Saturday, June 3, 2023

Young man works 20 minutes a day and earns $5,450 per month from car wash business

I started working at the age of 17 in a real estate agency. After a brief stint in college, I dropped out and got my real estate license at age 18.

When I was struggling to make ends meet, I read about the power of passive income. I wanted to invest in a business that basically runs on its own. Then, as luck would have it, a functioning self-service car wash in my Tennessee hometown went up for sale.

Now, at age 24, I make an average of $5,450 per month in passive income from my car wash business after monthly expenses of $1,500 to $2,000. The best part is that I only work on it for 20 minutes a day.

Buy a Car Wash Business for Only $2,000

When I bought my business, I had barely any credit history and only $2,000 in savings. But thanks to my experience in real estate, I knew I had several financing options available to me.

I decided to use the seller financing method. This is when, as part of the sale, the buyer agrees to pay the seller’s monthly loan installments, instead of taking his own loan from the bank.

I paid a lawyer $400 to draw up a contract that said it would cover the monthly mortgage payment on the existing car wash loan, as well as income tax, property tax, and utility bills.

After making these monthly payments, I will keep all the earnings. If he didn’t pay, the seller would repossess the property.

In May 2021, I closed the car wash, but I didn’t have to start paying the bills until June. I acted as a real estate agent on the sale, so the sellers covered the cost of the sale (about $4,000) instead of paying me a commission. I started making money right away with $0 down payment.

Earn passive income with a self-service car wash

I go to the car wash before, after or during work to take out the trash, refill coin machines, and wash dirty car washes. I also do preventive maintenance, like greasing machinery once a month.

Owning my car wash has allowed me to generate a source of income on top of my 9 to 5 job as a real estate agent. Last fall, I had enough money and credit to get a traditional bank loan and wash it from vendors.

Thousands of people have accessed my free training to learn more about investing in a car wash. Here’s my best advice:

1. Find Your Location

Search engines such as LoopNet or Craxi allow you to find commercial real estate for sale. This is how I came to know my location.

If you are driving through an area you want to visit and see dilapidated or abandoned car washes, you can use a search engine like Batchleads to find the phone number associated with the car wash, Can call the owner and see. If they are interested in discussing the sale.

Whatever method you use to find an interested seller, gauge their interest only over the phone. Save all other questions for the in-person tour.

2. Property Tour

During the process, keep these questions in mind:

Is it a good place? Is it near busy roads? Is it convenient for customers to come and go?

What does the team look like? Ask the owner how old the appliance is and how often it has been serviced. If the water pump is more than 10 years old and hasn’t been greased at least once a month, for example, it could be a bad investment.

Are There Simple Improvements That Could Make You More Money? Don’t be afraid to buy a bad car wash if you have good bones.

I was able to replicate my car wash when I first bought all new hoses, brush heads, vacuum hoses and accessories, as well as all new logos and signage. I slowly invested in this equipment during my first year in business and it only cost me a few thousand dollars.

3. Ask to review finances

When I bought my car wash, it was already profitable. Personally, I would never buy a car wash that is losing money.

Make sure that the proceeds from laundering cover all of your expenses, such as water, electricity, property taxes, and the mortgage.

4. Focus on retaining genuine customers

If the business you buy is in the green, your top priority when closing should be retaining your loyal customers. I keep my car wash clean and make sure everything is running smoothly every day so the customers keep coming back.

To increase my customer base, I also added my business to Google Maps and paid around $150 to place targeted ads on Facebook.

The downside of owning a car wash is the cleaning involved, but I don’t mind getting my hands dirty for a few thousand bucks a month.

Hannah Ingram is a real estate agent, investor, and mentor who advises people to buy car washes and laundromats. He bought his first car wash business at the age of 22. Follow him on Tiktok, Instagram and YouTube.

Nation World News Desk
Nation World News Desk
Nation World News is the fastest emerging news website covering all the latest news, world’s top stories, science news entertainment sports cricket’s latest discoveries, new technology gadgets, politics news, and more.
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