Major life decision

[Ben]

I reached out to Tom on linkedin and offered to pay for his time for 30min, if you don’t mind letting him know as well that may be helpful as I know LinkedIn can go weeks without being looked at. Thanks in advance.



QUOTE="washnshine, post: 151995, member: 5006"]
I’m not sure where you are located, but I am in NY state. And while I do not have this many washes, I know a few “down to earth” and really good guys who do. They are Tom Hoffman - Hoffman Car Wash and the Daniele brothers - Royal Car Wash.

Hoffman Car Wash

Hoffman Car Wash provides superior car wash services in the Albany, Kingston, Queensbury, and Binghamton areas.

www.hoffmancarwash.com

ENJOY A BETTER EXPERIENCE WITH GO!

This Royal location has been acquired by GO Car Wash!

www.theroyalwash.com

I’m sure you can find other guys in other areas depending where your are, but this is who I know and would talk to if I was in your situation.

They don’t sell anything and are simply owners who know how to get it done in my neck of the woods. I’m sure both would be glad to grant you a little phone time.
[/QUOTE]

 

[OurTown]

Absolutely need to see that historical data . Where is it and for express correct ?

That was before I was in the car wash business but from what I understand it was mostly self serve and in bay automatic sites that went back to the bank. It was before the express exteriors really started to be built like crazy.

 

[tdlconceptsllc]

The express market has not seen a ressecion yet and many will be bank owned (unless paid for free and clear) in the near future there built on top of each other. Not to many self serve operators want to bring up the 07-08 recession where you had to feed money into the washes to keep things afloat if they where not paid for. Remember Everyone has a bucket and dish soap at there house and can wash cars. People will not go without food, housing, refrigeration,plumbing,Gas, ammo, and vehicle repair. They will be worried about the $600 car payment and the $1500 house payment when they loose there job over washing a vehicle I can promise you that. I have seen it I am hear too tell you. Be wise my freind express market is not something to play with. This happened all through the southeastern united states

 

[Kramerwv]

Might be good time to lock in gains while taxes are low. Let market come to you.

 

[Axxlrod]

You want to buy 5 - 10 express washes?

So that means you have $25M - $50M as a warchest?

If you have that kind of capital, I'd give it to a top-notch money manager, and live off the returns while sipping cocktails on my boat.

Apartments and other RE properties are passive income. Car washes are operations. Two totally different worlds.

 

[Ben]

LOL if only...but sadly I DO NOT TRUST THEM .... Apartments are overheated so bad its insanity. 200 deals underwritten with my team and NONE work, 4% returns LOL.

Got some washes that pencil out. But need some OPS help to underwrite life with a portfolio.

You want to buy 5 - 10 express washes?

So that means you have $25M - $50M as a warchest?

If you have that kind of capital, I'd give it to a top-notch money manager, and live off the returns while sipping cocktails on my boat.

Apartments and other RE properties are passive income. Car washes are operations. Two totally different worlds.

 

[Ben]

1031, or pay like 68% taxes. cant sit and wait. 45 days to make a decision for tax defferal.

Might be good time to lock in gains while taxes are low. Let market come to you.

 

[Kramerwv]

1031, or pay like 68% taxes. cant sit and wait. 45 days to make a decision for tax defferal.

Yikes - I’d sell you my wash but you’d be $30mm light

 

[JGinther]

68%? Did you buy and sell this year? What state are you in? That's crazy! And the crazier part is that that must me low compared to historical taxes...? And future tax guesstimates?

 

[Ben]

Still need a portfolio owner for a quick chat. Down to the wire . Offers in etc

 

[washnshine]

One other question - the 10 washes you can buy- are they part of an existing larger chain? If so, why are those 10 for sale? If you buy, do you keep the name, or do you have to rebrand? I’m not clear how this specific group of washes is becoming available. Just curious.

 

[Ben]

Do any Portfolio owners exist on this forum ?

 

[MEP001]

Do any Portfolio owners exist on this forum ?

I like how you focus on one thing at a time.

 

[Ben]

Guys (n gals) I need to speak with a portfolio owner ASAP. Flying to the deals tomrrow . I need 30 min by phone with someone who has experience. I’m about to plow 30 years of hard work into this shit. Need to understand from someone who’s been deep what to expect. All the circling and number running in the world is no substitute for school of “been there done/failed/succeeded at that”.

Nobody on here is a multi site express wash owner ? I find this hard to believe.

Much appreciated

 

[JGinther]

It might just be that nobody wants to give a few million dollars worth of advice for chump change... And it could be that you are hearing a rabbits answer to a wolf's question about a good place to eat. You will find the gambit of operators here, but I think you already have the answers you seek. Good luck!

 

[MEP001]

Guys (n gals) I need to speak with a portfolio owner ASAP. Flying to the deals tomrrow . I need 30 min by phone with someone who has experience. I’m about to plow 30 years of hard work into this shit.

I think you're about to make a huge mistake in that you will be in over your head, you'll be trusting people you've never met, and that you'll be turning what was supposed to be a retirement into a 60+ hour a week job for not a whole lot of profit on properties that are at some point going to essentially be worth less than the land value.

 

[DavidM]

Maybe your inability to find an answer here is your answer. The portfolio owner you are looking for is too busy to hang out here, or he is completely detached from the day to day because he has good regional management and doesn't have to go looking for answers to day to day problems.

I don't own multiple express washes, just one plus some self serve washes. With 3-10 locations that you want to operate hands off, you will need a team of site managers, maintenance and repair guys, and solid hiring and training. Car washing is not passive unless you are at the very top with a great team in place. However, I don't know many passive owners that can recruit and lead a great team.

Like many of the guys here, I have been in the industry a long time. Car washing is not recession proof. Many washes lost 30% -50% of their revenue in 2008, including expresses. Car washing is a luxury purchase, everyone can skip a wash when money gets tight. Back then expresses were charging $3-$5 for a wash. Now they start at $10, people will wash less when the next recession hits.

A good owner can make a small chain of 5-10 express washes very successful but it is a long way from foolproof. The question I would be asking if I were in your shoes is this... Why has this bundle of washes not been snatched up by Mister, ICWG, Zips, Quick Quack or whatever regional car wash company is in your area. They are buying washes like crazy across the country.

There are lots of resources to help you and you can be successful but there is also a steep learning curve to the industry.

David

 

[jfmoran]

Hey guys, so here is the basic backstory , we’ve (my bro and I) ground out the American dream in Realestate since 2008. We are now exiting with the proverbial “millions” . But as we all know as investors the “millions” turn into pennies if nothing invested.... so we are once again looking around at places to place the money so it continues to work, we feel real estate is at the top and we don’t like how it looks at the moment, we have been circling express washes for years, afraid of the time commitment and in love with the cashflow.
Now we can buy about 5-10 of them.

but here is literally the million dollar question:

will our lives be hell chasing around wash issues 7 days a week? or with managment and regional managment will it be as passive or more so compared to owning apartment communities in different cities across the us that we owned before cashing out?

any owners who have owned apartment communities AND have owned express washes can talk to what we should expect are the differences of time commitment across both portfolio types ?

we are seeking cashflow on our exit as net worth is worthless as far as income goes. Thanks guys

Here's the short answer as I have been a GM for a regional chain with 10 locations a family operated business.

If you do not invest in the infrastructure to operate 5-10 locations, experienced operations management, HR, Admin, maintenance, then YES you will be running around pulling out your hair trying to manage these car washes.

It is NOT a passive business, UNLESS you have the right people in place.

I got of the operations side of the business because the owners I worked for don't understand this and they have been in this business for 40 years.

Express sites can be cash flow monsters, but it is not as easy as it seems from the outside looking in.

Feel free to reach out, if I can be of assistance.

 

[Axxlrod]

Not to mention this site caters to the SS/IBA operator. Tunnel operators are on another site.

To run more than I'd say, 6 express sites requires a lot of middle management. Site mgr, regional mgr, portfolio mgr, HR, controller, and maintenance, marketing, etc... That's a lot of support staff salaries to pay.

And that is assuming the sites are all in the same market. If they are spread around the country, well good luck.

 

[bighead]

Express car washes are a business that requires management….period

more passive investment categories are easy to spot because third part businesses will exist to manage those investments for you. Think self storage, apartment rentals, commercial rental management, or even standard rentals.

1031 into self storage or NNN capital leases