How to verify income with NO paperwork

[NWBY]

I inquired about an SS carwash for sale in my area, the broker explained that the owner passed away and they do not have paperwork to verify income or even give a ballpark figure, its not the first car wash Ive seen with no papers, but understandable its a cash heavy business.

Any other ways to verify income on these types of properties for purchase?

Thanks!

 

[chaz]

U can stake out the place at random times to get a sense of business. Though quite frankly….no financials….i’d start at making offer based on land value……and maybe allow some for equipment depending on age. Guy likely reported low numbers to cash out under table. That’s illegal. Plus when sell time come along….offers will be based on low numbers

 

[OurTown]

Can you call the water department to find out how much water was used per month? Maybe there was a chemical sales guy that stopped by once in a while and you find some info from that person.

 

[Rfreeman]

Personally wouldn't waste my time. An owner can't expect to sell a car wash with no financials to show much less ask more than land and improvement value.

 

[traveler17]

It’s not a business if they can’t show financials. It’s worth the dirt.

 

[Eric H]

Value of land, building and equipment is all that a conventional lender will loan on. If you can get a distributor to give you a value on the equipment and a real estate appraiser for building and land you’ll have a value to base your offer from.
The SBA will lend on the “good will money” or “business value” that is above the value of land, building and equipment. Without any supporting documentation the SBA won’t touch this deal.
Is the wash still in operation or is it closed since the owners passing?

 

[Dan kamsickas]

3 years of tax returns or you're only buying dirt.

 

[jollythind]

for me look at the land and business make sense to you and you think you have a good game plan to make this business more profitable then just go and buy i never ask for papers to see use common sense

 

[traveler17]

for me look at the land and business make sense to you and you think you have a good game plan to make this business more profitable then just go and buy i never ask for papers to see use common sense
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[traveler17]

for me look at the land and business make sense to you and you think you have a good game plan to make this business more profitable then just go and buy i never ask for papers to see use common sense

So your advice is to go and buy a business without seeing tax returns ?? Worst advice ever given.

 

[Dan kamsickas]

for me look at the land and business make sense to you and you think you have a good game plan to make this business more profitable then just go and buy i never ask for papers to see use common sense

You have a much different definition of common sense than the one I'm aware of.