Seller financing on car wash

[Angela Doyle]

There are 2 car washes for sale near me and I am meeting with the listing agent today to look at them. I requested copies of the income taxes for them both and it looks like this could be a pretty good deal but I'm not sure how much he spends on materials to keep them running as that was not included in his "financial report" (which was a piece of paper with number written for utilities). I would like to make him an offer of seller financing or conventional mortgage and show how the seller financing could be a better deal but I'm not sure how to go about offering that. Do I just need to give the excel sheet I created to the real estate agent or so I need to actually have a formal offer written out? And what kinds of things do I need to ask about when I meet with the realtor today?

[Dave Carpenter]

@Angela Doyle

A few things to consider

Type of wash- I’m guessing these are self serve with the spray want or in bay automatic where there are no employees needed.

Traffic flow-does the traffic flow and the businesses right near the wash support these incomes and any potential growth.

State of the equipment-is the equipment newer or older, is it well maintained?

Income over many years-weather plays a big part is the success of a wash, you want to see REAL numbers for st least 3, more like 5 or 7 years to get a better picture.

Sellers mindset-is he really selling 2 of 3. If he is getting older and wants to get out, you may be able to take over all 3 at the same time. You will get efficiencies of scale with chemicals and service calls.

Suppliers-talk to his chemical supplier and maintenance guy. These two people can make or break your car wash. They know everything about them and you will come in knowing next to nothing.

cash-is he reporting cash/coins from self serve bays and vacuum. If he is, great, you have s good picture. If he’s not, you should still do your numbers assuming there isn’t any other income. He can’t prove it and neither can you.

I’m sure there are more, but that’s a start. I’m glad to chat more if you would like!