AND !! !I understand and support your research. But under reporting income would be illegal here in the US. And the reference in my opinion makes the industry look bad. I suggest looking at figures on the books to ensure you will succeed. Most income these days is by credit card and leaves little to the imagination.
I'm running into this with a wash I'm looking at purchasing. Banks said no because of lack of reported cash flow.AND !! !
If you skim for 10 years and then decide to sell then all that skim will not show up on the financials you present to the buyer and the buyers bank.
Yup. I'm doing a contract for deed now with them. They ran into this with afew buyers and realized they wanted to sell. It was an inheritance and they don't want to put in the work so they want it sold.Seller has no option other finance it on his own or lower the price so that it makes sense. Unless someone comes in with an all cash offer...
I, & many others on here, have the same model. 4/8 SS bays & 1 or 2 IBAs. Clearly the friction IBAs wash better, but a Touchless IBA can make u a lil more bullet proof, from the "tunnel takeover"...Thanks for the reply. I am open to spending a few hours a day at the business. The one's I am currently looking at are not by any means cheap in price ($600-800k) they net about a 10% return on the asking price. With that sort of return its what I would probably expect to make working full time so spending a few hours a day would not be a problem. I have come across some where a part-time employee manages it, which ofcourse affects the profit the business is earning.
Unlike a gas station business, I see a future for car washes especially down the road re-investing into adding more automatic (maybe touchless which is popular here in Canada?) to expand the business.
what tips would you recommend for a newbie to look for when looking at a carwash business? Definitely not looking to get "washed" on a purchase!I, & many others on here, have the same model. 4/8 SS bays & 1 or 2 IBAs. Clearly the friction IBAs wash better, but a Touchless IBA can make u a lil more bullet proof, from the "tunnel takeover"...
1st wash i bought 5/1, i switched to 4/2 after a year of steady growth. Lines were too long, so wanted a preemptive strike, against someone w/ deep pockets wanting to take my business. Now have a touchless & friction.
2 mos ago bought a nice 4/1 which has a touchless. Im replacing that w/ a Razor Edge, for faster throughput.
1st wash I bought, they reported 95% of all cash. 2nd wash, seems like Definitely less than 90%.
Washes ain't all doom & gloom, but they ain't just "keep soap & wax, & puck up the cash" like a guy told me on my first purchase, 8 yrs ago! He took me to the cleaners!!!