How to Find a Laundromat For Sale

Laundromats represent a unique and exciting investment opportunity. Not many other business types experience a 95% success rate and 20 - 35% profit margins. Laundromat investment benefits go beyond sheer revenue—the global laundry industry has been projected to grow by more than a third (37%) between 2020 and 2025. Your slice of the pie is yours for the taking! As long as you go about it the right way. However, how do you find a laundromat deal with a strong ROI?

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 for how to find a laundromat for sale.

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 rest assured you end up with the best option for your business goals:  

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:

• 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.

Preparing for your investment in a laundromat business

There are many important factors to consider when buying a laundromat. When making the decision to invest in this industry, thorough preparation and understanding of financial commitments are essential to your success. Here are the steps you should take to prepare for your investment:

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.

4. Find all available funding options

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 Capital: 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.

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

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.

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.

Navigating the laundromat purchase process

Now that you have all the essential tips to shop for your laundromat, you should learn the steps to ensuring a smooth and successful purchase. Here’s a brief guide on how to buy a laundromat:

• Budget and finance assessment: Determine your investment budget and secure financing options, whether through banks, SBA loans, or alternative lenders.

• Find and evaluate listings: Use online platforms, business sale marketplaces, and local networks to find potential laundromat listings. Weigh all your options and conduct thorough due diligence on selected properties.

• Legal review and negotiations: Hire a lawyer to review all legal documents, including lease agreements, permits, and licenses. Negotiate terms with the seller, keeping in mind the valuation derived from your due diligence.

• Close the deal: Finalize the purchase agreement with all agreed terms. Complete the financial transaction and transfer ownership.

• Post-purchase actions: Transfer or obtain necessary permits and licenses. Implement any planned improvements or operational changes.

 Legal and financial considerations

The importance of understanding the legal and financial implications laced with buying a laundromat can’t be overstated. Here are the housekeeping items that must be addressed in the buying process: 

• Legal compliance: Double-check that all legal aspects, such as zoning, environmental regulations, and lease agreements, are in compliance and favorable for your business plans.

• Financial transparency: Verify and understand all financial aspects, including income, expenses, and potential liabilities of the laundromat.

• Contractual agreements: Review all contracts and agreements carefully, preferably with legal counsel, to understand your rights and obligations.

Conclusion

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.