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Car rental invoice pdf for small businesses

ladies and gentlemen welcome back to another edition of marvin's room your number one source for all things business finance and investing i'm your host with the most marvin francois and today is a very special day because we have my guide none other than mike the businessman how you doing my man how's everybody out here brother listen appreciate you for having for coming through and today is going to be an amazing day because we're going to be talking about how to start your own private car rentals right i'm super excited for us to get into it but before we do that make sure you guys take a second take a minute take an hour out of your day right here right now just go ahead and slap the like button and show this episode some love but without further ado let's get it let's get right into it my god mike the business man man my man how are you bro i'm excited to be here bro i'm excited to have you man it's been a lot of chirping yes sir it's been a lot of noise it needs to be you know i i didn't hear i had some people on here and they were like yo i got some other people i want to bring on these is it cool with you from i said listen don't bring don't bring no chumps right don't bring no suckers i need some heavy hitters and there was one name that kept revolving there was one name tell me what they certainly tell me what they said they said listen if you really want to turn this thing up yes sir they said if you really want to take this to another level you got to bring this man on here sir and it was your name man so i'm i'm very happy i was able to come and you're uh all the way from texas correct i came all the way from dallas texas bro yes sir flew in today and i got to go tonight i got to be in tulum in 48 hours see you listen so so we got to make this happen now we got we got it we got like it was worth it though i'm like yo when you hit me up i'm like say les i'm here are we here yes sir i'm excited man i know you're gonna bring a lot of game for the for the audience um get your pen and your pads out y'all listen i'm dropping gems it's about to be one of those it's about to be one of those so without further ado let's get into it right but now before we get started of course take a second to introduce introduce yourself let the people know who you are where you from uh what it is that you do and how you got your start all right so my name is michael anoha aka mike the businessman that's what everyone calls me um i've got a 6 000 square foot warehouse right by the dallas fort worth airport i own a private car rental business i ran out luxury and exotic vehicles that's what i've been doing for almost two years now i've been very successful at it okay uh my background so after college actually i went to rutgers uh new jersey right here in new jersey very very dope rutgers new jersey yeah okay so i graduated computer information systems man jersey was whack bro i tell people jersey raised me but texas paid me i love it they couldn't give me a job out here so i had to pack my bags i went to texas i got a job in auto insurance so selling property and casualty non-standard auto insurance okay so basically people with lots of tickets suspended licenses we're getting them some insurance getting them back on the road all right so i kind of got my feet wet in the insurance game um at an early age years later fast-forward years later you know how it is bro you always feel like the grass is green on the other side so i went back to corporate america i dusted off my degree got a job um as a vice president tech and cyber operational risk management for jpmorgan chase and um so basically what that means is it's almost risk management or the ones that keep the bad guys out of the companies all right so right um so i combined that experience of risk management insurance i had some buddies that were doing rentals and they were making a killing in it right so i figured i bet let me get into it i got to be honest with you man i couldn't tell you the difference between a v8 engine from a v10 or v12 okay but i know how to make money off them things and that's all that matters right right so um i just basically just took my experience and i ran with it i went all in right yeah we're here and you're here now yes sir and what's the fleet sitting at right now in terms of um in the warehouse at the moment probably have about between 10 12 cars right there hold on let me sit up yeah what what kind of cars are we talking about yeah so a few a few a few cars you might have heard of okay a lamborghini huracan okay that sounds familiar that sounds mclaren 570 gt okay that sounds even more familiar okay a couple of other european ones um uh a bentley bentega like i mentioned i got the i got a what else i got in there now i got a bmw i8 roadster in there i got a range rover in there i got a rolls royce rafe in there crazy about to get a ghost in the weekend i can keep going bro yeah you need to say drink some more bro okay and that's why i was excited to have you on because i know that my audience is very very much so interested in the car rental space but i was even more interested to bring you on because not just because you're in the car into space but because of the way that your business model is set up right sir from the research that i've done i it seems that the car rental space is one of the more hot hottest spaces to get into like right head to head with like airbnb and a lot of the platforms that a lot of these people are using are like turo get around hire a car and then this just goes on and on and on but when i did my research into you i was able to find out that you don't utilize any of these plans sir you actually have a business model where you have a private car rental company am i correct on that sir 100 so now talk to me a little bit about that because i think that a lot of people heard that their ears just perked up they said hold on i thought you i thought you needed terror to get started i thought you needed get around and hire car and all these other platforms are you like nah i don't i don't use none of that and you know i'm here doing what i have to do for the for the for the the audience member that's listening right now can you explain the difference between you know having a car rental business on a platform like a toro like a higher car versus what it is that you do right which is a private car rental company right so i think the biggest differentiating factor here is data who owns the data right so for me i'm all about collecting data being able to retarget and remarket my customers right right so when i'm relying on a platform i'm giving up the rights of that data they own the data okay i can't reach out to those customers in the future so for me that's a big so i was a big no-no for me so i knew from day one it was private rentals all the way okay so i just leveraged those platforms for barely a month two months i don't know about you if you've ever done i hate to mention these company names but if you've ever done one of those car sharing platforms it's a lot of minimum wage activities okay i barely did it two months and i quit i'm like i'm not doing this crap and i went full in i got a warehouse and i went all the way private so that's just me however there's several models to the car rental business game and i'll give you i'll give you i'll break it down for you guys right so there's a ride sharing model okay okay so that's where you buy cars specifically and you're targeting so your niche here is people that are on ride sharing platforms like your door dash your uber eats right so your target you're buying cars for them and then you're giving those cars to them to go rent it out so that's one model right right second model is a car sharing model okay that's more popular so you have apps like touro get around hire car so you're getting cars and you're putting them on those platforms the car sharing platforms um a third model which is the one i embrace is the private car rental model so i'm going direct to customer um you have a location and you're able to charge more there's a fourth model it's more advanced it's it's uh it's the floor plan dealer model okay where you got a dealer license and and you're you're using your floor plan to get cars and then you rent them for 90 days you either sell them or you just you know you send them to auction sell them off get new cars okay so those are the different models that you are in the space um a lot of people are mostly familiar with the car sharing model but yeah there's better ones out there got you now to dive a little bit deeper into the car sharing model one thing that i've heard from because i know a couple other people were in the private rental space one big motivating factor for a lot of them and i think this is probably maybe another motivating factor for you was the fees that are associated with these car riding uh platforms talk a little bit about that because there are some people who probably aren't in the space yet who maybe want to get into the space right and for you having the experience that you have i'm sure that that was one of the things we like man i'm paying you how much money my car is on there 100 right so can you talk about the different differentiating thing between that in terms of like you know some of the benefits that come with having a private rental company versus like being on some of these cars sharing uh these these ride sharing platforms right so facts i'll give you a real life example i was going to atlanta a few months ago and i tried to rent a rolls royce out there and the gentleman had his rolls royce it was a rolls-royce ghost and he had it on there for only 600 a day right so for two days the bill came out to like 1200 and that's that's the bread that was going to him then touro attacked on an extra almost a thousand dollar trip fee they called it okay and they also tacked on like an insurance fee on there right so at the end of the day the bill was almost 20 something 24 2500 but unfortunately for the owner of the car he's giving up almost 200 miles a day he's only going home with 1200 but not even 1200 because after that turo is taking depending on what plan he's on anywhere from 10 to 30 of that so homeboy is going home with only 700 that's crazy euros banking almost 15 16 1700 right so for me that's my problem with these platforms right so if you were doing private rentals i rent my go stop for a minimum of anywhere from 1100 to 1400 a day right you know that's that's what i read mine out right so why would i give up that bread when i could just do it direct to customers so that's for me that was the switch that told me like no i this i feel like churros built for the renters and also for their investors at bottom line they're about to go they're about to launch an ipo so they're about to go uh public okay so they have to please their shareholders right so they're not here for the host unfortunately um and i think for me that was uh that was the thing that i couldn't take about the platform and so that's why i just do it privately got you got your gosh and how long have you been doing in been in the private space i've been doing it almost two years now and i already had 11 cars i think he said 11 cars see i preach a different i know a lot of people you guys have watched a bunch of youtube videos and there's gurus out there to tell you go get 30 cars in 30 days i preach quality over quantity okay okay you could still make more bread with just a few of the right cars like if you if you niche down and then you you you market to your avatar you define your avatar who's your target audience like picture what they look like like if you're if you're targeting traveling nurses if you're targeting uh business professionals you're targeting families drill down to like the kind of cars they like drill down to your marketing message everything no like for me my avatar they like flashier cars right so i go get cars like the bmw i8 the doors lift up right now i'm saying i'll go throw on a purple rap on that baby and they love that right you know i'll go get like a mclaren with the butterfly doors or i get a c8 that's got butterfly doors they don't like that kind of stuff right you know and then they'll happily pay me anywhere from 500 to a thousand dollars on a c8 right you can't get that on two-row right i see c8 it's on 2-0 for 1.99 oh that's crazy there you go that's the same so um i think if you are able to just define your avatar get the right cars that they want it'll be a breeze private rentals all day okay so now let's let's let's break down the play let's run the play now let's do it break this thing down step by step now um in terms of getting started right let's start out with structure structure is the most important thing in any business you do i don't care if you're renting out cars or you're selling hot cakes on the corner flat bush avenue right you need structure right when it comes to credit okay right in terms of securing these vehicles does my credit need to look a certain way in order for me to get started in the private rental business and if so what does that structure need to look like as it pertains to that all right so first things first i'll preface with this you don't need to have good credit you don't need to have any credit you don't need to have any cash really you don't need to have any cards to get started in this business okay and we'll talk about that a little later however to answer your questions specifically like if you were going to go get yourself a bunch of cards yes you do want to make sure that your credit's cleaned up right at least the 680 or better that way you can get better interest rates on the cars um you can qualify for several banks um you can go to the credit unions you can take advantage of like the a small business auto loan where they give you very low interest rates less than five percent and they will approve you for up to four on one llc okay but there's several bank plays that we could run like there's banks out there like livestream that are given out of the bag you can get up to a hundred thousand from them on that car um so i think yes first and foremost right get your credit right okay um once your personal credit is right that you meet the right data points right make sure you don't have any of the late payments chargebacks repossessions on there get all that cleaned up this is 2022. y'all everybody needs to have good credit in 2022 y'all like let's let's stop with all of that like now get your credit right right so once you've done that next thing you need to start looking at is because you don't want to get these cards in your personal once again a lot of people watch some videos on youtube and they ran out got 30 cards on their personal credit now they can't even qualify for a cell phone bro right true story dti's messed up yo martin true story december a guy came to my warehouse um almost at the point of tears he told me he bought a bunch of cars put them on a platform and the platform dried up like december january february most of these platforms are dried up right and this guy was telling he confessed to me that he'd been living off his credit card paying his mortgage he has a family with kids right he's been living off his credit cards for months now almost at the brink of bankruptcy crazy just because his dti was through the roof and there's no way to get out from underneath it right you know so um let's not make those mistakes okay let's be smart once your personal credit is where you need it to be now you want to get your business credit right okay okay so make sure your business credit hits the right data points too make sure you've got a a business address business phone number business email all of that stuff right um once you get your business credit right you want to be buying the cards in your business name okay um now here's another thing another bar you guys don't hear anywhere banks car rentals is considered high risk okay so your nics code needs to be something different like business consulting something like that so the way we structure it is you have a parent company okay that's maybe like a consulting company and then your exotic business could be a dba or a child company of the parent company the parent company is what we're gonna go use to get the bag from the banks okay okay that's what we're gonna use to apply for our loans all of that okay so we keep that one squeaky clean we make sure you get the general get the duns number you generate a paydex on that get some trade lines on there whatever you need to do do that beef that guy up because that's where you get all the money from okay especially now we're about to go into a recession go get as much business credit as you can you can never have enough in fact you never have enough we're going into a recession right now i have a video where i just got over 200 000 in business credit in two weeks so i encourage you guys to do that because the the storm is coming um the storm is definitely coming yes sir so now let's let's let's backtrack here and and do a quick review so first off like you were saying you want to get the personal questions listen if you've been watching my youtube channel for long enough you already know what your personal credit's supposed to look like so we didn't have to break that down right but like you said 680 or higher right you want to keep your inquiry account low no uh no late payments right things of that nature you want to make sure you have at least three to five uh positive accounts on your credit report with a nice age to make sure that your credit is properly structured then from there like you said we don't want to go out there and get the cars in our personal name no we want to get them in our business name right because now if we get them in our personal name to your point where there's two three four five cars this and this is something not a lot of people talk about dti is real right debt to income ratio right so when we talk about debt to income ratio this has to do with how much you're borrowing compared to how much money you bring in and now to your point if you have all these cars that are in your personal name right that you own that you have loans on right this is not going to affect your negatively affect your ability to go and get credit from future lenders down the line whether it's a phone bill whether it's another credit card or whatever it may be because banks are not going to feel comfortable giving you money we got all this debt lingering out there that you need to pay back then you also talked about you know business structure right uh you one you one key one important key that you made was the naics code right so to do a quick dive into that for those who don't know the naics code is basically a code connected to a classifying system for businesses right depending on the type of business you have every business has a naics code that the banks and lenders and other other entities use to determine what field of business that you're in the level of risk right and the level of risk so for example i have i have a credit repair company right but my credit repair company is not structured as a credit repair company structured as a business consulting agency right because it's high risk i just learned something new i didn't know that car rental was high risk but now that i think about it about everything that comes in the business you wanted to so that's another gem right make sure that when you're going and you're getting a and we would get an llc for this business 100 you want to make sure that any ics code is connected to something not low risk the easiest one to get is is business consulting and then from there we're building up our business credit right and then we're able to go out and get the car yes sir son you know i pulled you over today because i was doing 90 and 40 and hit three people along the way no i don't care about that what i do care about though is uh checking our system seems like you got a 580 credit score right now normally i'll give you a ticket for this but instead i'm going to give you a link to a website called francoiscapital.com right i specialize removing hard inquiries charge offs collections student loans addictions and so much more so you leave here head over to francoiscapital.com and book your free credit consultation today the capital way all right well thank you officer what what the hell is this are you even a cop how did that so now let's let's let's get a little bit more into the business model of it all right because you deal with exotics and luxuries yes sir high luxury and exotic cars earlier on you were talking about different spaces that you know people could get into you were mentioning how most people use ride share platforms like a higher car for example that's more geared towards people that use the cars for work right ubereats doordash you know uh things of that nature and then you have other platforms like toro maybe for people that are tourists coming in and out around the state things like that could you talk about some of the different niches right we have exotics we have economy cars things like that talk about the different niches the different spaces that exist in the car rental space and if i'm the average person and i really want to get into the space but i don't know what's for me how do i know now before you get into it talk slow be thorough right break it down for them real simple i got you all right so you know most people start off with the economies right so they want to get the economy cars people feel like that's the foundation that's the bedrock um that brings steady income throughout the year so they start off with the economy cars and they'll go throw it on say a higher car right so you're giving it out to maybe like an uber driver that's going to keep it for months on end right right um and that's a great plan that's that's a great strategy um now i cater mostly to the higher luxury cars and the exotic cars reason why is that's where the bread is at bro okay like the amount of money i make perfect example i've had a i8 how much is an ieee you could get a i8 for 60 70 bands okay i've had an i8 that's been gone since december dude is paying me forty two hundred dollars a week everything's crazy that's insane you do the math right it's almost 100 g's right right so you can't get that with the economy cars okay i don't care how many economy cars you get you're not going to get that much bread so for me i just feel like quality over quantity you give me five good luxury cars i'll make you some bread i'll make you six figures off of them so that's just my mentality but yes you could start off with the economies some people like to go get the sprinter van some people do sprinter vans some people do um slingshot rentals um and then you have people that want to do like the higher end luxuries and the exotic cars that's another niche out there also so you could choose either one of those most definitely and then uh so so we have the economy we have the exotic slash luxury and i think slingshot i've heard that's classified under a specialty card right somebody kind of like that like like very specific vehicles that kind of people just use right now sprinter vans what would that is that is that have its own classification i would i would classify that as being luxury interesting earlier they are quite expensive okay gotcha but people typically use that for like like party rooms and things like that prom nights and all of that stuff gotcha now now what about like let's say like a like a like a g wagon is that also like that would be that would be classified as luxury exotic so to speak because a g wagon right now costs 250 bands got you so yeah got it you got yourself up there sir okay gotcha got you out all right so we have an idea of the different classifications we've talked about you know structure and things that you want to make sure you have in place to get it get in the game now we need to go get the most important part of the game the car get it right we got to get the car right now this is i think going to be the most important part of video because i think this is something that before this video if you were trying to get into the space this was probably something that maybe you were extremely confused about or you just had a bunch of questions that need to be answered so hopefully you're able to answer those questions for them let's talk about securing this vehicle right if we're if we want to get into the private car rental space we're like mike the businessman you got me i'm hot now i need i need to start i'm gonna start this business tonight but i gotta figure out where to get the car right where where do we go to get the car okay what's that process look like so i'll even take it back one step let's assume you don't even have a car okay you don't even have good credit to get a car right right so you can actually leverage your relationship currency your social currency do you know other people that have cars siblings family members friends right once just let everybody know that you are the rental car plug once people start to associate you with that people will be begging you to rent out their cars i know brokers in my city that don't own a single car to their name but they're known as the plug for rental cars artists and celebrities influencers they come into town they're calling them up like yo i need a car right and it's his job to go get him whatever car they want and he makes his bread on top so you can start off that way like start off being a broker that's the easiest way into the niche okay and then while you're doing that in parallel you're working on your credit you're working on your business credit all of that stuff right um once you're ready to buy a car your credit is ready i would say the first step is to go apply directly to credit unions okay credit unions yeah credit unions like dcu um pen fed navy federal go start with them okay there's several of them out there credit unions be giving out the bad they do they give up very good interest rates easier approvals start from there now once you have that approval in hand take that to your dealership i guarantee your dealer is going to want to match that offer or better well now that's why i was about to ask so you're saying don't go to the dealership go to the bank instead first why would you say good bank instead of the deal because people know to go to the dealership right because the problem is once you go to the dealership they run up your credit right they try to hit you upside the head with a huge down payment okay i don't put money down on my cars except sometimes some exotics you can't get away with it okay so i'm like if you're buying an exotic worth 300 000 chances are the bank is only going to give you 80 90 of the value of the car okay you know um now you might have to put something up but um if i'm buying a 100 000 car i'm not putting a dime down if i'm buying my bentega i just bought i didn't put a dime down gotcha so um yeah go get your approval first small business auto loan if you have an llc you just created yesterday you could actually go online apply put in your personal income and your business income and don't forget when they say business income that's how much you're projected to make for the year right so that's the number you put in there you put that number in there will approve you within an hour or two take that approval to your dealership they will match that or you can still use that to buy a car right so i think that's the best way to get started um some people have auction access if you've got auction access and go to auction go get your car there too got you now one bar i'm gonna give you guys about buying cars too right so actually if you're looking to get into the car rental business is um understand the concept of a base cash value for a car okay what is that let me explain that all right so let's take a look that's a perfect example right a bmw i8 i've never seen a bmw especially right now i haven't seen the bmw i8 that's less than 60 000 okay so i kind of know that that's the base cash right that's that's as far as it drops on the depreciation curve okay every car has a depreciation curve right so in the rental car game we kind of want to meet it as close to the bottom as possible okay that way we're not losing too much money okay so if i know if i know that the bmw i8 is never going to drop less than 60 000 if i get a if i see one at 65 68 70 000 that's a good deal i have that window that space to play around with and get rid of the car and i don't lose as much so just be mindful of that like when you go buy a 2022 mercedes benz or bmw they depreciate a lot right so within a year that car is crashing you don't want that you have to you're going to eat that cost that depreciation cost so try to buy it as low as low as possible on that depreciation curve um i like to buy cars also that are the oldest in the latest model change so say they changed the design last year or maybe where in 2022 if they change the design of the car in 2019 i'm gonna go get the 2019 version of it i'm not gonna go get the latest version because then i'm gonna eat that depreciation you don't want that so at least that way it looks like your fleet looks like it's the hottest one the latest model right but then you're not eating that depreciation cost gotcha okay i'm about to buy a rolls royce ghost or a rafe i know that the rafe still looks the same from 2014 to 2021. why would i go waste money buying a 2021 when i could get a 2014 that looks exactly the same that's a bar and would rent for the exact same amount of money that's true so that's the way you got to look at the business okay same thing with the ghost go get the oldest model that looks the same as the current one right any car you're buying right that's how you stay relevant that's how you make the most bread in the business i love you you're buying your cars that's a few a few bars right there i love that and it's called the base cash what was it again base cash value base cash value of the card you got you got you so wow that that's that's i didn't even think to think about that that's huge okay people don't so that's why they end up without in a whole 100 so so once again you're basically saying like hey man don't even waste time because we've heard the horror stories that come with going to these dealerships right um in terms of you know you go in there with one ink where you leave with like 72 100 and now you're getting ready to slap box the owner of the of the place because he didn't tell you who's only gonna run it one time and they shotgun your credit to all the banks you're saying cut the middleman out yeah go straight to the banks because that's what they're doing anyways right go there you get you find out what you can get approved for as it pertains to auto financing you come back with the check there you go and then you're like eating meanie money mo catcher i want that one and then you run out of there okay so now another there are times though when you want the dealership to run your credit talk to me about that all right so if if if you're in the exotic space or you're looking to buy a bmw okay i would buy a bmw i would like to be i'd rather be financed with bmw find finance then have a credit union take that loan why because you want to see bmw finance on your credit report it looks good guess what rolls royces most of the parts are bmw parts okay if you have a good loan with bmw and you've been paying off on it years later or months later if you want to go get a rolls royce they see that on there on there like oh okay there you go got you i went through i had an approval with to get my bentley right but when i went to the dealership they got bentley financial gotcha that looks pretty unaccredited it looks fantastic it looks a whole lot better than navy federal right right right right right right i'll take that over now if they gonna run you through some other right no i don't need that right so there you go that's another bar goodness gracious i love that okay so now talk to me about this then right because that's huge yeah another aspect of getting the car is how you go about getting the vehicle right we know one of the two the two main ways that you can go about securing a vehicle is you can either finance it or lease it right now now that we have we're trying to start our private rental company we have a lot more flexibility as it pertains to that but from your personal experience does it make a difference if we lease or finance the vehicle and if so what's the better route for us to go 100 finance in the vehicle okay um because number one with the leases they limit the number of miles most likely you're going to go over on the miles which is and so it's not even it's not you can't win on that situation now there is a website out there called swap elise.com say that again by saying swap elise.com got you um so you go to swapperleafs.com people that are already in existing leases and want to get out from them they put their cars on that platform gotcha so you're able to actually go on there if your credit is not as strong that's a good plug for you so actually go to swap police.com and go find a car that maybe has six months left on the lease okay and if the payments are manageable they're giving you enough miles you could actually get that car and after you pay it off for the six months guess what it's going to show on your credit report like you've paid off that car got you so that's an easy work around with the leases gotcha um so yeah i wouldn't go lisa brand new 2022 car no it's a recipe for disaster yeah there you go okay got you okay so now right we talked about structure we talked about the different niches within the business that you could tap into what your personal credit needs to look like what your business needs to look like where you can get the car different tips tricks and gems on how to secure the car in your best interest right now we got the car congratulations right but we're not there yet we can we're not just going to throw the car on the road and think money's gonna start running there's a process to this right another part of this process that i'm i know of and i know you're extremely familiar with is protecting this asset of ours risk mitigation risk mitigation right because like you just said and i like i just knew just learned which i kind of knew already you know there's a high risk industry and the reason for that is because of accidents we're going to talk about that a little bit later but we got to make sure this asset that we just secured is protected right because we needed to cash flow and create you know money for ourselves for our family for our business 100 so if i'm getting into the private rental business what are some of those tools that we need to have in place to ensure that this asset that we just secured is protected when we put it on the road all right so first and foremost once you get the car first thing you need to do is go get some kill switches or gps trackers in your car what's a kill switch a kill switch is basically it's a device you put in the car and you can remotely switch off the car so if your car gets stolen by somebody you could actually switch it off and they can't start it again until you manually or you you turn it on yourself okay so make sure you have a kill switch there's several companies that sell them i like to use either viper i use advantage gps or i'll use gold star by spirian there you go those are three companies out there that often say say those game but say so viper gps viper vip v-i-p-e-r gps there's a gold star on by xperian and there's also advantage so those are three companies you guys could tap into go get kill switches i like to have in my market texas is not as hot as say like in atlanta okay so in texas i could get away with just two trackers in there okay so one i'll keep active that means it's turned on and one i keep passive so it's off so these two in the same track at the two in the same car okay that's a bar so the thief doesn't know so when they do their scan they see one that's active they take that out but they don't even know they don't know about the other one that's passive so once i get the report the ping that one's been switched off i can't i can't ping it anymore i switch on the other one and i kill switch them right so in texas i could get away with having two if you're not somewhere hot like atlanta you want to get about four finalists yeah you want to triple up on that at least so yeah yeah definitely so number that's that's the first thing you need to do then you need to make sure that you have a good insurance policy on their cars talk about that so you got to get insurance on your cars there's several options right if you have a car that's less than 50 000 that's easy there are companies out there like lula insurance l-u-l-a okay lula will sell you fleet insurance so they they're okay with giving it out to people that are running their cars on tour or private rentals gotcha so and it's pretty cheap too so they charge you based on when the trip starts okay okay so it's not for when you're going out on a date with your wifey they're not going to cover those trips right only when the car is on a rental gotcha it kicks in okay so um however it gets tricky when the cost of the car is over 50 000. why is not a lot of companies that want to take on that risk a few years ago a lot of cats out of miami and vegas started committing a lot of uh insurance fraud right they'll get into the exotic car rental business it doesn't work out after a year or two they burn down the warehouse and grab insurance money okay so that kind of messed the business up for a lot of people so we have to improvise okay um there are companies out there if the car is less than a hundred thousand they're companies out there that you can sell supplemental insurance to the customer okay so there's companies like um insuremycard.com say it again my car my car.com that's one um there's another one called sure like s-u-r-e sureapp.com that's another insurance policy um there's allianz everyone's familiar with all eons so it's a-l-l-i-a-n-z dot-com you could sell those policies to customers um i am a little weary about those i like to use those i consider those secondary insurance companies obviously their claims process isn't as mature as say your all-state state farm progressive right so i use that as uh so to speak plan b okay now the main way to do this is whoever is renting a car from you needs to make sure that you need to make sure they have insurance okay okay so the renter needs to have full coverage insurance and that's a must that's a must like gotcha don't get too thirsty to work don't get too excited to collect that bread and you don't make sure they have insurance so you have to verify their insurance policy make sure the property damage limits match the value of the car okay so if you're giving them a car that's worth 50 000 on an insurance policy there's something called a property damage limit that's what the insurance company is going to pay for the vehicle if it was in a record stolen gotcha okay so say you're driving a 50 000 car and you have property damage limits at 25 000 on your policy if you wreck that car if you total it your policy is only going to pay out twenty five thousand dollars that sounds very similar to like gap insurance isn't that well gaap is more like when it's a total loss okay and then they pay if you're all under on your loan okay gap insurance helps you pay off what you all steal on your note gotcha right but this is different this is if you total the car but then your insurance policy limits are too low they're not going to pay the value of the car right okay so when if you come to me to rent a hundred thousand dollar car you need to raise your property damage limits on your insurance policy up to a hundred thousand minimum that way if the car is totaled or stolen they'll pay for it right so that's one thing you have to make sure you verify on the phone with the insurance policy uh the insurance companies you want to make sure it's an active policy you want to make sure that the renter is listed on there as a driver trust me people come and they scam it could be a son that's got the same exact name as i did i literally saw you hold on i saw you make a post on your instagram story just the other day where i think a guy came with like one name with like a id or something two different ideas yeah that's crazy hit us he hit us twice he hit us by phone he also hit us by instagram right hoping to get two different reps you know different ids right so people scam all the time i get it all the time a kid he's got the same exact name as his father maybe joe smith right he's a junior and as a senior guess what when you call the insurance company like hey i have a joe smith here and this is the policy number they're like yes yes joe smith we have yet right but it's not the same joe smith right so you got to be mindful of things like that okay so um there's a lot of scammers out there so you need to make sure you have the right risk mitigation controls in place i'll explain what that means a control is anything you put in place to mitigate avoid or transfer risk for instance a door a door is a control it's to keep people out from your house okay same thing with your car rental business you need to have controls in place so people can't come in because trust me every day people are going to come in to steal these cars from you especially if you got the exhaust especially when you got they come every single day right so you got to have the right processes and procedures in place to make sure it doesn't happen so my team they got to verify insurance they got to run background checks on people we got to do a lot of stuff just to make sure those cars come back safely right you got to have those policies and procedures in place what is that you touched on a couple of them what is that is there specific because background background checks is the most important thing 100 so what what are those are there websites that you are specific software what does that process look like there's a software there's websites that we go to we utilize just to make sure they're paid you have to pay for them is there anyone that you is there anyone in particular that you recommend like perfect example you could use whitepages.com okay so you can use whitepages.com and we're not looking now let me preface with this though like don't go out there and because you ran their background check and you saw that maybe he stole some candy 20 years ago yeah oh no right i'm not tripping off of that i'm looking for certain red flags like if this guy i had this one guy last month he we ran his but he tried to run a lambo from me right and we ran on paper part like bro you would just say here take the key take all the rights perfect on paper right we ran the background check homeboy had dropped 300 atms in oklahoma he just got done doing a 15-year bid okay so guys google is your friend also you google the names of these people you would be surprised what comes up you'd be surprised what comes up so um just google their names sometimes too just do your hey checks and balances just to make sure before you hand over those keys bro brother brother if i if i did that check after i gave that brother the vehicle i'd be i'd be hot there you go i'd be scared crying shook scared to death scared to look what yeah marvin i tell you this though like i my policies and procedures are all in place they're so solid that when i hand over the keys i sleep at night i'm not checking my gps right i have no alerts set on my gps's i don't want to know like i'm cool i've already done everything my team's done everything i know that car is coming back right so so now that's and i'm happy there's a great amazing segway because now let's get a little bit into that because now you being two years in the game having the fleet that you've had you've you've dealt with the lumps and the bumps and the bruises of getting into this industry you're more well-versed now right you've you've seen a good amount so talk to me a little bit about that because compared to what is your day-to-day what is the day-to-day of the business now look like for where you are at now compared to when you first started because you know we don't want to just sell everybody you know dreams and giggles and they're saying that everything is all sweet you know you probably went through a lot earlier on that made you you know the the car rental uh the private rental expert that you are now yes sir what did that what what did those earlier days look like in terms of what your day-to-day was like the processes everything else and what have you learned from them that you've now implemented now to where your your business is bulletproof ain't nobody coming in there ms nothing up yes sir so i think for me starting off um it was just me doing the car sharing apps it's constantly doing drops you're washing the car so a lot of minimum wage work right there weren't any policies and procedures in place none of that i was just learning as i went as i matured then i started to put those things in place right so now i have a check-in process i have a checkout process i have a vehicle inspection process we have back-end processes where we're running our checks on these clients right so and everything is documented and stored we use tools like asana asana if you don't know is like a project management tool right where you could actually document like policies and procedures um put all of that in there i share that with my team so as i've grown and matured our processes have also matured um i make sure i have staff now so i don't i'm not hands-on operational anymore i'm not doing any of that stuff instead i'm more strategic i'm behind the scenes i have meetings with the staff i have meetings with my marketing team so i'm thinking my role now is more so how do we grow this thing more right okay how do we scale versus instead oh the next car's going out i got to go clean that so it takes time as does if anyone tells you the car rental business is a passive that's a lie it's not true i hate to break that to you starting off it's not going to be passive right as you mature though it'll get there it gets there like any other stream of income facts nothing is ever 100 passive facts um especially if you're trying to make over six figures when you get to that back you don't have to sweat for some sweat equity involved initially right and then you get to a point where yes now the money is rolling in now i could hire a few warehouse staff now i could hire a marketer bring it in business putting out the word out there and then that's how you start to um scale your business there you go and then you stop working in it you can start working on it boom bar and i'm extremely happy that you said that because you know especially i mean we're both on social media so we see a lot of people selling false hope you know not just even in the carbon to business but just in every business and that oh yeah yeah yeah six figures and you ain't gonna have to do nothing passive family like cap i don't care what you're doing once again i don't care if you sell soap or you you do car rental like there's a process that you have to go to yes sir and you should embrace that process because i don't i'm sure from you you personally there's some once again there's some lumps some bumps some bruises that you took in your first year going through this car rental business that you're probably extremely thankful for now because you're so well ver you've gone through those experiences and it's made you so well-versed and so thick-skinned so it's like man like you said you sleep easy at night because i went through all that you know right so you want to embrace that in any form of business right not just within the private rental space with anything don't come in trying to be super hands-off and thinking everything is going to be peaches and it's not right and if it is something's wrong sorry something i'm not doing it right you're not you're not doing it big enough you're not doing it right you're not doing it big enough and that's a fact right but you made mention of something you talked about your team and uh you talked about some of the different uh people that you have in place one person you talked about you know you have someone that works in marketing right and that's something i think i i really want to make sure i get into in this sit down because i think one big reason a lot of people look to the ride sharing platforms like toro like hayo cars because in a way they handle the marketing aspect of the car for them my job as the renter is just to take these super duper nice pictures i put it on your platform because there are millions of people searching for cars every day i don't even got to worry about doing all this extra leg work to get this car out because it's chill roll it's like it's it's it's established brand people are going to come you as a private car rental a business owner you don't necessarily have what some people would consider a luxury in that right so you got to do your own marketing you got to do your own advertising talk to me about what that looks like how can we if i'm in this car rental space i'm taking notes as you talk in my business man i hope you guys are too yeah i'm taking notes he's talking right i'm like okay business structure check insurance check you know systems and process everything check check check check check check okay i got this private car rental company yeah i got this asset i got to get the word out i got to let people know i got this thing going on right so i can start getting that cash flow if i'm just getting started what what did you do then and what even what are you still doing now as it pertains to marketing your business to to make sure that you're getting consistent leads gotcha for your private car rental company all right so i'll give you guys a few bars right so if you're starting out with the car sharing platforms right so i call it the training wheels phase okay okay so i want it's uh you go into hybrid mode so i want you to be running the car sharing platform and at the same time you're running private rentals okay but the idea here is you're leveraging the car sharing platforms to build up the private rental side so you're starting to you're giving five-star service to your customers making sure you're getting testimonials you're trying your best to flip them over okay so a lot of times people when they hit that trip feed they're like oh whoa i didn't know turo's gonna charge an extra 500. if you if you describe you you have the right words in your listing they'll hit you up mm-hmm and um they'll call you like hey can you beat this price of course i can right right right right and that's how you can move the private okay so that's one way of that's the training wheel phase okay you're leveraging those platforms but you're flipping them over to you now you have data now you're getting them into your state your net right um there's other organic methods that we could use too right facebook marketplace is another very good one gotcha okay facebook marketplace craigslist cars on there people will blow you up bro okay put your cars on there people will blow you up i always stress though like no die avatar avatar if you don't know your avatar you can't you can't market to everybody otherwise you market to nobody right so for me i'm gonna keep it 100 real with you guys my avatar your dope boys gangsters like people that your hurts avis churro won't even approve right okay but guess what they come to me and they take perfect care of my cars right and they pay me good bread for them right that's my avatar so i i speak to them i go to where they hang out and that's why i market okay so i say this to say if you maybe your is traveling nurses go find facebook groups cater to them go drop your cars in there right if you're say you have cars that people would want for weddings go to wedding groups wedding planner groups on facebook right go advertise your cars there your phone will start to blow up okay there's other organic methods right like leverage social currency i keep saying that you need to be a walking billboard for yourself facts you need to brand yourself have your business cards let everybody know you're the rental plug okay people will start to it's a snowball effect with private rentals right on and that's the beauty of it bro like when when you're relying on an algorithm on these car sharing platforms what happens when it dries up facts you have no book of business you have no data who do you retarget how do you nothing you're just sitting there waiting right versus with private rentals all i got to do is send out a blast email or blast sms slash in some prices oh yo we got a weekend special 15 off they start calling back again right right you know um so that's the beauty of it so leverage that um i can give you another one if you have busy shopping plazas around you go park your car right there right on the street put a bandit sign on the windshield car for rent okay put a qr code if you're always outside i'm a homebody i'm not outside as much certain people are and i envy that if you're always outside yo if you're in the clubs every weekend when you go in there you're popping bottles then they need to be having your company name mtv exotics let everybody in there know right that's what you do right get to know the club promoters that's how so that's organic marketing there's also paid marketing you could run facebook as google ads is you could do those things too for your car running a business right i'm in the process of securing several billboards right now around the city right in dallas so there's several plays you could also run get your phone ringing and you don't have to worry about chasing customers out or relying on the algorithm the qr code play was huge because i see i mean their cars sprinkled all throughout brooklyn and just new york in general but they're like people that have bought them from auctions that looking to resell them and they put like the little marker in the window and they're like yo for sale two two thousand dollars i but now you're over here talking about parking your car and some of these like i've even heard that play but like you know part having your car you're you're parked in like by hotel like where hotels are hotels clubs funeral homes 100 but once again it all comes back to knowing your avatar like you said if you're in marketing to everybody you're really marketing to nobody you should know exactly and by the way when we talk about avatar we're talking about knowing the average age of your cu the customer right the ad the gender of your cu your average identity i'd drill down something right it goes it can go as far to the kind of jobs that they're working right what where they're from what do they like to do like this is the market research you want to do if you want to be successful by the way not just in private rental business but just in business in general because you got to know who you're selling to otherwise you're not going to be selling it the right way and speaking let me piggyback off of that thought too right see the biggest mistake i see people make is they go when they're trying to get into the business the first question that comes to head is like what car should i buy right right and then unfortunately what they do is they skip the whole avatar process they go to facebook facebook group a two-row facebook group and then they ask people what car should i get to get started right you know and then they're going off other people's opinions right or you go to the touro website and then you're looking for the top performing car that car might be hot today what if it's not tomorrow right so you don't want to do that that's why like you need to especially you need to define your avatar 100 that way you're getting the kinds of cars they want to drive and in that way you know your car is always going to stay rented out so i think that's key and don't skip that step before you go buy cars that's a major key major major key quick question would you be interested in learning how to start a six figure credit repair company yes okay what about six figure funding business yes again okay what about a six figure trade line business as well three yes it's cool that's all i need now listen i can't say too much now because i do need to get you back to this interview but i'm getting ready to launch a mentorship program and quite honestly i think you'd be a perfect fit right so when you're done with this video click the link in the description it's gonna bring you to the landing page it's gonna give you all the information you need about this program when it starts what it's about everything you're going to learn and if you would be a good fit for it we'll talk more on that page but for now let's get you back to the video so now listen i'll be honest with you i'd be remiss we've first off you dropped a lot of gems here today you've given a lot of value here today but there's one more there's one missing piece that if if i didn't touch on it my audience would probably slap me back my head i'm keeping the rule with you so we got to get into it because when it comes to business we can't talk about the good without talking about the best let's do it you already know where i'm going with this and when you're coming into this car rental game man let's talk accidents let's call car accidents because this is something that i'm pretty pretty sure again if you're looking to get into space is probably one of the biggest things that you're trying to figure out gotcha and i'm not into space but i have people like yourself and other people that i know who are colleagues of mine that are in the space who and everybody has said the same thing when it comes to accidents and these rentals right when it comes to accidents it's not a matter of if it's a matter of when it's going to happen right like there are no if ends or but like it's going to happen so now if we know that it's going to happen we need to do our best right as people who are looking against space to prepare for when those times come so talk to me a little bit about that what does the process look like you you just got a call from your assistant you just got a call from your manager hey listen mike we got a problem the rolls-royce got caught up in this fender bender that just whatever it may be what does that process look like when we have a car in our private rental company that gets into an accident from when we get that call to how we handle it moving forward right so first things first is you know um once you get that call you just let the renter know to um let them basically i ain't gonna lie when i get that call i hand it over i have a plug like i don't deal with that stuff okay i'm not going to be calling insurance companies because the process takes almost four or five months really oh yeah i don't i'm not dealing with that for me i got a plug he's out in miami shout out to my boy lex and i just follow the information over to him he takes care of everything see even when i get those calls i'm not shook because i know we've already kept our policies and procedures i know i'm gonna get paid matter of fact i'm gonna get make money off of that accident okay so um talk a little bit about that that's what so there's several ways to make money in this game off of that right so whenever you rent your car out number one make sure you're taking a security deposit okay that's number one that's to cover any damage they do to your vehicle okay it's a refundable security deposit so if they bring the car back there's no damage they get the security deposit back um if they damage the car you keep it right so if it's minor damage they scuff my rims i keep the deposit t