First Commercial Real Estate Investing - Gas Station

[Sumit Verma]

I have many friends worked in convivences stores and gas stations by running the finances of the business I'm interested in purchasing a gas station. Hypothetically here is the situation. Let me know if it is possible or not, and in both cases what would be the requirements? 

Business cost - $1M Net Assessed Value - $700k (land + building) Looking for 900k, with 30 years of financing, no balloon payment.

This would be my first CRE, I would run and manage the business by myself.

Thank you for your time!

[Henry Clark]

Steps:

1.  Get with a local banker and have them walk you through the process of getting a loan from them.  This will get you up to speed on how the finances will work.

2.  Unless it is seller financing, you will have a hard time getting a loan of $900k on a $1mm deal.  Maybe 10% SBA loan.  Check on that.

3.  Figure out $900k loan and interest payments per month.  Then compare against the cash flow after taxes from the business.  Is there enough for you to live on?

4.  Due Diligence- Probably need to do a Phase 1/2/3 epa study or you will be taking on the cleanup risk.

5.  Do you know how to contract the petroleum and store products?  Do you need to front any money for that?