this video is all about how one deal can change your life and not only one deal but one deal that you don't have to use a bank no money of your own no credit check heck you could be an immigrant you are you born in America no I came when I was 17 came when he was 17 years old living the American dream this video is all about that how can you buy a lrat utilizing creative finance and the strategies with it so that you can also quit your day job meet Benjamin Wong one of our sub two leaders in New England I met up with him recently in Boston while we were at the owner's Club Retreat owner Club is where I own businesses with other people inside of the sub2 community Benjamin is one of those members so we were hanging out in Boston he says Pace I got to show you this lrat that I was able to negotiate $0 down now what's cool about this lrat is not only did he get into this with Z down no credit check no experience in aat it's producing $20,000 a month in revenue and he was able to bring other people along for the ride some other private money lenders now what's cool about this is what he tells you at the end the secret of how he negotiated and got this deal done this lady did not want to sell the business the broker couldn't sell the business until Benjamin used this secret tactic to get the deal done stick around to the end to see exactly how my mind was blown let's talk about how did you find the lrom man sure so when I just moved myself up to Boston I started to talk to different Brokers uh who sell who who help sell the business and know that when I talk to one of the broker there's another gentleman's um behind me he over here our conversation then talk to me after I after my conversation with a broker that hey I know someone is looking to sell and but she has been trying to sell for 3 years she refused to sell to the buyer that she has no confident with so I know that this is a business owner that really care about the Legacy so what I choose to do is to go into a laundry mat use a laundry mat use the washer and dryer and and busy go there do a do this is the thing that nobody else is willing to do like one most people are not willing to pick up the phone and just call business brokers two the business broker has somebody in his office that overhears your conversation that person calls you and says hey Benjamin I know a lady she's trying to sell a laundromat but she doesn't feel comfort with any of these buyers she wants to make sure she sells it to the right person so most people would not even get that far which is really really basic but what the next step is you go okay well how can I get comfortable with this lady so you take your dirty underwear into this lady's laundromat and you start washing your clothes in order to build a relationship with her yes for the first time I I went into a LR Med was that time like I never Ed a laundromat my life oh my gosh that's so good and after that uh should understand that I buy businesses so I actually just just ended up provide uh you know send me a letter of intent and Sh and I has an oral agreement before closing I go in there every single day to learn how to run run the business and do the diry laundry for the the client with her wow 12 hours trade for 2 weeks wow I put off everything and the best part is this is a deal that I find it so good I open up to sub to New England to own it with no way what was your first line to this lady hey are you the owner when I go in I was like I I haven't tried to use a laundry man I'm just trying to to to see how it work and and and and she was like I've never seen you and I said yes but I'm trying to learn how it work because I'm interested in buying business and Lund is one of the thing oh my gosh what a gen genus line bro this is so good you you told the lady hey can you help me understand these machine she says I've never seen you before you go yeah you've never seen me before this is my first time in a lrat and it's because I'm trying to buy other businesses like this so I want to learn how they work oh my gosh I'm going to do this so what was the purchase price of the laundromat 400 400,000 okay that's with the building or without the building that's uh the building was lease okay so she's on a lease got it 400,000,000 for the business yeah and The Branding and the machines and everything it's all included okay so $400,000 purchase how much of it was seller financed it was half okay so she says give me $200,000 down MH you got that2 200,000 from private money lenders inside the community partnered with people to they were private money Partners not private money lenders what's the difference between a private money lender and a private money partner well a private money lender is somebody that's more like a lender that wants monthly payments and they want interest on their money they want security they want protection all of that kind of stuff but they're lending money to private money lender a private money partner is where somebody comes in and brings their money to the table because they want Equity they want ownership they don't need monthly payments they don't need interest on their money they just want to be a part of the deal and become a partner what's beautiful about what Benjamin Hong did is Benjamin says I love this sub2 community so much and I want my friends inside this community to participate in this deal with me so he leveraged the power of this community and raise the money from within now this is not something you can just go do this is how we built sub2 we built sub2 Over The Last 5 Years 27,000 unbelievable people in our Collective community and a lot of them literally join sub2 just to lend and partner with people with cash so Benjamin knew that he says Hey guys who wants to own a laundromat I did the call I did the negotiations I structured the deal I did the followup I did all of the things I don't want to do this deal alone I want to bring in some partners and what is amazing is not only did he they participate but he didn't have to bring any money to the table and they didn't have to do any of the things they don't want to do it's a beautiful partnership so that is why he raised private money Partners rather than rais private money lenders the structure of the deal you did with the lady in the laundromat did that deal have payments attached to it the original deal before she cut up the note Oh you mean the original seller finance note yes yeah okay and what were the payments uh I think it was about one grand um but I think we have like 6 months before we need to start making I think defer payment love it because we need we need to we need some time some wrong way to stabilize the business and that's also what I told my Capal partner say hey thank you all for putting the money in to help us acquire the the business um our goal is to send out the first distribution track on month 7 and that's what we did 2 days ago oh my God yes how' that feel so good and to be honest it's a peanut check but it's a big milestone when I give the the the track to our Capal Partners I was so surprised how people react honestly that small check means the world because it is not about the money it's about the Milestone and it's about progress forward progression and Trust what is where does the revenue primarily come from is it coming from a service provider that goes and picks up other people laundry brings it there to wash it and then delivers it back is that kind of a a gig a gig worker is doing that a lot at your laundromat the highest profit margin is from wash dry and fold because you're essentially overcharging people's labor yeah with the high ticket item yeah the Lund itself is just more like a advertising yeah um people come in steing the few corn to do it it's just advertising probably just pay the utility um the the the second largest um profitable item is dry clean we out dry clean okay people bring in the the clothes we send it to our vendor they do the work we we take about a big percentage of it what like 20 30% that was like 50 oh my word yeah so if we push on the dry clean we can scale if we push on wash dry and fold we can scale but we will need labor okay so how are you primarily getting the business SEO the Google business profile was something that we push so hard on oh and by the way all the capital Partners is responsible to help us leave the review and also push for the online present all of them actually went in and asked their family friends to leave the review We Now are the dominating um uh lry m in terms of Google review wow all right here's what's genius about what Benjamin did is not only did he get into this deal with no money out of his pocket because he brought in a gang of private money Partners from the sub2 community but he also enlisted them because they're obviously loyal to their own investment they came in they did Google reviews which are free they then enlisted their family and their friends and they got all the SEO for free they became the dominant participant in that entire Corner everybody pulls up that laundr mount now here's what's great what he's talking about is there's three areas of profit okay area one area two and area three area one is obviously laundry okay so when people come in and do their laundry coins he says we really don't make a lot of money on that it's limited there's not a ton of space but it's really marketing and it's the storefront a lot of people would call that what we say in the business loss leader we're actually losing money on the laundromat think about this most people think I'm going to buy a laundromat and get rich he's actually not getting rich off the LA it's just the magnet to bring in business where he is getting rich is he now is doing dry cleaning and he's not even doing the dry cleaning he found a dry cleaner to Outsource all the dry cleaning too and so when they charge let let say $10 for an item it only costs him $5 from the the vendor they have a 50% profit margin and they don't do any work their vendor comes up picks up the the laundry or picks up the dry cleaning charges Benjamin 5 Benjamin charges the client 10 just because his location is right there in that corner location location location he's making 50% so if he amplifies the dry cleaning alone he's going to make a tremendous amount of money without hiring another person now Wash and Fold this is a huge part of his business as well the problem with this is even though he makes a lot of money on it it requires labor and so what he's going to be doing is he will of course be focusing on this and F be focusing on this two things that make a tremendous amount of profit margin but the number one place I told him he should be spending his time is on dry cleaning so let's watch as he unfolds more secrets yeah this is really cool man it doesn't seem like this is the American dream but this is the American dream now you got to make something into your own like you get to turn this into something I like think about all these clients out here that are like waiting for you to amplify your services this is freaking awesome this is how we serve them better right 100% a lot have changed since the first time I walk into the laundromat when I walk in here first time there's actually the big tables put across the hallway and people are just folding on the table crowded and you know people are walking you know side by side and all that so the first thing that we do was to clear out the table move the table toward the end one over there the other one put it toward the other side my initial Vision was to put enough table over there that we can have more than one folder right and so once we clear this we realize that when people walk by they W willing to walk down the the hill to use the machine down like down walkway okay so your business is primarily made all your money is made primarily here correct this is as simple as it as it gets guys like he outsources all of the laundry or the dry cleaning they do their wash and fold right here like when you guys talk about and listen to people talking about Wash and Fold you think it's some elaborate thing and some fancy thing it's literally right here somebody's chonies are right here somebody just folds us folds us fold this fold this fold this boom like this is epic you get two three people in here just doing that all day long people don't want to do their laundry anymore how much like would an average customer like one person seven pairs of clothes weekly how much would it cost me to do Wash and Fold it will probably be about $30 $35 for wash fold $35 my gosh and they're still bringing in that kind of cash this is amazing what an amazing business model he has now whether you own a laundromat you don't chances are you don't yet you should just join the sub2 community I'll teach you how to actually go buy businesses the same exact way as Benjamin did but just let's say you don't own a laundromat these principles that we're going to talk about these tips these tricks that we're going to talk about not only are they going to amplify his business but they can amplify your business as well so do me a favor we want to hear and Benjamin wants to hear your suggestions of what you would do in this laundromat down in the comments down below me and Benjamin will actually sit there and watch we read all of those comments please let us know exactly what you would do in this laundromat if it was yours what if you do like one free dry clean or something like that like if you if you're like hey here this coupon gives you one free item of clothing dry clean are they going to bring are they only going to bring one thing no they're going to bring two three four five things what happens is you your average client does this right your average client is is doing what I do Y which is six shirts mhm right and so you get them in really if your profit margin on those are let's say 50% or whatever you did one for free but the other ones you made 50% on exactly because they they they make the trip already I bet you there's 400 500 clients within 3 miles of here or 2 miles or even a mile of here cuz you got all these apartments right y that have things in their closet they keep saying I need to freaking go get this dry cleaned and I think if you if you do that coupon that's good it brings awareness but if you're like free coupon in the next 3 days dude let me go I will go freaking put coupons on doors right now like let this is this gets me like the split testing on this would be so fun to be able to do you guys are doing roughly $20,000 a month roughly roughly in in Revenue your expenses are 10 to 14,000 you're putting most of your capex right now back into the business at least for right now and then at some point you'll start taking some more distributions yes or maybe even take some of that money and you go let's go buy another Lund Mount yeah my um our goal is to give the all the money back to our partners so they are there are zero money in the deal and make get infinite return yeah and then we go out and buy and those partner will be so happy and just jump on the next one with us what else am I what else am I missing that you guys are going to do you need more people like what do you need what's the thing that you need to improve Colin yep yeah so one of the things I think we need to improves is um lead lead generation still so that that coupon thing is definitely going to drive that leads right um and then we need to figure out people people running right now we've got one person that's super overwhelmed he's doing 12 13 14 hours here and he's here from like 7:30 until like 9:00 at night last night yeah and what happens if you lose that person that's that's a problem right so you lose that person you got to like start from scratch what if you did you got a couple of college students that are like hey I need to work and study and you give them a place they can work study got fast internet here whatever and you have people like not intern but they work for a lot less money but they can come in here and study I mean heck there's probably people in the community they're like their kids would come and work okay so here's a thought people want things to be done for them right so the biggest issue you have is your clients are sitting there going hey I've got so you need a database is what you need if you had a database and you had a way to reach out to these clients every week like hey can we pick up your can we we pick up your dry cleaning this week and you actually have a courier running around picking up everybody's dry cleaning yeah are you kidding me we just put in the CRM we got to go high level for this that's how you win this game imagine if you were able to have a database of like 3,000 clients around here and you just text everybody once a week like Hey we're doing our pickup please reply if you have dry cleaning and we'll swing by oh my gosh yeah humans want one thing right convenience right I don't want to do any work but I know I got to I got to do all this stuff so homeboy this guy right here 007 so 007 These are nice shirts by the way yep dry clean our high high-end client okay so this is your high-end client so homeboy has this is actually the same client by the way all of these are the same guy guy you think he likes blue shirts yeah right professional so if you were able if you were able to tell him hey we'll pick up and drop off your dry cleaning would that guy pay an extra $25 for that order and how long does it take for somebody to pick up and drop off stuff now most people are going to say well Benjamin knows how to do this he's a great negotiator guys I'm going to tell you right now I'm not even a great negotiator I don't even think Benjamin is a great negotiator because this skill that Benjamin is going to show you and how he got the deal is not about negotiating okay it's not what it's about is actually building rapport with the seller and finding their problem this seller already had a brok ER involved okay the broker said oh this lady's never going to sell the seller then says uh I don't know if I'm actually interested in selling the property what ended up happening is Benjamin said what's going on in your life and he built rapport with the seller by finding out what her actual problem was you know what's funny this seller gave Benjamin an extra $200,000 on this deal without him even negotiating the $200,000 she rips up the promisory note she P rips up the debt on her own accord and it wasn't because of negotiating it was because he cared about the seller and built Rapport and actually found her bunnies so the laundry man um originally owned by old lady and the old old lady has a son who is in my age he has been living in the basement for a while and she's in he's in his 30s and uh the basement in her house not the basement in the lroom man no in her house okay and she was wondering why me the same age as her son is out buying businesses while her son is playing video game in the basement people make choices bro you're over there making babies he's over there getting head shots in Call of Duty just telling her that um just give me your son's numbers and I'll have a CH with him oh wow and so you were like offering to Mentor her son yes I was like just planing to tell her tell him what I do and why I do what I do her son submit five different um application or or resume to apply for five different position wow the first time ever wow and she was so glad at the closing table she was like this is the problem so know and she just tear it apart I what do you mean she tore it apart she tore she said consider it paid because when I ask how important it is to you that your son leave the ba the basement and actually go out do something meaningful she told me that it's going to worth the entire world you're kid are you paying attention to this so you're no money out of pocket no money down other than the closing cost and then the seller wanted $200,000 seller in payments yes in payments and you're telling me that during this time frame you start becoming her F her son's mentor and you speak life into him you inspire him he goes and starts applying for jobs yes and he starts building momentum mhm then his mom sees how much you've poured into him and how you've helped him and she comes to you and rips up the $200,000 promisory note she said consider it paid that's insane she said in her whole life she has never traveled one day and all she initially wanted was was retire and go travel but after my conversation with her she realized it's more important to see her son to be out of the basement what the freak what a great story this is amazing and this is why I so resonated with the bunny yeah you found her bunnies her bun her biggest problem wasn't even the laundromat was her son in her basement and she didn't even tell me initially of course not cuz you got to provide value and get people to oh my gosh what a great story Benjamin God you're the bunny you're the Bunny Finder I love it how many deals does somebody have to do to quit their job one deal one deal like think about what's cool about this laundromat that Benjamin bought with no money no cash no credit no Bank nothing all he did was buy a business with creative Finance one deal and 99% of people on the planet could quit their job because it produces that much income exactly and the best part is you're upgrading yourself from the worker to a owners you own this man this thing's printing money for you congrats thank you CHR you guys want to learn how to do some creative Finance we have a case study down for you below all you got to do is click the link down below