I'm buying my first car wash!

[Bossman]

I’m under contract to purchase an existing car wash in Illinois. I’m an experienced real estate investor and rehabber, and I have experience working with equipment and the general public, so I’m confident that I’ll be able to operate the place if the deal closes.

I’m comfortable with verifying the equipment and the real estate, but I was wondering if anyone had advise on the best way to verify current gross sales. The current owner is out of state, and a buddy of his takes care of paying the part time employees and getting the money to the bank. From my visual observations and talking with one employee, I’m not getting a warm and fuzzy feeling about how much this place is generating. It has one automatic and six self serve bays. Additionally, is seasonality a factor in this business? Any advise on basic first-timer errors to avoid would be appreciated.

 

[ibspuds]

Snow, Salt, Ice, Rain, then SUNNY DAY = $$$$$

 

[washtubman]

Wow! You're under contract and just now you're trying to get gross numbers. Sounds bassackwards to me; but........ Have them show bank statements and tax returns. Seasonal? You bet. January has been a ball buster with all the snow and very cold temps.

 

[harleygrant]

I’m under contract to purchase an existing car wash in Illinois. I’m an experienced real estate investor and rehabber, and I have experience working with equipment and the general public, so I’m confident that I’ll be able to operate the place if the deal closes.

I’m comfortable with verifying the equipment and the real estate, but I was wondering if anyone had advise on the best way to verify current gross sales. The current owner is out of state, and a buddy of his takes care of paying the part time employees and getting the money to the bank. From my visual observations and talking with one employee, I’m not getting a warm and fuzzy feeling about how much this place is generating. It has one automatic and six self serve bays. Additionally, is seasonality a factor in this business? Any advise on basic first-timer errors to avoid would be appreciated.

Buying the wash would be a start...

 

[dogwasher]

I have a 4SS/2automatic car wash for sale in Saint Charles IL you should contact me!
The water bill would be a really good start to check volume

 

[Earl Weiss]

I guess ignorance is bliss.

 

[Waxman]

I’m under contract to purchase an existing car wash in Illinois. I’m an experienced real estate investor and rehabber, and I have experience working with equipment and the general public, so I’m confident that I’ll be able to operate the place if the deal closes.

I’m comfortable with verifying the equipment and the real estate, but I was wondering if anyone had advise on the best way to verify current gross sales. The current owner is out of state, and a buddy of his takes care of paying the part time employees and getting the money to the bank. From my visual observations and talking with one employee, I’m not getting a warm and fuzzy feeling about how much this place is generating. It has one automatic and six self serve bays. Additionally, is seasonality a factor in this business? Any advise on basic first-timer errors to avoid would be appreciated.

What type of equipment have you worked with? Why would you sign a contract to purchase a business w/out a firm grasp of sales? Do you know the expense side at all?

The carwash business can prove challenging without proper planning. Sounds to me like you need more education before you buy a carwash business.

 

[Whale of a Wash]

What type of investor gets under a contract without the details. As a real estate investor myself you need solid figures before a purchase. Otherwise you will pay too much or not know if it was a good deal. Owning both i can tell you, and my wife and friends, that still think you just stop by and pick up the money. A car wash is like having a baby- they require constant attention!!
Scratch all that--Have you ever visited ND with our 4 seasons. I have 5 washes that will make you 5 times as much as one.

 

[PEI]

Car washes are very weather dependent. Salt on the road will drive up you iba numbers, but only if you can get enough sunny days after it is put down. Warm summer weather will drive up your self-serve while driving down your iba numbers.

As for getting accurate numbers, you can only get something close if the equipment has non-resetable information. Otherwise you will have to look at the water bill and make an educated guess.

Some newby mistakes would be to assume that what ever soap is being used is ok. You need to do your own testing and research. Don't believe what any salesman tells you until you have verified it. Also, do not expect to just collect the money. You must be on site maintaining it and talking with your customers.

Good Luck!