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August 25th, 2010
Considering Buying a Car Wash – Watch out for these red flags!
As part of the commercial real estate side of our brokerage, and do to experience and some great contacts in the industry, we regularly help buyers purchase and help owners sell car washes. And while most owners are ethical and honest individuals and business people, we occasionally hear and see evidence that makes us very thankful that we don’t deal with scum.
Car washes as businesses have matured from an economical way to hold onto land in the hopes of future redevelopment and appreciation potential into active part time businesses that follow many of the same rules as other companies with respect to advertising, return on investment, cost control and sales.
A few things that potential buyers should always be on the lookout for when considering a car wash purchase:
- Equipment repairs – wash equipment undergoes heavy use, you should ask for receipts from qualified repair companies as well as check the equipment thoroughly for examples of poor quality, repair, and wear and tear.
- Reconciliation of Gross revenues – bank statements should match credit card receipts, cash receipts and financial statements.
- Correlation of utilities with revenues – If a car wash is undergoing revenue growth, you should see and corresponding growth in water and electrical usage.
- Correlation of COGS with revenues – If a car wash is undergoing revenue growth, you should see a correlation with soaps, towels, and other COGS for the increased number of washes being used.
There may be legitimate reasons why any of the above do not apply exactly to every wash, but the reasons should be thoroughly investigated and verified to ensure that the seller is not improperly inflating there revenues.
Inflating Car Wash revenue is easy
Since car washes are primarily cash businesses, the easiest way to inflate revenues, is simply to plug in quarters, tokens, and dollars into the self serve bays. Since no water or soaps would be used, as well as no additional electricity to heat the boilers, or power the washes, this type of increase should be fairly easy to spot. Also, the increased revenues will not be in the automatic bays generally as they would automatically run costing the owner (and potential seller) money. The difficulty in detecting this type of fraud is if an owner has the financial capacity and intelligence to use additionally soaps, water and utilities, and to keep the percentages of auto bay washes consistent with the self serve washes.
There are other red flags as
well
However, we don’t want to give away all our forensic accounting and physical inspection tips and tricks. Instead suffice it to say that purchasing a car wash is slightly different than many types of business purchases and you need an experienced car wash real estate broker to assist you to help ensure you don’t get taken advantage of by an unscrupulous seller.
Tags: buying a commercial car wash, car wash real estate broker, inflating car wash revenue, red flags when purchasing car washes, warning signs when purchasing car washes
Posted in Commercial Colorado Real Estate, Miscellaneous | Comments Off
August 16th, 2010
Early Christmas Present for Underwater Homeowners from the White House?
It seems that homeowners may soon get a break from the Obama administration. According to an article on Reuters, the “Obama administration is about to order government-controlled lenders Fannie Mae and Freddie Mac to forgive a portion of the mortgage debt of millions of Americans who owe more than what their homes are worth. An estimated 15 million U.S. mortgages – one in five – are underwater homeowners with negative equity of some $800 billion.”
Main Street treated like Wall Street
Wow – that’s pretty nice of the administration. I mean, it’s about time that Main Street got the same treatment as Wall Street. What does this mean? Well, for one, homeowners could breathe a sigh of relief if their underwater debts were somehow forgiven. Areas in the Denver metro area and many other big cities have been plagued by the housing crisis. For example, Thornton Colorado Short Sales are prevalent and this could help solve some of the worries homeowners are facing. Imagine the stress that you would no longer have if your mortgage debt was forgiven. I don’t know about you but I would be the happiest person ever. It would mean that my government actually cared about me and not just the major banks on Wall
St.
You can always try a Short Sale
However, people must be prepared that this doesn’t pass and their debt won’t be relieved. If that’s the case, here in Colorado, Colorado short sale brokers will be working that much harder to
sell their clients home. I’m curious to see what happens on August 17th –
the day the Treasury Department meets about the future of Freddie Mac and Fannie Mae. Stay tuned for more.
Tags: foreclosure relief in Colorado, short sale in Colorado, underwater homeowners
Posted in Colorado Real Estate and Homes | Comments Off
August 12th, 2010
Short Sale vs Foreclosure
Many homeowners these days are ‘upside down’ (owing more on their home than it is worth) on their home and have recently lost a job, had a medical emergency, or other unexpected life occurrence that forces them to consider letting their home go to foreclosure. While the number of foreclosures nationwide is rising again after the brief moratorium imposed by the administration, a short sale may be a better way to proceed for many homeowners.
Benefits of a Short Sale
- You are able to select your own short sale real estate broker.
- You can be current on your mortgage payments and still do a short sale.
- You will probably be able to buy another home again sooner after a short sale vs a foreclosure.
- You can avoid the social embarrassment of a foreclosure.
- The effect on your credit score will probably be less from a short sale than a foreclosure.
- Some banks do not report short sales to the credit bureaus at all.
Drawbacks of Foreclosure
The result of a foreclosure is the bank repossessing your house. Not only will you lose your house, but the lender can get a judgment against you for the difference you owe plus the lenders costs for the foreclosure action. If that isn’t enough, your credit report will be in terrible condition for many years to come. With certain restrictions, you may be eligible to buy another home in 5 years if the home was your primary residence. Without restrictions, the wait is 7 years. If you are an investor and do not occupy the home, the wait to buy with a Fannie Mae insured loan is 7 years. A number of sources have reported FICO score drops from 200 to 400 points after a foreclosure.
How long does a Short Sale take to accomplish?
Short Sale negotiations with a bank can easily take 2-3 months. Many banks still have not caught up with the wave of foreclosures that are occurring and have very high turnover in their credit management departments. We always suggest utilizing a short sale facilitator that has contacts with the banks and lenders, experience, and that we have worked with
before. Effecting a successful short sale for a client should NOT be a ‘learn as you go’ process for your real estate broker!
Exactly how does a Short Sale timeline proceed?
First week – Meet with your short sale real estate broker.
Contact and gather information required for short sale coordinator.
List your home for sale, the real estate broker should have professional pictures and videos tours taken of your home.
Prepare your home for showings to potential buyers.
Second week thru 6th week – By now you should have had multiple showings (between 10-20), and have a workable offer to submit to the bank.
Your real estate broker will be working with the short sale coordinator and you to gather any additional info and submit the offer to the bank.
The bank special assest manager (or their designee) will open a file for your home sale.
7th week thru 12th week – You should be fairly close if not approved for a
short sale at this time.
Hopefully the initial buyer will still be around.
If not, the bank can still approve the short sale as a predetermined price.
Your home will still be aggressively marketed to take backup offers from potential buyers.
13th week thru 20th week – This is the target timeframe and most likely time frame in which your house will actually sell and a closing will occur.
There are many factors that will affect the timeline above. What lender you have? What, if any, stage of the foreclosure process you are in. Will you have to substitute buyers? An experienced short
sale broker will be able to help, guide and and keep you informed thru this difficult process and will greatly increase the likelihood of success!
As always, always obtain legal and tax advice before making a decision between a short sale or a foreclosure.
Tags: Colorado short sale, Colorado short sale real estate broker, short sale real estate broker, short sale vs foreclosure
Posted in Colorado Real Estate and Homes, Commercial Colorado Real Estate | Comments Off
August 9th, 2010
New Thornton Colorado Wal mart opening
The newest Wal-mart in Thornton, CO just opened July 21, 2010 at 128th Ave and Quebec street. This is right across the street from the
Quebec Run homes in Thornton, CO.
This Wal-mart is a
supercenter open 24 hours a day with a nail salon, hari salon, vision center and Subway sandwich shop. Addtionally, the pharmacy will be open until the early evening hours. This store includes full bakery, groceries, deli, and even a full liquor department. The overall store is huge at 202,000 square feet.
While you may or may not be a fan of Wal-Mart stores, company policy or their net affect on America, many people still shop their and the location next to the Quebec Run neighborhood will only add to the conveniece factor for the homeowners in the community.
Tags: Quebec Run homes, Thornton Colorado neighborhoods
Posted in Colorado Real Estate and Homes | Comments Off
August 6th, 2010
Jefferson County Colorado Car Wash for Sale
car wash for sale in Littleton, CO. Located within Jefferson County, this car wash incorporates some of the newest amenities, desired features and technical innovations in the industry.
The cash flow is excellent, currently at 7.8% based on ’09 numbers including real estate taxes, and the car wash is UP over 25% year to date for the 2010 numbers!
This makes this car wash an excellent purchase for this price. Replacement cost is over $2.2 million alone.
Additionally, some of the points below make this car wash a very attractive purchase.
1. There are no other open bay uses left in south Jeffco. This means no more washes in South Jeffco.
2. One of a kind under-carriage wash in the self serve.
3. New office with walk out deck, new bathroom, and new receiver and speakers for music in the bays.
4. The first ever Hi-Flo Tri-Foam in self serve. No other competitor in area has this.
5. Scalable design ready for reclaim and solar
6. Proprietary customer list goes with business approx 500 and growing fast!
7. Set up new proprietary partnerships that will go with business.
8. Bays big enough for boats and RV’s from Chatfield state park. We are on Chatfield’s preferred wash list and we are the closest,
this was just done 2 months ago.
9. Extremely well maintained equipment.
10. Busy King Sooper’s shopping Center and getting busier.
11. All encompassing Exacta POS equipment including all bays, Shampoo vacuum, all vacuums, auto cashiers, and paymaster. You can monitor finances from home!
12. Monitor wash from home …brand new camera system installed.
13. Other modifications by owner to reduce energy.
14. Designed and expansion for dog wash potential.
15. New blow dryers installed in self serve bays.
16. New vacuums installed at the beginning of last year.
17. Training available.
18. 10,000 gallon water storage tank and boost pumps ensures constant pressure
19. Weep water reclaim system.
For Car Wash real estate listing info for this property from
MLS.
Offered by Surety Realty Inc
Jason Pavlovic
Managing Broker / Broker owner
303.667.1622 direct
Jason@suretyrealty.com
Stuart Dobson
Broker owner
303.919.0309 direct
Stuart@suretyrealty.com
Tags: colorado car wash for sale
Posted in Commercial Colorado Real Estate | Comments Off
August 1st, 2010
Check out the link below about this amazing deal!
Thornton Colorado Home For Sale
Highlights about this home in Thornton Colorado for sale are included…
Please contact Stuart Dobson for more information:
Cell Phone: (303) 919-0309
Stuart@stuartdobson.com
Tags: buying a home in thornton colorado, stuart dobson, thornton colorado home for sale, thornton home for sale
Posted in Colorado Real Estate and Homes | No Comments »
February 12th, 2010
30 Acre Golden Colorado Ranch for sale
One of the last large parcels of ranch land in Golden, CO Mountain views and development potential for 120 single family home lots. Currently there is a rustic home on the property with three bedrooms, one and 3/4 baths and a wood burning fireplace. The home is on a well and septic system.
Horse Property and ATV riding
This ranch land is bordered on the East by North Table Mountain Village subdivision. The homes there are selling in the $400k range on 6,000 square foot lots. The land has barns, sheds and fenced corral and a pasture in back for horses. Additionally, the Van Bibber creek runs across the property. If you are looking for an incredible investment opportunity, that you can also live in, this is it! Obviously, there is plenty of room for storing an RV, trailer, riding horses, riding ATV’s or dirt bikes. The land is currently set up for a horse operation with agricultural zoning.
Excellent Golden Colorado location
Located close to an existing equestrian center, this home and land has easy access to I-70, US 6, the Boulder Turnpike and the Northwest Parkway E-470. The physical address is 19375 W. 58th Avenue, Golden, CO and is located just East of Highway 93 and the newly designated Jefferson Toll route.
Offered for sale at $999,999. Previously under contract for $3.5 Million!
Offered Exclusively by:
Surety Realty Inc.
Jason Pavlovic – 303.667.1622 direct
Jason@suretyrealty.com
Stuart Dobson – 303.919.0309 direct
Stuart@suretyrealty.com
Tags: Golden CO development land for sale, Golden CO ranch for sale, Golden Colorado ranch for sale, horse property for sale in Golden CO
Posted in Colorado Real Estate and Homes | No Comments »
February 9th, 2010
Another story about why banks are irrational and insane when dealing with short sales
To make a long story very short. I have a very well qualifed buyer (821 credit score, $100k plus down, salaried job for the governement, etc.). We found a house that another Realtor has listed as a short sale. This other Realtor is also experienced, knowledgeable about the area and well versed with short sales. The house was appropriately priced at $340k, we made an offer for $325k….everything is ok so far.
The bank short sale processor gets involved
And everything goes to hell. The banks BPO appraisal comes in at $375k! Out of area appraiser, and the bank processor will not consider an appeal. Both the listing Realtor and I know this BPO is way off target since no model of this house in this neighborhood has ever sold for more than $355k (even in the height of the housing boom).
Time, Money, and Frustration
So, the sellers have paid for a real appraiser to come in and do a rational appraisal in the hopes that the bank processor has a superviser that the listing Realtor can get in touch with. Meanwhile the buyer is being patient, even though this process has now dragged on for three months with no end in sight.
The home sellers are frustrated, the home buyer is frustrated, and both of us Realtors are frustrated. But at least the bank processor still has a job and is collecting a paycheck for the outstanding job she is doing 
Ahh, it’s good to be involved with Short Sales!
Tags: buying a short sale home, Colorado short sale, purchasing a short sale in CO
Posted in Colorado Real Estate and Homes | No Comments »
January 29th, 2010
Broomfield Office Lease Space
If you are looking for small, short term, but very clean, upscale office space to lease in Broomfield, CO. The Broomfield commercial office space for lease in this building may be just right. Located at 6343 W. 120th Ave, which is just west of Sheridan Blvd, this two story building has office suite with windows, mountain views, or interior offices. All of the available office spaces left are on the second floor.
Cheap office space in Broomfield
The lease rates range from $325 per month for an 85 square foot office, up to $975 per month for 630 square feet, with many offices in between. You will not find nicer, less expensive office space in Broomfield! Plus the landlord is willing to enter into short term leases,
so your risk is minimal.
Office space amenities
Each office has drop down ceilings, phone line and one phone provided (more lines are available), and may come with some office furniture for use as well.
Common Area includes:
- Conference Room – suitable for 15 people.
- Copy Room – has professional copier available.
- Reception Area – tiled; well lighted, and professional.
- Break Room – fridge, microwave, stove, sink, etc.
- Elevator access to second floor.
Offered Exclusively by:
Surety Realty Inc.
Jason Pavlovic – 303.667.1622 direct
Jason@suretyrealty.com
Stuart Dobson – 303.919.0309 direct
Stuart@suretyrealty.com
We believe in the building and office space so much, we even moved our office here. If we as Realtors don’t know where the best, cheapest deals are…who are you going to follow?
Tags: broomfield office space for lease, Commercial real estate, office space for lease, office space for lease in Broomfield
Posted in Commercial Colorado Real Estate | No Comments »
January 15th, 2010
Outdoor Activities in Denver, Colorado
Colorado is famous for its leisure activities – kayaking, canoeing, mountain climbing, skiing, hiking and many others. As the state capital, Denver is a truly unique American city – blending the urban metropolitan cityscape with the outdoors and serving as an important base for exploring the Colorado mountains.
Summer is generally the best time to visit Denver as winters are often bitterly cold, although the climate is mostly sunny all year round. However, in winter the region becomes popular with skiers and snowboarders from all across the USA and from other countries. The internationally renowned ski resort of Aspen can be easily be reached in a day and provides some of the best ski conditions to be found anywhere in the world.
One of the most popular outdoor activities is the Red Rocks Amphitheatre, which hosts regular concerts throughout the season. Famous acts who have performed here recently include Crosby and Depeche Mode. As the heat intensifies during July and August, an excellent way to cool off is to visit one of the 15 outdoor swimming pools in the city. Admission is just $2 for children and $3 for adults and a seasonal pass is available as well ($20 for children and $40 for adults).
Another popular outdoor attraction is Denver Zoo, which provides an excellent family day out in this 80 acre park, comprising of over 4000 animals (admissions prices in 2009 were $7 for children and £12 for adults). However, if you are comfortable with the heat, or you would prefer to visit Denver in the spring or Autumn, the Denver Botanical Gardens are a worthwhile visit. Despite Colorado`s dry climate, the gardens contain over 32,000 species of plants and during the summer months they are open from 9am.
If you would like to travel a bit further, take a trip west on the I70 to see the outstanding views of the summits of the Colorado Rockies. In winter this route can be treacherous so do be careful. A 70 mile journey south on the I25 will take you to the famous tourist attraction, `Garden of the Gods` – a stunning series of red rock formations which are popular during the summer months.
When travelling to Denver, most people suggest that the most convenient and efficient way of getting around is book a car hire which you would pick up from the airport. For car rental Denver airport offers anything from luxury sports cars to large minivan, all at various price ranges. You can also use the skyline service which can take you from the airport to your destination.
Posted in Miscellaneous | No Comments »
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