MAS444 said:
Buddy of mine is looking to open an express car wash. He has a potential location targeted and is working with a consultant and has all estimated costs, revenue, etc. The plan would be to buy the land and build the car wash, operate it for a few years and then split the land from the business and probably sell the car wash (and probably keep the land and ground lease). Possibly rinse, repeat.
I'm considering investing.
Does anyone have any experience with these kinds of deals? Positives, negatives, etc?
Biz partner has developed many car washes in his career and still has 2 in his portfolio. Car Washes are a real estate play that provides cash flow.
Buy land, build & develop car wash - ok.
Operate for a few - ok.
But, splitting out the land will make the whole opportunity less attractive to anybody in the future and greatly hinder your chances of selling it to someone else. So I would not recommend that path.
However, if that was the route you all take, i would think you need to make the pad the car wash is on its own lot from a platting standpoint. So, initially you all would own the two lots, and then you eventually lease the one lot the car wash sits on. I just don't see someone signing up for owning and operating a car wash facility without being able to participate in the upside of the real estate and/or having the real estate asset behind them to serve not only as a value-add to the opportunity, but also a hedge.