Looking At Buying A Gas Station.
Well, like the topic says, I am looking at buying a gas station. From what I have read on here, gas stations are hard to get any sort of conventional financing for due to all the risks of leaks in the tanks. Would I be better off trying to find a private investor for something like this? What type of percentage rate would I be looking at for something like this?
What all should I find out about the station? My parents used to own one yet never ran it. It was in Texas somewhere and they leased it out to someone there. The only thing they could suggest was finding out when the last environmental study was done and have any contract that I sign contingnent upon it passing a new one. They also suggested getting copies of financial documents and tax returns for the past 5 years. What else should I inquire about?
If the cap is less then 10 I would not even consider it. Is the gas station in West Palm? Find out about the age of the equipment.
I havent bothered to call yet. The asking price for the station is 2.7m and it supposedly nets 380k. For all I know, that profit margin may be with the station completely paid off and there may be nill profit with a payment for the property.
About the financing for this. I can tell you that I am in no position to put any type of reasonable down payment on this thing. Is it possible to get a higher percentage rate for a 100% loan on something of this size? Should I try to seek money from a private investor or would I be wasting thier time?
Also, I figured there is such a huge liability with a gas station that I would want to do something like a C-corp and have it pay me. Even though I would essentially be taxed twice, I would not want them to come after me personally if there were something to go wrong. Also, how about owner financing?
How would you proceed? Sorry for the scatter brained response, but I figured you may know.
go to www.selfstor.com...regards, CWal
Look for National Organizations to join, they will have all the stats from all states and counties with trends showing over-built and under-built for the population and areas. You will have to do your research into the right mix of different size units for the area that you want to build in. Develop a strong business plan, Demographics, research before attempting financing. It can be a great business with strong cash flows.
Good Luck,
Robert