One year later

[MudMoney]

Last year I listed with a commercial realtor a 4bay ss with living quarters that I had run for 17 years.Realtor said I would probably have to carry paper to make a sale.I told him no way ,as most of us forum users know what usually happens,you get the wash back in bad shape.Wash was on the market for only 4 months and sold it to a mid 30's guy that got bank financing.Glad I stuck to my guns, just returned from a 3 week vacation to find he has put it up for sale.When I asked him why,he cited wash was more work than he realized,always fixing something and wasn't making any money.I was concerned when I sold it that I was creating competition for my other wash.That hasn't happened as business was up 11% thru July.I could list some of the factors that caused this wash to lose money and be put up for sale but I would be preaching to the choir.Just glad I never carried the note.

 

[Whale of a Wash]

You made a wise choice. It sure would be bad to sell it to someone who gives up easily on a contract. Some guys make more money buying and selling their washes than owning them, so you could make him a ridiculous offer.

 

[Jeff_L]

I'd consider buying it back for cheap. Who knows how many customers left because you did. If you came back, how many would follow?

 

[MEP001]

I'll bet it was another case of someone thinking the car wash business is a "stop by once a week and pick up the money" venture.

 

[Waxman]

It's not just carwashes , but many businesses where holding paper can get interesting. Bar rooms in my area have had a tough time. MA put a smoking ban in effect that hurt bars, plus the economy didn't help. One owner I know held paper and wound up with the place back again. It sold again but I'm not sure if he held paper again.

Had a detail shop customer last week who owned 13 apartments. He sold them and held the note. Had a clause where he got them back if new owner defaulted. He got them back, but not w/out a big lawyer bill, as the new owner had changed the titles to the property somehow, had gotten them mixed up with other loans as collateral, etc. Now the previous owner has them back but had to borrow money to renovate, pay the lawyers etc.

 

[rph9168]

Even holding the lease on the property is not without risk. If the soil becomes contaminated you may be held responsible for clean up costs. If for some reason the wash becomes inoperable (fire or natural disaster) you may be left with the mess. I am a firm believer in selling it all and cutting any possible ties with the new owner.

 

[MudMoney]

I will be doing a wait and see on how my former wash does through the winter.As I have several other businesses to manage besides my existing wash ,I don't have a burning desire to buy it back.Many of you are right about loyal customers following an owner or wanting to try a different wash that an owner might have.Last month I increased my prices going from a $ 1 @ 1 min. 45 sec. to $ 2.75 start up for 4 minutes.I was gone after I did the increase but my employee who was here 9 hours a day said that he didn't hear or see people drive away.One month isn't a trend setter so I will keep my eyes open to see if customers start going elsewhere to wash .FYI the other 3 washes in town are $1@ 3min,$1.50@ 3.5 min.and $1.50 @4min.