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Today’s story: A $4M car wash deal where land, numbers, and trust all collide.
But first…
Holy mackerel, folks.
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Now, onto today’s deal…
Not every car wash is just quarters and soap. Sometimes it’s a real estate deal in disguise.
A buyer in Arizona thought he was evaluating the land underneath a small tunnel-and-wand car wash. But once conversations started, the seller made it clear he wanted to sell the land and the business together. That turned a potential $2.4M land purchase into a $4.2M package deal.
It runs mostly absentee with part-time employees, and since 2020, the seller has rebuilt the auto tunnel (which was down for nine months in 2024 during the upgrade), replaced equipment, gone cashless, and added a 24/7 membership wand wash system.
The location has strong anchors nearby, including a coffee chain and a gas station, and the city has even recognized the seller for improving the local property value.
The buyer’s analysis suggested this deal would really pencil closer to $1.7M–$2.2M. Still, he floated a possible purchase price of around $3M, with most of that tied to the land, as a way to keep negotiations moving.
The buyer came to the community with questions, setting off a practical breakdown of how to approach deals like this, from valuation and financing to environmental risk and seller psychology…
From the start, this deal was about trust. The buyer worked to really connect with the seller. He shared his buyer profile, explained his background, and made it clear he cared about the business, not just the dirt under it. That simple step mattered:
Even with private equity firms circling, the seller continued engaging with him directly. At one point, the seller bypassed the broker and sent a personal text:
That kind of outreach doesn’t happen if a seller thinks you’re just another number-cruncher. It happens because they feel respected and believe you might be the right steward for what they’ve built.
The lesson? Strong relationships can unlock creative deal structures.
As one deal coach pointed out, this is rare:
Another deal coach emphasized how you keep that creative door open: “Don’t just say, ‘Here’s what I’m willing to do.’ Ask the seller, ‘What are you willing to do?’”
And this is where a practical tool comes in. One deal coach shared how he uses ChatGPT to expand the playbook when talks stall:
The land is both an opportunity and a risk here. Because the wash sits next to a gas station, any purchase of the property would require environmental studies, as one deal coach flagged:
Beyond the land, operating a car wash brings its own unique challenges. One of our deal coaches spelled it out in the community Slack:
Among his points:
Car washes can look deceptively simple, but the reality is a mix of real estate, operations, and reputation management.
The car wash industry is large but fragmented, with 15,600 firms operating nearly 19,500 locations and generating $16.3B annually. The top 50 players account for only 20% of revenue, leaving the rest to independents and small chains.
When the buyer pulled comps, most similar washes in busier markets traded at far lower valuations. Many of those high-traffic, fully automated washes were valued at 1–1.5x revenue, sometimes 2x if they were doing $600K–$700K a year.
What drives value in the industry?
As the buyer heads into another meeting with the seller, there’s plenty to weigh: the land risk, the operational realities, and whether there’s a structure where this deal could actually pencil out… or just wash away.
With private equity circling and a wide valuation gap still on the table, the buyer now has to determine how far creativity and relationship-building can take him.
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The information contained here may not be typical and does not guarantee returns. Background, education, effort, and application will affect your experience. Your results will likely vary.
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