jmmiller777
New member
Any reccommendations on wether I should build from scratch or buy, remodel, and refit an existing property? This would be in the San Antonio, TX area
Build or Buy?
- Thread starter jmmiller777
- Start date
Whale of a Wash
5 Washes 36Bays 2Vectors
Is that question missing alot of variables, Is there a wash in question that needs work, do you have land, and what exactly are you trying to build. If it was a house i can't tell if you are trying to build the playboy mansion or a one bedroom house. Also need to know what kind of money you have , i have been to your city a few times, and i do remember it as having many car washes and low prices which puts more variables into a vague question.
MEP001
Well-known member
In today's market, regardless of the variables it's going to be very difficult to build from scratch a profitable car wash. If you have the experience to buy an existing property and rehab it yourself you'd have the best possible ROI; then again if you had that experience you probably wouldn't have asked your question.
Whale, you've made me want to look back and see what my post # 666 is about.
Whale, you've made me want to look back and see what my post # 666 is about.
Whale of a Wash
5 Washes 36Bays 2Vectors
I hope my #666 looked more like the devils advocate than the devil. In that case i would have said --Have you ever thought about five car washes that are in an area that really has the four seasons. What you need is a turn key business in an area that really salts the roads.
You would be amazed that all the money to be made on just a few short hours a week.
LOl
You would be amazed that all the money to be made on just a few short hours a week.
LOl
This is a business decision which is based on R.O.I
Texas is known to have cheap land and as a result, there are too many ss car washes per capita to be able to get real good return on your investment (one of your projection should be future competition)
There is a third option- don't get into this business if the numbers are not there.
If you decide to build or to buy, make sure to spend the money on a good appraiser, so you will make an educated decision.
Texas is known to have cheap land and as a result, there are too many ss car washes per capita to be able to get real good return on your investment (one of your projection should be future competition)
There is a third option- don't get into this business if the numbers are not there.
If you decide to build or to buy, make sure to spend the money on a good appraiser, so you will make an educated decision.
Waxman
Super Moderator
Survey says........Buy.
soapy
Senior Member
The Southwest Car wash association is one of the most active in the country. I would contact them and talk to a few of the locals about the market.
robert roman
Bob Roman
Some experts believe commercial real estate is beginning to show signs that the deterioration of transactions and fundamentals has begun to plateau, the early stages of recovery may be imminent. In certain markets, apartment, office, retail and industrial sector transactions are beginning to heat up and investors are signaling a strong interest in pursuing acquisitions at the bottom of the cycle.
Over the last several years, the inventory of small class-B properties (0.25 to 0.5 acres) has increased from Big Oil shuttering smaller, obsolete gas station properties; fast-food drive-thru that closed (i.e. Checkers, KFC, etc.) and distressed self-service car wash properties.
Developing on such improved properties has certain advantages.
Entitlements are easier to obtain because property is improved (related land use) and has adequate utilities at the site.
Given current market conditions, these properties can often be bought for the price of land. Demolition expense for a small retail shell is next to nothing today.
I have been told that financial markets have improved dramatically over the last several months and it is now supposedly less difficult to obtain SBA lending for project development.
If the site location is economically desirable and suitable as a car wash, it may be convenient and useful to the public.
In most regions, niche markets exist for small-scale car washes. Potential business models, food for thought.
1) Exterior express wash, mini-conveyor or dual express in-bays, with free vacuums
2) Exterior express, mini-conveyor or dual express in-bays, with separate detail shop
3) Exterior express, mini-conveyor or express in-bay, several wands, with free vacuums
4) Exterior express, mini-hand-wash, several wands, with free vacuums
5) Full-service, mini-conveyor or dual express in-bays, with separate detail shop
6) Full-service, hand-wash conveyor or belt, with separate detail shop
Over the last several years, the inventory of small class-B properties (0.25 to 0.5 acres) has increased from Big Oil shuttering smaller, obsolete gas station properties; fast-food drive-thru that closed (i.e. Checkers, KFC, etc.) and distressed self-service car wash properties.
Developing on such improved properties has certain advantages.
Entitlements are easier to obtain because property is improved (related land use) and has adequate utilities at the site.
Given current market conditions, these properties can often be bought for the price of land. Demolition expense for a small retail shell is next to nothing today.
I have been told that financial markets have improved dramatically over the last several months and it is now supposedly less difficult to obtain SBA lending for project development.
If the site location is economically desirable and suitable as a car wash, it may be convenient and useful to the public.
In most regions, niche markets exist for small-scale car washes. Potential business models, food for thought.
1) Exterior express wash, mini-conveyor or dual express in-bays, with free vacuums
2) Exterior express, mini-conveyor or dual express in-bays, with separate detail shop
3) Exterior express, mini-conveyor or express in-bay, several wands, with free vacuums
4) Exterior express, mini-hand-wash, several wands, with free vacuums
5) Full-service, mini-conveyor or dual express in-bays, with separate detail shop
6) Full-service, hand-wash conveyor or belt, with separate detail shop
Greg Pack
Wash Weenie
The number of new construction SS locations being built has plummeted and will likely not recover to any level near what it was. In my area, they are too expensive to offer a decent ROI and the customer base is diminishing. SS got me to where I am now, and I am thankful for that. But there just isn't enough people in my area willing to wash themselves to justify the 500K plus investment for a new facility. My advice would be to buy used with an established track record or get into another market segment such as express.
