Many in the commercial real estate sector are worried that valuations are too high, and profit margins of REITs unsustainable, these pessimists also point to the increase in Federal Reserve Interest Rates. If you listen to some of the commentary at Seeking Alpha, or on Active Rain real estate business social network the prospects of a sector rotation and downturn in the commercial real estate space is a real concern. Having been in the truck and car wash business, I can tell you this can be a curse if you are looking to sell and a blessing if you are looking to expand. Let’s talk about what to do if you want to sell now.
First, it would be best to get the deal done as soon as possible as we are in a pro-growth environment right now, but it could be short-lived. Now then, let me give you some marketing advice when it comes to selling your car wash or truck wash.
Okay so, according to a lecturer interviewed by the “Knowledge @ Wharton Podcast” — which I do not recommend for most of its business news, simply because it is far to leftist thinking, academia, so it’s to be expected — there have been some studies by retailing psychologists that glossy pictures attract thoughts of wealth, stability, and abundance. The psychologists showed that this reality comes from deep within human psychology regardless of nationality – translation; it’s a throw-back to evolutionary development of the human brain. But why you ask? Well, it has been reasoned that glossiness symbolizes water, wetness, and food = Abundance, Wealth.
Why do psychologists believe this? Because kids as early as two years old try to lick the pages of glossy magazines, kids of every nationality around the world.
What is so unfortunate is that so many Business Broker listings I see with car washes or truck washes offered look dry, bright, and lots of concrete with an ugly old building – that’s no way to get a car wash buyer interested. Sure, other car wash owners want to see the volume and numbers, profit margins and the second set of cash accounting books as they are interested in buying the car wash to expand their already current business but for a new buyer not yet very involved in the industry – glossy is the only way to go if you want to get a fair price and sell your wash at the top of the market before any possible or predicted pull-back in the commercial real estate sector. Please consider all this.