In this episode of Raising Private Money, Sam Wilson tells us about his experience in landing his first deal with private money. As a former skeptic of private money, our guest today talks about his success as a full-fledged convert who has raised over $8 million in private money!
Today, Sam shares his secrets on leveraging his deals to invest in Laundromats. Did you know you could land at least 25% ROI by investing in existing laundry facilities? And with a 95% industry success rate, too! So if you’re looking for a highly profitable and failproof venture, tune in to learn about scouting for Laundromat deals, mitigating the risks, and how laundry facilities will always be profitable, even when the economy is on a downturn.
Join us for this episode to hear Sam’s success story with private money and how you can join in on this money-making strategy!
Key Takeaways:
- How to secure your first private money deal
- Why now is the best time to invest in Laundromats
- Finding opportunities in fragmented industries
- How Laundromats are sustainable in every economy
- Sam’s real estate investment strategy
- How to mitigate the risks of investing in laundry facilities
- The best approach to finding Laundromats sellers
- How you can start investing in Laundromats today!
Check out my book: 7 Reasons Why Private Money Will Skyrocket Your Real Estate Business and Help You Build Incredible Wealth!
Get it here for FREE: www.jayconner.com/moneyguide
Sign up for the Private Money Academy and get 4-weeks free: https://jay-conner.mykajabi.com/offers/AMM4hCPW/checkout
Connect with Sam and Bricken Investment Group:
Website: https://brickeninvestmentgroup.com/
Email: sam@brickeninvestmentgroup.com
FB: https://www.facebook.com/HowtoscaleCRE/
Instagram: https://www.instagram.com/howtoscalecre/
Twitter: https://twitter.com/howtoscalecre
Youtube: https://www.youtube.com/channel/UCsXj5_qjplJKCZa-78aEBKg
Linkedin: https://www.linkedin.com/company/bricken-investment-group/
https://www.linkedin.com/in/samwilsonhowtoscalecre/
Learn How To Vet A Deal In Under 10 Minutes: https://brickeninvestmentgroup.com/checklist/
Guide To Quitting Your Job Through Real Estate Investing:
https://brickeninvestmentgroup.com/guide
Timestamps:
0:01 – Raising Private Money with Jay Conner
1:00 – Today’s Guest: Sam Wilson
1:58 – Running Out Of Capital? Raise Private Money Now!
3:40 – How To Start A Conversation With A Potential Private Lender
6:28 – Using Private Money Is Offering An Opportunity
9:27 – Jay’s Free Money Guide: https://www.JayConner.com/MoneyGuide
10:12 – Big Money In Investing In Laundromats?!
11:46 – What Is Fragmented Industry?
16:13 – Best Investment Strategies
18:39 – 25% ROI In Investing In Laundromats
23:24 – Existing Laundromats vs. New Build
25:06 – Marketing Strategies In Finding Laundromat Facilities
27:48 – Capital Investment For Laundromats Facilities
30:08 – Invest With Bricken Investment Group: https://www.BrickenInvestmentGroup.com
Clean Up With Private Money… a 25% ROI- With Jay Conner & Sam Wilson
[00:00:00] Sam Wilson:
Anytime you can find a fragmented industry consisting primarily of mom-and-pop owners, and I’m gonna say this and it’s gonna maybe hurt some feelings, but unsophisticated mom-and-pop owners without the systems, the processes, the technology, or the capital backing to really turn it into a professionally run business. It is ripe for someone to come in and consolidate.
[00:00:21] Narrator:
If you are a real estate investor and are wondering how to raise and leverage private money to make more profit on every deal then you are in the right place on raising private money, we’ll speak with new end seasoned investors to dissect their deals and extract the best tips and strategies to help you get the money because the money comes first. Now, here’s your host, Jay Conner.
[00:00:59] Jay Conner:
My guest today has raised over 8 million in private money, and he has been involved in all kinds of real estate, in just about every way possible that you can think of from auctions, foreclosures, fixing flips, rentals, and hard money syndication. Buying houses subject to the existing note. Lease options, brokerage, self-directed IRAs, commercial assets.
[00:01:24] Jay Conner:
You name it. He’s been a part of it. And now his most recent ventures and interest and favorite part about real estate investing today is actually expanding in his investments in laundromat facilities. I hear that laundromats can like print money for you. I’m not sure, but in just a moment, you’re going to be meeting my guest, Sam Wilson, right after this.
[00:01:57] Jay Conner:
Sam, to get the show kicked off. My lands, you’ve raised over 8 million in private money and this is raising private money, for your real estate deals. This is what we talked about on the show. And first of all, what was it in what part of real estate was it? Take us back to when you first started raising private money.
[00:02:19] Jay Conner:
Why did you start raising private money and for what kind of deals was it?
[00:02:23] Sam Wilson:
I started raising private money. W I mean the rest of us, at some point we run out of our own capital and so I started raising private money when we were buying houses at the foreclosure auctions. Those were all cash transactions.
[00:02:38] Sam Wilson:
You had to show up to the courthouse steps, with hundreds of thousands of dollars in your pocket, and cashier’s checks. In order to buy those assets right then and there. And I had to have, private money to do that. So that’s really where I started, was actually just getting promissory notes.
[00:02:53] Sam Wilson:
Unsecured promissory notes from friends and family and anybody else I could convince that I was gonna put their money to good use and paying them, paying ’em handsomely for that. And then I would just go and use that at the foreclosure auctions.
[00:03:05] Jay Conner:
Your story is similar to mine. I started using private money back in 2009 when I ran outta money at the bank.
[00:03:16] Jay Conner:
In other words, I was relying on, my local bank to fund my deals. And called ’em up, had a couple of deals on the contract, and I learned my line of credit had been shut down. Of course, we know what was going on in 2007, eight, and nine. Sam, take us back to that first private lender that started loaning you money.
[00:03:33] Jay Conner:
How did you approach ’em? How did that conversation go? Cause our listeners here on the show are all the time wanting to know how do you start a conversation with a potential private lender and, What should that conversation sound like in order to end up having someone do business with you as a lender?
[00:03:51] Sam Wilson:
I would say that conversation, in the beginning, was full of fear and trepidation. Even though I knew what I was doing at that point and had a reasonable track record behind me, I’d never really gone to anybody else to raise. Money or ask ’em for money or tell ’em how to structure the deal. I remember writing up our own kind of in-house promissory note that I borrowed from somebody else and tweaking it to, to, I don’t recommend this necessarily, but tweaking it to where it made sense for the both of us and just saying, Hey, here’s what I’m gonna do with this and here’s the term at which I’m gonna borrow.
[00:04:21] Sam Wilson:
The determined rate at which I’m gonna borrow the funds. And then, after the races we went, that conversation would be very, Different, I think today, but I don’t want to get maybe necessarily into the weeds on that unless you wanna go down that rabbit hole.
[00:04:36] Jay Conner:
Oh, let’s go down that rabbit hole. Because what’s relevant is today. So if you were to start having a conversation with a potential private lender, how would you start that conversation and how would you approach it today versus, when you did the very first time?
[00:04:51] Sam Wilson:
Yeah, I would approach it very differently.
[00:04:53] Sam Wilson:
One, I’d put a deal deck together, be one of the first things I’d do. I’d say, Hey, look, here are all of the things that we are investing in or that we will be investing in, depending depend on how they were, being secured in the asset. Again, if it was buying at the courthouse steps, there’s not really a good way to give them security in the asset until after we’ve already spent the money, which is a that’s a nuance that somebody’s got to know you very well.
[00:05:16] Sam Wilson:
On the other side, though I would put, I would put a very nice deal deck together that shows one, what our track record is, what our history is, the types of assets we’ve bought, what we own right now, our performance to other investors. Have we ever lost money? I might even put things in there. It’s the top 10 mistakes I’ve made in real estate.
[00:05:31] Sam Wilson:
Cuz I think anytime you can tell the truth. About who you are and what you know. That just, that, that instills confidence, I think, in investors when you can say, Hey here’s some things we’ve done wrong in the past, and here’s how we’re, how we mitigate that risk going forward. Maybe not necessarily things you’ve done wrong, but at least put a risk mitigation plan in that deck as well.
[00:05:48] Sam Wilson:
So those are some of the things I would think through if I were to approach you and say, Jay, I’m raising a million dollars, and here’s what we’re gonna do with that money, and here’s how I’m gonna protect your asset. Or your interest in the asset. Sure, yeah. That’s where I’d start.
[00:06:01] Jay Conner:
What comes to my mind is, when I’m talking with a new potential private lender, One thing that I learned at the very beginning about raising private money was to separate the conversation between what my program is, what I pay, my private lenders, how they’re protected, how they can get their money back early in case of an emergency.
[00:06:21] Jay Conner:
And I teach ’em my program. The beautiful thing about the way that at least I approach private money is that I can’t be rejected because I’m not raising money for a particular deal, I’ve learned over the years the worst time to be trying to attract money is when you need it for a particular deal, right?
[00:06:39] Jay Conner:
Yep. So I separate the activities. Of teaching people the program. The old traditional way of borrowing money is you go to the bank and get on your hands and knees and put your hands underneath your chin, and you beg and you say, please fund my deal. Please fund my deal. And in this world, we’re not doing that.
[00:06:58] Jay Conner:
Instead of asking for a mortgage, I’m actually offering a mortgage. And plus, I tell people all the time, if you’re. Teaching your private lending program or a, and then you talk about a deal in the same conversation. Unfortunately, most of the time you already sound like you’re begging in your desperation if they’ve never loaned you money before.
[00:07:16] Jay Conner:
When I call it putting it in the queue, like they tell me they’ve got, X number of dollars, 150,000, 200,000, whatever dollars. I say, okay, I’m going to put you in the queue and put your money to work for you just as soon as possible. And then I call ’em up within, two weeks or so.
[00:07:31] Jay Conner:
I say I got great news. I can now put your money to work. Then, it’s like I’m not chasing, I’m not begging, I’m actually offering them an opportunity. You agree with that Philosophy and outlook.
[00:07:42] Sam Wilson:
I do. And our business model has changed in the commercial real estate space too. Unfortunately, it’s probably a little bit different than what you’re doing in that now we are raising on a per-deal basis on rather large real estate syndications.
[00:07:57] Sam Wilson:
We’ve moved from that private money model and it’s still private money and it’s still syndications and it’s still investments in the actual assets, but now it is on a per. Asset basis. But I will say that we are constantly, to your point, reaching out to investors, talking to investors, and engaging with them.
[00:08:14] Sam Wilson:
Even if we don’t have live deals, he’ll let them know what it is we’re working on, the types of things we’re working on, so that when the time comes, they are prepped and ready to make that investment as opposed to just going in cold.
[00:08:26] Jay Conner:
Sure, and you make a great point. To your point, Sam, attracting money for syndication or raising a large pool of money for a larger project, then obviously that is different that is a different approach.
[00:08:42] Jay Conner:
Having funding, for a single-family house. I know you want to talk about laundromats and I do too, but before we do, let’s give away a gift. Sam, I’ve got a new private money guide called Seven Reasons Why Private Money Will Skyrocket Your Real Estate Business, to help you build incredible wealth.
[00:08:57] Jay Conner:
You can download this private money guide for free. It’ll get you on the fast track. Two private money never missing out on a deal for not having the funding. You can download this for free at www.JayConner.com/MoneyGuide. So let’s talk about the laundromat industry. Sam, I know absolutely nothing about the laundromat industry. So first of all, why do you believe this is a good investment opportunity?
[00:09:42] Sam Wilson:
Why is investing in laundromats a good opportunity? We have invested in practically every commercial real estate asset class.
[00:09:50] Sam Wilson:
I know you gave that there in the introduction from multifamily self-storage, land parking, and RV resorts. I’ve touched all, I think, except for industrial and office space, and only two maybe that I have yet.
[00:10:03] Jay Conner:
You were smart not to do the office space since everybody’s on Zoom now.
[00:10:08] Sam Wilson:
Correct. But even outside of that, I’m doing office space conversions right now as a passive investor, not as an active investor.
[00:10:15] Sam Wilson:
That’s just, that’s passive investments for me. Turning those into storage, which is a fun, fun project to see, go down. But I digress. I say all that to say that why is right now a good time to invest in the laundromat space? Anytime you can find a fragmented industry consisting primarily of mom-and-pop owners, And I’m gonna say this, and it’s gonna maybe hurt some feelings, but unsophisticated mom-and-pop owners without the systems, the processes, the technology, or the capital backing to really turn it into a professionally run business, it is ripe for someone to come in and consolidate.
[00:10:52] Sam Wilson:
So that’s one that, that’s thought number one is that it’s a very fragmented industry. Thought number two is one of them already.
[00:10:59] Jay Conner:
Sam, before you go to thought number two, how is a fragmented? What is it about an industry being fragmented? First of all, I want you to define that. What is a fragmented industry?
[00:11:09] Jay Conner:
And then secondly, what about a fragmented industry that offers opportunity?
[00:11:13] Sam Wilson:
A fragmented industry is something that has it’s largely owned by individual owners. So it’s something where Jay would own a store. Sam owns a store, and the next guy down the street owns a store. There’s not any institutional ownership or large group ownership of these assets.
[00:11:32] Sam Wilson:
So that’s a fragmented industry. What was your second question, Jay?
[00:11:35] Jay Conner:
What makes that an opportunity?
[00:11:39] Sam Wilson:
Economies of scale. So when you own a single store, you can’t afford a full-time maintenance person. A general manager or a regional manager, you can’t afford to bring on all the staff that you need to make it run as a sophisticated business.
[00:11:54] Sam Wilson:
You also don’t probably have the capital backing to do the necessary capital expenditures to improve or invest in technology or invest in all the things that make a store go around and actually become a very professionally run organization. For you, you might say, gosh, Sam, putting a million dollars in equipment and payment systems in a store.
[00:12:16] Sam Wilson:
I only own one store. You’re like, I’m however old you are. Mr. Owner. Mr. Owner, let’s say he’s 55 years old and he’s thinking to himself, I the $80,000 a year I’m making on this store. Putting a million dollars into, that’s a lot of money. And that’s a big payment. And I think I’ll just, ride this thing out for as long as it keeps making money.
[00:12:33] Sam Wilson:
And then one day I’ll sell it and by the time they sell it, they’ve run it into the ground and it’s, the value of, it’s gone to almost nothing cuz the NOI is just falling off a cliff. That said, I’ll just go back to the first statement of economies. A scale. If we buy 10 stores in an area, I can now afford a regional manager.
[00:12:51] Sam Wilson:
I can now afford a full-time maintenance person. We can get full-time maintenance trucks, we can get vehicles, we can get in-house delivery drivers. We can get all of these things that, 10 stores can support, but one may not be able to. So that is one of the key reasons why it is just ripe for consolidation, is because there’s just not.
[00:13:10] Sam Wilson:
There’s just not that large owner. There are a few, but there are not the broad-based large ownership groups out there that have really taken this on. And you may, you’d have to wonder why, and I don’t completely know the answer why. I just know how the business works. I know the return profiles of the business, and I’m really excited about it because it’s, it is, it’s an inflation-resistant, recession-resistant asset class behind food and shelter.
[00:13:35] Sam Wilson:
The third thing most humans want is clean clothing. And the demographic that uses laundry facilities today doesn’t stop using laundry facilities. The worst the economy gets, in fact, they start using them more. So it’s just a, it’s a really neat business to be involved in and it’s a neat opportunity to come in and really bring, not just sophistication, but also, think about this Jay, like why are we why does the term coin laundry still exist?
[00:14:03] Sam Wilson:
Why are we putting quarters in machines? You can pay by phone. You can pay by phone. You can sit in your car and have the machine tell you when it’s done running, so you can come back inside and get your laundry out and move it over to the dryer if you want. But 99% of the stores out there don’t have that basic technology.
[00:14:18] Sam Wilson:
Like we’re going, we’re getting rid of the coins in a coin laundry because, it’s not 1965 anymore. There’s no reason to put it, most of our machines are nine and 10 bucks a piece to start anymore. Why are we putting 40 quarters in a machine? This is, it doesn’t make sense. And that’s what you find almost entirely across the industry.
[00:14:37] Sam Wilson:
So those are just small things I look at and go and we’re getting rewarded. I’m just blabbermouth in here, but we’re getting rewarded handsomely. We’re going into these stores and putting a million dollars in equipment, in putting in brand new equipment, making in brand, just top to bottom.
[00:14:51] Sam Wilson:
Retrofitting these stores, automatic doors that unlocked bright lights that never go off fully attended, brand new equipment, payment systems, and loyalty card systems. Just all this stuff that kind of goes into making a new experience for the end user of a laundry facility. And yeah, it’s working out really well.
[00:15:08] Jay Conner:
That is awesome. From what would you say, Sam, is your overall? The investment strategy and how does investing in laundromats fit into that strategy?
[00:15:21] Sam Wilson:
Yeah my overall, and this is, this has been something I have learned the hard way. My overall investment strategy personally for the last three or four years has been highly opportunistic.
[00:15:33] Sam Wilson:
By that, I know enough people in the industry. I run a real estate podcast. I get deals sent to me all the time, and it was just fun for me where it was like, Hey, I got this really cool multi-family complex. You wanna join us on this? And I’d say, yeah, sure, that’ll be fun.
[00:15:45] Sam Wilson:
We’ll go down and buy a multi-family apartment complex and then we go buy self-storage. Then. You heard that in my bio. And I would say in the, for better or worse equation, it’s probably been on the for the worse side of things, just because it hasn’t been a very. Laser-focused things. So there’s one thing I’ve done probably not very well is being highly focused.
[00:16:05] Sam Wilson:
So my overall investment strategy, especially right now, we’re recording this, what this is April 4th, 2023 is one downside protection. So that’s step one. I think that one thing investors and myself are particularly concerned about right now is the loss of capital and or being highly focused on capital preservation.
[00:16:24] Sam Wilson:
So that’s step one. Step two is finding an asset that we can reprice with inflation. And that and unlike a long-term lease on a multi-family project or even a triple net lease, which doesn’t reset for five years. I can change prices at our stores like a gas station. Takes me about 30 seconds and I can reprice an entire store, which again, your mom-and-pop owners can’t do cuz they gotta go to each machine and program ’em.
[00:16:48] Sam Wilson:
But for me, I can do it right here from my computer while I’m talking to you. So it needs to be inflation resistant. And then thirdly, it needs to be recession resistant. I already talked about that. So it’s something that in the overall investment strategy, oh, and it needs to produce a double-digit cash-on-cash return to both my investors and to me.
[00:17:04] Sam Wilson:
So if it, and I know that sounds it’s like a pie-in-the-sky dream, but the laundry facility business will do all of those things for me. So yeah that’s the strategy right now. If it meets those four metrics, I’m in and the laundry business is it. And so that’s really where we are going long.
[00:17:21] Jay Conner:
Yeah, you just touched on it just a little bit, but I’d like to get a little granular and specific. So in, in, when investing in laundromats, what kind of returns are you typically looking for in an investment like this?
[00:17:38] Sam Wilson:
Yeah, that’s a great question. I will give you more of the industry. The industry-wide return profiles because you, I don’t wanna get granular into the splits between investors and general partners and this and that.
[00:17:51] Sam Wilson:
We don’t have time to get into all that. But on industrywide return on investment, cash on cash, and annual return on investment, it’s 25 to 35%. Wow. We found that to be true. We’ve I’ve, yeah. Very healthy. And we’re, I’m living proof of it. I can tell you that from the stores that we own right now, that’s absolutely the way it works.
[00:18:12] Sam Wilson:
And as so anyway, I don’t, but that, hopefully, answers your question. Was that Oh, it does.
[00:18:15] Jay Conner:
A 25% return is, that’s phenomenal. Phenomenal. Regardless of any kind of, asset class that you’re in, that you’re investing in. And no matter.
[00:18:27] Jay Conner:
What we do in business, there’s risk involved in everything we do. So what would you say, what kinds of risks are perhaps associated with investing in laundromat facilities, and how do you mitigate those risks?
[00:18:41] Sam Wilson:
Yeah, it’s a great question. I will start with the positive news. The positive news is that we have a 95% industry-wide success rate in the laundromat business.
[00:18:52] Sam Wilson:
That means nine and a half out of 10. Laundromats that go into existence are profitable laundromats, which is an astounding statistic. That’s amazing. Yeah. Compared to the restaurant business, I don’t know what it is, but if I were to slow, take a slow, I’d put it at maybe three and a half or four out of 10 restaurants that end up being wildly successful.
[00:19:12] Sam Wilson:
So that’s the good news. Laundry facilities thrive in areas where laundry facilities are needed. So just think about that for a second and go, okay, there’s a certain subset, there’s a certain demographic, there’s a certain area of town where laundromats are needed. They’re not gonna be in the areas of town where the median home selling price is two and a half million dollars.
[00:19:38] Sam Wilson:
It’s just not where they’re gonna thrive. So you get the attendant problems that go along with that. Just let your imagination run wild. There’s everything from crime to, just stupid stuff. Homeless people. You name it, and we’ve seen it happen. I got more stories from laundromat owners.
[00:19:56] Sam Wilson:
You just go, really? That actually there are humans that, yes, it happened. Indeed it did. But the good news is that generally that amount of stupid is easy to fix. Okay, so a bunch of punk kids came in and decided to graffiti the walls. Okay, there’s a few hundred bucks. Get the painter in there. Paint the walls.
[00:20:15] Sam Wilson:
Oh, everybody stole plants in the store. Okay, we gotta go back to Lowe’s and buy new green plants and put ’em on top. You run an actual business, you run a contract and ran a contracting business for a decade, and we lost a whole lot more money than some plants and some graffiti.
[00:20:29] Sam Wilson:
In that business with some projects that went wrong, with some deals that didn’t go as planned, things like that. So overall, I can deal with a little bit of that stupid, I just call it stupid cause that’s what it is. The stupid stuff happens. That’s one of the risks I would say, is that you just gotta put your game face on or some of that kind of just nonsense.
[00:20:48] Sam Wilson:
Outside of that, gosh maybe I should be thinking a little bit more critically here, but. Obviously, you could over improve a store. Maybe haven’t seen that happen yet, but the risk of the business folding or going under would probably be more a sign of the operator and less of the business itself.
[00:21:11] Sam Wilson:
The area, again, areas where laundromats thrive, they’re not gentrifying that fast. You don’t have to worry about necessarily the next day your once was laundromat neighborhood becoming a. Again, a two-and-a-half million dollar medium home selling price area. So those are a lot of things that maybe come to mind on me.
[00:21:27] Jay Conner:
On the big picture, when you got a 95% success rate, that in and of itself mitigates the risk of you having that kind of success rate. So as you were talking, another question came to mind and that was, Is your investment strategy in laundromats, are you looking for existing laundromats that you want to buy and I rehab houses, you gonna rehab, you’re gonna buy it and rehab the laundromat and bring it up to, today’s standards of, with all the technology that you were talking about, are you building them from the ground up or all the above?
[00:22:03] Sam Wilson:
Speed to market is an important component here. In this business and the lowest hanging fruit right now is existing stores because again, it is a largely mom-and-pop owned business. Yes, I do at some point want to start developing and building ground-up laundromats, we’re not there yet. It’s because there’s so much lower-hanging fruit.
[00:22:25] Sam Wilson:
Or we can go in and buy an existing store. The time it takes to build out a store properly to get all the. The mechanicals, the electrical, the plumbing, everything’s set just right. That’s a long endeavor and it’s a very expensive endeavor, and a lot of times you can buy those already, all that infrastructure in place at far below replacement cost just because the business itself has been running into the ground.
[00:22:47] Sam Wilson:
The value of the business is really what, just a factor of its net operating income. Yeah, speed to market is one of the things we really focus on. And also just, the expense of getting to that market. So building ground up. Yes, it’s something that I think we will then tackle maybe on, in phase two of our business.
[00:23:05] Sam Wilson:
But right now there’s just ample opportunity in existing stores.
[00:23:08] Jay Conner:
What’s your marketing look like as far as finding sellers or motivated sellers of laundromats?
[00:23:17] Sam Wilson:
That’s a great question, and that’s something that’s constantly on the test. So we’re constantly revising, reviewing how many letters we sent out this week, how many phone calls we’ve made, how many stores we’ve visited, and how many letters we dropped off in person.
[00:23:30] Sam Wilson:
The by far and away most effective marketing channel for us is visiting. Visiting a store in person. So we will just go and a lot of times even the owner may not be there. But that’s okay. We’re gonna drop off a letter for that owner right there and leave it with whoever’s working there, or leave it on the desk or slide it under the door somewhere.
[00:23:52] Sam Wilson:
Leave it where somebody that has keys to the building is gonna walk in and find it and go, oh, hey, Sam stopped by and he’s curious about my laundromat. And see, would like to see if we’re interested in selling by far and away the most time-consuming, but also the most effective marketing that we have done today.
[00:24:09] Jay Conner:
So you’re, so what you’re saying is your most effective marketing method is knocking on doors.
[00:24:14] Sam Wilson:
Bingo. You got it, man. You got it. I love it. And we’ve done loads of mail, we’ve done loads of phone calls, we’ve done loads of everything. And the best thing we’ve done with the fastest, most effective results have just been knocking on doors.
[00:24:29] Jay Conner:
Yeah. A lot of laundromats just my own personal observation, some of ’em are standalone stores. Some of them are renting space in a, shopping center kind of thing. Does it matter to you? Do you have a preference as to whether you’re investing in a business that’s renting space or otherwise?
[00:24:49] Sam Wilson:
We will take a store on a lease. Certainly. I would prefer to own the real estate. Always. I want to control it if we can. That’s, that just, that’s kinda the number one rule, I think is to control the control the real estate. So we do have stores on leases and those are fine. But always with the understood objective, even with the landlord, the day we sign a lease, I want to buy the whole facility.
[00:25:11] Sam Wilson:
And that can be, and these can oftentimes be found, and this is a secondary part of the business, but they can be found in a retail strip center, right? So you may have a laundry facility, you may have a barbershop, you may have a. Ice cream store. You may have a liquor store, you may have any of this other kind of relevant last, I’m not gonna call ’em last mile, but they’re businesses that you can’t, Amazon that is all right there.
[00:25:33] Sam Wilson:
And it’s why don’t we buy the whole building? And that, too is a component of what, certainly we’re doing. So yes is the answer to both.
[00:25:41] Jay Conner:
Okay cool. So when you buy these, of course, capital’s needed, you like me, we raise money. We attract money we attract lenders and investors.
[00:25:51] Jay Conner:
So what kind of capital investment is required to purchase and operate these types of facilities? And how are the funds raised?
[00:26:00] Sam Wilson:
That’s a great question. It is. I’m gonna use a number and say it’s roughly a million dollars a store by the time you if it’s a standalone store. By the time you buy the store, put all your equipment in, you’re gonna be all in for about a million bucks if you’re doing it right.
[00:26:16] Sam Wilson:
And it’s the size of the facility that we want. That is also, it can vary wildly just because, let’s assume we go back to the retail strip center. Like maybe it’s a really nice retail strip center and maybe there’s a laundromat and maybe there’s a car wash attached to it as well. So again, things that we would buy would include all of those because it’s this just fits the laundromat being the anchor tenant, if you will.
[00:26:40] Sam Wilson:
And the other things are kind of ancillary revenue streams that go right alongside of it. So that number could be two and a half million bucks. It’s really hard to say, but I would say on average, if I’m just throwing a dart. At the dart board. I’d say, on an average deal, it’s gonna be roughly a million dollars out the door by the time you’ve got a store completely retrofitted and ready to go the way you want it.
[00:26:59] Sam Wilson:
So I got you that said. How are we raising the capital for that? We are actually just on, in the, on, on the front end of launching a fund and this fund will go, al’s gonna be roughly a 10 million laundry fund. We will go out and acquire assets we may or may not take on debt. That’s one of the things that’s a fund, is it fund.
[00:27:19] Sam Wilson:
Excuse me. That’s one of this kind of fun inside of this business is that we don’t even necessarily have to take on debt in order to make it a very profitable business. So that’s one of the things we’re kicking around right now. It’s we can raise private capital for this, put it inside of the, buy these assets inside of the fund, and if we ever decide that we want to go out and leverage, then we can or we cannot.
[00:27:39] Sam Wilson:
Obviously, the more leverage you take on, the greater risk you assume, but also the greater your returns can be. And so that’s something we’re kicking around right now. That’s not completely. Ironed out yet, but that’s certainly one of the things that we’re looking at.
[00:27:53] Jay Conner:
So I was gonna ask, do you have an investment opportunity right now?
[00:27:58] Jay Conner:
If someone’s interested in passive income and. Not having to look for deals and negotiate deals and just wanting to sit back. And if they may have retirement funds and they want to invest some of those retirement funds, you know they can transfer ’em over to a self-directed IRA company and then invest with you.
[00:28:14] Jay Conner:
How would they reach out to you and find out more about your investment opportunity and the kind of returns they can get?
[00:28:19] Sam Wilson:
Go to www.BrickenInvestmentGroup.com/Join. That’s www.BrickenInvestmentGroup.com/Join. That’s how you get notified of all the opportunities that we have coming up.
[00:28:34] Sam Wilson:
We will have the laundry fund launched probably in the next 30 to 45 days, and there’ll be ample opportunity inside of that. We’ve already got, a pool of stores that are gonna go into and including both the businesses and the real estate going into that fund, like five or six stores already that are Lined up to go into that fund.
[00:28:52] Sam Wilson:
It’s gonna be, it’s gonna be a great opportunity, I think, on that front to get into the laundry business. So again, go to brick and investment group.com/join and you can hear all about our opportunities.
[00:29:03] Jay Conner:
That is great. Sam, thank you so much for taking the time to join me here on Raising Private Money.
[00:29:09] Jay Conner:
You’re my first laundromat guy.
[00:29:13] Sam Wilson:
Good. I’m glad to be of service. Thank you again for having me on, Jay. This was loads of fun. Absolutely.
[00:29:18] Jay Conner:
You got it. There you have it. Another amazing episode of Raising Private Money. I’m Jay Conner, your host, also known as the Private Money Authority, and we really appreciate the subscribers and the followers.
[00:29:32] Jay Conner:
If you happen to be listening on iTunes, just click those three. Dots and click on follow. If you’re watching on YouTube or Facebook, or any of our other live-streaming channels be sure on YouTube to ring that bell so you don’t miss out on any of the other upcoming amazing episodes. So I’m looking forward to seeing you right here on the next amazing episode of Raising Private Money.
[00:29:57] Jay Conner: And I’m Jay Conner. Wishing you all the best and here’s to taking your business to the next level. See you right here next time.
[00:30:07] Narrator:
Are you feeling inspired by the knowledge you gained in this episode? Then head over to www.JayConner.com/MoneyGuide. That’s www.JayConner.com/MoneyGuide and download your free guide that shares seven reasons why private money will skyrocket your real estate investing business right now. Again, that’s www.JayConner.com/MoneyGuide. We’ll see you next time on Raising Private Money.