Advice on 5 Bay Purchase

[Orionj316]

I am considering the purchase of a 5 bay SS 15 mins form my house. This is in a rural area off of a state route (TN) with a traffic count of 10K+ daily. I met with the owner today and received some general information and took some pictures.

There are 4 traditional bays and 1 truck/trailer bay with an no roof. It has been closed for 10+ years. The owner topped off the CAT pumps with oil before closing. The 4 self serve options were rinse, soap, wax and foam brush. There are 2 vacuums, the pits drain to the city sewer and the meter boxes only took quarters (no bill changer on site). All utilities are currently disconnected.

Speaking with a realtor recent sales of businesses with a similar foot print have gone for 70K-90K.

If a deal could be agreed upon for the right price i would like to start off adding a card reader, and in the future adding dryers and other equipment for the bays.

I would like some general advice on the state of the current equipment, how much it would cost to make medications to start bringing in cash flow and a general idea of the amount of work needed to get this SS up and running again.

I do have more pictures if they would help.

Thanks for the feedback!

 

[MEP001]

The first thing I'd look into is whether you can re-open that fifth bay. Since it's been closed for so long, they may not allow you to open it at all, or may require you to cover it, in which case you'd lose that specialized income.

Addressing the cinder clock walls that are showing severe cracks, the whole foundation must be collapsing. IMO this "business" isn't even worth the dirt it sits on. The lack of room for modern equipment or additional functions is a whole other problem.

To add dryers, you may have to upgrade the wiring. That alone could cost you $20,000 to $50,000 if the city has to pull 3-phase.

 

[Orionj316]

The first thing I'd look into is whether you can re-open that fifth bay. Since it's been closed for so long, they may not allow you to open it at all, or may require you to cover it, in which case you'd lose that specialized income.

Addressing the cinder clock walls that are showing severe cracks, the whole foundation must be collapsing. IMO this "business" isn't even worth the dirt it sits on. The lack of room for modern equipment or additional functions is a whole other problem.

To add dryers, you may have to upgrade the wiring. That alone could cost you $20,000 to $50,000 if the city has to pull 3-phase.

Thanks for sharing.

If It makes a difference, I spoke to the mayor before talking with the owner and She wants the car wash open.

I'll look into the 3-phase options for the business as I didn't know that about the dryers.

 

[traveler17]

Nothing wrong w you wanting fix that place up. My advice is if you are moving forward is to tell the current owner that is not a business. It’s a shell of what used to be a business. If you make an offer get the tax records on the property because that is what you are buying. Good advice up top also. Anything can be fixed up but do your due diligence before jumping in. Good luck!!

 

[Orionj316]

Nothing wrong w you wanting fix that place up. My advice is if you are moving forward is to tell the current owner that is not a business. It’s a shell of what used to be a business. If you make an offer get the tax records on the property because that is what you are buying. Good advice up top also. Anything can be fixed up but do your due diligence before jumping in. Good luck!!

I should hear back from the owner in a few days. Any idea on if I should purchase new pumps and motors or try to use what's been sitting for 10+ years?

All of the Equipment people I've spoken to says that I should just go all new. Not sure if they are just saying that because they want a sale.

 

[traveler17]

I should hear back from the owner in a few days. Any idea on if I should purchase new pumps and motors or try to use what's been sitting for 10+ years?

All of the Equipment people I've spoken to says that I should just go all new. Not sure if they are just saying that because they want a sale.

Obviously the exterior you will want new, meter doors , booms , all new hose etc . It is much easier to start w all new but I personally would see if the motors and pumps are working.

 

[ShinePro]

Buy the dirt
Startover

 

[MEP001]

All of the Equipment people I've spoken to says that I should just go all new.

Of course they do. They're looking at making at least $100,000 off you. There are some honest ones, but most just want to sell equipment.

If the current owner really did fill the pump crankcases to the top with oil before he shut it down, he's one of the smarter ones out there. He has kept the crank and bearings from rusting. The pumps will be as good as the day it was shut down, although they'll need new rubber parts.

Again, I would pass on this. There's not room for the modern functions like spot free rinse, the changer will either have to go in the door or the back wall (both bad ideas), I don't see room for people to come and go without driving through a bay, the whole thing just looks bad.

 

[Dan kamsickas]

The only way you should do this is you are buying the dirt only.

This is what you are looking at:

1) Rebuild the stands or replace. If you rebuild them in place you have zero room for the other functions customers want. If you replace with a more compact system you may be able to fit it in the equipment room but you still won't have much room to breathe in there and will cost more up front. You may still not have enough room for a softener and RO system, although in TN you may be able to ditch the hot water tank to gain some room.

2) New bay equipment(booms, meterbox doors & hulls, guns, brushes, hoses, signs, lighting) as well as every hose and wire to the bays should be replaced. Honestly you could be, ball park, $65-$75k worth of equipment between the bay and equipment room depending on options. That doesn't include any shipping, taxes, or install cost

3) Possible(or probable) utilities upgrades. It's been closed for around a decade. I would be surprised if major upgrades aren't needed.

4) What is the road visibility like? It appears to be set back a ways. Is there signage? Can you locate the vacs to near the road to draw attention?

5) As MEP said: Change machine in the back of building is not a great idea. It's inconvenient for the customer and hidden from view which makes it a tempting target for scumbags. In the door isn't any better. The only other suggestion I would have is we are having more and more customers eliminate their coin acceptance. Strictly bills and credit card. I thought the first customer who requested it from me was nuts(and told him such) but since he did it almost 2 years ago, he's seen an increase in revenue with far less time collecting every week. Of course that brings up an issue with the vacuums. There isn't much room on those for cc readers and display timers, and no room for a bill acceptor.

6) The building itself is in need of some serious maintenance. Beyond the mortar cracks, it's filthy. Paint is peeling. Parking lot needs patching, if not regrinding. I assume the lighting is junk.

 

[tdlconceptsllc]

If the Mayor wants this open up so badly ask them for grants towards it. It will tear 130-150k to get back and running easy that's with buying a used pumpstand and the rest new equipment,concrete asphalt electrical and whatever needs to be gutted for sure. The equipment there is not worth messing with.

 

[MEP001]

The building itself is in need of some serious maintenance. Beyond the mortar cracks, it's filthy.

Those aren't just cracks. The blocks are misaligned to the point they're casting shadows. At the very least, the equipment room walls need to be torn down and the slab repaired.

 

[Orionj316]

4) What is the road visibility like? It appears to be set back a ways. Is there signage? Can you locate the vacs to near the road to draw attention?

Thanks for sharing your perspective. The above picture shows visibility one way (west bound).

 

[Orionj316]

If the Mayor wants this open up so badly ask them for grants towards it. It will tear 130-150k to get back and running easy that's with buying a used pumpstand and the rest new equipment,concrete asphalt electrical and whatever needs to be gutted for sure. The equipment there is not worth messing with.

I wouldn't say she wants it open badly but more-so she would like more active businesses and for the area to look nicer.

 

[Dan kamsickas]

Those aren't just cracks. The blocks are misaligned to the point they're casting shadows. At the very least, the equipment room walls need to be torn down and the slab repaired.

I live in the north. I've seen far, far worse that usually take just some tuck pointing. When your temperatures annually swing from sub freezing to 100 degrees, it happens. I've spent a lot of time in TN, most cinder block buildings over 20 years old have some form of what I see on those cracks.

 

[Orionj316]

To add dryers, you may have to upgrade the wiring. That alone could cost you $20,000 to $50,000 if the city has to pull 3-phase.

Looking at the Delmeiter website it looks like there area Air Shammee's that run off of 1 phase and 3 phase. Is the 1 phase not reccomended?

 

[MEP001]

Either will do, single phase is more maintenance but that maintenance isn't very difficult. I meant you might have to upgrade the service because of the amperage draw, although that probably isn't necessary since the high-pressure pump motor and the dryer won't be running at the same time.

What's the speed limit on that stretch of road?

 

[Dan kamsickas]

What is that business on the main road that blocks the view of the place from the main road?

 

[Orionj316]

What is that business on the main road that blocks the view of the place from the main road?

Bank

 

[Orionj316]

What's the speed limit on that stretch of road?

The speed limit is 45MPH.

A half mile before and after the city it's 55MPH

 

[Orionj316]

I spoke to the owner and he is asking 70K for the property. He is open to seller financing it as well.