WHERE IS THE CAR WASH GROWTH?
Double your revenue with the Xtreme Xpress Mini Tunnel
Convert an old in-bay roll over into a Xtreme Xpress Mini Tunnel provided you have a minimum of 35 feet. The conversion delivers a superior wash, develops or strengthens a brand that customers will return to, and deliveries many more cars per hour resulting in happy customers and higher profits creating a winning combination. Please see this video for a “documented explanation and advantages of converting to a Xtreme Xpress Mini wash.”
Video and table with case study regarding the advantage of converting to a Mini Xtreme Express Wash courtesy of Sonny’s www.sonnysdirect.com/
Traffic & Profits for the Lube Center & Convenience store also Increased due to the success of the car wash.
Locating land and securing a permit, for a typical tunnel can be a difficult task as everyone in the industry is aware. Finding the above-described outdated in-bay wash to convert into a Xtreme Xpress Mini Tunnel may not be as difficult in your community as well as communities throughout the US. Existing outdated in-bay car washes may not have a nice appearance due to age, lack of upkeep and the City is usually happy to issue a permit for your renovation (a win, win, for you and the City). The Xtreme Xpress Mini Tunnel will likely be washing cars within 10% of the time it takes to purchase the land, design the wash and obtain the permit, plus construct the car wash.
The Xtreme Xpress Mini Tunnel does not compare in revenue to the popular Express Tunnel but the cost is substantially less; sites are much more available, and you can start washing cars much sooner. In summary, the Xtreme Xpress Mini Tunnel may be an option you should consider as part of your business strategy.
SBA-Capital lenders provide financing for the Mini Tunnel and the Express Tunnel because the financial performance of both are superb. Contact Hershel Pierce at SBA-Capital for details.
The “SSO” ( Select Service Organization )
Your best financial adviser before, during and after the construction or renovation of your car wash
by Hershel Pierce – featuring Keith Stewman
We encourage Car Wash owners throughout the US to develop a relationship with an “SSO” Select Service Organization in their respective area and take advantages of the valuable services they make available to their customers; it truly is a team effort. Before you read the following blog, please click the Big Man Logo and enjoy the two-minute video with Wes Dawson, founder & President of Big Man Washes and Keith Stewman New Business Development and Training.
Thanks to Keith Stewman, a nationally recognized expert with Big Man Washes in Texas, for taking the time to describe how their Car Wash SSO works with Car Wash investor from the very beginning to the completion of construction and beyond.
This blog is written based on what Big Man Washes does in the area they serve, primarily Texas, and Oklahoma. Readers of this blog throughout the US should contact their local Select Service Organization and develop a working relationship with what will become your best friend; it will be a win, win for both parties.
Keith Stewman: Keith is Director of New Business Development & Training at Big Man Washes works daily with car wash investors, designers, and construction to make the investor’s car wash dreams become a reality. With 28 years of experience in the Car Wash industry, Keith understands how to “LISTEN TO THE INVESTOR” and advise them if their plan will provide a good ROI (Return on Investment). If not, Keith will make other recommendations for the investor to consider.
Keith’s First meeting with the car wash investor: During the first meeting with potential car wash investors, Keith explains the negatives about the Car Wash business. If the investor responds, “I have already thought of all the negatives, and I want to move forward.” Keith will then emphasize that ROI will be the guiding force going forward. If the existing car wash or the new ground up the investor is considering does not meet the expected ROI, the investor must move on to the next opportunity. Another common mistake is falling in love with the property. If Keith’s site analysis says the site grades out poorly the investor must move on to a site that has a fair ROI.
Keith will provide price range “examples” in the first meeting for different washes and suggest the investors contact Hershel Pierce, with SBA-Capital regarding being pre-approved for their construction and permanent loan. Keith also provides Veronica Atlee’s contact information to investors that need assistance finding car wash sites throughout Texas.
Car Wash loans provided by SBA-Capital: Hershel visits with the investor by phone or email to review the options available for financing their Car Wash. The most common question is will you pre-approve me for a loan at no charge or obligation, assuring me the loan will be available when needed, and the answer is yes. SBA-Capital goes into detail regarding how much cash equity is required, if any, (see website for details) and when is it payable during our first conversation.
SBA-Capital’s first conversation is devoted to explaining the financing options available and answering questions the borrower may have. Each Car Wash Investment is different, and each borrower has different needs and assets. Once the borrower has this information, they can make an educated decision regarding which loan is best for their Car Wash.
Loans are available to purchase an existing car wash as is, purchase an existing car wash at a certain price plus add a specific dollar number for minor or major renovation and Loans are available to construct a new car wash from the ground up. SBA-Capital also has a “Car Wash Improvement loan, from $100 K to $800 K” for renovation plus the loan can be used to expand an existing wash. Terms for Loans with Real Estate are typically for 25 years. Equipment loans typically do not exceed ten years unless the equipment is part of a construction loan. We quote Interest at market rate on the day you contact SBA-Capital.
Site selection by Veronica Attlee: Veronica, specializing in car wash brokerage, assisting car wash investors, developers, and existing car wash operators in either finding sites to build from the ground up or buy/sell) existing car washes throughout Texas. Veronica is well-versed with site requirements for a car wash, including the development process and typical city requirements, such as zoning, special use permits, and city council meeting due process.
With limited qualifying sites, it’s important to quickly contract the sites – with the least amount of risk. Alternatively, since there is a shortage of good qualifying sites, more investors are purchasing existing washes, installing new equipment, and remodeling the structure if necessary. In this case, the investment can be lower, and the turnaround time to revenue will obviously be a lot quicker than a ground-up project. Veronica is available at 972-886-8357 or veronica@attleerealty.com
Why You Should Choose a Broker That Specializes in Car Washes
By Veronica Attlee, Atlee Realty
Specialized market: We live in a highly specialized world, and the buying and selling of Car Washes – more uniquely so. As a result, using a qualified car wash broker is important. They typically work full time to keep a pulse on this niche market, and as a result, have the very specialized knowledge and information that you might not get with an agent or broker that is not specializing in car washes. There are unique factors to consider when investing in, or selling a car wash vs. any other business, hence a unique approach is needed.
Services provided by Car Wash Brokers: Since most car wash owners/operators choose to keep the sale offering of their car wash confidential, a car wash broker becomes an invaluable resource for both sellers and buyers alike. Specialized brokers or agents are tapped into the market, and will be aware of listings, “unlisted” or “unadvertised” car wash inventory. Also, being niche specialized, they will likely attract and maintain a list of car wash buyers/investors. In fact, many existing owners are also buyers investing and growing their portfolios. Your broker will likely have direct access to these opportunities, that may not be available elsewhere, which is advantageous to anyone looking to invest in this industry.
Furthermore, there are several types of car washes, and the approach to investment in each is very different from the other. A specialized car wash broker will have a solid knowledge on these and be able to apply your investment objectives to the right type of car wash investment.
Do I need a Qualified Car Wash Broker: If you recognize the specialized nature of the market as briefed above, then one can quickly ascertain the answer to be a simple “yes.” However, add to that the complexities of the financial assessment of car washes, understanding car wash POS and financial reports, calculating return on investment, along with the debt service ratio to determine if the business earnings will support a loan, and put you in touch with car wash lenders that can close it…then the answer becomes a resounding “YES!”.
Select your Broker: Select a broker with a proven car wash record that specializes “in your state,” keeps their data and available inventory current, and has the negotiating skills and work ethic to consummate the transaction. Attlee Realty specializes in Texas only contact them today info@attleerealty.com | 972-886-8357
TREC requires all real estate license holders to give the following Information about Brokerage Services to prospective buyers, sellers, tenants, and landlords.
HOW OLD IS MY CAR WASH?
Do I need arthroscopic repair or a complete equipment replacement for my car wash?
By Bob Fox, Sonny’s Car Wash College
Ask your local Sonny’s Car Wash SSO (Select Service Organization) to provide you with an analysis of your car wash (like my medical analysis). The analysis may suggest renovation of the existing equipment or all new equipment depending on the current equipment’s condition. Your SSO can also do a Proforma for the renovation providing you with tools to make an educated economic decision. Take advantage of the support available from your local Sonny’s rep throughout the US. They provide many helpful tools and support to their car wash owners as described in the following link: Car Wash Distributor Your Best Financial Adviser
If you’re still operating with equipment that’s obsolete, how are you competing with all the washes with new technology? Are you limping around and taking aspirin for a problem that requires surgery? Liberty car wash is a case study example of a car wash that needed surgery to survive and reach its full economic potential. Visit the Liberty case study here.
Liberty, which was owned by absentee owners, asked Paul Fazio, CEO of Sonny’s Enterprises, if he would like to purchase the car wash. Paul did purchase the business but only after he had offered the business to the other local car wash investors. After renovating and re-inventing Liberty, they are washing over 15,000 cars per month on 53 foot conveyor. Installing and offering free vacuums more than doubled the revenues. Anthony Analetto, President of Sonny’s equipment, did a case study on Liberty, describing all of the improvements to share with car wash investors throughout the US so they can adopt the improvements that will help improve their respective car wash operations.
SBA-Capital has financed similar investments as described above. If the current owner wants to make the improvements, a loan is arranged to refinance the current loan and funds are escrowed to make all the planned improvements. If there is a new purchaser, the loan is structured to purchase the property (per the contract) and includes escrowed funds to make the desired improvements.
Bob Fox: Sonny’s Car Wash College Call 1-866-492-7222 for information about Sonny’s Car Wash College
Thank you to our contributors
Hershel Pierce (SBA-Capital) – Connect on LinkedIn
Bob Fox (Sonny’s Enterprise) – Connect on LinkedIn
Keith Stewman – (Big Man Washes) – Connect on LinkedIn
Veronica Attlee (Car Wash Broker) – Connect on LinkedIn
Ella LaChance, Design & Edit – Connect on LinkedIn
SBA Capital’s car wash industry specific e-newsletter is focused providing you with the latest news and information from and for the car wash community. If there is a topic you would like for us to cover or would like to provide an article to be featured, email us at sbacapitalloans@gmail.com.