Nursing Homes/Apartments/Gas Stations?!?

[Michael Ellis]

Hey everyone!

I am torn on which investment I should pull the trigger on! Does anyone have any experiences with nursing homes or gas stations? I know they all have there pros and cons so please let me know what you would go for. 

Thanks

[Mohammed Rahman]

Hey @Michael Ellis - I have experience with neither but can tell you that this form is probably not going to yield the most fruitful result. 

Have you instead considered attending a local real estate meetup and asking for connections/opinions in that avenue? 

I'm sure there's also a ton of information online or on Youtube about each of these asset classes you could take advantage of. 

[Seo Hui Han]

Hey Michael,

Gas stations are a weird, insular world that, to be honest, even I am hesitant to divulge too much about because I don't want a google search to pull up one of my posts of these forums and bite me in the butt later.  I will tell you stuff that I never see anyone posting online.

I will tell you that, like real estate, because it is real estate, location, location, location is important.  Don't rely on ONLY VPD numbers.  They're important, but they don't tell you the whole story.  For gas stations, you want the following:

1.  On the intake path to a major freeway or highway.  A gas station location can have high VPD numbers, but if it is on the exit path from a freeway (as in, on the side of the road leading away from the freeway) it will do much worse than if it is ON THE WAY to the freeway.

2.  It is at a major intersection.  On the corner of 2 high-traffic roads.  Not "near" the intersection.  ON THE CORNER.

3.  The less competition, the better.  Is there another station at the intersection?  Is there one a mile away?

4.  Is there a high volume site nearby, like your Costco's, Buccee's, Sam's Club, etc?  You will never be able to compete with them, and they will drag your financials.

5.  Is there a large residential area nearby?  This is IMPORTANT.  People fill up when they leave their house on the way to work.  Not when they are near work.

There is lots of info about financials, environmental, all that stuff out there.  But I notice no one ever talks about this, so there are my 2 cents.  Good luck, it is not easy to invest in because, among other things, you need a whole lot of knowledge, there are huge barriers to entry, and unless you literally know someone with experience, it is difficult to really learn.  There are no "how to run a gas station" podcasts or youtube channels.  At least, none like Bigger Pockets.  But that's also the good thing:  because it's had to get into, there's a lot less competition.

Oh, never hire a consultant.  They don't know anything, and they will rip you off.