Funding

[Rooster’s Car Wash]

I have two washes and need funding. I have an LLC but can’t get approved for a personal business loan. Where can I get a loan? My DBA is almost 1 year old and my LLC is only a couple months old. Most banks want you to wait 2 years. Need money now for renovations/remodeling/repairs.

Also, where did y’all get your money from in the beginning?

 

[Rfreeman]

Do you have any other real property assets you can use as collateral?

Personally, I owned rental real estate free and clear. I refinanced 4 properties to take cash out to buy more during the Great Recession. The last opportunity I found was a foreclosed car wash and I bought it. Values went up in time and had instant equity since I bought near the bottom of the real estate market. So I use my other assets as collateral to finance any deal that comes my way.

Additionally, I have a great relationship with a local bank that understands car washes and my business plan. I have a track record with them. Getting started is always the hardest but once you do it seems to get easier

 

[Rooster’s Car Wash]

This is awesome. All I have is my house. Thought about doing a HELOC. I’m going to start to work more with my bank. Thank you!

 

[Rfreeman]

I know a local car wash owner that used his house to get his first one.....8 car washes later he has done really well for himself and his family. Needless to say he has a nicer and bigger house now.....

Another one I know maxed out 10+ credit cards to get enough money out to buy his first one. Worked his full time job and car washed part time. As he put it....family ate beans and rice for a few years but paid the wash off and now he has 5 of them and is doing well for himself and his family. He quit his full time job and just runs the washes.

Have a sound plan and know how much you need to borrow... bankers don't like when you come in and ask for loan but don't know how much you want....remember their bidding on your business just as much as you are for them.

 

[Rooster’s Car Wash]

I know a local car wash owner that used his house to get his first one.....8 car washes later he has done really well for himself and his family. Needless to say he has a nicer and bigger house now.....

Another one I know maxed out 10+ credit cards to get enough money out to buy his first one. Worked his full time job and car washed part time. As he put it....family ate beans and rice for a few years but paid the wash off and now he has 5 of them and is doing well for himself and his family. He quit his full time job and just runs the washes.

Have a sound plan and know how much you need to borrow... bankers don't like when you come in and ask for loan but don't know how much you want....remember their bidding on your business just as much as you are for them.

This is the best advice I have heard so far. Thank you!

 

[Waxman]

i owned my land outright and used that as collateral. i also got bank financing and an sba 504; 60/40 split.

still i was on a shoestring for ten years or so; i borrowed more $ to build my detail shop then more again 3 years ago when i remodeled my iba.

i also financed an 8 plex apt bldg and a 5 plex with a beauty salon.

I am heavily leveraged still and I love every bit. i always make extra principle payments, still.