Have you ever flipped a car wash?
- Thread starter floppgean
- Start date
Rfreeman
Well-known member
Any flip is worth it if you buy it right.
Car washing isn't for everyone but you have to determine which strategy is best for you based on your personal goals and objective regardless of the asset class. If you can buy a car wash like you mentioned above that has a true market value as you indicated above then yeah making $300K to me would a nice deal. However, is the $375K a pipedream or a realistic value for the car wash that would be a win/win for buyer and seller which would lead to closing a transaction.
Car washes are specific use real estate properties that offer annuity like returns. So how much profit are you wanting to forgo future cash flow payments (that will cost you or someone work)???
A wash I sold I knew I would sell it because the department of transportation was all around me. They owned the land easy, north, and west of me. To the south was the road so I knew sooner or later they would want the property. I over paid for the location based on current cash flow but I knew I could operate it better and I did. This better performing cash flow gave me leverage to negotiate a better price that ultimately would be better than any wanna be car was owner would offer me so I let it go after holding it for 3 yrs.
Car washing isn't for everyone but you have to determine which strategy is best for you based on your personal goals and objective regardless of the asset class. If you can buy a car wash like you mentioned above that has a true market value as you indicated above then yeah making $300K to me would a nice deal. However, is the $375K a pipedream or a realistic value for the car wash that would be a win/win for buyer and seller which would lead to closing a transaction.
Car washes are specific use real estate properties that offer annuity like returns. So how much profit are you wanting to forgo future cash flow payments (that will cost you or someone work)???
A wash I sold I knew I would sell it because the department of transportation was all around me. They owned the land easy, north, and west of me. To the south was the road so I knew sooner or later they would want the property. I over paid for the location based on current cash flow but I knew I could operate it better and I did. This better performing cash flow gave me leverage to negotiate a better price that ultimately would be better than any wanna be car was owner would offer me so I let it go after holding it for 3 yrs.
Thanks for sharing your insights! I completely agree—buying it right is key to making a flip worth it.
I recently did some due diligence on a car wash that was listed for $375K. After going onsite, I found out that 3 of the vacs weren’t working, and one of the self-service bays was down. Not exactly a great sign! I dug deeper and discovered the seller had actually bought the place for $75K in April" 24 I reached out to let him know about the vacs, and he mentioned that he’s selling because the numbers have been low—though I hadn’t even mentioned I was a potential buyer. It’s in a less-than-ideal part of town, so I have a feeling it might sit on the market for a while.
I admire your approach to selling your car wash, especially leveraging the Department of Transportation's presence around your property. It’s impressive that you were able to improve the performance and negotiate a solid deal. That’s the kind of forward thinking that makes these flips really work. Thanks again for your perspective—definitely keeping all of this in mind as I look for my first deal!
Waxman
Super Moderator
sounds like a great businessman; trying to make a quick $300k selling a wash in a poor location with multiple vacs and one self serve bay " out of order "!!!
good luck to them...
good luck to them...
