How Anyone Can Buy A Car Wash With Other People’s Money Capital Raising

So I recently met a Raises. com member that acquired a car wash. I flew out and we walked around the facility. I got to know the new, the old owners, the people that used to own it and some other people that I work with and some other people that are working with Raises. com managed to meet the clients and we managed to share ideas.

And I learned how he did it, how he used our services to get it done and all the different nuances and kinks and weird knickknacks. That have to do with the car wash acquisition, so I’m just going to quickly run through three main things I learned in walking through this car wash acquisition So I guess the number one is mainly that he already owns a 44 units multifamily deal that he raised millions of dollars for and we managed to help him close that one and You know about like over a year ago so He noticed that the cash flow is way better in the business.

So in a car wash than in the Multifamily deal because the multifamily deal the valuation even though it’s low compared to the car wash It was so much more, like the amount of cash that comes out of it is so much less than the car wash. And I found that really interesting because the car wash just charges, maybe a few like between 50 or 100 down to 2 per every customer that comes in.

And because of that, it actually adds up and it makes millions. So the problem was because somebody’s renting a place. The cash flow is really fixed and stable and it’s not really that high. So I was just surprised by how much cash it does and it had a 50% profit margin. So for a car wash, I have a 50% profit margin.

How Anyone Can Buy A Car Wash With Other People’s Money Capital Raising

That’s pretty good. The second thing I realized is there’s a nice combination of asset appreciation. So the value of the asset goes up over time. And I also noticed that Because the value of the asset goes up over time, you already have your real estate part of the deal. Because the car wash is obviously attached to real estate.

So you have the same benefits of real estate without being in the real estate world. And I find that very interesting because many people say that, Oh yeah, you have to get into real estate because the value goes up. But then people forget that businesses that are like commercial, anything, any business basically that is attached to real estate still inherits the benefits of real estate.

So he has the long term appreciation benefits of real estate without him actually owning real estate and Or with sorry without him actually doing project management property management in real estate. So that’s the second thing I noticed and then the third thing is you do have to have a lot industry expertise because he’s been watching a lot of videos about car washes and a lot of And trying to understand how it works.

And even when we’re walking around the facility, he would take us to the billboard and then he would talk about how he changed the billboard, how he knows that crooks steal from a certain machine, how he had to do research on. A like on a tap machine, on a machine that’s, charges takes debit cards and credit cards because it just used to be a coin operated car wash and he had to do research and all the vendors and he got cheated by one that I’m not going to name, but, and then he found another one.

How Anyone Can Buy A Car Wash With Other People’s Money Capital Raising

Now it’s better. And he used to watch a YouTube video on the guy who owned car washes for years. So he did a lot of work and learning how the business operated. So it’s not really something where I think you have to. It has, it’s something separate from what you do as your main job or your main profession or your main business.

It has to be something that you’re already used to doing or that you did a lot of research in. Because he’s pretty much full time on that car wash. While he has the real estate deal in the background working making millions in total. The thing is that the car wash is, for now at least, a full time job until he builds the systems to get out of it.

And later on, he’s going to do a roll up with more of the car washes and turn it into a system. Not really a franchise, but more a system. And the point I’m making is he has a pretty deep knowledge of the car wash space. Not extremely deep, but maybe he spent like three years, two or three years researching it.

To the point where he knows like the types of customers that come in, the cost of buying, of getting like a self serve car wash versus the car wash where that is automatic, and he really did some deep research in all the types of car washes, the types of equipment you need and everything.

So it takes some work to know it. So for example, if you’re somebody who’s an accountant, you should probably buy accounting firms or financial service firms or financial law firms or financial firms that are adjacent to what you already understand deeply. Otherwise, you wouldn’t have to spend three years having to learn it.

Bottom line, you have to know yourself. Those are the three main takeaways. And, he was really happy that he got it done, obviously, and it was really great. But, basically it’s really, it’s not really, it’s a quote unquote unsexy business. It’s not really that sexy. It just generates money.

And… What he’s doing now is he’s making it sexy by doing a roll up of similar car washes. Because the people that owned it, it was a Korean couple that was very more old school and then are retiring. So he did a lot to make it more modern. And he’s making it more fun and modern. And he’s using technology, Google Ads automation, software, and everything, subscriptions, online subscriptions.

How Anyone Can Buy A Car Wash With Other People’s Money Capital Raising

To make it generate more profits, but yeah, overall it’s basically number one, if you buy businesses, you get the benefits of real estate appreciation with cashflow, as opposed to just real estate appreciation and property management. I guess number two, businesses can cashflow really well. If it’s really profitable, you want to make sure that if you find a profitable business you want to make sure that it’s as profitable as possible and you can find a lot of profitable cashflow in businesses that are unsexy.

And number three just remember that it takes a lot of knowledge to be able to operate it, not as scary amounts, but it just takes some knowledge. So probably you have to have, you have to be doing it as your main profession, knowledge, business, or career. Or you have to get somebody who knows more about it.

To join your team. Otherwise you’re spending two or three years passively learning on YouTube, like he did. So those are my takeaways and make sure that, Hey, if you want to buy a business, just start now, and create a fund to do it because that’s the legal way of doing it if you want to raise.

So if this is something that you’d like to do, just make sure you click around comments and make sure you head to raises. com and we’ll see you in the next one.