Gas station investment opportunity (out of state in FL)

[Stephen Biggans]

Perhaps someone with more experience can advise. 

I'm an agent in PA and two of the agents I work with have an LLC and are looking for an investor with them for a Mobil gas station in Florida. I wanted to get some opinions on this. They say it will net 100k/year and that the 40k investment I might make would be repaid before any profits are taking by ownership. Promissory note for the 40k. The seller is sick and needs to cash out so seller will finance loan of 37k at 4% interest with 10 year term. The plan is also to expand liquor and tobacco sales and sublease car wash space.

The arrangement would be that I get 30% equity for the 40k and the two guys who run the LLC would put up 20k. Supposedly, it will net over 100k/year and the money I'd put up would be repaid before any profits taken.They would also manage the store and I wouldn't need to be involved in operations. He tells me the essence is that they have to maintain majority control, the benefit to me that I'd be getting the money back in addition to the equity with quarterly payments. 50k buys inventory and 30k is escrowed with interest by Mobil which supposedly comes back.

I attached the documents he sent me. Closing is supposed to be May 1, and would appreciate any advice you might have. One question I had for you is that I was wondering was whether it is logical, based on the info, that I would be putting up 40k to their 10k each and only get 1/3 equity? Thanks so much.

Here is the data.

ITEM	MONTHLY GROSS	ANNUAL GROSS	MARK UP	GROSS PROFIT	COMMENTS
Grocery	45,000	540,000	29%	156,600
Gas (Gallons)	20,000	240,000	3 cents	7,200	Commission of 3 cents per gallon and the gas company pays for all credit card fees for the gas AND C-store sales.
Car Wash	750	9,000		9,000	Hand car wash rental
LOTTO – Profit	625	7,500		7,500
Check cashing
Cig. Display
ATM	150	1,800		1,800
Food Truck	300	3,600		3,600	Rental Income. Food truck 2 days per week.
Vending Game
Money Orders
Rebate 24 hr.	600	7,200		7,200
Rebate Inspect.	500	6,000		6,000
Air/Vacuum	50	600		600
Total				199,500

EXPENSES

ITEM	MONTHLY AVG.	ANNUAL	COMMENTS
Rent	3,000	36,000
Electric/H20/Garbage	1,400	16,800
Telephone/Internet	155	1,860
Insurance Liability	225	2,700
Sales tax on rent	315	3,780
Employees / Payroll	6,500	78,000
POS Ruby	500	6,000
Misc. Expenses	100	1,200
Property Taxes & Building Insurance	1,194	14,328
Car wash expense			Sub-Tenant pays all expense for car wash.
Credit card fees			Gas company pays all fees.
Total		160,668

NET PROFIT $38,832 + $24,000 if owner works = $62,832 Total Owner Benefit