NAPA Auto Parts in Clyde, Texas

[Autumn Rankin]

Investment Info:

Retail commercial investment investment.

Purchase price: $450,000

Cash invested: $90,000

We purchased the NAPA auto parts business and will soon purchase the store from the same person. We put $90,000 down, making 10% returns so far and are way ahead of our goals already for the year. The store came with all the fixtures, stock & fully staffed with great people! We are planning to open the 2nd store within 6 months and it will be in Coleman, TX. We own the building there and it will be a new market for NAPA :)

What made you interested in investing in this type of deal?

My husband is a mechanic, we both knew that he couldn't do manual labor forever. He used to manage a Carquest Auto Parts store and he learned about the business. He knew it could become passive income, good hours and use his knowledge.

How did you find this deal and how did you negotiate it?

He went into a local NAPA store and was talking to the manager. The manager said "I know a guy who wants to sell his store, here is his number."
My husband met him, and they talked about it. 2 days later corporate calls my husband and says "lets meet". So they met up with him and talked, then invited him to Dallas corporate headquarters.

How did you finance this deal?

We had to come up with the $90,000 down payment.
Had $30,000 in Savings
HELOC $27,000
Student Loans (im in school on GI bill ) $20,000
Chase Credit card cash advance (0% interest for 1 year) $15,000
:)
NAPA uses Bank of America, NAPA is the one who approves you and BOA just handles the $$

How did you add value to the deal?

We knew we were already getting a phenomenal deal and the president of the company told my husband that since it was such a great deal he was going to loan us $50,000 additional line of credit for the store

What was the outcome?

We have a store that has a full staff that has been there a while, it is performing better than last year.

Lessons learned? Challenges?

keep searching, it only took us 9 months of looking for a store to buy to closing on one .

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

N/A