Leasing Wash's

[washregal]

I have an opportunity to lease a wash.. Thinking the income I gain from it - could knock down my current debt load on my other two locations nicely.. Does anyone have experience in leasing? Is there a blanket lease someone could recommend for me - pvt msg if so..On a lease since I will never own the land is there a pct of income I should look out for? Also - would 100% of the utility get picked up be me in leasing the property or can some of that (typically) get negotiated into the cost of the lease? Obviously taxes would be part of the monthly lease payment - anything else? This opportunity wasnt something I was looking for - just might make sense though - location is so close and great area - Thinking it might be worth it - even for 6 mo or so see how it goes - doesnt seem like to much risk - for a decent reward.. what are your thoughts?

The facility ha (4) SS and (2) IBA -

 

[mac]

Good questions. My thoughts are that at the right price, almost anything makes sense. Here are some random thoughts: If you do it, make damn sure that you have the right of first refusal in case the owner, or his estate, wants to sell. Is the equipment in good shape? Can you work on it and get parts? Do you trust the numbers that the current owner has for sales? Can any improvements that you make be considered yours if/when you leave? And I'm sure there are many more.

 

[boywonder]

Ive leased a car wash and will never do it again. If you don't own the ground, you don't own anything. The lease will typically depend on how receptive the owner is to you. You will get stuck with paying everything. Taxes, utilities, etc, unless the owner uses part of the location for themselves. Leases are typically no less than 10 years. I don't see any lessee wanting to do a 6 month lease.

 

[washregal]

Good points.. I know I need to be wary in this - Not interested in owning the land in this deal... I would try and include as much of that utility / taxes etc into the monthly lease payment. I am not interested in subsidizing someone Else's land deal..If I cant make the numbers work - I would of course just walk away.

 

[tdlconceptsllc]

I currently have a lease personally. I had the option after 3 months in the lease to sign for 10 years and a option to purchase at anytime/first right of refusal before the lease is up also as long as i submit a formal letter with intend to purchase property for X amount before my time expires. Get the Lease rate locked in for as long as you lease it. Get in the lease the "Lease" may take upgrades and personal equipment installed back into your possession at the end of term as long as you installed them. If someone most of the time is willing to lease a carwash which i don't see people lined up to do anyways in this industry they will work with you because obviously they want out. You can get it for 3 months,6 Months, 1 year whatever with a option to extend to make sure you want it. That is what I done and it has worked out so far for me thank god. it will be little clauses in there like "Lease must keep property clean to the physical eye,Maintained property picked up from debris ect.. and a no harassment clause from the property owner for enjoyment of the Lease ect.. You want a good Lawyer to draw it up to cover you both so there is no issues down the road. Will cost several thousand to do it right for a good one but it can be done and don't expect it to be correct on the first draft. Good Luck you can inbox me for more detailed questions if you want.

 

[pgrzes]

I have a wash that is leased. I have been there for about 15 years. Wash has been at this location for 49 years. Same landlord entire time. Property has been for sale pretty much the whole time wash has been there, but the $$$ they want has been so unrealistic no one will purchase. Its a large parcel with several rental properties and a bar that the landlord owns. I have been trying to get him to sub divide and purchase a portion but he doesnt want to spend any $$$ to divide. This location has worked out well this way as the rent has been so reasonable for all this time, but on the flip side could have owned it by now.