Chris Berg, a serial entrepreneur with a diverse background, shared his journey from early "dirty jobs" to building a portfolio of online businesses and investing in car washes, leveraging unique tax strategies. His first job at 12 was scooping poop at a veterinary clinic, followed by farm work and even mining engineering, experiences he credits with forging his strong work ethic.
His entrepreneurial path began at 27 when he purchased an excavating company in 2003 through an SBA loan. He grew the $180,000 business to $2.6 million in four years, eventually selling it for a significant profit of $650,000. This nest egg allowed him and his future wife to fulfill a long-held dream: living off-grid in a solar and wind-powered home in rural Colorado for 13 years.
The 2008 financial crisis, which thwarted his plans to build houses, ironically led him to discover Tim Ferriss's "The 4-Hour Workweek." Inspired, Berg pivoted to online businesses, purchasing a solar-powered gear website. This venture, allowing him to work from anywhere, was a game-changer. Around 2009, personal health issues, including a gluten intolerance, prompted him to delve into nutrition and personal training, eventually leading him to create a successful health supplement company. This health business, which he grew to $18 million in 2022, remains his primary focus, driven by the reward of helping people improve their health.
Berg's entry into the car wash business was serendipitous. While searching for self-storage facilities during the pandemic boom, a commercial agent suggested a car wash that had been sitting on the market. He discovered a neglected facility – no Google Maps presence, outdated pricing, and poor service. By implementing simple value-add strategies – better soaps, fixing broken equipment, updating prices, and improving customer experience – he increased its business by 70%, almost doubling it within a year.
The true revelation came in December 2022 when his accountant informed him he would owe almost nothing in taxes for the year. This was due to "bonus depreciation," a tax incentive designed to spur investment. Unlike typical commercial real estate, where depreciation is spread over 39.5 years, car washes qualify for accelerated depreciation on almost the entire property (excluding the land) in the first year. This allowed him to offset a mid-to-low six-figure tax bill from his other profitable ventures, making car washes a highly attractive investment.
Berg focuses on self-serve and touch-free car washes, catering to a niche market of individuals who prefer to wash their own vehicles or own large trucks/custom cars unsuitable for automated tunnels. His "3 M's" strategy involves: **Modernizing** (upgrading equipment, improving customer experience), **Modifying** (raising prices, introducing membership programs), and **Marketing** (Google listings, positive reviews, better signage).
His long-term vision is a "roll-up" strategy: acquiring 20-30 car washes in Colorado over the next decade, branding them uniformly, and offering a network-wide membership. He aims to significantly boost the EBITDA of these combined assets, anticipating a valuation uplift from a 10-cap to a 5-cap, potentially turning a multi-million dollar investment into a $60 million enterprise. Finding good deals, often those with "a little bit of hair on them" that scare off less experienced investors, remains a key challenge, along with securing financing from specific regional banks that favor car wash investments.
Beyond business, Berg is a proponent of continuous learning, influenced by books like "Rich Dad Poor Dad" and "Ready, Fire, Aim." He actively engages on Twitter (now X) to learn and share insights, having built a significant following by discussing his car wash and tax strategies. He also emphasizes the importance of community and mental well-being, participating in masterminds and "Breakthrough" retreats involving psilocybin-assisted therapy (legal in Colorado), which he describes as transformative. His personal journey from social isolation to cultivating deep friendships highlights his belief in genuine curiosity and active listening.
For those interested in learning more about his car wash strategy, Chris Berg offers insights and a course at Taxfreecashcow.com and is active on X (@ChrisBergTweets).