All Forum Posts by: Sumit Verma

Send him a letter, emphasize that you are personally yourself the end-buyer, include proof of funds, include something attesting to you being financeable (unless your proof of funds is for the full cash purchase price).

If he owns 20 local businesses, good chance he's in at least one chamber of commerce, and if he's not, he 100% knows people that are, who will spill the beans and offer to do an intro if you mention you're interested in buying a gas station over a beer or a meal (there's probably like 3 people in that city that fit this description, why not get introduced to all 3?), at that event's monthly lunch, or whatever it is. 

When you meet him, mention that letter 30 minutes into that meeting, the light bulb will go off, but now you're not just the rando letter person, you're also the person that knows the person who introduced you, etc.

Do a little digging to determine his schedule at work-if he even goes there. Find out what he looks like and have a 'chance meeting' with the owner if possible. That's where I would focus my effort first. 

 That sounds like a great plan to get started out of school. Your lenders will be very helpful in helping you underwrite the deal and develop a biz plan. That will be key to operational success.

You might consider asking the owner to seller finance part of the deal and also stay on for a transition period to help show you the ropes. Even if you’re going to change up operations getting those lessons learned from the current operator will help you a lot. 

 I would agree the Midwest will take the longest to change types of energy. Depending on the operator the inside sales can drastically beat out gas sales. I’ve seen many people get creative offering many projects like car washes, propane, u haul rentals, food, etc. It’s very hands on for most owners (high turnover employees  and employees stealing bc of cash sales) so as long as that’s something you’re willing to do it’s likely a great option for you. 

 What state are you buying in? I work with hundreds of gas station owners and operators each year. We are building Hydrogen Fueling stations in CA and we lease land from the gas station owners. 

Some are the operators of the business only, Some own the dirt only and ground lease to the operators, and some are both. Your systems and processes will make or break you. Most operators end up living at the store and working long days and weeks UNLESS they have multiple gas stations and can leverage that scale for operations. 

When it comes to environmental check to see if the property has a NFA (no further action) letter. That means that the prior leaks and soil/groundwater contamination have already been taken care of. 

Check to see where the owner is at on updating / replacing old UG tanks that need to be replaced with current standards. Those costs to both shut down the biz to upgrade/replace and the cost of doing the work are huge capital costs. 

Separately, lots of AHJs in CA are banning the building of new gas stations. CA is going to be extreme and the rest of the states are likely 10-15 years behind those initiatives. That being said, what is your long game and how would you handle gas being phase out and how would your business pivot?