Buying a car wash

[Parzivan]

Hello everyone

I’ve been talking to an owner about purchasing there car wash. I met with them last Friday to see the property and go over everything. The couple was very informative about what’s working and what isn’t working. I see potential to install other things to the bays like tire cleaner etc. They have a lot of verbal leases with advertising boards and an ice machine which help the revenue. My thing is they sent me a P&L report which shows a loss of 18k. While asking 324k for the property and lot next to it. I’m just curious what I should offer on it. Cause I know at there asking price it doesn’t make sense if they’re already losing money. It’s a 4 bay 2 vacuum car wash. Any opinions would be appreciated
thank you

 

[traveler17]

Hello everyone

I’ve been talking to an owner about purchasing there car wash. I met with them last Friday to see the property and go over everything. The couple was very informative about what’s working and what isn’t working. I see potential to install other things to the bays like tire cleaner etc. They have a lot of verbal leases with advertising boards and an ice machine which help the revenue. My thing is they sent me a P&L report which shows a loss of 18k. While asking 324k for the property and lot next to it. I’m just curious what I should offer on it. Cause I know at there asking price it doesn’t make sense if they’re already losing money. It’s a 4 bay 2 vacuum car wash. Any opinions would be appreciated
thank you

What’s the gross for the last 3 years?

 

[Parzivan]

What’s the gross for the last 3 years?

This is what I have gotten from them. I was also told all of there leases on the property are verbal agreements only. Which are billboards and ice machine. Which means all of the leaseholders could leave right after I buy it also cause i would have no proof of the lease agreement.

 

[Parzivan]

What’s the gross for the last 3 years?

they’ve also have only owned it for 2 years.

 

[OurTown]

That is an unbelievably slow car wash and not worth the asking price. I would not pay much more than $100K.

 

[traveler17]

You need to ask if they bumped their head. 34k!! Unless it’s unbelievable prime real estate they’re asking 10x gross. Tell them no thanks. Always exceptions but general rule is 3 to 4 x’s gross With the land. Stay patient. You’ll save yourself headache and a lot of money.