I started working at a real estate office at 17 years old. After a short stint in college, I dropped out and got my real estate license at 18.
While struggling to make ends meet, I read about the power of passive income. I wanted to invest in a business that basically runs itself. Then, like fate, an operational self-service car wash went up for sale in my Tennessee hometown.
Now, at 24, I earn an average of $5,450 a month in passive income off my car wash business, after $1,500 to $2,000 of monthly expenses. The best part is that I only work on it for 20 minutes a day.
Buying a car wash business with just $2,000 in the bank
When I purchased my business, I hardly had any credit history and only $2,000 in savings. But thanks to my real estate background, I knew I had a number of financing options at my disposal.
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, rather than taking out their own loan from a bank.
I paid an attorney $400 to draw up a contract that said I would cover the monthly mortgage payments on the existing car wash loan, as well as the income taxes, property taxes and utility bills.
After making these monthly payments, I would keep all of the profits. If I failed to pay, the sellers would take the property back.
In May 2021, I closed on the car wash, but I didn’t have to start paying bills until June. I acted as the real estate agent on the sale, so the sellers covered the sale costs (about $4,000) instead of paying me a commission. I started making money immediately with $0 down.
Earning passive income from a self-service car wash
I go before, after or during work to take the wash’s trash out, fill the coin machines, and wash dirty car wash bays (the stalls where people wash their cars). I also do preventative maintenance, like oiling the machinery, once a month.
Owning my car wash has allowed me to build a stream of income on top of my 9-to-5 as a real estate…
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