Why She Bought A Car Wash At 22

All right, today let's figure out how this 22 year old makes $7,400 per month car washes. How many cars do you think are actively used in the US? This actually surprised me. The DMV reported it registered about 276 million vehicles in 2019 alone, with a population of 328 million. Then if you think about this, this is wild. How many car washes do you think there are to service these cars? Just over 60k. So 60,000 car washes for almost 300 million vehicles. I was feeling a wee little bit of an opportunity there, huh? So even if we assumed all economic factors were equal and that only one quarter of those 276 million vehicles were regular cars for us, the rest being, you know, commercial use cars, that means that there would be 1,150 cars for each car wash. 15 bucks per wash. You'd be breaking in a cool 17,250 bucks a month. Even if your local car wash car owners only wash their cars once every quarter, that still translates to $69,000 in annual revenue. Maybe that's why Shaq has a ton of these. Do you know he's one of the largest private car wash owners out there? Enter this lady, Hannah Ingram. I love her. She got famous on TikTok. I had a chat with her. She went from college dropout to part time realtor to full time tiktoker to car buyer. And she's from Tennessee. It's kind of cool. She has one cash flow business of choice, car washes. Because this first one here, she bought for 140k. It cash flows that 7,400 bucks I told you about per month. But long before she was making any real money to buy this thing, she figured out an innovative way to do it.

If you go drive by a car wash and it's not for sale, this is exactly what I would do. Step one, I would google the business and get a phone number. Or I would look on the side of the building and try to find a phone number. Then I would make a cold call asking the owner if they would be willing to sell it if they were to get a price they would want. If they say no, I say, what if you were to get the price that you wanted out of it? You know that the right price, anything's for sale. If they still said no, I would just be like, do you have any other properties in the area that you would be interested in selling? Because laundromat owners could be car wash owners as well. And they may be willing to sell you a piece of property that they. That's the one you weren't calling about. If they said yes, I would set up an appointment to meet with them. I want to see the property. I'm not going to mention anything about finances. I'm not going to mention anything about seller financing. I'm just trying to get my foot in the door and meet with the owner.

She met with a local owner. When you're a realtor, what do you do? You meet people for a living. And so she started talking to somebody that had a car wash with commercial land. Three vacuums, six self serve bays, that's where you pull your cars in. Five vending machines in it. That's where you sell. So. And wash and air fresheners, I guess. And two bill collectors. She bought it for 140,000. Price tag, not too shabby. But the revenue itself was super interesting because you can see there's images. She posts them on it weekly. Where in her typical two week cycle, we see Hannah scoop, I don't know, 1300 bucks in coins out of three buckets. Another 960 bucks in another two. Another 1900 bucks in dollar bills from her bill collector. And brings in right around 3,700 bucks in each two weeks. All right, so this is a perfect example of one thing to watch out for in car washland. See how this is covered up? That's probably because they got too many fake bills. That's why you want to have coins and a credit card reader, because the machines can't make sure those are real. One little sneaky tip for you. Now, 140 bucks is still a lot for somebody. Would certainly be a lot for me when I was 22. And so you might be thinking, girl buys a car wash at 22. Yep. Thanks, dad. But that's actually not the case at all. Hannah comes from a middle class family, one that's pretty reasonably averse to risky ventures like buying 140k property at 22. Before she bought it, she was working 12 hour shifts as a factory worker. And her father actually was a factory worker too. He didn't bankroll this operation at all. In fact, she used $0 to buy it. The answer might surprise you on how she did it. Lots of people make fun of cold calling and meeting people one off, but that's exactly what she did as a realtor. She was making phone calls to see if anybody wanted to sell their property. This lady didn't want to sell a property. She wanted to sell a car wash. And so she started getting a relationship with her. She didn't have deep enough pockets to buy it, but this lady liked her. And that value of likability can be huge in deal making. So Hannah used this technique, we talk about it all the time in building businesses called seller financing. So she was actually able to Skip the whole 20% down. Taking out a bank loan, getting her credit score hit, having to go through an SBA nightmare because she just took over responsibility for the car wash from the owner. And with all the revenue she made, she started paying back the owner first and taking a cut of the deal. I thought this was a pretty fascinating model because in today's day and age, everybody's always telling me on TikTok and Twitter and now YouTube that you cannot do a deal without money down. But the ways that you can do that are when you have a seller like this woman who is ready to exit her business. She was ready to go, but she didn't have anybody that wanted to buy it. The business didn't make enough money for somebody to run it and buy the business. Her solution was a hustler, young Hannah, who could take over the business and run it for her. The cool thing about this is it's totally replicable. Can you get the exact same deal? I don't know, but I think you get one close. Now give me the beat. Let's kind of break down how we would replicate something like this. Cool. So say you like this idea of getting 7,400 bucks a month for about 10 hours of work a week. Maybe you try this. Step one, you pick up the phone. I imagine a lot of skeptics out there listen to this and immediately go, if car washes are such great cash cows, why would anyone want to sell them? Well, it's the same reasons as always want to retire. They're behind on taxes, their business fatigued, they're relocating to another state. The list goes on and on. But as long as you choose not to look, you'll never find the deals right for taking. If you're like me and you're already juggling a dozen other businesses, that's where the power of delegation comes in. You find your Hannah and you outsource not only running the business, but you're cold calling. It's never been easier than now to find somebody to help you do these types of deals. If you put, I don't know, 20 minutes a day, spending as little as a half hour searching on Twitter, Google and Fiverr, you can turn up dozens of agencies with a proven track record to cold calling. These contractors don't even have to close your deals. They can only just give you the first car owners that are willing to even talk to you about it. And it's kind of like I always say. I mean, when you're doing deals in this way, you can try to sit on the sidelines and just learn, or you can learn from doing so. What I do today is step number two for you. I go to LoopNet. Think of it like Zillow, except for all things commercial real estate. With a good old fashioned search and scroll, you might be able to stumble across something like Hannah's. Or you can go to Biz by sell. Biz by sell is a lot like LoopNet, just usually not as much real estate. Okay, so you're going to cold call people, then you're going to go to these two sites. Then you're going to learn about how to finance it, like seller financing. Everyone out there might be telling you to brush up on NFTs and crypto, which probably shouldn't hurt, but you should add seller financing and boring businesses to the mix. Basically, with your background, knowledge of a seller, some charm and negotiation skills, you can knock three to four zeros off the down payment that you need to purchase. And you can actually pay for somebody else to let you take over their business through future revenue. It would go kind of like this. And you can see the numbers here that Hannah did. I might say to this individual, hey, I want to buy your car wash, but I don't have the money to put down on buying the car wash right now. How about you let me run the car wash exclusively? You keep 60% of all profits to the car wash right now I only take 40% until I pay you back. And then we flip that as soon as I've paid you back your down payment. So the, you know, the one year's, let's say, profit of the business, then it goes up TO I make 50% of the business and you make 50% of the business. Then the next year it goes to 60, 40, flip the other way. Then the next year, 70, 30, the other way. The beautiful part about deal making is it's just all about how creative can you be. So after we've learned seller financing, then it's about time to get a lawyer. Like with every other property acquisition, seller financing can get a little bit technical and the devil's always in the details. So you hire a legal expert to hash out the finer details of your contract. You can actually click on our website we have lots of examples of attorneys who do this for Hannah. Drying up her paperwork cost her about 400 bucks. Yours might cost more, but it's worth it. To ensure you don't take over somebody else's businesses on bad terms, then you go to improve it. Remember our vending machine cash flow idea that you saw in one of our other videos? You might want to add some more of those. She right now has a few of them, but it turns out that vending machine stocked with not just things to wash the car or clean the car, but with Cheetos and Red Bull, they make some money. So I would add those to the property, too. Right now, Hannah attributes a good portion of her weekly turnover, meaning the money she takes in to vending machines. She has vending machines that do things like glass cleaner, air fresheners, tire shiners, interior sponges, absorbent towels, apparently even her air fresheners, which she buys. These margins, they blow my mind. She buys these air fresheners for 20 cents apiece and resells them for $1.25. That's a 500% markup. And this is one of my favorite parts of the car wash business because the margins is so cool. Typical margins on this type of stuff is 50 to 60%. Now, we're only talking 50 cents, but that actually ain't bad because then you get something like this. This does not cost you a dollar, as evidenced by the fact that it's basically a fancy paper towel. You fill up these vending machines and then collect the quarters weekly. I like that they have a card this bad boy. I would probably do that on all of the machines. But this right here at 50% margins is actually pretty ridiculous. I mean, look at this thing. As a realtor, Hannah kind of knows how to pull pennies out of real estate, and that's why she's pushing to build self storage units on the unused land around her car wash. She's adding ice vending around her car wash. We call this value add, or how you can add other amenities to continue diversifying your cash flow and increasing it. The last point I'll say here is mergers and acquisitions. The car wash industry is one of the few areas where there are very few big players. Even the largest chains don't have a market share bigger than 5%. What does that mean for us? Disaggregation means opportunity. A horizontal merger is one way to expand while safeguarding your cash flow against, let's say, the fact that it's freezing in the winter. So basically, you would acquire car washes up north where there's higher customer volume during the summer, and then you might acquire some down south that would offset your income that you don't get during the winter. Of course, you could also do what's called a vertical acquisition, which basically means you buy other related businesses that are similar to your business. That might be like you bought a car wash. Now you bought a ice vending machine business. Now you bought a vending machine business, and you have this nice little satellite that brings all the businesses together. There's a lot of ways to slice the pie when it gets to doing deals and buying things like car washes. I don't know why more people don't talk about it, except that all of us former Wall street people like me like to make the 2 in 20. That's how we do expenses and things like our private equity funds. But the thought here with this channel is we teach you guys how to stack cash too. Because if we all make money together, it's a lot more fun than getting rich quietly. If you got any questions, drop them in the comment and make sure to hit that follow button.