Catherine BellEmpowering Women to Create Financial Freedom Through Passive Income, Real Estate, and Social Impact

Car Wash Investment: Negotiating Deals & Operator Risk! #shorts

21 Jun 2026 · 1 min

Watch on YouTube

1:01

In this YouTube short, Catherine Bell outlines how to negotiate a car wash investment deal by focusing on debt service coverage ratio (DSCR) coverage, operator risk, and lease structure. She notes that the lease is not a national triple‑net, so pricing must reflect the operator’s risk and the specific use‑environment diligence. Based on the current net operating income (NOI), the price aligns more with a credit‑tenant scenario than a young local operator, prompting a lower purchase ask. Bell then proposes a funding strategy: 60‑65% loan‑to‑value (LTV), a 25‑year amortization with a 5‑year term, and buyer equity in the range of 1.3‑1.5×. She justifies the deal by highlighting the clean triple‑net lease income, long lease duration, stable rent schedule, and the tight DSCR at the proposed ask, positioning the investment as a low‑risk, stable cash‑flow opportunity.

Chapters

We're going to lower the ask. Okay, so my target contract. Okay, DSCR coverage negotiation script. So there it gives it right there. So great location and lease structure, but this is not a national triple net lease. We need pricing that reflects operator risk, specifically use environment diligence, DSCR. At the current NOI, the deal price is more like a credit tenant than a young Local, regional. Okay, so we can move quickly, but we need— oh, hold on, hold on. We need a low to make the deal and risk. Okay, the funding strategy. So if we were to do 60 to 65%, 25-year amortized, 5 years, buyer roughly equity 1.3 to 1.5. Why it fits: it's clean triple net lease income. A long lease, stable rent schedule, at risk, 65% LTV. A DSR is tight at ask.