Tune in to this episode where we talk with guest Sam Wilson to discuss the profitable world of laundromat investing. Sam recounts his journey from real estate flips to niche investments like laundromats, explaining the cash flow benefits and community impact. Learn how laundromats offer recession-resistant income streams, and listen to Sam’s expert tactics for standing out in a traditional industry. Also, hear firsthand about Sam’s successful transition away from parking assets. This episode is a must-listen for those interested in diversifying their investment portfolios with alternative, cash-flowing real estate assets.
- Sam, Founder of Bricken Investment Group, hosts a top-rated commercial real estate podcast, with 40K+ monthly downloads and 800 episodes. As an investor for over a decade, he has focused on laundry facilities, aiming to diversify and provide stable returns for himself and his investors. Sam, based in Memphis, TN, holds a business finance degree and a real estate license, emphasizing non-traditional investments for predictable returns.
00:00 The Best Ever Conference
02:21 Coming Up
02:39 Welcome To The Show
03:24 How Sam got Started in Real Estate Investing
04:35 The Evolution of His Real Estate Journey
07:38 How He Timed the Market
10:00 How he Approaches LPs
12:54 His Previous Investments
13:51 Why Laundromats? Why Now?
17:28 Is Multi-Family Affecting Laundromats?
18:31 Aspen Fund
19:49 Can You Expand The Laundromat Market?
21:17 Are Laundromats Similar to Car Washes?
23:09 How Do Laundromats Depreciate?
24:52 The Other Aspects of the Laundromat Business
26:58 Working with Short-Term Rentals
28:14 How LPs Can Invest
31:29 How to Evaluate a Laundromat Operator
33:27 What Metrics should we be Looking at?
34:42 What Does His Competition Look Like?
38:49 A Great Podcast he Listens to
40:26 Contact Sam
40:56 Thank You For Watching
41:05 Viking Multi-Family
41:43 Steve Suh Book
42:31 Guest Overview
– [00:00:07] Jim announces the ‘Passive Investing with Left Field Investors’ event at the Best Ever Conference.
– Emphasizes the focus on networking and education tailored for limited partners.
– Mentions significant discounts available for infielders at the conference.
– [00:02:02] Sam Wilson discusses the thriving laundromat industry across major Southeast cities.
– Jim introduces Sam as a founder of an investment group with a diverse real estate background, hosting a commercial real estate podcast.
– [00:03:32] Sam recounts his entrance into real estate investment.
– Shares his experience from flipping houses to investing in diverse asset classes like parking lots and laundromats.
– [00:05:06] Sam describes transitioning from single-family home investments to commercial real estate and exiting the parking industry just before the pandemic.
– Relates his profitable exit from parking investments and discusses his role as an LP and GP in various deals.
– [00:07:24] Jim questions Sam about the appearance of chasing different asset classes.
– Sam responds with insights into his strategy and focus, emphasizing the shift to the laundromat business.
– [00:10:10] Sam continues addressing the consistency of focus for limited partners.
– Explains his decision process for selecting laundromats as his main focus based on cash flow and investment security.
– [00:14:21] Sam delves into the fragmented laundromat industry and its technological improvements.
– Shares the goals of professionalizing the industry and the advantages of laundromats during economic downturns.
– [00:17:32] Discussion on the impact of multifamily properties with in-unit washers and dryers on the laundromat business.
– Sam clarifies the target demographic and the continued demand in specific market areas.
– [00:20:20] The geographical spread and success of the laundromat business beyond Memphis.
– Sam reaffirms that the business model is not limited to a single city and is thriving in various major cities.
– [00:21:24] Sam describes laundromats as a primary business operation with some real estate aspect.
– Compares the business model to car washes and discusses the necessity of renovations and upgrades for older laundromats.
– [00:23:26] Information about the use of depreciation in the laundromat business through cost segregation studies and Section 179.
– Discusses the tax benefits associated with laundromat investments and the options for expensing equipment purchases.
– [00:24:50] Sam mentions additional services like delivery in partnership with DoorDash and Uber.
– Highlights the business expansion into offering multiple revenue streams and the potential tax benefits for limited partners.