Buying a car wash. How long did your search last?
- Thread starter floppgean
- Start date
Fatboy769
Living the American Dream
@water guy, looks like Sarasota, FL
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OurTown
Well-known member
Almost a year but that is irrelevant. It could take a few days or possibly years to find a decent wash at a price you can turn a worthwhile profit on.
I travel a lot for work so I was looking in Pennsylvania for a few months, checked out Nashville and the surrounding areas and once the hurricanes stop coming through every week in Florida I’ll be returning home to Sarasota. Prefer to buy a car wash in warm climate state.
Dan kamsickas
GinSan Technician
If you're not going to be around to run it, you need to rethink the investment. Just because some clown on youtube claims it's a great, passive investment doesn't mean it is. I've seen far, far, far more absentee owners fail than succeed.I travel a lot for work so I was looking in Pennsylvania for a few months, checked out Nashville and the surrounding areas and once the hurricanes stop coming through every week in Florida I’ll be returning home to Sarasota. Prefer to buy a car wash in warm climate state.
Dan kamsickas
GinSan Technician
You stated you travel at lot for work. I hope you're not assuming that the wash would be your sole source of income. I would caution against that. Again, I've seen many, many make the same mistake.
Dan kamsickas
GinSan Technician
Then how are you going to travel a lot for work and be hands on to properly run the business?
I will no longer be traveling. I can work from anywhere from my laptop. I’m a consultant
Wow, that’s wonderful! Sounds like the demand is strong.
Roz
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Finding a carwash for sale is relatively straightforward and can be easy. There are ones for sale in most states, plus you can always approach an owner of a location you like and see if they wish to sell. There are plenty of owners who would consider an exit for the right situation.
Figuring out how to finance it is going to be the challenge. Banks have little desire to lend money unless you have other assets or significant cash flow from other operations to pledge as collateral. If you are looking for cheap carwashes then you are looking at places that will need significant additional investments. If you want a carwash that already has established cash flow then you will need some equity funds to make that purchase happen. Three financing avenues to consider are home equity lines of credit, pledged asset lines of credit for say a brokerage account, or a retirement account. Then you are the bank to yourself so you can repay yourself at the pace that makes the most sense. Good luck with the search
Figuring out how to finance it is going to be the challenge. Banks have little desire to lend money unless you have other assets or significant cash flow from other operations to pledge as collateral. If you are looking for cheap carwashes then you are looking at places that will need significant additional investments. If you want a carwash that already has established cash flow then you will need some equity funds to make that purchase happen. Three financing avenues to consider are home equity lines of credit, pledged asset lines of credit for say a brokerage account, or a retirement account. Then you are the bank to yourself so you can repay yourself at the pace that makes the most sense. Good luck with the search
Car_Wash_Guy
Well-known member
How much more can you come up with for a down payment? I might know a few
Rfreeman
Well-known member
Took me over 10 years. Started looking before the 2008 financial/real estate crisis and well all real estate was way overpriced. I got really lucky and ended up buying a wash after the crisis for less than land value. Negotiating on it took 9 months alone as I waited for the deal to come to me vs. overpaying. Be patient find the right/best deal for you and your circumstances...don't try to jump into one...do your homework.
I have 50k but I ideally I like to put 75k or more down which I am currently working on.
You're not going to get much of a wash for that, banks are tightening up lending already, I'm guessing a newbie to the business would have to put down at minimum 25% - and more likely 40%+ in this lending environment. Not trying to be a negative nancy, but this is what I am seeing out there.
Thanks for the heads-up! I appreciate the reality check on the lending environment. I’m optimistic about my chances and am working hard to build up my funds. Your advice helps me plan ahead, so i am prepared. The pandemic has given an uncertain economic outlook for some time now….
