Codie Sanchez's Laundromat Investments Yield Returns Exceeding Traditional Finance

Investor and "Contrarian Thinking" founder Codie Sanchez recently highlighted the significant profitability of laundromat investments, asserting, > "I've made more money from dirty laundry than most finance bros make on Wall Street." This statement, shared on social media, underscores her long-standing advocacy for "boring businesses" as a lucrative alternative to conventional high-finance ventures, offering a detailed "playbook" for identifying profitable opportunities.

Sanchez, a former Wall Street professional, transitioned from traditional finance to focus on acquiring and scaling small, often overlooked businesses. Her philosophy centers on "contrarian thinking," emphasizing that predictable, recession-resistant industries can generate substantial wealth with lower risk compared to high-growth startups. Laundromats exemplify this approach, characterized by stable demand and consistent cash flow.

Her investment strategy for laundromats often involves what she terms the "BRRT" method: Buy an existing business, target a Recession-resistant sector, Raise prices through value-added services, and add Tech for efficiency. This systematic approach aims to optimize operations and enhance profitability, moving beyond basic self-service models. Typical returns for laundromat owners can range from 20-35% ROI, according to her insights.

Laundromats offer diverse income streams beyond coin-operated machines, including wash-and-fold services, pickup and delivery, vending machines, and commercial contracts with businesses like hotels. These additional services significantly boost revenue and customer engagement. Sanchez emphasizes that while laundromats are not entirely passive, strategic management and leveraging technology, such as cashless systems, can streamline operations and reduce owner involvement over time.

Acquiring an existing laundromat is often preferred over building one from scratch, boasting a higher success rate (75-95% compared to 10% for startups). Financing options are varied, including seller financing, equipment loans, and SBA loans, making entry accessible even without substantial upfront capital. Sanchez continues to champion these often-underestimated businesses as a robust path to financial independence.