@MrSolar.]

@@rudolphg76 You are 100 percent correct!

[@HotDoggingwithDan]

The difference is in the loan. When you take out a $300k loan to buy a laundromat, you arent buying brand new machines. You will still have machine issues. You are buying "goodwill", which, in reality, is worthless. For example, I was looking into buying a bar here locally for $100k. The taxes showed an income of $220k annually. The expenses were reported as $65k annually. In buying a bar in a leased space, there are no assets. Only goodwill. The income. The customer base. What the owner of that bar didn't tell me (and didn't expect me to figure out) is that out of the $220k income, $120k of it was a result of the owner leasing the bar for private events through the catering company that he also owned. If I had purchased the bar, the income would've gone from $220k/year to $100k/year overnight because it wouldve lost the revenue that the owner brought from his catering business. Taking out a $300k loan for the "goodwill" in a laundromat that will have the same maintenance issues as a zombie mat as far as machines go is a lot more risky than taking over a free laundromat and spending $300k on brand new equipment.

[@rudolphg76]

@@HotDoggingwithDan That's assuming you can bring back the customers to this zombie mat with this new equipment and make enough revenue to now cover your monthly operating expense + monthly loan payment. Until then you'd need to have to cover that expense with whatever reserve you have. The 40K I have saved up doesn't seem like it's quite enough. I'm not really sure what a healthy reserve would be when starting out.

[@traekiful]

I have the Danny dvd . I am going to rewatch it. I will have several businesses by the summer god willing. I need more info on rent abatement

[@HotDoggingwithDan]

Watch it a few times. You'll find something each time that you missed before. Abatement is just free rent. Its extremely common in commercial leases. Its designed to give the new tenant. (You) time to build/design/repair/upgrade the space as they need it so they can open up and gain a customer base before having to make the first rent payment. Ever seen some residential apartment complexes advertise "Move in today and get your first month for free"? Its the same thing. Abatement is just the commercial word for it on a commercial lease, and its typically 6 months to a year for free in the commercial world, rather than a month or two on a house or apartment.

[@tommaricle1782]

Former Hoosier so I love that part of the videos. I love seeing people with a business mindset. People can have an IQ that's through the roof but still just not get it with business. Keep it up.

[@frankpappalardo630]

Great video

[@tchims9103]

Do you still work with Danny? Are there additional fees after you’ve hired him to negotiate for you? Thank you SO much for sharing this information, means a great deal coming from an actual Danny DeAngelo method “alumnus”. I’m about to jump on board, and found your video invaluable.😊

[@falloutpictures]

That is how my friend started his computer repair business is through leasing. He is 5 years in and already the most successful repair business in our town. I love watching you vending. I am looking to leave my company to sling dogs myself. I did it during college and I miss it and still wondering why I left it.

[@dereksmith6097]

Awesome. I just bought the course, and I owned a laundromat in the past. Do you still own it and how is it doing today?

[@HotDoggingwithDan]

Nope. Got it for free, opened it up to the public, and sold it for profit.

[@waltbuzby8644]

This helps alot. Looking at getting his course soon. How long did it take you to find yours ? Thanks

[@HotDoggingwithDan]

I actually found my mat before I knew about Danny. I had no clue how to negotiate for it, and the owner was trying to sell it to me. I did a Google search, found Danny, and he helped me get into my mat for free.

[@timothypatenaude2350]

Awsome content. And awsome of you to reply in the comments below. You have given more knowledge than most books out there. I have owned Danny's DVD for the last 2 years. Right after I recieved the DVD I was involved in a work related accident that left me almost crippled. After numerous surgeries I'm finally on the road to recovery and I will follow my dream of owning multiple laundrymats. Love your videos and Following Keenan.

[@EB-ok3io]

Thank you for this honest review. You were the only one that came up in looking for reviews on Danny’s course. I like to hear pros & cons and all I got was the positive which makes me skeptical

[@nart9521]

Hi Bro How much his consulting -Help fees cost

[@PaulItaliaArmwrestling]

Thank you for this video, I was questioning his system after watching all his YT videos and seeing these Live calls he does which almost always go bad so had me second guessing the Whole system.. but seeing u have your own laundromat and vouching for his system gives me inspiration that I can do the same.. Thank you again just subbed to your channel I also run a KZbin channel and would love to have u on for interview to tell your start if u are interested… 🤠🇮🇹

[@zakichoudhary507]

Basically, it's like Dan Peña's finance purchasing thing. Gather a board, find a "motivated seller" with a cash positive business, convince an accountant/lawyer to front you, and presentations to get banks to loan you the money. The whole thing pays for itself. Except Peña targets clinics instead of laundromats. 😂 Wait. Why all these guys named Dan. 👀

[@HotDoggingwithDan]

I suppose you could do it that way... it doesnt really matter if its open, closed, cash positive, or cash negative... My laundromat was shut down for about 9 months when I took it over. Also, you don't need an accountant or lawyer to front you anything. When I say I got my laundromat for free, it was literally, in every way, FREE. It didn't cost a dime. I didnt borrow money, no seller financing, nothing... I just signed the lease and took it over.

[@zakichoudhary507]

@@HotDoggingwithDan No, no I meant Peña does it that way, the targets are multi-million dollar operations. 10s of millions in many cases. The board and stuff is for liability and to convince the banks etc. I had no idea you could do it with laundromats, and negotiate the rent abatement stuff 👀. lol I been watching Investment Joy for like a year, just realized he did something similar but with a private investor. Thanks for the breakdown man, great stuff. 👍

[@debo1937]

Did you use Danny to negotiate the deal with your landlord?

[@D_Tron1981]

How much is your monthly revenue from that business?

[@rhondaprice4805]

Thank you so much!

[@noahwoods5899]

How do I become a client? I see that I cant get the DVD but how do I get him to handle negotiations?

[@HotDoggingwithDan]

Start with getting his course... You'll get his direct email with that to reach out to him directly about any other questions or negotiating.

[@stann6868]

How does danny make his money? Does he take a percentage of your income? Or is his part small enough that the course price pays for it?

[@HotDoggingwithDan]

He charges for his course.

[@keithritchie2726]

How much to have Danny negotiate your lease?

[@HotDoggingwithDan]

You would need to reach out to him for that info. Like a lawyer, it depends how involved you want him to be. You can get his course for about $200 or you can get full consulting for about $2k... just depends on your needs.

[@saulurrutia9758]

I need to know how to open a laundromat, I’m in Virginia I yes move to a new place is no a decent laundry here. I need to know how to go into this business. I know you can help me. Thanks

[@HotDoggingwithDan]

Start at www.LaundryDan.com

[@oguzoguz4686]

How did you find the laundromat you own today? Did you go loopnet? If laundromat makes 50K net can you get it for free?

[@HotDoggingwithDan]

I found mine for sale on facebook. It doesnt matter how much it nets.

[@mig7290]

Wow what a video. I'm subbed. Huge Laundromat there. Not seen one so big here in Europe. And you do Hotdogs too. I'm subbed.

[@Satoshis8]

So what is the benefit that Angelo gets from that lease does it means that he owns your property(laundromat) but you can keep the profits?

[@Telegrm-t_OnlyPwr]

$10k

[@samfish6938]

You pay him $8000

[@Wogsmawp]

5:26 I think I know exactly what he’s doing I’d do the same damn thing open them machines up and get me a damn snack and drink 😂

[@HotDoggingwithDan]

Lol... negative. I would take quarters out of the change machine to get drinks and snacks. I had 3 massive locks on each machine that made them a pain to get in and out of, so I never would've unlocked the machines just to get a drink or snack. I think I was checking the money on the machines, or I had just finished restocking.

[@bryanpearce4440]

Your parents must be very proud of you.

[@HotDoggingwithDan]

They are.

[@gabrielmartinez3766]

Good job bro. I’ll be following u to see your success.

[@samfish6938]

$800 if you call him

[@jamieaubry8078]

Just subscribed to you. Thanks for your candor!

[@ronald3887]

Who won the 100$ giveaway?

[@HotDoggingwithDan]

There is a video coming this weekend with the announcement! Stay tuned! :-)

[@mctransportation9831]

The rap make your video almost unwatchable. You could cut it out.

[@kellywilliams2372]

Keep up the hard work Dan!

[@kevinwatson5833]

I found out about danny from a live stream a couple days ago thank you sir for answering one of my lingering questions about purchasing machines

[@Sohailali1]

I love your setup and your life. Can we please switch?! More security being added huh? I am not sure I like Angelo. He is arrogant and comes across as silver tounge snake charmer. I am not sure tho if he is legit like you say.

[@Sohailali1]

I miss hot diggity doggin videos.. damn virus..

[@HotDoggingwithDan]

I understand why you might see him that way. He is certainly a good salesman, and has some good sales pitches, but it doesn't negate the fact that what he's selling is information that works. Its a fine line between arrogance and confidence. He is a very confident man. He's confident in what he's selling, and rightfully so. He knows that what he's selling works. He's got successful clients all around the world that prove his methods every day... Clients with 5, 6, and 7 laundromats that were free, using the information that he shares. A big part of why his negotiations work has to do with his ability to show landlords that he is confident and knows what he's doing. Its all business.

[@HotDoggingwithDan]

@@Sohailali1 I miss them too! The bar is opening back up on July 4th! It was originally June 15th, but has been delayed due to damage as a result of the recent riots. SOON!! WE'LL BE BACK TO DOGGING SOON! I PROMISE! Thanks for your patience! Its much appreciated! :-)

[@Sohailali1]

@@HotDoggingwithDan I hope I see those videos. By way of how things are things are going it's not looking good here in Pakistan where I live.

[@Sohailali1]

@@HotDoggingwithDan I'll believe it if you say so..

[@justafryguy]

Thanks for sharing!

[@frankpappalardo630]

Great vlog thank you love your hotdog videos😅

[@Mental_Diet]

Thank you

[@samerkasfy2099]

Thank you for your video

[@TheRealfrost-qf9tm]

How can I be like you I need to do this to feed my family

[@HotDoggingwithDan]

Start with www.LaundryDan.com It takes work. It soesnt happen overnight. The best place to start is with education.

[@TheRealfrost-qf9tm]

Thank you so much my brother wish you nothing but safety and success

[@62streetlawyer]

Sounds 😎

[@sharonpodorski4687]

No

[@HotDoggingwithDan]

Yes

[@thomasperkins6879]

Great Job Man.

[@georgegonzalez2442]

Sounds unlikely. Any commercial property that gives you a long lease abatement is probably a place that has not been making lease payments, which is a bad sign. Why would you think if the previous lessor couldn't make the payments that you will be able to? And you probably need an excellent credit rating or a provable other source of income in order to take over a $300,000 lease. Do you really want to take on the debt, risk, and hassles of operating an unprofitable business?

[@HotDoggingwithDan]

George, no offense, but you obviously know nothing about commercial leases or laundromats, and judging by your use of the word "probably", you obviously have no experience with commercial leases. Allow me to teach you. I got 6 months of lease abatement on my laundromat.. Lease abatement is common in literally EVERY COMMERCIAL SPACE IN THE COUNTRY... likely the world. You can go to the Mall of America, the largest, most successful mall in the country, and get lease abatement. Abatement is designed to give the business owner time to build out the space to fit their needs before opening the doors and paying rent. Abatement literally has nothing to do with location or success of the business. Next, people fail in business for different reasons every day. In my case, I got my laundromat for free because the previous operator had personal financial problems with the IRS that had nothing to do with the business, but he started funneling business money to fix his personal financial problems, leaving him unable to pay the business bills... As the current operator of this laundromat, I can tell you for a fact that it is profitable and does very well. Next, Nobody checked my credit OR income to sign this 15 year lease... again, your use of the word "probably" tells me that you are making uneducated assumptions. I GLADLY took on the debt and risk, though I'm not sure what "hassles" youre referring to, as my free laundromat is not now and has never really been a hassle for me..... A negative mind will never achieve positive results, George. Instead of sitting at a keyboard making uneducated assumptions about what I've actually done in real life, that you obviously have no experience with, you should click on the link in the description of this video, buy the DVD, and educate yourself... People all around the world are getting profitable free laundromats and doing exactly what you're sitting here claiming can't or shouldn't be done. They got up out of their computer chair and made a decision to improve their life, and they went out and actually talked to commercial landlords, and they MADE IT HAPPEN! You can be like them, or.... you can keep sitting in your computer chair doing nothing but making false analysis claims and uneducated assumptions... that choice is up to you, buddy. Either way, good luck to you!

[@ms.5779]

@@HotDoggingwithDan Drop the 🎤 thanks for all this knowledge

[@devin11007]

@@ms.5779 _Absolutely!_

[@williamscholze1875]

“Sounds unlikely” based on what?

[@wendellmonster6179]

Great job 👍 your friend Sue 💕

[@HotDoggingwithDan]

Thank you! :-)

[@AngelaCancervive]

Hey, Sue!

[@wendellmonster6179]

Angela Roembke hi ! Hope you’re having a wonderful day thank you for stay Hi ! and say hi to Gunner for me too 😊take care guys 💕

[@warriorcity2308]

ONLY BOSSES ARE DOING THAT , THANKS DAN

[@marc-mv1kf]

Good video

[@christineibanez3305]

Cool

[@sheronicasmith9139]

Lol this guy is bogus Danny is the absolute truth !!!

[@HotDoggingwithDan]

Ummmm.... Im bogus? you should actually watch the video...