Thinking of buying a SS wash

[WickedWash]

Hello all, this is my first post but its not my first time here. I have been scouring the internet for any and all information I could gather before posting anything. I know a local guy who owns the wash in my town but haven't been able to get a hold of him. So i figured I would post here. I'll list everything I know and I'll list everything I have inquired about.

I got some financials but they were obviously made up because there were several things missing on it. I have asked for new financials with the excluded fields included this time.

Wash- 2 SS and 1 auto touchless. And 2 or 3 vacs. Not sure on brand yet I haven't actually stopped in and looked at wash yet but drive by it at least twice a week.

Traffic= average 9600/day located on a main U.S. Highway at the edge of a small town. There is a steel mill about 5 miles away that probably employs 2000 or so people as well as some other industry at the edge of town just past the wash. There is a small grocery and pharmacy on the adjacent property. Beside that is a McDonalds. There is a small truck stop/ fuel station on the other side of the McDonalds. So I feel like the opportunity is there if you can bring them in.

Asking price is $93k. Comes with the land it sits on. They are open to offers is what the sales agent told me. Obviously price depends on revenues and age and condition of the property and equipment.

I don't know the age or condition of any equipment but it is currently owned by a major car wash company. That is one of the things I have inquired about is the equipment.

I am mainly looking for a little guidance and or pointers that would make this as easy as possible. I know I'm not going to be a millionaire from one car wash in a small rural town. Basically my main goal is to be able to have it pay for and maintain itself and put a little change in my pocket. For the 1st year or 2 I could care less about supplemental income. I just don't want to acquire something that wont pay for itself in the course of 5 - 10 years.

I have read up on pump maintenance, pit cleaning, what chemicals to use in summer vs winter, how to make your signage appealing, promotional programs, etc... If it's on this forum I have most likely read it. I have watched youtube videos of pretty much anything someone should know about a wash.

About me: I run a machine shop with my step father but I have been wanting a pain in the butt of my own for a long time. I tried starting a motorsports apparel line but I didn't do my research so it didn't pan out. Plus it was pretty much constantly hands on and I did not have the time for that. So I used it as a learning experience. I have been looking for business opportunities for about the last 6 months and for some reason this dang car wash just keeps saying, check me out, check me out. So that is what I am doing. I am pretty handy with fixing most things. I am not great with electrical but can do most of the basics as far as tracing down problems. Other than that I can fix or break mostly anything. It is especially handy having a machine shop at my full disposal. Most people on this forum seem super cool and willing to help so that is why I chose to post here.

I just wanted to get the ball rolling on here and I will update when I get some real financials. My main question i guess would be, who do I go see about going over the financials with? Tax man? Bank man? I have a buddy whose dad is very well to do and owns several businesses and I was thinking about taking the financials to him to see what he has to say. I mean you want to get information from successful people right? At least that's what I always try to do as much as possible.

If any of you see anything I missed that I should know about this business, I would love to know and I will take any and all criticism as constructive.

Thanks in advance all !

 

[tdlconceptsllc]

Hey man sounds like you are headed on the right track. I am going to suggest some pointers that may help you. Why does the current owner want out if you don't know ask him. What's the tax value just the land. The self service Carwash business is no longer jumping making good money like before the 06-07 recession. It has slowly made progress forward owners wanting to work there business and reinvest. You sound like a busy man and need to focus on what you want. I will say one thing I promise you a 1 bay automatic and 2 SS will not make you as much as a successful machine shop. What kind of equipment is in the automatic and SS (Self serve). Is it a nice clean running site or you need to revamp everything. Example a new WashWorld automatic is 110K+ instailed. New paystation 10K+ not including SS equipment. You can always get a used laser and used equipment. Man it's just truely what you want. The asking price is only what the NET income will support no matter what some old Carwash man tells you. It needs to make the bank note as it sits unless your just investing in the land value. Remodeling a Carwash is very expensive. So if you buy the site for 80K you might have to put a good 150K behind that in new or used equipment,building,parking lot repaved,New signs and be willing to work before and after work Mon-fri and all day on saturday and sunday and come home to a ill wife that made because you work all the time now & no friends unless there in the Carwash business. Nobody is going to tell you that hahaha. Is it really worth it. Tell the guy you want to lease it for 6months before buying to make sure that's what you want. Hey Feel free to call me for advice after 7pm. Thomas 919-724-2130 southernpridecarwash@gmail.com

 

[WickedWash]

"Why does the current owner want out if you don't know ask him."
A major car wash company owns this wash. They have 100+ washes. Im not sure if we are allowed to say which company. I dont wanna break any rules here on the site.

"What's the tax value just the land."
According to the auditors website it is $10,120.00 .



"I will say one thing I promise you a 1 bay automatic and 2 SS will not make you as much as a successful machine shop."
As of right now I do not own any shares of our machine shop. He owns 100% of it. I just help run it. Its generally just a 2 man operation but when we get real busy, sometimes we bring in a couple extra guys. This is one of the reasons I wanted to get into the car wash business.

"What kind of equipment is in the automatic and SS (Self serve). Is it a nice clean running site or you need to revamp everything."
From the road the site appears pretty nice. Me and the gf are heading over there in about 30 minutes to check everything out.

"Example a new WashWorld automatic is 110K+ instailed. New paystation 10K+ not including SS equipment. You can always get a used laser and used equipment. Man it's just truely what you want. The asking price is only what the NET income will support no matter what some old Carwash man tells you."
This is the exact reason I posted on here. I don't want to buy a wash that has equipment near the end of its useful life. I just want something that will support itself. Including repairs and bank note.


"It needs to make the bank note as it sits unless your just investing in the land value."
In this particular town, I don't see the land value ever increasing enough to make this the only reason to buy the wash.


"Remodeling a Carwash is very expensive. So if you buy the site for 80K you might have to put a good 150K behind that in new or used equipment,building,parking lot repaved,New signs and be willing to work before and after work Mon-fri and all day on saturday and sunday and come home to a ill wife that made because you work all the time now & no friends unless there in the Carwash business."
lol. She's already mad most of the time anyways. haha. And does anybody really have friends after your around 25 years old? lol.


I might give you a call on Friday if you are going to be available. I also got the number for the guy here in town who owns a wash so i am hoping he will show me inside his equipment room and stuff. His wash is about 50 yards from my house so I have a decent idea in the evenings about how much traffic it generates. He isn't getting rich off of this one wash but it has to be maintaining itself because he built it and has owned it for probably 20 years now. He has a few others in the area too. The good thing is that his wash and the wash I am interested in are on the same U.S. highway so I would suspect about the same amount of traffic. I havent looked at any traffic reports yet for his wash here in town.

Thanks a lot for your advice and input. Ill reply back after while with the state of the property and what not. I don't know **** about the equipment in a car wash so I will have to have someone who knows about that stuff check it out.

 

[robert roman]

“Thinking of buying.....2 SS and 1 auto touchless....A major car wash company owns this wash. They have 100+ washes.”

Why is seller selling?

Most likely it’s part of a strategy to dump under-performing assets to improve performance of chain. Under-performing means operating at a level that does not merit re-investment.

Wash is probably 15 to 20 years old. Outside has been maintained to keep up appearances but equipment is original. It’s been maintained but now old and obsolete from technical and marketing perspective.

“….goal….pay for and maintain itself and put a little change in my pocket….mall rural town….Traffic…9600/day….small grocery…pharmacy-…McDonalds….small truck stop/fuel station”

Salient facts here are small, small and small.

“Asking price is $93k.”

This price implies wash is generating gross sales of around $30,000.

“I got some financials but they were obviously made up because there were several things missing on it.”

Chains do not operate business out of cigar box. So, absent profit and loss and balance sheet statements may indicate the owner is actually a 3rd party who bought the wash from the chain and is now trying to dump it.

Since equipment is incidental to value of income producing property, you need assistance with financial forensics not equipment.

So, I would consider engaging a CPA, carwash broker, equipment dealer or carwash consultant to help you ferret out the smell factor.

 

[Kevin James]

That's a Super Wash in Butler Indiana. There's a reason they are selling it and it's not in your best interest. The best thing you can do is run, not walk, but run the other way.

 

[robert roman]

“That's a Super Wash in Butler Indiana. There's a reason they are selling it and it's not in your best interest.”

I would not necessarily throw this under the bus.

While a certain location may turn out to be a non-starter, I have clients evaluating such properties.

The reason is some properties have higher and better use as carwash site.

 

[Waxman]

"Why does the current owner want out if you don't know ask him."
A major car wash company owns this wash. They have 100+ washes. Im not sure if we are allowed to say which company. I dont wanna break any rules here on the site.

"What's the tax value just the land."
According to the auditors website it is $10,120.00 .



"I will say one thing I promise you a 1 bay automatic and 2 SS will not make you as much as a successful machine shop."
As of right now I do not own any shares of our machine shop. He owns 100% of it. I just help run it. Its generally just a 2 man operation but when we get real busy, sometimes we bring in a couple extra guys. This is one of the reasons I wanted to get into the car wash business.

"What kind of equipment is in the automatic and SS (Self serve). Is it a nice clean running site or you need to revamp everything."
From the road the site appears pretty nice. Me and the gf are heading over there in about 30 minutes to check everything out.

"Example a new WashWorld automatic is 110K+ instailed. New paystation 10K+ not including SS equipment. You can always get a used laser and used equipment. Man it's just truely what you want. The asking price is only what the NET income will support no matter what some old Carwash man tells you."
This is the exact reason I posted on here. I don't want to buy a wash that has equipment near the end of its useful life. I just want something that will support itself. Including repairs and bank note.


"It needs to make the bank note as it sits unless your just investing in the land value."
In this particular town, I don't see the land value ever increasing enough to make this the only reason to buy the wash.


"Remodeling a Carwash is very expensive. So if you buy the site for 80K you might have to put a good 150K behind that in new or used equipment,building,parking lot repaved,New signs and be willing to work before and after work Mon-fri and all day on saturday and sunday and come home to a ill wife that made because you work all the time now & no friends unless there in the Carwash business."
lol. She's already mad most of the time anyways. haha. And does anybody really have friends after your around 25 years old? lol.


I might give you a call on Friday if you are going to be available. I also got the number for the guy here in town who owns a wash so i am hoping he will show me inside his equipment room and stuff. His wash is about 50 yards from my house so I have a decent idea in the evenings about how much traffic it generates. He isn't getting rich off of this one wash but it has to be maintaining itself because he built it and has owned it for probably 20 years now. He has a few others in the area too. The good thing is that his wash and the wash I am interested in are on the same U.S. highway so I would suspect about the same amount of traffic. I havent looked at any traffic reports yet for his wash here in town.

Thanks a lot for your advice and input. Ill reply back after while with the state of the property and what not. I don't know **** about the equipment in a car wash so I will have to have someone who knows about that stuff check it out.

If an operator is willing to take you through his e.r., etc. you should at the very least buy him a nice dinner and drinks. Just one guy's opinion, but an experienced operator is very valuable in terms of their time and guidance. Remember your manners ( not that you wouldn't)!!!

 

[soonermajic]

You can get used equipment all the time. I totally re-modeled my wash w/ almost 100% used. Have had very few problems, so far.
You may gimme a call sometime as well. text first, as I am a coach & teach all day. 409)200-hoop(4667)
I recently, 2 yrs ago, got into the carwash business....very similar to your deal...

 

[Overachiever]

That's a Super Wash in Butler Indiana. There's a reason they are selling it and it's not in your best interest. The best thing you can do is run, not walk, but run the other way.

Just an FYI if it is a Super Wash and you end up pulling the trigger. You'll probably be thinking about upgrading the automatics at some point assuming they are the old oval tracks. You'll likely need to modify the building by lengthening the bays and raising the roof to put a new automatic in. Which will turn an already expensive project into an even more expensive project for a low revenue wash.