New Posting** First time investor - Need advice regarding gas station purchase

General Real Estate Investing
1

The question I have is:
If you had a chance to look at the possibility to purchasing a gas station, what would you look for? How would you know it is a good investment?

I am new to investing but am excited at the prospect of learning and possibly closing my first deal. Please advise.

Thank you for your time and input.
ZoeMom4

2

If you are new to investing i would start off with something a little smaller than a gas station purchase.
Unless of course you have the education in accounting and business management…

Good Luck !!!

3

The biggest problem you will face is financing for the purchase. Most traditional lenders shy away from gas stations because of the environmental concerns & the large default rate of the borrowers.

If you really want to purchase a gas station, then you either need to partner with someone that has experience with managing a gas station and/or you will need to get corporate training (from one of the major suppliers).

I would think twice before pursuing this type of investment as a new investor.

Regards,
Patti

4

:cool i work with a company who will finance this type of deal !!! BUT keep in mind you will need to get past the credit check ect just as with any loan

5

I would like to echo what others have said - big time environmental issues that make lenders nervous (it should make you nervous too). If the tanks are really old or if there has been leakage, it could cost you big time. It would be very risky for you to start with a gas station. Is there a reason you’re looking at gas stations? My wife underwrites commercial loans and they don’t lend unless the buyer has experience or has a partner with experience. I would look for something else…

6

Aside from enviromental compliance, background (or the lack thereof) would be one of your bigger challenges when attempting to secure financing.

Background aside, up to 97% financing is available for owner operated gas stations.

Regards,

Scott Miller

7

Oh Mom ! is that new perfume ? Octane 87,
Owner occupied business means your pumping gas when Billy doesn’t show…

8

Sorry for being so out of the loop! Thank you to all who wrote. I decided to think smaller … like apartments with 7-8% cap rates and virtually little vacancy.