Buying a Car Wash / Phase 1 Environmental

[washregal]

I am looking at buying (2) wash's - These I have leased since 2006. The seller states that a Phase 1 environmental will need to be done.. How much cost will this incur per site?

Shouldn't the seller be picking up the cost of this? - Taking a leap of faith in buying the wash's.. Costs are going up and hard to raise pricing.

What am I doing?????? Do I need to be stopped? All advice appreciated.

 

[I.B. Washincars]

Why is it hard to raise prices?

 

[Car_Wash_Guy]

I just bought a wash in July, and I want to say the Phase 1 was $5K.

 

[washregal]

A couple of reasons. The economy for one.. Also my timers at my wash's are not the most forgiving.. Count up timers. Would mean adding dollars for new signage, as well as adding timers a big cost.

 

[Earl Weiss]

I am looking at buying (2) wash's - These I have leased since 2006. The seller states that a Phase 1 environmental will need to be done.. How much cost will this incur per site?

Shouldn't the seller be picking up the cost of this? - Taking a leap of faith in buying the wash's.. Costs are going up and hard to raise pricing.
.

A Phase one is a historical analysis of the property and neighboring properties to see if there might be an issue. Lenders typicaly require this. If there might be an issue then a phase 2 needs to be done.

Who pays is a matter of negotiation. Existing owner will say I don't need or want one so why should i pay?

i have solved this several ways. Split cost, (Both Sides issue checks for 50% to the environmental company up front) or Buyer pays but if it shows there may be an issue Seller pays (Seller puts money in escrow in case deal falls apart. You don't want to have to sue to collect.) If there might be an issue then report benefits Seller vis a vis what he needs to do to market / clean / due further investigation.

 

[soapy]

I am selling one of my washes that is on a old construction grade land fill. The Buyer is picking up all costs of the phase one and 2 audit. Once I get it sold I will elaberate on all the steps that they had to take. Everything has passed thankfully and the deal is almost closed. If you are going to buy almost any commercial property now with a bank involved they will require a Phase 1 audit. I also found out that any environmental audit is only good for 180 days so you can't use one that was done years ago.

 

[robert roman]

"I am looking at buying (2) wash's - These I have leased since 2006."

"Taking a leap of faith in buying the wash's.. Costs are going up and hard to raise pricing.

"Do I need to be stopped?"

I don't know.

Will buying the washes create more wealth than leasing them?

If not, why bother.

 

[smallwash]

I purchased my wash in June of 2012. I paid for the phase one due to SBA loan requirements. The phase one revealed that the property use to be a cotton gin 80 years ago and it had inground fuel storage tanks.

The phase 1 recommended a phase 2 be done. Seller split the cost of the phase two drilling. Soil samples came back clean. Phase one was $1,750 back then.

A corporation I work for had to get a phase one on a piece of property they purchased, the price for this phase one was $2,600.