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Are there any positive people here?

Eric H

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$325,000 with 20% down($65,000) = $260,000 at 5% for 15 years is $2056/month.
yearly nut is $27,328 plus the current $10,000/year expenses equals an average net of $34,672/yr or $666/week

yearly expenses of $10000 seems low for water, sewer, electric, gas, insurance, pit pumping and supplies....
$325,000 is a 4.5 multiplier. Obviously, most here would like to see the multiplier closer to 3-3.5 but the numbers do work. maybe add CC and air dryers with a modest price increase and you'll be off and running.

Why do you have to come in pointing fingers calling everyone negative when you have a site that will actually show a profit? What is the downside?
 

Jujubeadz

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Good point. The first post was unfair. Thanks for the breakdown. That really helps.

Looking at pump room tomorrow. Hopefully no surprises.
 

MEP001

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Why do you have to come in pointing fingers calling everyone negative when you have a site that will actually show a profit? What is the downside?
I assume he saw all the posts in the "I want to buy a car wash" sub with all the unrealistic deals and thought the worst. I was pretty hard on one guy, but he was clearly a "drop in once a week and pick up quarters" type.
 

Jujubeadz

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Could be... he’s over 70 and getting out. Everything is hand written old school.

Waiting for tax returns.

What do you guys think a better estimate of expenses, not counting mortgage and insurance?
 

OurTown

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It probably depends on where it is located but I would guess $30-35K. Why not include insurance?
 

kentadel

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My guess would put expenses in just above 20k. I can give you a positive take...my self service bays are doing better than ever, and have been on an upswing for several years now. Same with the inbay touchless. Both can thrive in the right areas.
Enjoy the business!
 

mac

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Well I am having the time of my life. It doesn’t hurt that I spent 40+years in maintenance and construction, so I can do most everything needed. My wash was a basket case. I made it into the best wash in the city. It is 5 ss bays and a auto that washes vans up to 9’-8” tall. In the past week we got 7 five star reviews. Still a lot of work but worth it.
 

Dan kamsickas

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Good point. The first post was unfair. Thanks for the breakdown. That really helps.

Looking at pump room tomorrow. Hopefully no surprises.
Some of us have been in the business for a looooonnng time and seen more than a few people go broke because they let their enthusiasm get the better of good business sense. As cantbreak80 said, there are a lot of people who really don't have a grip on the reality of this business. It can be a nice source of income and pretty fulfilling......if done right. It can also be the easiest, worst paying 80 hour a week job you'll ever have. I've also talked several people out of spending money on things that they really shouldn't. I've also had them think I was full of crap, bought somewhere else, and lost their a**.

Post as many pictures of the equipment as possible. You may not like it, but the folks on this forum will give you their honest opinion. One thing I have seen more and more people get bit by is a seller saying everything is up-to-date, working great, and easily serviced.....and it's obsolete or built by a company that no longer exists and you spend way too much time($$$) trying to keep running or have to outright replace.
 

Rfreeman

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I believe expenses are area specific, but generally I would estimate they run 35-45% gross income. I have seen this down here in Texas at the deals I have looked at over the years. I would agree with everyone his expenses are not accurate OR.....his income isn't accurate! You said you have spent some time looking and watching this wash.....what does traffic look like? Which one isn't in line, income or expenses? Also sounds like you really want this location, put emotions aside and deal with numbers to make sure this deal pencils out and you are happy with how it pencils out. NOT "WHAT IF" I INCREASE REVENUE 10,20,30% BUT WHAT IT IS NOW because that increase in revenue may never come or wore yet revenue may tank due to competition.

Best of luck and we, as a group, are never short of opinions, thoughts, or comments.......welcome to the forum
 

Wash4Life

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I think we accentuate the negative because it seems so many think it will be an easy gig, consisting mainly of picking up cash once a week. As a potential buyer, you're better to be aware of all the nasty bits. If you're not scared away by that, then you might just go OK in the industry.

As an analogue, I also emphasise all the worst parts of a job when interviewing a candidate. Better that they know all the negatives up front.
I know what you mean. If I had a dime for every customer who said on a busy day, "I wish I was in this business," I wouldn't be in this business. I'd own a private island the size of Australia. Then there's the oversell aspect from the vendors in the industry. They make it sound like any car wash will do well with their products. We're a correction against those things.

Dealing with the public can harden a person, too. I fall into that category. Customers do stupid things. What really exacerbates it is when business is slow.

The public and politicians believe we're made of money and that we should be told what to pay people and should be taxed out the ears. When we raise a price, we are looked at as greedy. We were at the mercy of politicians when many of us were forced to close at the onset of COVID because nobody was trying to be right. They were trying not to be wrong.
 

Randy

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Jujubeadz, I think you should bite the bullet and buy the car wash, it looks like it's pretty well maintained. Add a few services and raise the prices, you should do fine. I'm being positive for a change.
 

I.B. Washincars

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Jujubeadz, I think you should bite the bullet and buy the car wash, it looks like it's pretty well maintained. Add a few services and raise the prices, you should do fine. I'm being positive for a change.
Who are you, and why have you hi-jacked my buddy Randy's account?
 

Jujubeadz

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Working on pics next week. BTW, I could not be more appreciative of all the comments.

really helps in making my decision. As this is just a first step out of the corporate game.
 

BubblesIllinois

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Working on pics next week. BTW, I could not be more appreciative of all the comments.

really helps in making my decision. As this is just a first step out of the corporate game.
I'm running along side you my friend. Working on my first purchase, to avoid going back to the corporate world.
 

Bandit

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Me & my partner bought a dirty old wash 4 years ago. Keeping it clean and being there with a positive attitude, is what it took.
 
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