Great idea, or horrible idea?

[Axxlrod]

Many tunnels are leased; I've heard of some IBA bays that are leased. I think the difference is tunnels can make such more revenue that there can be plenty of $ left over after making the lease payment. Not sure that is the case with an IBA leased from C-store.

I've always owned all my dirt; but I just signed a lease for an older full serve tunnel wash that I am going to convert to express. It's on a pad in a busy shopping center with no competition around. Of course I'd rather own the land, but this deal cash flows nicely so I'm willing to take the risk. Plus I got a very long term lease, so it's almost like I own the land anyway.

 

[Keno]

So, if I decided to lease this spot, whom would you guys say I talk to about that?

It appears a Big city area Fuel Co owns it, & leases it out to some foreigners.

If the whole property is leased to someone else already, you would need to get a sublease from them - adding more complexity and risk for yourself

 

[soonermajic]

If the whole property is leased to someone else already, you would need to get a sublease from them - adding more complexity and risk for yourself

So you believe I'd need to get a sublease from the guys whom are currently leasing?

What potential snags should i be wary of?

 

[Car Wash Man]

I would not get involved in this if I were you. 200 miles away is pretty far away to be maintaining a wash, weather you have have family or not in that area. I think this would be a drain on your well being as well as a lack of drive to keep this location maintained with it being such a far drive. Also the lease thing would be pretty sticky with a IBA that is old and broken down, especially since the location is already subleased. Lots of question marks associated with this deal to make it work. If it was in your town where it is easily accessible it would be more doable.

Another big thing is. What happens if you stick all this money in to the location, It isn't as big as a success you hoped for, And now you are stuck in a long term lease with monthly rent. I would not call this a good find in the carwash world. Sorry to be negative, I would rather be blunt then see someone get stuck in a deal they weren't hoping for.

 

[Car_Wash_Guy]

Another thing to consider is “lease-hold improvements”. I have it in all my commercial leases.

Basically anything you install and is attached to the floor, walls etc is considered such and stays with the property

 

[ShinePro]

1) firemen usually work 24 on 48 off
Car washing is a perfect 2nd income gig for them.

2) all of the leases I know of - equipment owned by operator. All your leasing is building and land.

I m in coach, but I get to fly down a come see it

 

[soonermajic]

My 2 fireman sons are both 48/96. Both live very closeby.
I will rip their old LW4000 out & install new Petit, advertising "LOCALLY OWNED BY Plano Firemen"
Won't do the deal without minimum of 5 yr lease, & i fully own all wash equipment.

 

[washnshine]

Signage that says “owned by firemen”, some hot lava products, turtle wax fire and ice, hot carnauba - I see a theme for this wash, coach!!! Maybe call it Five Alarm Car Wash

 

[soonermajic]

Signage that says “owned by firemen”, some hot lava products, turtle wax fire and ice, hot carnauba - I see a theme for this wash, coach!!! Maybe call it Five Alarm Car Wash

Dude..i love it. That is a pretty good idea!

 

[Blanco]

My 2 fireman sons are both 48/96. Both live very closeby.
I will rip their old LW4000 out & install new Petit, advertising "LOCALLY OWNED BY Plano Firemen"
Won't do the deal without minimum of 5 yr lease, & i fully own all wash equipment.

You need a 5 year lease with a 5 year extension. If things build up after the first couple years the landlord will have the upper hand on renegotiating the lease for the next 5 years if you don’t have extension and he sees your doing good business.

 

[water guy]

What part of tx?

 

[Keno]

What part of tx?

..."LOCALLY OWNED BY Plano Firemen"
...

I'm guessing somewhere around Plano based on previous comment by Coach.

 

[soonermajic]

I'm going to meet with the owners week from Friday. I wil report back.

I really wanna do this. Hopefully it goes great, & you guys can jump on this in yalls areas...