Tommy DobczykOpportunity Zone Advisor, OZ Wizard · Director of Development | Certified Opportunity Zone Advisor

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

21 Jun 2026 · 1 min

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1:01

A framework for buying a car wash: negotiate DSCR coverage based on the lease quality, not just location. Since it's not a national triple-net, price in operator risk. The speaker suggests 60-65% LTV, 25-year amortization, 5-year term, and 1.3-1.5x equity to match the stable rent from a clean long-term lease.

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.