EP 422: $2.6M 2015 Free Cash Flow On Luxury Car Business
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What is the main topic discussed in this episode?
This is The Top, where I interview entrepreneurs who are number one or number two in their industry in terms of revenue or customer base. You'll learn how much revenue they're making, what their marketing funnel looks like, and how many customers they have. I'm now at $20,000 per top. Five and six million. He is hell-bent on global domination. We just broke our 100,000-unit soul mark. And I'm your host, Nathan Latka. Okay, Top Tribe, this week's winner of the 100 bucks is Jose Avila. He is a 17-year-old that doesn't want to go to college and he wants to start his own business. For your chance to win 100 bucks just like Jose every Monday morning, simply subscribe to this podcast on iTunes right now and then text the word Nathan to 33444 to prove that you did it.
Okay, many of you heard I made a big league acquisition of a company called SendLater. And I'm a greedy business guy. I didn't want to give away equity to a technical co-founder. So I found my coders on a website called TopTal at NathanLatka.com forward slash T-O-P-T-A-L. I paid over $12,000 to the site to a guy named He Sheming in China, who I've never met, but we're going to build a big business together. I'm taking SendLater public by the time I turn 30. I'll tell you more about TopTal later on in this episode. Top Tribe, this is episode 422. Coming up tomorrow morning, you're going to learn from Johnson Emanuel. He's a Nigeria agency business that did 230K in 2015. On track to do over a million in 2016 with 17 employees and growing fast.
Top Tribe, good morning. Our guest today is Pejman Ghadimi. He's a serial entrepreneur, an exotic car collector, best-selling author of Third Circle Theory, and recently he's the founder and CEO of Secret Entourage, a secret consulting and VIP motoring service. Pejman, are you ready to take us to the top? Yeah, sure.
Thanks for having me on.
Of course. Now, you're doing all kinds of things. So I want to get super focused on this interview. In the last 12 months, what has made you the most money? Your entrepreneur business, the book, your consulting, where is it?
No, my biggest bread and butter has always been VIP motoring. VIP motoring is a luxury concierge service that focuses on helping people invest in a So what's the website? Okay, great.
So let's go there. And then what I love to do. So, so I think you just explained kind of what it does. How do you make money?
Sure. So, I mean, the program is a little bit, it's not something that's done online. It's a very exclusive concierge service. And the concept is simple. We find and buy some of the rarest exotic cars on earth, including cars that go as high as $10 million a car. We buy them, we get allocations for cars that are not even out yet. We sell those on the basis of investment, not as brokering the car itself, but just investing in the car. We allow people to come in and purchase, let's say, a car that we're buying for half a million. We'll let them purchase it for $700,000 and we'll guarantee that we'll resell it somewhere around $1.2 million in the next year or so.
What if you don't? I'm sorry? What if you don't?
no well we have guarantees in place so we know the market good enough and we've done this long enough that we have a very extensive clientele worldwide that we know what they'll pay at what given time for what and then we also have guarantees in place in case let's say the market takes a tank we can always back out and get out of certain deals so that the actual consumer is never actually impacted by this So their principle is ultimately safe. We're playing on extremely high margins based on knowing what previous markets did for similar cars in the past.
So Pejman, let's go through an example right now. What's a car that you have available? What's the name of it? Is it online?
So for example, like we bought a LaFerrari at 1.4 million when it first came out. Okay. We sold it, like we had three allocations, which is unheard of. We had three of such cars at sticker between 1.3 and 1.5. We took, let's say, let's use one of them as an example.
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Chapters
4 chapters
1
What is the main topic discussed in this episode?
0:00–7:21
2
What is VIP Motoring and how does the exotic car investing model work?
7:21–10:46
3
What are the guarantees, risks, and 'bribery' tactics used to secure rare car allocations?
10:46–17:12
4
How did VIP Motoring generate $37M revenue and $2.6M free cash flow in 2015?
17:12–26:59
Speakers
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