House of Wolves - A Power Couple's Playbook

Unveiling the Secrets of Our Exotic Car Rental Business!

November 27, 2023 Randy & Mary Vasquez Episode 7
House of Wolves - A Power Couple's Playbook
Unveiling the Secrets of Our Exotic Car Rental Business!
Show Notes Transcript Chapter Markers

Are you curious about the secrets behind our successful Luxury  and Exotic car rental business? Ever wondered how to build a loyal client base and make strategic business decisions that align with your lifestyle and passions? Brace yourselves for an exciting ride as we unfold the journey of HOWMOTORS , born from a simple desire for a new car to a thriving business.

In this episode, we discuss our humble beginnings and rapid growth, featuring an extravagant fleet of cars like Lamborghini, G-Wagon, Tesla, Ferrari  and many more. We share our strategic approach towards building client loyalty and downsizing our operations, the unexpected encounters with sexism, and the adrenaline-rushing experience of dealing with a stolen car. But hold on, we're not just about cars and capital; we also share our transition towards sustainable business growth amidst these challenges.

As we wrap up, we transfer some valuable lessons to all the budding entrepreneurs out there. We highlight the importance of building a sustainable income, having solid processes, and gaining hands-on experience. We also throw light on the perks of being in this business, from the promising cash flow and flexible lifestyle to the endless networking opportunities. So, buckle up, tune in, and be a part of our exhilarating journey. Don't forget to visit the Broke Millionaire Academy for more insights into our world. Let's hit the gas and accelerate towards success together!

Want to join in the conversation? Subscribe to The Broke Millionaire Youtube channel or follow Randy and Mary on Instagram. You can also check out their luxury & exotic vehicle rental service at howmotorsluxe.com, and elevate your side-hustle education at The Broke Millionaire Academy.

To watch our episodes please subscribe to The Broke Millionaire Youtube channel: https://www.youtube.com/watch?v=zvci4bqKjDE&list=PLh_N9FtZhe5qF453HxF7SbrKqLg1D2PBT

Follow Randy on Instagram at https://www.instagram.com/thebrokemillionaire_/
Follow Mary on instagram at https://www.instagram.com/mary__mar/

Join The Broke Millionaire Academy to begin/further your side-hustle education. Courses and Life Coaching all available at https://the-broke-millionaire-academy.teachable.com/

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Speaker 1:

Ah, the secrets behind our exotic and luxury car rental business. All the drugs. My I was raised by the wolves ain't 24. Runs the night playing with your life Run gets the pack.

Speaker 2:

that's risk in your life. Better play it right and you better play it right. I got loyalty and blood. I do anything for love and everything for us. Doing everything like everything ain't been too much.

Speaker 1:

Hi everybody, welcome back to our podcast.

Speaker 2:

I like it. What's the name of it?

Speaker 1:

The House of Wolves Power Cuffles Playbook.

Speaker 2:

That's what it is. Yeah, okay. I think, Dude, we could never get this name right.

Speaker 1:

I don't know what it is. It's like I just want to say the how podcast, but that was not available on any domain.

Speaker 2:

Yeah, so shout out to if it is available out there. If you see somebody who has it, let them know to give it to us or to let it go so we can use it. Make this a lot easier.

Speaker 1:

On everybody.

Speaker 2:

On everybody, on both of us.

Speaker 1:

But whatever, what doesn't change is that we're here for you, and today we are finally going to talk about the secrets behind our exotic and luxury car rental business. I know that there's a lot of curiosity out there about what it is that exactly we do, how we do it, why we do it. Is it easy, is it not Right?

Speaker 2:

Right.

Speaker 1:

So we're going to dive in, share some things, and we hope that it will be exciting for you guys.

Speaker 2:

Yeah, I like it. So we'll kick off with where we are today and then we'll backtrack, right, so today we've grown our luxury car rental business how motors to revenue a little bit over 500k last year. Right, that was a goal where we set. I think we're going to get pretty close to that this year, maybe a little bit less right, because of some changes and pivots that we've made. Currently we have a fleet about what is it? Nine cars that we have, eight or nine cars, exclusive cars, high end, you know, from the Lamborghini to the G-Wagen, tesla, plaid, lucid right, lucid Air, which a lot of people don't have right now. So we've pivoted the brand, we've pivoted the things that we're doing and how we're managing it. Yeah, but this one we're going to focus on first how we got started and then where are we today and what our plans are for the future.

Speaker 1:

Yeah, so the Howl Motors story is a very unique one because it's a business that we particularly didn't plan for. It actually happened as a beautiful accident.

Speaker 2:

Yeah, this is true. So basically, I wanted a brand new car. It was time for me to give up my lease.

Speaker 1:

Oh, wait, wait, wait, wait. Oh cheers, cheers, cheers. So he wanted a brand new car.

Speaker 2:

I wanted a new car and I told Mario listen, Mario, my favorite car all the time that I've always wanted is the BMW M6, the Grand Coupe. And Mario was like that's cool, but I don't want to pay for that. And I was like, okay, well then, how am I going to figure out to convince my wife to let me pay for a car? And I heard about, you know, car rentals. And I heard about this app tour that people were coining in at that time the Airbnb of cars. And then I researched and researched and looked up what it looks like and I, you know, made a proposal to Mario and said, hey, why don't we consider this? We can rent it out a few days a month and it can help us with the car payment, it makes it easier on us and you and it can manage our cash flow. So I'll dive right in. We went, we got the car. It was a beautiful blue M6. It was gorgeous, it was perfect, and we put it up on the application and the next day it was booked right and after like a week of us trying to get this done, we had the M6 and we had a Nissan Rogue up there. Immediately, Mario turns to me and says, um, yeah, I think I want my car, I think I want my favorite car. And we ended up going back to the dealer and we got a Mercedes GLE, the coupe, which is beautiful. It was such a nice car. And then we started growing from there. We started looking at the business and said, wow, this could really be a thing. Cars are renting. We're starting to make some money. People have a lot of interest in this. What else is next? And we kept just kind of looking at it and researching the business and taking it serious. We created how motors, we created the brand, we created the website, we created the Instagram.

Speaker 1:

But that all took some time.

Speaker 2:

Right.

Speaker 1:

And the way that I want to say is that, um, once we stumbled upon this opportunity and we saw kind of like a momentum immediately, the minute that we started, um, you know, it kind of like expanded our mind immediately to like, oh my God, this could actually be like something a real thing Right. The reason why that's important to understand is because, literally, randy and I did not have a plan to, not even the vision to have what we have now, and when I tell you that we started so humble, our expectation, to be honest, for the vehicle was like well, if it pays half the car, note, we will be okay right because we had just recently Changed into a new home. We had moved into a new house, that kind of like bumped our mortgage payment a little higher. Right remember and we're like oh, I don't know, I'm not comfortable with these new expenses. Then Randy's springs on me the whole I'm six thing and I was like I don't know, how are we gonna do this? And our compromise was that, hey, if this at least pays for half the car, I'm okay with it, because then at that point it's more than adjustable and things just popped off from there. It was just like the perfect timing, right and then our entrepreneurial spirit came in.

Speaker 2:

We started to research Okay, what does this look like for us? How can we grow the business? How do other people grow the business who are competitors? We started doing the market research, we started doing the industry research. We started to figure out what vehicles we should purchase next. What a plan looks like? Okay, in five years, where do we want to be? And we started backtracking. So we put in all our good habits, all our good learning from everything else in all of other businesses, and we put it into the the how motors and eventually we got what we got right and things started to grow little by little.

Speaker 1:

Yeah, so that was just just a few years ago and when I tell you that we implemented, I guess, the successes that we've had in the past, it really it really worked for us and the reason why our brand is so solid is exactly because we kind of have like our secret formula that we just apply to the things that we do. Branding is probably the most significant part. We actually. What was so unique, I suppose, for this particular business in comparison to others is the fact that our market, our location, impacted our business model tremendously, where, for instance, in our other endeavors, we focus on the product, not necessarily much where we are. So, being in the Orlando area, it really inspired and it was like the muse Pretty much for our future selections, getting to know who our client was, and we really started to understand our market, the industry and again, like I said, I was not a car expert. I didn't even like cars at that point. I probably still don't only like like one car, yeah, but we literally had to ingrain and breathe this industry and we became experts and it was amazing, I don't know. I'm really proud of us because we really ran with an opportunity.

Speaker 2:

We did, we did, but there was some bumps in the road, right. So our first obstacle right was we had purchased two new vehicles. We still have the old one, so we have three vehicles now and I would like how we're gonna grow this cool that we can, we can continue to buy more vehicles and figure out how to do that, right. So there was a the financing aspect, right, and then also the risk that we were taking. We were talking about jumping into a business full steam from going from a Car note of $17,000 that all the way to quarter million, right, yeah. So we were like okay, now we got a quarter million in that, we got all these cars. We have all these liabilities, right. Everybody says that cars are liability, which, in a lot of cases they are right. So we have all of this now and how do we continue to make sure that these cars are getting paid and we make money off of it? How do we make sure that we know what the maintenance of these cars are, how we keep clients happy? I've always said with the clients, right, we're in the customer service business, not the car rental business, right? Yeah, it's all about taking care of the client. So we focus our efforts on that, right, and then, at the same time, we focus on how do we grow. One of the major First things that we had that we ran into an issue is where we're gonna put these cars right. Because we're buying high-end cars, yeah, and we're like we have a two-car garage.

Speaker 1:

Yeah, with no driveway there's no driveway, we can.

Speaker 2:

We were fitting our car sideways if you guys look back at some of our videos or pictures that we did. So it was like we're gonna park these cars to make sure that they're secure when they're not rented, right, how do we do that? So our entrepreneur spirit came through right and we say, okay, how do we get another property that we can store these cars? Or do we buy a commercial property? We looked into that, we did our research on that. Do we run something? Right? We explode that and, just as fortune has it right, the house next door to us became available. We ended up buying that. We ended up using that house to park our cars right and park more cars in there, plus use the whole house as an office, where now we're like thinking, okay, if we have all these vehicles, what's the kind of help that we need? How many people do we need on our staff? What kind of jobs do they need? Right, it was a fresh new thing that we were jumping into that. We had no idea and we just had to learn as we were going. But again, we were able to purchase that house. Right, we took the real estate side of us Purchase that house and we were using it as the as our friend comes in the HQ.

Speaker 1:

HQ.

Speaker 2:

HQ and we hired employees and we had people working for us and we had people that were able to help us continue to grow the business. And I think what our first year? First year, we got up to like seven, eight cars. Right, the pandemic hit Right, things got crazy. Yeah, a lot of people that were in the industry got out of it. Right, there was selling their cars because they couldn't figure out how to pay. We were fortunate enough that we did figure out how to get them because we had some good relationship with our clients. And then from there we're like, hey, this can be a real thing, this can be a real opportunity. The next thing we you know, we have like 20 plus cars.

Speaker 1:

Yeah, and that's when she started getting crazy, but in a good way, because In hindsight and I want to backtrack a little bit to the purchase of the home which was so strategic, like Randy says, we kind of like Flex our muscle from the real estate side and we quickly Realized that that was also an added bonus and an opportunity because we were able to kind of like piggyback on two things Leasing the house off to the business and the business paying for the house, which eventually is ours anyway. It was kind of brilliant. But then when we jumped into the, the fleet that we had at that point to manage, you also have to understand that by growing the fleet You're also adding growing your expenses, your like abilities. You need more employees. You know, sometimes high turn as business owners and as the founders of this, of how motors, I was very much ingrained. I'm always on the operations side, so you would have found me anywhere from like Learning how to plug a tire to detailing these vehicles and removing like melted Chick-fil-A in the in the back seat of these cars. So by growing the fleet and onboarding new, new, new employees, we had to do a lot of processes and a lot of learning because, again. We've never had a business where we were managing 20 vehicles. Needless to say, we didn't have a business where we were just managing three for a long time. This has been a very fast and strategic growth. Then let's take it back to the pandemic. It hit us mm-hmm for some time. I don't know how we survived 2020, right. But boy did we blossom I think that we just like rose from the ashes. And you came in and like you know what? I think it's time. It's time for a change. People were like struggling making decisions, and then what?

Speaker 2:

and then we took off, right, and we said, okay, well, how do we sustain this business, how do we continue to grow the business? What is you know? Again, going back to our five-year plan, ultimately, what is it that we wanted to do with this business? And we wanted to create a Sustainable income for us. Right, another source of income because, as anybody knows us, it's all about building multiple sources of income. So we said how do we sustain that? Right. And then, at the same time, how do we lower our expenses and how do we lower our volume? Right, and how do we make sure that the vehicles that we're purchasing, our Vehicles that people really want, right and could give us a larger return on our investment in terms of the daily renters, the weekly rentals, the monthly rentals, right. So, again, very strategic, in the cars that we were selecting and why, and we focus on, okay, well, what's our lifestyle and how that's going to be. So we went off and we bought, you know, the G-Wagon, we bought an M8, we bought the Lamborghini Right, we bought again those high-ticket cars, the, the Tussles that we focused on, because those were the ones that really were giving some some good return for us, and we kept at the same time, continue to build our pipeline for our clients, right, making sure that we knew exactly who we wanted To run to right, establishing those relationships with those specific clients and making sure that we kept them within our own community. Right and make sure. Hey, come back to us, what do you need? Okay, we're able to give you anything you want. You want a seven passenger we got you. You want a two-seater we got you. You want something fast we got you. You want something you know, just for you and your wife, for a date we got you. So we, we were able to provide our clients with anything that they need. Oh, the Lamborghini's rented. Well, we got a 9-11 for you, that I'm gonna give you. Right, right. So again, we were very strategic in the cars we were buying to make sure that we were continuing to grow that pipeline and keep our clients close to us, again with the mindset of if we do that, then this could be a sustainable business. Right, that doesn't put a lot of time on us, a lot of strain on us for us to continue to grow.

Speaker 1:

Yeah, and our model behind that, honestly, was that, like Randy said, we're in the customer service business, so technically we would have a client and we would identify these clients quick, just based on communication, when we would meet them. Sometimes, when we had the opportunity to meet them in person, we will build a rapport. We have such a strong community of people that value respect, you know, really are proud of what we have come up with and respect the business and are loyalists. You know we have about I want to say about close to like 50 customers throughout the States, some international, that are just on rotation. You know they travel here on a yearly basis and they love a car, they have a favorite car. Sometimes we phase those cars out and we have to, you know, say hey, by the way, this car that you love is no longer here. And it's that one on one relationship that we have been able to build with our customers that I feel that has made, that has influenced a lot of the success as well. And to Randy's point about the community and our client loyalty is the fact that we even asked them right. We would like Well, what do you think? What are you into? And we would actually like hey, we got it. That was a great suggestion. So the relationship and the rapport I feel that have been amazing.

Speaker 2:

Yeah, so we've gotten to where we're at today because of that, right. So now our five year plan on this was again to have nice, have the lifestyle, have the cars, have the cash flow, have the sustainable income all those pieces, right. So I think, what the cars that we've bought now and the ones that we're keeping, we've downsized right. We've gone from 20 plus cars. We've downsized to something that's more manageable for us. Absolutely Right, we have less employees than what we had before. Again, because dealing with employees and dealing with so many cars was ending up happening to us. It was taking up all of our time, Right. And we like to dabble in different areas, right. We're like, listen, we don't see ourselves having this car rental business that has over a hundred cars. That's not kind of where our passion is, where we want to be. But, again, we wanted to make sure that we continue this business. So we've modeled it and we've built it for that specific right. But you know, besides that, I wanted to take a quick pause and just throw something at you. What was the crazy, what's been the crazy experience that you've had through this business?

Speaker 1:

Good or bad?

Speaker 2:

Either one Bad, let's go with bad.

Speaker 1:

You know which one it is.

Speaker 2:

Tell me.

Speaker 1:

So I've dealt with a tremendous amount of sexism In the industry period. So in our business, as you know, the car business in general is Mainly a male dominated industry. So a lot of the people and a lot of the followers and a lot of our clients, you know, because we use the how motors brand, they don't know who's behind that brand. So behind the messaging, behind the blogs, behind that person messaging them back. So when they get on a one-on-one level they actually always gravitate to saying hey, randy, or or hey sir, hey man. And then I'm gonna be crying like Stop my dude. And they don't know that it's Mary. I've had a terrible experience, unfortunately, is one isolated situation which were kind of common in one particular vehicle with the m6. I call it the hot rod because people would rent it and just act a freaking fool. So I would play babysitter and of course, you know, with safety in mind first for the customer. I'm like, hey, you kind of have to like slow down a little bit, yeah. So they really didn't like a female telling them how the driver car pretty much, and then wouldn't take that feedback and it got really early escalated.

Speaker 2:

They say quickly, and I think the reason why I didn't know you were gonna go there when the car got stolen, and that was another. Oshis okay, but I want to highlight the one that you said about sex, and I know it's important, right, because this goes to the partnership that you and I have, right, so you know this podcast will turn into that. In that particular case. Right, it was that moment where we had to decide, okay, how do we continue to manage this right, and do I jump in or do I not jump into this? Right? Yeah, and I think at that moment, I think you did a wonderful job of being able to stay with it and and continue to work through that right, and Continuing for us to say, hey, the stain our lanes and our roles in, regardless of what's happening, you manage that, I manage this. Right, we can't get involved and cross, you know, each other's paths because it might get too crazy. So, you know, I was, I was your coach through that, which was, which was good, but you ultimately were the one that was handling that situation with the client and you were able to grow through that experience as well. So, you know, one of the reason why I'm mentioning that is because you know, as you're building your partnerships with your significant other or You're with your business partner, always making sure that you guys are staying in your lanes, right, you do your job, I do my job. We can coach each other and we can help each other when we need to, but at the end of the day, that needs to stay in those lanes, because that's the way that we're both gonna march to the same. You know, same success, right, but the the one with the, the accident. Now Let me highlight that one real quick. So Crazy thing that happened with with one of the cars. Somebody stole the car, ended up in a high speed chase with Felice at a state in Georgia. The car was one of our partners. Right it was. It was on our, on our platform. We were managing it for somebody else.

Speaker 1:

It probably had like under a thousand miles.

Speaker 2:

Like under a thousand miles and it was something crazy to happen. The cops had to run the people off the road. It went into a ditch. The car is halfway totaled. They cost like access of like 50k to fix the car or more. And the crazy part about that experience is because now that was the first time that we had to deal with that, right. So now we're managing through it and okay, well, how do we figure this out and how do we figure all the pieces out? And he was just insane. But again it was four months. It was four months of trying to deal with that. Again. I, those are the things that happen in this business, right, because people look at this business and they look at us or anybody else is doing it. They look at all the good things. They don't see the bad things.

Speaker 1:

Oh, everybody thinks it's easy.

Speaker 2:

Everybody thinks it's easy. It's not. That was an experience that really taught us how to deal with issues right. If that ever happened to us again, I think we'll be quicker, easier, faster way to be able to handle that situation. But those are risks. Any other business has the same risk and people always ask us when they try to get into business what's the worst thing that can? That's the worst thing that can happen right, and it happened to us.

Speaker 1:

Yeah, yeah, yeah. And I think that when we have this conversation with other people, we're like well, you know, you can actually total vehicle. What does that look like to you? What about if your vehicle goes missing? Are you gonna be okay with that? So now we start with the worst and then get into all the goodies that the actual business has to offer. But again, this is not for everybody. You need to have a thick skin. You need to know your shit. Do your research, stay on top of your competitors, understand where you are, understand your customer, understand in what lane you're in so that you can absolutely just master right Own that fleet and know exactly how to push it.

Speaker 2:

Yeah, and now we're up to a point. So I'll close it out with this. The business has been able to give us crazy experiences through the couple of years that we've been in it, but we're up to a point where we've understood which route to go. Again, I'll hit it on it. We've built a sustainable income. We've built a model that we know how to deal with processes and issues. We have the experience. We actually have a course, so I'll throw that pitch in there. We have a car rental course on how exactly to grow your business and the things that you need to do. And now we've gotten to a point where we're just getting money, cash flow, in. We have the lifestyle, we have the vehicles and everything is peaches and cream. At this point, right, we're sailing because we feel comfortable in understanding that we have the knowledge right and we also have the process in place for us to continue to grow. So I would close it out with if you wanna get into this business, it's a great business to be in a lot of cash flow, great lifestyle, great network that you can build off of it. But you have to learn through it and you have to get the experience and you have to build the right process in order to be successful.

Speaker 1:

Yeah, I couldn't agree more, and I think that if anybody is serious about starting their business or just growing your existing business, you need to lean in on people that have gone through it, and that is us. We welcome you to visit the Broke Millionaire Academy. We will put it in all the bios on audio and on YouTube as well, for you to be able to find us, and we look forward to sharing what we know and wish you all the best and hope that this podcast episode has added has provided some goodies and value to you.

Speaker 2:

Cheers to that.

Speaker 1:

Cheers.

Luxury Car Rental Secrets
Strategic Planning and Client Loyalty
Car Business Challenges and Learnings
Sustainable Business Growth and Advice