Creative Financing: How Young Entrepreneur Bought Profitable Car Wash In Tennessee and Makes R100k per Month

• Hannah Ingram, a 23-year-old real estate investor, purchased a coin-operated car wash in Tennessee
• She used three strategies to find potential sources of passive income: using commercial search engines, cold-calling business owners, and driving around to find rundown properties
• She had to put a lot of money into the car wash at the start, upgrading equipment and making cosmetic changes

At just 23 years old, Hannah Ingram purchased a coin-operated car wash in Tennessee to have 10 passive income streams before she turned 25. Ingram's interest in investing in real estate was sparked by reading Robert Kiyosaki's Rich Dad Poor Dad in high school.

Ingram had to get creative with financing since she didn't have much credit built up or savings

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According to Business Insider, she used a strategy known as owner financing or seller financing, taking over the loan payment of the owners for two years to show the bank that the car wash made a steady income. She initially invested much money into the business, upgrading equipment and making cosmetic changes. She made a profit the first month, and now the car wash makes about R100 000 a month in profit and mostly runs itself.

"In high school, I read a book by Robert Kiyosaki called 'Rich Dad Poor Dad,' and it talked about how real estate created millionaires in the US," Ingram said. "At just 17, I knew that I wanted to invest in real estate after finishing that book. I've been involved with real estate ever since."

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Her interest in real estate led her to purchase a coin-operated car wash in Tennessee to create passive income streams. She used three strategies to find potential properties: commercial search engines, cold-calling business owners, and driving around to find rundown properties.

"When I found the car wash, I asked the owners to send their financial reports and looked for expenses I could cut out," Ingram said. "For example, they were paying a few hundred dollars a month for a radio advertisement that I knew I could lose and replace with social media marketing. Doing those calculations, I could see a clear way forward where I'd be able to stay in the green, and that gave me confidence in the investment."

Financing the car wash purchase was challenging for Ingram, as she did not have a long credit history, and the bank lenders wanted a 25% down payment. She used a strategy known as owner or seller financing to get around this.

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"The people I bought it from had already gone to their bank, gotten a loan, put the down payment down, and taken the subsequent credit hit," Ingram said.

"But usually an owner doesn't want to hold onto a commercial property forever. I offered to take over the loan that the owners already had with their bank. Banks like to see several months of steady income coming in before they'll give a loan, so by taking over their loan payment for maybe two years, I'm able to show the bank, 'Hey, my car wash is making R100 000 a month.' Then the bank will look at that, in addition to the income I already have in real estate, and from there, I'll be able to move the loan into my name and actually get it financed myself."

She had to put a lot of money into the car wash at the start, upgrading equipment and making cosmetic changes. But she made a profit in the first month.

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"I tell people to buy a car wash, not build one because odds are good that an existing car wash already has a customer base and generates revenue," Ingram said. "It's a pretty low-risk investment, and you can make passive income while working on other things."

Some Netizens do not believe Hannah's story

@Brian Hunter said:

"Umm, no. Car washes break constantly, and customers are constantly complaining. It's an awesome source of income, but there is nothing passive about it, nor is there any such thing as a passive income when it comes to businesses, unless you truly have a manager that runs it as if they own it, but eventually even then the chickens will come home to roost in some form or fashion. I wish people would stop thinking they can get rich by doing nothing. It's toxic to our society."

@Day Poe said:

"There’s a car wash available right now in my town. Get on it 22 year olds."

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@Kristi Denson said:

"Okay, Mr White."

@Keo Kong said:

"I assure you it’s not running itself!"

@Jacob Johnson added:

"Owner financed" with no interest, parent's real estate company and "a ton of money saved from working at fast food job" You guys write some pretty decent fictional stories haha."

@Mikai Bauhaus joked:

"Y’all seen Breaking Bad."

@Yan Mikhaylov said:

"Nothing “runs itself”, except your money. They run themselves really fast."

@Franz Anton Fideli II said:

"Where did you get the money? I want to hear this one too. Oh Wait!! I see, you gambled and so far you're hanging in there."

Woman shares 5 businesses people can start with R500 or less

In other business tip stories, Briefly News reported on a lady who calls herself an entrepreneur and personal development ambassador who gave people tips on Twitter about the businesses they can start with only R500.

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Firstly, she said people could start a sneaker-washing business that only requires detergents and water. Her second idea was baking scones and muffins, and she said there was no way the baked good won't sell at places like taxi ranks.

@MrSAAerobics asked:

"So which business are you doing out of the five that you mentioned? With proof, please."

Source: Briefly News