All Forum Posts by: Kev Pito

Current operator is leasing a gas station from third party. Operator wants to sell to me.
Willing to provide Environmental reports and such.

Location:
At intersection. Currently unbranded
building is 2400 sqft.
Town population: 2500
Daily cars passing through that street. 6000 (based on 2022 data)
No working pumps- will be rebranded by purchase. (BP will be the new brand- 10 year lease with BP)
Store was heavily dependent on game machine revenue which is 45% in state. That's the take home net. Owners license got revoked due to violation. These machines can come back but currently not possible under current operator. He was netting 30,000 monthly with these running 24x7.
My goal is to assess the value of business without game machine license and with gas.

Scenario 1:
Terms if I assume his lease and pay him off at 250,000.
Rent 8200 (somewhat negotiable)
Utility 1500
Payroll 6000
Insurance/internet 350

Current Inside Sales: 45000
Current lottery commission: $3000
Gas when pumps were working: 20,000 gallons at 30c.

Based on these numbers, I am guessing he is putting money into this business without working pumps and no game machines. He says he makes $8000 dollars every month- I am thinking he is including his own payroll.
If he was passive, he would have to put money to keep the lights on?

................
I am planning to be passive with another partner who will also be passive. Thinking of putting full time manager to run the show. We will alternate who goes to oversee the store every other week.

Improvements we can make:
Store is in bad shape. Clean up, paint, make it look nice, organize etc.
put a salaried manager.
Empty shelves. (Stock more inventory)
Pumps. (Get rebranded and get more gallons or car traffic)
Game machine. (Apply for license and get em back)

Scenario 2:
Own real estate and takeover business. Maybe consider subleasing the gas station.

Can I get SBA loan 7a or 504 loan?   

Scenario 3:
Run, no money to be made.

I am open to suggestions for each scenario.
For someone that has worked in convenience industry- what are things to consider or do? is this feasible store or loss leader?

Not buying the land, Just the gas station lease. Still recommended?

Shop is 24x7.  Seems like he is only running convenience side of business. 

His annual compliance report is clean he says.

Owner had his Coam taken away and is the single owner running the show, an hour away from his home base. 

Reason for selling: Burnout....

With Coam, his net take home was 400,000 or higher on yearly.   

Without COAM, his net take home is 200,000-250,000. This is current take home- even though its not papers.    I asked for his numbers before when coam was in full swing and he did all legitimate numbers.    

Rent is 8200 (non-negotiable)   

He has had lottery guys steal cash from drawer etc- last November.  Area is in somewhat high crime but there is a police station right across from it.   

Guy was leasing the place, and is asking for 250,000 for business.   

What are your thoughts?

So you did all the paperwork on behalf of the owner prior to purchase? How intensive was the rezoning piece?

You had an agreement put in place with seller that you would purchase the lot at conversion? You did 5000 earnest money?

I want to buy a piece of residential land that has vacant house at 4 way. intersection. About 9 acres land is available .

How difficult is it to get it rezoned to commercial to set up a gas station?

How can I get approved for funding for entire project? Including land and build cost?

Can my offer have contingency for phase 1 passing in addition to rezoning approval? Would I have to have financing prior to offering?

Can I do a purchase clause saying the deal is null and void if not zoned to commercial?

I want to put gas station/convenience store.

License back has to be confirmed but the old owner will never get it back. New owner has a chance. The 60k are from convenience sale only.

How did you come across this? driving around and doing parcel search on who owns it and then doing a search at courthouse?

Inside sales is 60,000 monthly
4 pumps.   

There are two major gas players (parkers and enmarket) both within 2 blocks.   

vehicle per day is 6000.   

Current owner lost their gaming license and is looking to sell. Can gaming machine be brought in at same location under new ownership?  

Is this a profitable? what are some things to consider?   

This will be a cash deal, is Phase 1 a good idea and baked into purchase agreement? What other things can i check