Podcast Summary: The Side Hustle Show – "10 Reasons to Buy a Laundromat Business as Your Next Side Hustle (Greatest Hits)"
Release Date: July 3, 2025
Host: Nick Loper of Side Hustle Nation | YAP Media
Guest: Jordan Berry, Founder of Laundromat Resource & Multi-Laundromat Owner
1. Introduction
Nick Loper introduces the episode as part of the Side Hustle Show's greatest hits collection, highlighting an upcoming real-time check-in with Jordan Berry about his laundromat business four and a half years post the original recording.
Quote:
“...stick around at the end for the real time check in with Jordan to see how his business is doing four and a half years after this original recording.” – Nick Loper [00:00]
2. Jordan's Journey into Laundromat Ownership
Jordan Berry shares his unconventional transition from pastoral ministry to owning laundromats. Initially, he and his wife considered renting out their house to purchase a condo in Hawaii. However, his wife proposed buying a laundromat, inspired by a family friend who successfully transitioned from a tech job to running a laundromat with minimal hours.
Quote:
“...if he could quit his tech job, you know, and just run a laundromat, and he's there, you know, five, ten hours a week, max, that sounds like what we want to do.” – Jordan Berry [03:13]
3. Analyzing Laundromat ROI and Valuation
Jordan explains that laundromats are typically valued based on net income, often ranging between three and five times the net income. This valuation method can yield impressive unleveraged returns of 20-30%.
Quote:
“The typical multiple is three and a half to five, somewhere in that range... your returns can easily be over 20 and even over 30%.” – Jordan Berry [04:04]
4. Finding and Evaluating a Laundromat to Buy
The initial process involves searching online listings, contacting brokers, and assessing leases. Jordan recounts their first purchase experience, which turned out poorly due to over-reliance on broker-reported financials and purchasing a rundown establishment in a challenging area.
Quote:
“We ended up losing a lot of money for a long time before we were able to kind of pull ourselves out of that situation.” – Jordan Berry [11:31]
5. Common Mistakes and Lessons Learned
Jordan emphasizes the importance of not solely trusting brokers, conducting independent due diligence, and verifying financials through methods like coin collections and utility comparisons. He highlights lease negotiations as critical to ensure long-term stability.
Quote:
“Never rely on the person whose income depends on you buying anything... have somebody else who's experienced in the industry...” – Jordan Berry [13:26]
6. Financing Your Laundromat Purchase
Financing options include SBA loans, laundromat-specific lenders, and seller financing. Jordan advocates for leveraging specialized lenders who understand the business and are invested in your success.
Quote:
“There are laundromat specific lenders... their interests are aligned with yours. They want you to succeed.” – Jordan Berry [17:41]
7. Managing Your Laundromat: Models and Operations
There are two primary management models:
- Unattended Model: Automated access with daily maintenance visits.
- Attended Model: Staff present throughout operational hours handling customer service and additional services.
Quote:
“Fully staffed all times, they highly focus on customer service, they offer drop off service, they do pick up and delivery...” – Jordan Berry [57:50]
8. Maximizing Cash Flow and Building Equity
Jordan discusses various revenue streams beyond machine usage, such as ATMs, vending machines, massage chairs, and additional services like wash-and-fold or pickup and delivery. Enhancing net income directly boosts business equity.
Quote:
“Every dollar of net income you add to your business is going to add three and a half to $5 of equity.” – Jordan Berry [30:06]
9. Tax Advantages of Laundromat Ownership
Owning a laundromat offers significant tax benefits, including the ability to deduct business expenses before calculating taxable income and depreciating equipment and real estate assets.
Quote:
“Depreciating the equipment basically means the equipment loses value in the IRS's eyes and you get to deduct that off of your income.” – Jordan Berry [31:31]
10. Marketing Strategies for Success
Effective marketing is crucial to attract and retain customers. Jordan outlines a three-step strategy:
- Dramatic First Visit: Promotions like free washes to draw customers in.
- Second Visit Incentives: Encouraging return visits through targeted promotions.
- Retention: Maintaining high service quality to ensure long-term patronage.
Quote:
“When you open a new laundromat or you retool your store... do something dramatic to get people in the door the first time.” – Jordan Berry [36:05]
11. Current State and Future Trends (Post-Original Recording)
Four and a half years later, Jordan has expanded to owning five laundromats with plans for more. The industry faces challenges like increased competition and higher acquisition multiples (now around 4.5 to 5.5 times net income). However, technological advancements in remote management and payment systems have enhanced operational efficiency. There's also a surge in service-oriented laundromats, such as pickup and delivery models, paralleling trends in other service industries like lawn care.
Quote:
“Now there's a lot of technology... you can manage them from anywhere in the world if you set them up right now.” – Jordan Berry [55:04]
12. Final Advice for Side Hustle Nation
Jordan advises aspiring laundromat owners to work with the best in the industry, leverage existing knowledge and resources, and persevere through challenges to unlock substantial financial rewards.
Quote:
“When you work with the best, you end up becoming one of the best people.” – Jordan Berry [42:37]
Key Takeaways:
- Laundromats as Side Hustles: Offer substantial cash flow and ROI when properly managed.
- Due Diligence: Essential to verify financials and negotiate favorable leases.
- Diversified Revenue Streams: Incorporating additional services can significantly boost profits.
- Tax Benefits: Depreciation and business expense deductions enhance profitability.
- Technological Integration: Remote management and cashless systems streamline operations.
- Market Trends: Increasing interest and technological advancements are reshaping the laundromat industry.
Resources Mentioned:
- Jordan Berry's Website: laundromatresource.com
- Laundromat Resource Podcast
This episode provides a comprehensive exploration of laundromat ownership as a viable side hustle, blending practical experiences, strategic insights, and forward-looking trends to equip listeners with the knowledge to succeed in this business venture.