Looking at leasing my first car was. Thoughts, opinions, advice?

[Ken1234]

Hello everyone. First time posting here. Started a new job this year and have been driving by a closed down 3 bay car wash. 2SS 1 In bay automatic. It had vacuums but they all got removed many years ago. It sits on a lot with a gas station/fast food restaurant in a small town with 900 population. It sits on the corner of a highway and intersection; speed limit is 35/45 mph. I inquired about it, and the guy I spoke to actually use to run in 10+ years ago, ironic I thought. He said that it use to do good sells back in the day. Back story is the land it sits on is owned by gas station, gas station chain got acquired by another company and they had no interest in operating the car wash as they only deal with gas stations. He said that they have no interest in selling the land either but would lease it. a percentage on profits for a year or so until I get everything up and running for a while than figuring out a monthly rent.

The closest car wash in 20 minutes away across the state line.

I am looking at it Thursday. He said equipment was replaced shortly before they closed it down. Anything I should be on the lookout for in particular? The in bay automatic looks just old and rough to say the least.

If the equipment was winterized, would it be wise to assume that it "should" still work even after sitting for so long? Right out of the gate I am going to factor in replacing all the hoses, guns, brushes, repaint everything, new coin boxes with bill and cc.

Thank you in advance!

 

[washnshine]

Do not assume anything will work after sitting that long. Find out what type of IBA you have. It does not sound like that was updated- so was it just the self serve equipment that was replaced? Also - I am not sure what type of revenue you can generate with a population of 900. Don’t get me wrong - people need to wash and it’s good there is a place for them, but you are probably not looking at huge numbers here.

 

[Ken1234]

Do not assume anything will work after sitting that long. Find out what type of IBA you have. It does not sound like that was updated- so was it just the self serve equipment that was replaced? Also - I am not sure what type of revenue you can generate with a population of 900. Don’t get me wrong - people need to wash and it’s good there is a place for them, but you are probably not looking at huge numbers here.

Do you think I would get more than just the normal people with being off the interstate? People stopping for gas or getting burger king?
Don't get me wrong I would love huge numbers but I agree with you.
Do you think the average would be acceptable $1,000-$1,500 per ss Bay? I know in the average you have 1,000 population per ss, but I am factoring in out of town traffic for the second ss bay. The automatic bay I am basing off of 2x ss bay. So say $4,000. Altogether that would be about $6,000 a month from the bays. Does that seem reasonable or am I to still to high on my figures?

 

[Dan kamsickas]

Any lease agreement needs to take into account the likely possibility that you are leasing an empty building on a piece of dirt. I would start with the assumption that every piece of equipment needs to be replaced(you already need at least 3 vacuums) and you could easily be looking well over $250K for the most basic setup not including install and utilities. You may be able to save some but you're not going to save all of it. Let's say they or you don't want to renew after a year, who's going to eat that investment.

The fact that they don't want to run a carwash but don't want to sell the dirt is a big red flag. They are most likely keeping it for future expansion of their current business model.

 

[HeyVern]

I'd never improve somebody else's property for them. They'd have to foot the bill for any improvements before I'd even consider touching it.

 

[washnshine]

Do you think I would get more than just the normal people with being off the interstate? People stopping for gas or getting burger king?
Don't get me wrong I would love huge numbers but I agree with you.

Hard to say. I don’t know the volume of people that use the exit you are on. Also - where are they going and are they in too much of a hurry to get a wash if they are also getting gas and a burger? You need a base of repeat customers. You may have 10 customers come off the interstate and wash with you one day, but never see them as customers again.

 

[MudMoney]

I have operated 1 car wash in a town of 900 with county population of 2200 and only wash in 45 miles. Total waste of time,energy and money. My highest gross was $ 17000 and change. Thats with $ 3.00 start for 4 minutes . You do not even own the dirt. Run from this deal !

 

[Randy]

If you don’t own the dirt there is little to no value in the car wash. I wouldn’t think about a deal like that. The only person who going to reap the rewards of your hard work is going to be the property owner.

 

[SudsMaster]

I advised you to think about a few key things before jumping into leasing your first car wash. Before you dive in, make sure the equipment's in good shape and be realistic about how much money you might make. Think about who's gonna wash their cars there and if they'll keep coming back.

When you're talking lease stuff, make sure you're clear on who's gonna pay for what, especially if equipment needs fixing. And hey, while making lots of money sounds awesome, for more information, check out the lease deals near me.

 

[Car_Wash_Guy]

Do not lease. Either attempt to buy the property or walk away.

 

[Earl Weiss]

Considerations: 1. Start up cost. - Get rent consideration to cover that cost. If it will cost $20,000 for star up and rent is $1000 / mo get 20 months free. 2. Get options to extend. 3. Get option to Buy. 4. Get right of first refusal.

 

[Car_Wash_Guy]

The issue you're gonna struggle with is all the money you dump into that building is going to be considered "leasehold improvements "and usually stay with the building. I own car washes as a hobby but my main passion is commercial real estate. And even if you were to put into the lease that the equipment is yours. It's going to be worth pennies on the dollar if the place doesn't make it.