Car Wash and Land Investment

[Steven Hage]

Investment Info:

Other commercial investment investment.

Purchase price: $390,000
Cash invested: $78,000

We purchased a three bay car wash with excess land. The original concept was to develop the excess land and exit the car wash business. Solid marketing combined with sustainable and repeatable operational practices has resulted in sales increases of 104%. The revised plan is to stabilize the car wash operation for a sale with a lease back of the real estate. Additional land development will only increase the projects margin.

What made you interested in investing in this type of deal?

The excess land was the initial driver for this investment.

How did you find this deal and how did you negotiate it?

This was a drive by on one of our self storage site searches. The negotiation was simple with the seller offering a sales based price that met our 13% ROI.

How did you finance this deal?

Bank financing

How did you add value to the deal?

Planning for the excess land development

What was the outcome?

This deal has cash flowed from day one to the point we have been able to invest heavily in equipment preventative maintenance.

Lessons learned? Challenges?

Be open and flexible when opportunities present themselves.