Trying to buy another wash.

[Bricks]

I was on the phone with my soap guy, trying to figure out how to get cleaner cars. He said I need to get a job. I said “I need another wash. Why don’t you ask the guy 8 miles down the road if he’ll sell?” Turns out he’s been thinking about selling it. I met with him and I like the wash, but I’m not sure if I’ll be able to afford it.
It has three SS and one Hydro spray rainmaker. And another bay that’s never been used but it’s all plumbed in, has a pit, he just stores his mower in it.
The wash sits in the middle of a McDonald’s, subway, dollar general and a bank.
It has (pvc?) panels on the walls, poured wall style construction and a metal roof. It looks really nice.
It is not kept clean at all! It’s almost as if it’s never swept/ shoveled. I’d be all over it !
Im not a business man, but this wash is ten to 15 minutes from my house. I quit my job last year and I think this is a good opportunity. He wanted 300 and agreed to 280.
I’m not crazy about the auto. It seems so narrow compared to the Futura Revolution.
Would I be stupid to mortgage an existing personal property to purchase this, instead of paying the higher interest and payment (15 vs 30yr)? Fixed rate vs arm?
Thanks for any help. This is huge for me.

 

[soonermajic]

Gotta have more info if anybody can say if it's worth $280. Id definitely do 15 yr fixed if at all possible. I would NOT mortgage my personal property.
Beg him to do owner finance. Thats how I goty 1st big break. Also, emphasize he's not paying the 7% fee to a realtor...

 

[Rfreeman]

Do the numbers work at $280K agreed price is the only thing you need to know in my opinion. With the fed raising rates in the near future I would do a fixed rate all day long unless you like higher payments in the future. Me personally I would want to get the wash paid off asap so I would go 15 yr convention or refinance whichever gets you the best payment terms

 

[Bricks]

Gotta have more info if anybody can say if it's worth $280. Id definitely do 15 yr fixed if at all possible. I would NOT mortgage my personal property.
Beg him to do owner finance. Thats how I goty 1st big break. Also, emphasize he's not paying the 7% fee to a realtor...

He said the only reason he’s taking less than 300 is because of no realtor. I don’t know how owner financing works. I wouldn’t know where to start. He did mention something about financing options. I just thought if I could borrow against my other property, I could go 30yr and have a more comfortable payment.

 

[traveler17]

I put up my original property to buy a high volume wash. Fixed 15 yr and NO balloon on new site. He wants 300, what’s his PNLs tell you the last 3 years. How much property?

 

[Bricks]

I put up my original property to buy a high volume wash. Fixed 15 yr and NO balloon on new site. He wants 300, what’s his PNLs tell you the last 3 years. How much property?

No financial info offered. Is that what PNL is?
I think it’s just under 1/2 acre .49.

 

[soonermajic]

Dude...you're willing to buy a business for $300,000 & NO FiNANCIALS?!!
First off, NO bank is loaning you any money, w/out financials, & secondly, if u don't know what financials are.... i have no words for you

 

[Earl Weiss]

No financial info offered. Is that what PNL is?

It's P & L.

 

[MEP001]

The wash sits in the middle of a McDonald’s

That right there says you should get it even if you can't afford it.

 

[Bricks]

That right there says you should get it even if you can't afford it.

That right there says you should get it even if you can't afford it.

I think it’s a good real estate opportunity. If I mortgage my second home, then P&L won’t even factor in. It looked like a busy wash when I was there Saturday. However, it was unseasonably warm.
It has vacuum tubes on the coin boxes and I’m still confused about that setup. My other wash has gravity chutes into a vault.

 

[MEP001]

It uses vacuum motors to pull the coins into a central vault in the room. It's great if it was done right.

 

[traveler17]

That right there says you should get it even if you can't afford it.

Exactly right

 

[traveler17]

No financial info offered. Is that what PNL is?
I think it’s just under 1/2 acre .49.

No financial info offered. Is that what PNL is?
I think it’s just under 1/2 acre .49.

yessir Profit and Loss. Any loan you try and get it will be required. Last 3 years

 

[I.B. Washincars]

yessir Profit and Loss. Any loan you try and get it will be required. Last 3 years

Would that be required if the land value was at least 280K?

 

[Rfreeman]

I think it’s a good real estate opportunity. If I mortgage my second home, then P&L won’t even factor in. It looked like a busy wash when I was there Saturday. However, it was unseasonably warm.
It has vacuum tubes on the coin boxes and I’m still confused about that setup. My other wash has gravity chutes into a vault.

Profit and Loss always factors in however you are located in between great national tenants and at .49 acres this could be a solid highest and best use land play.

Why does profit and loss factor in? Well you need the profit to pay the loan unless you plan to just keep putting money into this wash to pay the mortgage. From the little I know, I would look at similar land values for "pad sites" in this area to get a good idea what the dirt is worth and potentially the value of at least the land on this deal.

Personally, assuming the above works out by that I mean the pad site shows to be $280K or more I would buy the property immediately list is as a build to suit or land lease then fix the wash and get it up and running as best I could (bc you will have a mortgage on it). Do this with the idea in the near future you can get another national tenant on a land lease for about $10K a month triple net, mailbox money.

 

[traveler17]

Dude...you're willing to buy a business for $300,000 & NO FiNANCIALS?!!
First off, NO bank is loaning you any money, w/out financials, & secondly, if u don't know what financials are.... i have no words for you

He said he didn’t hear of PNL

Would that be required if the land value was at least 280K?

great question and I don’t know the answer. I know banks take land value into consideration but don’t know if land appraisal part comes back at a huge value and business income is so-so. I would think as long as they know they could sell it and get their return it’d be ok. I don’t know

 

[Bricks]

It uses vacuum motors to pull the coins into a central vault in the room. It's great if it was done right.

That’s good to know! I was worried it would be a headache. I was thinking about laying brick up to the bottom with an encased vault for each one. But this is very encouraging! Thanks!!