Laundromat Influencers Are LYING to You: An SBA Loan Broker and Laundromat Owner’s Perspective
Hi, I’m Keira Hamilton. I’m an SBA loan broker and former laundromat owner. In this post, I want to share some hard-earned truths about laundromats and the myths around "passive income" that you’ve likely encountered online.
As someone who helps entrepreneurs obtain financing for business acquisitions and has firsthand experience running a laundromat, I’m here to help you cut through the noise and understand what it’s really like to buy and operate a mat.
1. The Passive Income Myth
If you’ve scrolled through Instagram or YouTube lately, you’ve probably seen ads promising you can buy a laundromat with no money down and earn passive income. Sounds too good to be true, right? That’s because it often is. From my own experience, laundromats can be great businesses, but they’re far from the “set it and forget it” type of passive income influencers make them out to be.
When I owned a laundromat, I quickly learned that it requires a lot more than just showing up to collect coins. There are daily responsibilities, maintenance issues, and customer needs that require constant attention. Can owning a laundromat be more hands-off than a typical 9-5 job? Sure can. But calling it passive income is a major oversimplification, and you should be skeptical when you hear it.
2. Beware of Pre-Recorded Webinars and False Promises
Recently, I went down the sales funnel of a “passive income coach”. I was very skeptical of her program, but I decided I should research further before passing judgment. I attended what she called a "live" webinar, but it quickly became obvious that it was pre-recorded. I asked multiple questions in the chat and the Q&A section, but none of them were answered. This was a red flag for me, and a clear sign that the whole thing was designed to funnel people toward her paid mentorship program rather than provide genuine value.
The more I dug into the program, the more red flags I saw. The coach’s explanations were vague and her claims were misleading (examples to follow).
I even reached out to the coach for clarification on some of her points and offered to pay for her time to chat, but the only option was to buy her full mentorship package. This kind of upselling without transparency is something I advise all potential business owners to avoid.
3. The Reality of 100% Seller Financing and “Free” Laundromats
One of the big selling points these influencers push is the idea of buying a laundromat with no money down through seller financing. While I understand the appeal of this strategy, the truth is far more complex. You’ll hear that seller financing is a great strategy because it poses no risk to the seller. This is simply false.
If someone sells you their laundromat with 100% seller financing, it means you don’t have to put any money down. You make monthly debt payments, but you own the business. Typically it’s written into the contract that if you stop making payments, the seller can take the business back, hence the claim that there is zero risk to the seller.
But if you’ve gotten to the point where you can’t make payments anymore, what kind of shape is the business in? Chances are the asset they’re taking back won’t be worth much.
I can tell you I would have only sold my laundromat with 100% seller financing in two situations: 1) I was selling to a family member or trusted friend, someone I wanted to help get a leg up in the industry. 2) I was desperate to get rid of my laundromat.
Chances are a laundromat being sold with 100% seller financing is not going to be in good condition. The machines may be outdated, the facility might need repairs, or the customer base could be declining.
You’ll also hear influencers talk about getting a laundromat for “free” by working with the landlord directly. Maybe the owner abandoned the mat or hasn’t been making rent payments and the landlord wants a new operator in place. In these situations, you have to ask yourself–why was this laundromat abandoned, and do I have the skills, resources, and time to revitalize it?
You may think you’re getting a deal, but what you’re really buying is a lot of work. If you don’t have a plan or the resources to invest in upgrades and customer retention, that “no money down” deal could cost you more in the long run.
4. Laundromats Take More Than 20-30 Minutes of Work a Day
One of the biggest myths I hear is that laundromats only need 20-30 minutes of attention a day, and that the majority of this work can be outsourced to an employee so that owners only need to go in occasionally to collect coins. This is ridiculous.
Even if you have an employee, they’re not going to be able to squeeze daily responsibilities into 20-30 minutes, especially if you want to run a profitable and customer-friendly business.
When I owned my laundromat, I offered wash and fold services in addition to the self-service machines. These extra services required staffing, scheduling, and constant management. But even for self-service mats, you’ll need to handle machine repairs, clean up after customers, and manage the day-to-day operations of the facility. You can hire help, of course, but that adds another layer of responsibility—managing employees.
So what is a realistic time commitment to expect? This is really going to depend on your laundromat, so I’ll just speak to my experience. In a typical week, I would spend 7-10 hours working on my business, either physically being there or working on it remotely. Most months I was making about $150/hr for this work, which was a higher hourly rate than my corporate job. But those 7-10 hours needed to be flexible. It would have been really hard (maybe even impossible) to successfully run my particular laundromat if I’d kept my day job.
Running a laundromat, especially one that offers extra services, is far from passive.
5. Income Checks in “No Money Down” Programs: A Hidden Barrier
One thing that really stood out to me during my research into these programs is that despite their claims of “anyone can succeed,” some of these passive income coaches require an income check for their mentorship programs. If you don’t meet a certain income threshold, you’re blocked from participating. This directly contradicts the “you don’t need extra money” claims they make.
Final Thoughts
I want to make it clear: I don’t think all of these passive income programs are scams. I even believe that some of the strategies they teach can work—for the right person, in the right situation. But the truth is, laundromats aren’t easy or completely passive, and they require more than just a financial investment. They require time, effort, and hands-on management, especially in the beginning.
If you’re thinking about buying a laundromat, or any business for that matter, I encourage you to do your homework. Don’t get sucked into the dream of passive income without understanding the full picture. Ask questions, talk to real business owners, and remember that if it sounds too good to be true, it probably is.
If you want to learn more about laundromats and business acquisition financing, check out my YouTube channel, stop by my Office Hours, or book a one-on-one consultation with me.
