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Buying a Wash with or without Real Estate

PLM38

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I’m looking at two established car washes, express which are selling for 4x net.

The lease in place is at nearly 20 years, but the closer I get to it, the more concerned I am that this isn’t enough. To be paying a premium for something, which it’s value is tied so intrinsically to the physical location.

What are your thoughts on this? Are their any contingencies that can be added to have an unlimited option to renew?

The deals look fantastic, but I want to be building something that will last. Curious how you all feel.
 

MC3033

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Is it just a land lease or equipment/building as well?

4x for an express even leased might be a solid deal still. Going to depend on specifics (how much money do you need to invest over the lease term and potentially never get back)
 

traveler17

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For me personally, I wouldn’t buy any business without the dirt. I can’t take the thought of putting all the $$ , time and sweat into making a business into something great then in the end ya don’t have anything to show for it. Im
Not saying if that was my only option I wouldn’t do it, just giving you another perspective. I have personally passed on a lease that was making really great money and I’m so thankful I did. Patience and timing worked out and was able to purchase my 2nd wash. Hard pass for me, I want to own it if I can. Keep us posted, Good luck !!
 
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