Gas station investment opportunity (out of state in FL)
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