Next large investment: Car Wash or Storage Unit facility?

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Next large investment: Car Wash or Storage Unit facility?

Juan V Lopez
Investor · Las Vegas, NV · Member since 2020 · 153 posts · 136 votes

If your desired next investment was either a car wash or storage unit facility, which would you choose and why?

  1. • Build automatic car wash from scratch
    • Buy old car wash, renovate & stabilize
    • Build storage facility from scratch
    • Buy old storage facility, renovate & stabilize

My wife + I own a few businesses & rentals and are looking to move into a much more passive business with our next large investment. 2 lanes we've fixated on are storage units and car washes.

Our high-level criteria:
• Own the real estate
• As low maintenance as possible
• Lower west coast (California, Nevada, Arizona, Idaho, Utah, etc)
• Desirable asset when we decide to exit

I'm just looking for input from the community and perhaps opinions from those experienced in these areas. TIA BP fam! ✌

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Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
4y

@Juan V Lopez It's almost always cheaper to buy something existing than to build new. There are a ton of mom-and-pop storage facilities around the country. Find someone that's interested in selling below market value, just like you would with a residential investment. I was cold-calling storage facilities in my town. Six months later, I bought one that is cashflowing better than ten of my residential rentals combined.

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  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    4y

    @Juan V Lopez It's almost always cheaper to buy something existing than to build new. There are a ton of mom-and-pop storage facilities around the country. Find someone that's interested in selling below market value, just like you would with a residential investment. I was cold-calling storage facilities in my town. Six months later, I bought one that is cashflowing better than ten of my residential rentals combined.

    The DIY Landlord Book4.7248 Reviews
    WebsiteView Page
    5Reply
  • Juan V Lopez
    OP
    Investor · Las Vegas, NV · Member since 2020 · 153 posts · 136 votes
    4y

    @Nathan Gesner - much appreciated, thank you brother!

    0Reply
  • Chad McMahan
    Residential Real Estate Broker · Sedona, AZ · Member since 2017 · 751 posts · 504 votes
    4y
    Originally posted by @Juan V Lopez:

    If your desired next investment was either a car wash or storage unit facility, which would you choose and why?

    1. • Build automatic car wash from scratch
      • Buy old car wash, renovate & stabilize
      • Build storage facility from scratch
      • Buy old storage facility, renovate & stabilize

    My wife + I own a few businesses & rentals and are looking to move into a much more passive business with our next large investment. 2 lanes we've fixated on are storage units and car washes.

    Our high-level criteria:
    • Own the real estate
    • As low maintenance as possible
    • Lower west coast (California, Nevada, Arizona, Idaho, Utah, etc)
    • Desirable asset when we decide to exit

    I'm just looking for input from the community and perhaps opinions from those experienced in these areas. TIA BP fam! ✌

    Hi Juan.

    I do not know the numbers for car washes, but I do know mini storage is a strong cash flow business. It's more volatile that STR's, though.

    0Reply
  • Frank McGovern
    Rental Property Investor · Chicago, IL · Member since 2021 · 32 posts · 32 votes
    4y

    I would do car wash because I am experienced auto detailer who owned a detailing business for over a decade. I would not recommend anyone to just open a car wash if they don't have the experience and know what is going on. There is much more overhead than many realize and many things you need to learn a bit before just opening something like that.

    Storage is quick and easy and just requires land and barely any knowledge to open and run. Low overhead too.

    3Reply
  • Kevin Douglas
    Investor · Bend, OR · Member since 2019 · 61 posts · 68 votes
    4y

    @Juan V Lopez - how is the search and evaluation going? I’m actively doing a deep dive into the car wash business model and have a big chunk of capital allocated to start making offers on properties when I’m ready. Have you learned anything else interesting so far? 

    I think @Nathan Gesner has great advice. I’m going to start calling around to local businesses and see if I can generate any leads! 

    1Reply
  • Derrick StClair
    Investor · Los Angeles, CA · Member since 2020 · 14 posts · 13 votes
    4y

    @Kevin Douglas & @Juan V Lopez - literally doing the same, I'm based in LA but looking in Nevada, Arizona, SoCal, and Denver but I haven't spoken to anyone who has owned a car wash before which I would LOVE to do. Do you guys know anyone? Maybe @Frank McGovern want's to volunteer :) lol 

    2Reply
  • Juan V Lopez
    OP
    Investor · Las Vegas, NV · Member since 2020 · 153 posts · 136 votes
    4y
    Quote from @Frank McGovern:

    I would do car wash because I am experienced auto detailer who owned a detailing business for over a decade. I would not recommend anyone to just open a car wash if they don't have the experience and know what is going on. There is much more overhead than many realize and many things you need to learn a bit before just opening something like that.

    Storage is quick and easy and just requires land and barely any knowledge to open and run. Low overhead too.


    Makes sense, thanks Frank! Much of the feedback I've gotten on this lines up with what you said. Car washes definitely seem to be heavier on the operational/strategy/maintenance side as opposed to storage units.

    Thanks for the feedback.

    0Reply
  • Juan V Lopez
    OP
    Investor · Las Vegas, NV · Member since 2020 · 153 posts · 136 votes
    4y
    Quote from @Kevin Douglas:

    @Juan V Lopez - how is the search and evaluation going? I’m actively doing a deep dive into the car wash business model and have a big chunk of capital allocated to start making offers on properties when I’m ready. Have you learned anything else interesting so far? 

    I think @Nathan Gesner has great advice. I’m going to start calling around to local businesses and see if I can generate any leads! 

    After the research I did after posting this, I decided to narrow my search to storage facilities. I'm attending a storage conference in Vegas in April 2022 and have been digesting a ton of AJ Osborne's content on self storage. While car washes might produce a higher dollar-for-dollar profitability, storage seems to be a much better fit for what I want – less maintenance, less employees, less things that can go wrong in the day-to-day.

    Much of the feedback I've gotten on storage so far has pointed me to cold contact local mom & pop storage owners and inquire about purchasing their property. The opportunity would then be in updating their payment systems to new tech, building a strong online presence so people can book online, marketing to the local community and offering items for purchase inside of the facility (locks, moving boxes, dolly rental, etc).

    How's your car wash search going, brother?
    0Reply
  • Juan V Lopez
    OP
    Investor · Las Vegas, NV · Member since 2020 · 153 posts · 136 votes
    4y
    Quote from @Derrick StClair:

    @Kevin Douglas & @Juan V Lopez - literally doing the same, I'm based in LA but looking in Nevada, Arizona, SoCal, and Denver but I haven't spoken to anyone who has owned a car wash before which I would LOVE to do. Do you guys know anyone? Maybe @Frank McGovern want's to volunteer :) lol 

    Nice man! How is your search going? There are car wash conferences you can probably attend too, brother. Keep us posted.

    I've narrowed my search to storage facilities after some initial research. Better fit for what I want at this point.
    0Reply
  • Nicole Heasley Beitenman
    Investor · Youngstown, OH · Member since 2017 · 2k+ posts · 2k+ votes
    4y

    BP has made me bias toward self-storage simply because they've had more guests on the podcast that are in self-storage, and they all have great stories. I don't see the demand for self-storage going anywhere in the foreseeable future. I do see a slow but impending decrease in car ownership in the coming years.

    0Reply
  • Kevin Douglas
    Investor · Bend, OR · Member since 2019 · 61 posts · 68 votes
    4y

    Interesting point @Nicole Heasley Beitenman - What do you see replacing cars? 

    0Reply
  • Nicole Heasley Beitenman
    Investor · Youngstown, OH · Member since 2017 · 2k+ posts · 2k+ votes
    4y
    Quote from @Kevin Douglas:

    Interesting point @Nicole Heasley Beitenman - What do you see replacing cars? 

    I don't see cars being replaced. I see them being shared. Companies like Uber, Lyft, and Turo are making it easier to utilize cars you don't own. Amazon, Instacart, Uber Eats, Doordash--they're all making it easier to receive goods without going to a store. Remote work is reducing the numbers of people commuting to work. 

    I'm not saying cars are going to start disappearing tomorrow, especially as you get farther and farther out from urban markets. But I do see a slow and steady transition away from car ownership as time goes on. 
    0Reply
  • Sonny Dhillon
    Investor · Sacramento · Member since 2018 · 40 posts · 10 votes
    4y
    Quote from @Juan V Lopez:
    Quote from @Kevin Douglas:

    @Juan V Lopez - how is the search and evaluation going? I’m actively doing a deep dive into the car wash business model and have a big chunk of capital allocated to start making offers on properties when I’m ready. Have you learned anything else interesting so far? 

    I think @Nathan Gesner has great advice. I’m going to start calling around to local businesses and see if I can generate any leads! 

    After the research I did after posting this, I decided to narrow my search to storage facilities. I'm attending a storage conference in Vegas in April 2022 and have been digesting a ton of AJ Osborne's content on self storage. While car washes might produce a higher dollar-for-dollar profitability, storage seems to be a much better fit for what I want – less maintenance, less employees, less things that can go wrong in the day-to-day.

    Much of the feedback I've gotten on storage so far has pointed me to cold contact local mom & pop storage owners and inquire about purchasing their property. The opportunity would then be in updating their payment systems to new tech, building a strong online presence so people can book online, marketing to the local community and offering items for purchase inside of the facility (locks, moving boxes, dolly rental, etc).

    How's your car wash search going, brother?
    Hi Juan 
    how’s your search going for self storage , I would like to connect with you . I been also thinking of car wash and self storage but like you leaning toward self storage , so wanted to see if you did get one and can share some pointers 
    0Reply
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