Old Gas Station ( Revisited)
Just read a thread on a similar subject. I actually have been driving one maybe, twice a week.
I like the automatic carwash idea. The property is on a major intersection. There is a gas station across the street and a small mall strip adjacent. The neighborhood is middle class and the intersection is very active at all times.
Looking for steps in finding out if this is a viable idea. I know I have to find out:
1. How much
2. Why selling
3. Environmental
4. Zoning
5. What about winter time?
What else should I investigate?
Thanks,
MS[ Edited by manystyles on Date 07/10/2004 ]
Somewhere out there there is probably a journal dedicated to the Car Wash industry. Track it down. Get a couple of years of back issues, read them all.
Carwashes can work well. However, there are not passive investments. They require active managagement.
A good website to start looking for info on the carwash business is http://www.autocareforum.com
Around here, if you remove the gas station improvements, you have to fix any environmental contamination from the underground tanks...that is the main problem, if you leave the majority of the improvements, I think you can still leave the tanks in the ground...Also here, the state keeps a website with all sites that are contaminated/could be contaminated...I'd say your first major step is going to be finding out how much it will cost to demo/fix environment IF it can be done. Some cities don't even want you to mess with the old tanks because of the hazard of them leaking the rest of what they have into the ground and running off...
Most lenders shy away from gas stations...period. They have too much environmental risk associated with them. Lenders are looking for low risk..so anything you can do to reduce the risk to a lender, the better.
Some areas of San Diego are designated as environmental rehabilition zones, and as such, are eligible for government grants for environmental protection. In fact, several million dollars are set aside for this sort of land reclamation.
You may want to check with your county/state websites and your city zoning/planning departments to see if the property you are considering is eligible for such a gift. Other incentives might also be available.
MarleneM