Passive Income To The Way!

10 Jan 2025 · 1 min

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In this segment, the speaker outlines a passive‑income strategy centered on owning "boring" businesses, specifically laundromats, using the BRRT framework (Boring, Recession‑Resistant, Raise Prices, Add Technology). He cites a portfolio of three laundromats generating $3 million in annual revenue and describes a typical single laundromat that produces roughly $60 k in profit, yielding about $30 k of owner take‑home after employing an operator. The discussion emphasizes the price‑inelastic nature of laundry services—allowing price hikes (e.g., from $0.25 to $0.50 per wash) without losing customers—and suggests that technology upgrades can further enhance margins. The overall message positions laundromats as low‑effort, recession‑proof assets suitable for building passive income streams.

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laundromats making? Well, it depends. Like, I have one laundromat— it's, well, it's a group of 3 of them that does $3 million a year revenue. The way that I think is interesting to do boring businesses is we talk about the BRRT method— boring businesses that are recession resistant, where you can raise prices and add technology. And so this methodology basically means if you own a laundromat, you buy a laundromat, it's boring, does $100,000 a year, that's recession resistant because nobody wants you to be smelly running out of clothes, and you raise prices because, um, typically it's pretty price inelastic, meaning you can go from 25 cents to 50 cents a wash, and people will still wash there, right? So that's the methodology. So we have ones that do $3 million, and then my first laundromat, I think it made, you know, $60K-ish in profit, but I had an operator, so I took home like $30,000 or something like