Why am I buying Car Washes

Good Afternoon, Everyone!

It’s been a while since I wrote a newsletter, but today feels like a great day to share some updates. With everything going on in the world—a strike, a war, and the upcoming election—it’s normal for many of us to feel a bit anxious. But I have some good news I want to share!

I want to talk about a project I’m working on with car washes. You might be wondering why I’m focusing on this, but by the end, I think you’ll see how it could be helpful for some of you too.

This newsletter might be a bit long, but if it helps even one person who’s trying to come up with a business idea, it will be worth it.

Lately, I’ve had people questioning my business methods and the returns I get. So, I want to share my journey with you all.

A few months ago, I started looking for properties for sale that aren’t listed on the market. I’ve had a lot of success finding properties that are priced wrong. While doing my research, I found a car wash near my home that caught my interest. The listing had expired, and the owner was also the agent, which made it easy to contact him.

Usually, when an owner is also the agent, they price their property high because of their emotional attachment. This guy was tough to work with—argumentative and doubtful. I knew I had a challenge ahead.

When I arrived, it was clear what the problem was. The place was a mess! The owner was overly concerned about how things were locked up. It became obvious he had a “taking” mindset, which can be a big problem in business. If you’re only focused on what you can get from a deal, you might struggle to succeed.

Listening to him, I realized that the car wash wasn’t showing the numbers to justify its asking price. Despite the difficulties, I believed him. Sometimes, you have to trust your gut. Just like a basketball player takes a shot when they’re open, I felt good about this deal.

Here’s what I look for when checking out car washes:

1. Pricing: How much do they charge per minute?

2. Payment Options: Do they accept credit cards?

3. Amenities: Do they offer the features people want?

4. Condition: Is everything clean and working?

5. Lighting: Did you know that using colored LED lights can increase business by almost 30% at night?

This is a simple plan that can work in almost any market. So, why am I doing self-serve car washes? One reason is that many have gone out of business, so there’s not much competition. Plus, prices have gone up a lot, and I want to be part of that growth. People are now paying around $10 for a wash, a big jump from when it was just $2 or $3.

This car wash wasn’t offering any of those important features. They charged nearly a dollar for 2 minutes and 45 seconds of wash time, while other places were charging a dollar for just one minute. I knew there was a chance to raise prices and almost double the revenue just by getting in line with the market.

I ended up buying the car wash for $300,000. The owner wanted $340,000, but I knew he couldn’t get that with his numbers. Most people wouldn’t want to invest $300,000 in something like this, but it’s a good fit for me.

I plan to expand by buying three more car washes, which will total around $2 million. My goal is to double the sales and save about $500,000 in taxes by taking full advantage of Cost Segregation, its the greatest ROI of any tool that I use.  If all goes well, I hope to sell everything for around $4 million.

What if you don’t have $300,000 to invest? Many deals like this aren’t easy to finance unless you have strong connections or the owner is willing to help. You’d be surprised how many sellers prefer to save on taxes rather than get top dollar for their business.

I’m building a good reputation in the car wash community, which helps me find new deals. If you know someone looking to sell a car wash, I’d love to connect!

I’ve also been thinking about the future. After selling my oil company in 2016, I thought I wouldn’t have to work again. But living expenses can be surprising. Even small things, like fast food, can cost a lot more now. I believe we might still face inflation in the future. So I may hang on for a little walking around money.

So even if this journey doesn’t lead to a huge profit right away, it could be a great opportunity for my kids in the future or a fun side project for me as I prepare for another retirement.

If any of this helps you, I’d love to hear back from you. That’s why I share these updates!

I’m not selling anything, just sharing my experiences and hoping to see all of you succeed!

Take care,

Chris