Specialized market: We live in a specialized world, including the marketing and selling of Car Washes. Staying current on the local Car Wash market is a full-time job and is recognized as such by the brokers that are successful. Car Wash Brokers understand lenders consider Car Wash loans a SINGLE PURPOSE BUSINESS requiring the Broker to be constantly aware and updated on actual value, not what someone thinks the value may be. A qualified broker understands the bank’s appraiser will determine value based on earnings of the Car Wash and does not rely on the fact the owner can convert to another industry in the event the car wash does not have a fair Return on Equity. A Car Wash is designed and constructed for a specific purpose; it is indeed what lenders refer to as a Single Purpose Property (Business).
Beware of Surprises: Assume the land you wish to purchase to construct your new wash or the existing wash fits all your requirements; at least it so appears. What if the highway department plans to construct a “fly-over” at the intersection where the Car Wash is located and what appears to be a prime location will soon be looking up at the highway that is now overhead and the cars are going by 70 miles per hour. Another unpleasant surprise would be if you found out, after you closed on your multi-million-dollar investment, that two other similar washes were about to start construction within one mile of your investment. A full time dedicated Car Wash Broker will most likely be aware of these issues that can have a negative impact on the future earnings of the Car Wash you purchased.
Services provided by Car Wash Brokers: First, your broker will likely be aware of the above issues and will save you time and potential financial damages from making a bad investment. Brokers can also provide names of lenders that have a history of performance. We have already established the fact that a Car Wash is a single purpose investment which makes it even more important to work with a lender that understands car wash loans and understands the industry. Brokers will also respect your time by showing Car Wash investments that are priced correctly. If a buyer likes a specific wash that is overpriced because it is close to their residence, or some other personal reason, the broker may advise you the Car Wash has been on the market for over one year, the seller will not budge on the price, and when one contract was finally negotiated, the transaction fell through because the appraisal came in to low. In the real world, a Car Wash value is determined by what a seller and buyer will agree to as a sales price and more important, will the appraisal support the sales price enabling a lender to make a loan on the property.
Do I need a Car Wash broker: The best analogy is “Do I need a residential Real Estate Broker” to assist me in purchasing or selling my home? History shows most residential Sellers and Buyers opt to use a Residential Broker to assist in the sale or purchase of their home. Selling or Purchasing a Car Wash can be challenging and qualified brokers can be very helpful in making the transaction successful. Car Wash Brokers work long unusual hours, must be knowledgeable of the market environment, and service the needs of their client.
Negotiating the contract: Skilled Car Wash brokers are very much aware they must do a good job on all the above before they will have the opportunity to negotiate a contract. Brokers have loyalty to their clients but they also realize it is in their client’s best interest to negotiate a contract where all parties are clearly and truthfully informed to avoid unpleasant surprises that cause the transaction not to close. Many books have been written on “Negotiating skills” and they are important of course. However, in all my years working with and observing brokers, my conclusion is today’s Car Wash broker relies on “the old fashion way” of servicing the needs of their clients by being totally honest and transparent with all parties with the end results being the broker makes it possible for their client to “get what they want and need at a fair price”.
SBA was founded to help the local business person and create jobs in the U.S. The program has exceeded all expectation creating hundreds of thousands of jobs each year and total annual loans typical exceed 30 Billion dollars annually. Our objective at SBA-Capital is to make it possible for our borrowers to select and obtain the best possible loan for their financial and wealth planning.
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Need a broker in TX? Veronica Attlee is a Car Wash Broker specializing in Texas