Got a phone call yesterday from a realtor who had a 4 bay car wash for sale that I had made a offer on approxamately 6 years ago. It was sold to someone after I had looked at it and the new owner run it a couple of years and shut it down.Turned off all the utilities and it has set for over 2 years. This woman starts telling me what a great money maker this is and I would be a fool to let it pass by. I proceeded to explain to her that no one closes a Money Maker they close one because its a money pit and they were loosing money. When she quoted me a price I told her that was more than I offered when it was a car wash and she said ,It's still a car wash! I told her after the owner walk away and it was closed and vandilized it was just a building and if it wasn't winterized and setting at least 2 winters that no one knows if the equipment is operatable or not. I would just have to pass on this great deal. She explained to me how stupid I was and how I wouldn't know a good deal if it hit me in the face and I couldn't make it as a business owner. Than she hung up on me. God bless realitors.
Money Maker !!!!
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I.B. Washincars
Car Washer Emeritus
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Whale of a Wash
5 Washes 36Bays 2Vectors
I would find out the realtors broker and make a complaint.
They take that kind of behavior very seriously. That is not the behavior they
tolerate. I have used realtors for some of my apt bldgs. But i look at them as blood sucking leaches for their 7%. They use someone elses property to sell . They stock no inventory. They do no cleanup. They do no repairs like a car wash owner. They pick up no trash. Almost no work --Phone calls and lunches, and big talk. Sorry for the rant!! about the leaches.
They take that kind of behavior very seriously. That is not the behavior they
tolerate. I have used realtors for some of my apt bldgs. But i look at them as blood sucking leaches for their 7%. They use someone elses property to sell . They stock no inventory. They do no cleanup. They do no repairs like a car wash owner. They pick up no trash. Almost no work --Phone calls and lunches, and big talk. Sorry for the rant!! about the leaches.
While I am not really a big supporter of realtors they can be worth the money spent. A good realtor qualifies potential buyers and can be very effective negotiating terms and conditions of the sale. While selling the wash by yourself may seem attractive for saving realtor costs, often a good realtor can get you a fair price without risking problems with the sale. Obviously the example given is not what I am talking about and like any profession their are some really bad ones that do little or nothing more than list properties.
captain cw
Member
I always get my best business advice from people that have never had the guts to do it themselves. I know a gentleman with a masters degree in business. He has never been in business himself and can't seem to keep a job, because he always thinks he's to good for whatever the job is. He is currently unemployed and trying to get a teaching job at a local college, teaching other people how to be in business, thus lending credence to the old saying.... "Those who can't, teach (or give lots of stupid advice)"
bigleo48
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What I see with Realtors around here is that they are a dime a dozen and the inability to get business and close deals weeds the good ones out from the bad.
But mostly they are people trying another career because they failed at all the others.
This lady clearly falls into that category.
Big
But mostly they are people trying another career because they failed at all the others.
This lady clearly falls into that category.
Big
washnvac
Well-known member
If it is such a great deal, you should have told her to buy it. Ofcourse, she probably is not qualified to run a fruit stand, let alone some real business.
I wish I had a nickel for every realtor that has told me I need to open a wash here or there. Then I would be rich......well not rich, but I would have quite a few nickels.
I wish I had a nickel for every realtor that has told me I need to open a wash here or there. Then I would be rich......well not rich, but I would have quite a few nickels.
Several years ago there was a Realtor and a car wash distributor that teamed up together in our city. They put up signs in some locations - usually corners - that said it was a future site of a car wash even though there was no wash in progress in an attempt to generate leads. I think it worked to generate some leads but do not know if they ever sold a wash from their ploy.
keniniowa
Member
The other day on a motorcycle ride rode by a closed wash. Found the listing, it's listed for double what I'd think it's worth best case scenerio if it were in operation.
Made an offer on a little two bay ss this spring, roughly half of asking price. I've had some changes in my life since then, wouldn't give that much for it now.
Every wash I see for sale is that way.
I'm in my fifth year as a wash owner. Wouldn't mind getting another one, but none of them are priced realistically.
Then like the closed wash I saw on the bike ride, it's too much wash for the location. Not a bad spot for a wash, just not that one that big. So assuming it needs repair from sitting; fix all the bays and have them under-utilized or leave a couple dormant and pay prop tax/ins for no income. Looks to me like that one in particular is going to have to sell for next to nothing to ever be a money maker.
Or is there something I'm missing too?
Made an offer on a little two bay ss this spring, roughly half of asking price. I've had some changes in my life since then, wouldn't give that much for it now.
Every wash I see for sale is that way.
I'm in my fifth year as a wash owner. Wouldn't mind getting another one, but none of them are priced realistically.
Then like the closed wash I saw on the bike ride, it's too much wash for the location. Not a bad spot for a wash, just not that one that big. So assuming it needs repair from sitting; fix all the bays and have them under-utilized or leave a couple dormant and pay prop tax/ins for no income. Looks to me like that one in particular is going to have to sell for next to nothing to ever be a money maker.
Or is there something I'm missing too?
Real estate sales
I'm a car wash owner and am also a licensed Real Estate broker.
Selling "business opportunities" (i.e. the corner gas station, or liquor store, or medical practice) is quite different from selling real property (i.e. land, housing).
A small subset of brokers/sales people specialize with business opportunity sales. The best ones keep this focus and don't do any listings or sales of houses or property. This is because the business opportunity sales involve a lot more, and different, issues. Umm, were you going to structure this purchase as a stock sale or an asset purchase? Most realtors don't know the difference.
Unfortunately, a car wash sits right in the middle-- a business opportunity sitting on a piece of real property, normally both bundled together for sale. What often happens is that a real estate agent, not familiar with business opportunity sales, sees some "easy money" and takes a listing. They simply don't know what they are doing, although most of them mean well. They wouldn't know what a cap rate is if you explained it to them.
You can fault the agents for getting involved in the listing, but the govt agencies have agreed that these sort of sales should be handled by real estate brokers. I just don't think they could figure out where else to "regulate" business opportunity sales so they swept it in with real estate brokers.
I'm a car wash owner and am also a licensed Real Estate broker.
Selling "business opportunities" (i.e. the corner gas station, or liquor store, or medical practice) is quite different from selling real property (i.e. land, housing).
A small subset of brokers/sales people specialize with business opportunity sales. The best ones keep this focus and don't do any listings or sales of houses or property. This is because the business opportunity sales involve a lot more, and different, issues. Umm, were you going to structure this purchase as a stock sale or an asset purchase? Most realtors don't know the difference.
Unfortunately, a car wash sits right in the middle-- a business opportunity sitting on a piece of real property, normally both bundled together for sale. What often happens is that a real estate agent, not familiar with business opportunity sales, sees some "easy money" and takes a listing. They simply don't know what they are doing, although most of them mean well. They wouldn't know what a cap rate is if you explained it to them.
You can fault the agents for getting involved in the listing, but the govt agencies have agreed that these sort of sales should be handled by real estate brokers. I just don't think they could figure out where else to "regulate" business opportunity sales so they swept it in with real estate brokers.
cleaning up mud
Member
I am a carwash owner and a Realtor/Broker. I agree one bad apple spoils the bunch!!!!! That goes for carwash owners as well!!!!!
Sequoia, thanks for the informative posting. Could you explain the reasoning behind the fee structure for a business broker? I've thought about liosting my business (distributor) but have a hard time getting past the 10% fee for a sale. That's almost double what a regular agent gets for a house. Are there ways to negotiate that 10%?
PaulLovesJamie
rural 5 bay SS
I sold my distributorship through a business broker. They got me several qualified buyers fairly quickly and were discreet at marketing my business. I wanted to make sure the word was not out on the street that my company was up for sale since I was was not totally sure I wanted to sell unless I got a fair price. They handled the whole transaction. They screened prospects to make sure they had the resources and put together a nice presentation on my business. I did get my price. I thought 10% was a little steep but the one I worked with was very professional and made the process real easy.
They did take my wife and I and the buyer and his wife out for a very nice dinner but I would have been happy to do that myself if their fee was lower. I would try to negotiate that down if possible but I am not sure you will be successful at it.
They did take my wife and I and the buyer and his wife out for a very nice dinner but I would have been happy to do that myself if their fee was lower. I would try to negotiate that down if possible but I am not sure you will be successful at it.
Commission
The 10% sounds like a lot, but remember that any broker typically has splits involved. Maybe 5% for the listing broker, and 5% for the selling broker. Then you get to the agents, who each usually get half of the 5%, each.
But, many of the best business brokers refuse to cooperate with other brokers. Is this from greed? No. It's because they don't want the other broker, who may not be familiar with these sort of deals, to screw everything up and either grenade the deal or get both brokers sued for incompetence. If a real estate agent, who specializes with residential houses, brings a business buyer to a broker who has a company for sale, it can get really weird given the very different type of experience level.
Keep in mind that business brokers often have to spend a lot more $$$ to market a business than compared to a residential house. A lot of residential houses get put into MLS (virtually free) and that's about it.
Yes, you can try to negotiate the commission. First, make sure you business is very well prepared. This means 2-3 years of accurate and fully documented financials. And make sure the place is clean and ready for sale.
Your approaches on trying to reduce the commission could vary. Me, I would show the extensive financials, as this will be comforting for a broker to see. Next, I would ask if the commission could be reduced based on purchase price and/or if the broker concludes the deal without having to cooperate with another broker. The numbers are quite different if there is one broker versus two.
I sold an airplane a while ago by negotiated a declining commission based on a declining purchase price, and, of course, just the reverse of course. This incented the broker to make more money if it sold for a higher amount but lowered my out of pocket if it did not.
The 10% sounds like a lot, but remember that any broker typically has splits involved. Maybe 5% for the listing broker, and 5% for the selling broker. Then you get to the agents, who each usually get half of the 5%, each.
But, many of the best business brokers refuse to cooperate with other brokers. Is this from greed? No. It's because they don't want the other broker, who may not be familiar with these sort of deals, to screw everything up and either grenade the deal or get both brokers sued for incompetence. If a real estate agent, who specializes with residential houses, brings a business buyer to a broker who has a company for sale, it can get really weird given the very different type of experience level.
Keep in mind that business brokers often have to spend a lot more $$$ to market a business than compared to a residential house. A lot of residential houses get put into MLS (virtually free) and that's about it.
Yes, you can try to negotiate the commission. First, make sure you business is very well prepared. This means 2-3 years of accurate and fully documented financials. And make sure the place is clean and ready for sale.
Your approaches on trying to reduce the commission could vary. Me, I would show the extensive financials, as this will be comforting for a broker to see. Next, I would ask if the commission could be reduced based on purchase price and/or if the broker concludes the deal without having to cooperate with another broker. The numbers are quite different if there is one broker versus two.
I sold an airplane a while ago by negotiated a declining commission based on a declining purchase price, and, of course, just the reverse of course. This incented the broker to make more money if it sold for a higher amount but lowered my out of pocket if it did not.
That is really good advice.
I wish I would have thought of some of those things. I had squeaky clean financial and the business was in a good financial position - no debt other than monthly costs. The business sold in two months. I did get my price though.
I wish I would have thought of some of those things. I had squeaky clean financial and the business was in a good financial position - no debt other than monthly costs. The business sold in two months. I did get my price though.