Purchasing Land to build a Car Wash:
The first step is to meet with one of our agents and discuss the Car Wash Industry in general and establish an area where you would like to have your business.
As soon as a buyer’s agreement is signed we will begin to turn stones until that perfect site is found. Very few pieces of land are zoned specifically for a car wash. Most are PUD (public urban development). This means the zoning codes are expansive, but the city has the authority to reject a proposed business without giving any reason. In addition, a demographic study will be performed on each proposed site along with a Proforma (financial feasibility study).
The contracts are written and progress of each step of the projects and contracted dates will be monitored by our team. We can take a 60-90 day look before these come into play. Amongst the many additional steps, a general site plan for the project will be needed for our meeting with a city planner. The general site plan must be drafted by an architect to convey setbacks, easements and other specific design platforms.
We will provide a list of architects who have built many washes. Because of their knowledge of specific design needs in the car wash industry, the need for dreaded overruns in the architectural budget are considered extremely rare, if any.
Just like architects, we can suggest several contractors who have built many washes. These contractors can give us “not to exceed” costs very quickly since they have accumulated a wealth of wash building knowledge.
We have several lenders that we work with and are very familiar with the car wash industry. Several of these banks have many washes on their books. Car washes are not easy to get a loan for; they are considered single use properties. These lenders will give very good competitive rates.
The wash to be built will need an appraisal. Every lender has approved appraisers that they rely on to give the most accurate but conservative value. The lender will need: Land costs, Building costs, Equipment costs and Miscellaneous costs. Miscellaneous costs will include, but not limited to; architecture, water and sewer tap fees, gas and electrical service.
A business plan can be also be purchased from a local company. A business plan will be needed to submit an application for a loan.
Purchasing an Existing Car Wash:
The first step is to meet with one of our agents to find a wash that you would like to purchase. If you already have a car wash in mind, then we can immediately begin to work on your behalf.
Next, is to have a meeting with one of our preferred lenders and get working on a pre-approval. The lender will provide a check list of items for this. We have several lenders we work with that are familiar with the car wash industry. In fact, one of our lenders has financed over 60 car washes. Several of these banks keep wash loans and do not sell them since the investment is considered very safe and solid. Car washes are not easy to get a loan for from the local branch bank. They are considered single use properties and knowledge of this industry is beyond their normal scope of work. Our preferred lenders will give very competitive rates.
The wash to be purchased will need an appraisal. Every lender has approved appraisers that they rely on to give the most accurate but conservative value. There are several items we look for to justify the price of the wash. A quick assessment can be done based upon a 10%-11% cap rate.
The lender will assist in breaking down the P&L (profit and loss) making sure all is well understood.
Buyer’s Agent:
A buyer’s agent works solely on behalf of the buyer to promote the interests of the buyer with the utmost good faith, loyalty and fidelity. The agent negotiates on behalf of and acts as an advocate for the buyer. The buyer’s agent must disclose to potential sellers all adverse material facts actually known by the buyer’s agent including the buyer’s financial ability to perform the terms of the transaction and if a residential property, whether the buyer intends to occupy the property. A separate written buyer agency agreement is required which sets forth the duties and obligations of the broker
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