Awesome questions. Unfortunately, a lot of the answers are “It depends.” There definitely are some lenders out there that will refinance a loan and even loan you more than you currently owe. It just may be some work hunting them down. I suggest starting with laundromat-familiar lending agencies like Alliance and Eastern Funding, and also with smaller banks and credit unions. Definitely let me know if you’re able to make progress on it, though. I’ve never tried.

In terms of adding value to the laundromat, I would start with making the laundromat more clean, comfortable, and appealing to customers and maybe doing some advertising and promotions to get people to come to your laundromat. We also have a free value-add checklist that you can download for free at:

https://laundromatresource.dreamhosters.com/resources

Hope that helps!

Hi Darren, As Jordan mentioned the answer is it depends, but the answer is yes too! Ha ha

I have a chain of laundromats in Cincinnati and have refinanced many many times. Sometimes for better terms to improve cash flow, sometimes to repackage new equipment and sometimes as a cash out in order to acquire or build a new location. This is why I say “it depends”.

It’s all based on how leveraged you are. Most lenders are going to give you a multiple of your net profits as a fair valuation. That multiple will typically be in a range of 2X to 6X. I’ve never did a strictly cash out refi for no reason but I imagine they’d balk at that but they will almost always do a cash out refi if you have equity AND you’re reinvesting the proceeds. I agree with Jordan that Alliance financing, Eastern Funding and a community bank or credit union are you best options. I’ve done loans through them all.

Regarding adding value there are almost unlimited ways to add value to your mat for a customer. Keeping your stores super clean, being attended, having in store vending, having A/C, extra wide aisles, large folding tables, a plethora of seating, rockstar attendants and management, drop-off laundry services, free WiFi, an ATM, credit card pay at the machines, games and coin pushers, TV’s, convenient hours, kids play area with books and a kids TV, modern facilities, an out of this world restroom, etc etc etc. I could go on and on. I hope this helps you out. Please check out my videos at “Laundromat Millionaire” on YouTube too. Best wishes to you