A buyer restructures a $2.9M acquisition offer down to $2.1M cash by eliminating the seller-carry and citing the car wash's outdated equipment. The pitch hinges on the seller's inflated 7% cap rate and the cost of upgrading to an automated system with a lounge.
4, because he wouldn't even consider the $800,000 carry. So let's remove the $800,000 carry, which brings it down to a 2.1 instead of 2.9. It would just be straight cash and would it be fine? Straight cash. Close in 90 days after due— close after a 90-day due diligence period at 2.1. Okay. And then we justify it with the numbers and say, here's the numbers. This is why we're doing it this way, because your cap rate is 7% on your bullshit numbers are bullshit. And the 2% increase on lease and all that. Insane. And if this company goes out, you've got an outdated, outdated car wash there. The car wash is outdated. Nobody does the self-cleaning car washes anymore. They want automated car wash and people doing the car wash and washing the car. They— so you need to build a lounge on that property and extend it and make it to where people can just pull in and get their car washed and they don't have to do any work to get it done.
