5 Steps How To Purchase A Gas Station

(doylc.com) How to Purchase a Gas Station - Buying a gas station involves a complex decision-making process. You must research the location carefully and work with a commercial real estate agent to identify a strong business. Consider all the practical and financial factors to make a strong offer. Let your agent help you negotiate a good purchase agreement.

• How to explore neighborhoods

1. Study the flow of traffic. When you first come up with the idea of ​​​​buying a gas station, you need to familiarize yourself with the location. Drive through the neighborhood. Study the traffic patterns and learn about the busy intersections. Look for places that are likely to see a lot of travel and that attract customers from local businesses.

2. Talk to the police. Visit the local police station and find out about crime or other activity in the area of ​​your potential business. Ask about any past criminal activity at that particular gas station or other similar facility in the area. Find out how active the police are in patrolling this neighborhood.

To ensure you get their full attention, you should call the police station in advance and ask to see someone. This works better than just dropping in unannounced.

In some jurisdictions, you may be able to view local police activity on the police department website.

3. Visit the Chamber of Commerce. The Chamber of Commerce exists to help local businesses communicate with each other and share their successes. Visit the Chamber of Commerce and ask about the community's strengths and weaknesses. You should be able to find out if new businesses are growing or closing in the area. Even if you can't arrange to meet in person, visit the chamber's website and see what you can.

A chamber's website provides information about community activities, charitable giving, and corporate involvement in community leadership.

The Nashville Chamber of Commerce, for example, has a dedicated section on its website dedicated solely to relocating to the area and starting a new business.

4. Read the local newspaper. Visit the public library and read the local newspaper for several weeks or months. Check out the police "blotter," a run-of-the-mill article reporting on police activity in the city. Look for gas station crime stories. Look for information about local population growth or decline. Try to get an idea of ​​the community's attitude towards new business.

5. Visit us as a customer. After narrowing down your options, visit the station you wish to purchase. Pay attention to all the details. Is it easy to enter the station or is the ranking difficult? Is the arrangement of the pumps easy to move? Keep in mind that some things may be easy to change when adopting, but others may not be or may be expensive.

For example, cleaning the bathrooms and repairing furniture would cost relatively little. However, if you find the installation doesn't work at all, you could face significant unexpected costs.

• How to purchase a gas station using a commercial real estate agent

1. Search online for a commercial real estate agent. Search for "Commercial Properties" in the location that interests you. You should find listings for several commercial real estate agents. Check their websites to see what types of properties they manage. If possible, find a company that specializes in retail stores and especially gas stations.

2. Check out the agency's other listings. If most of them appear to be office space, this company is probably not for you. They may know how to operate a gas station, but that won't be their specialty. Find a company that seems to show several similar companies.

For example, in the St. Louis, Missouri area, A&M Realty, Inc. lists several gas stations and convenience stores on its website. This is probably a company that can help you (in this area).

3. Meet with a real estate agent. If you find an agency that seems to be able to help you with commercial real estate, call to make an appointment with an agent. Meet with the agent and ask questions about what the agency can offer you. In particular, you can ask some of the following questions:

"How familiar are you with this community?"

"How many gas station sales were you or your company involved in last year?"

"What special features do I have to consider when buying at a gas station?"

"What can you or your agency do to help me with licensing and other regulatory requirements? "

4. Explore the agency's support services. Find out what the real estate agency can do to help you. Buying a petrol station is about much more than just looking for a property. You want a real estate agency that can help you analyze the market, look at the company's financial records, and understand the community.

For example, in the Boca Raton and Tampa, Florida areas, the Commercial Florida Agency provides such strategic services as:

- Side choice

- Feasibility studies

- Market forecasts

- Demographics

- Research services

5. Visit available properties. A commercial real estate agent should be familiar with the gas station properties available in the area. Ask the agent to arrange visits so you can tour the facility and speak with the owner or manager. During your visit, take a look at the facility, the structure of the buildings, the traffic routing and the location of the gas pumps. Ask for the company's sales records and financial accounts.

6. Examine the supermarket. Many gas stations contain convenience stores or sell some additional items. Gas stations typically make more profit from their convenience store than from selling gasoline alone. Check the type of business, the number of products sold and the general cleanliness and appearance. All of these are signs of a successful company.

• How to purchasing into a franchise

1. Consider the value of the name. Buying a franchise, as opposed to an independent broadcaster, comes with the value of a recognized name. Whether you choose Shell, Sunoco, Texaco or any other name, you automatically become part of a recognized brand. This brand adds value to the station itself and will likely attract some level of business to your station.

2. Check the company's protections. When you buy into a franchise, the national company offers some legal protection. This can be a huge advantage when buying a franchise over an independent gas station. Buying an independent station can leave you alone.

One of the biggest concerns about owning and operating a gas station business is the risk of tank leaks and environmental damage. Most franchise purchases protect you in such cases. The national company often assumes responsibility.

You must read the Franchise Agreement very carefully to ensure you fully understand your obligations and those of the National Company.

3. Find out about the future fees and costs of a franchise. Buying a franchise comes with the benefit of a household name and some financial protection, but you are responsible for significant fees and other financial expectations. Read the Franchise Agreement carefully to know what they are. Find out about the requirements for owning a franchise before you buy the station.

For example, you'll likely have to buy your gas from the company's own suppliers at their chosen prices.

You have to pay for the insurance for the company's pumps and other facilities. #*You will likely have to pay regular franchise fees.

4. Research potential competitors. If you buy into a franchise, the national society may have the right to approve other franchises in close proximity to your own location. While you can't control or limit all of the competition, you don't want the competition to come from your own brand. You should negotiate this point before buying a franchise and try to set a radius that is as large as possible.

• How to investigation of the risks

1. Test the soil under and around the property. Once you buy the property, you become responsible for all environmental hazards therein. You must find out about these dangers before you buy. You need to determine if the gas tanks are leaking or something has gotten into the ground that you may need to clean.

Search the phone book or the Internet for local agencies that carry out environmental assessments. Before hiring someone, explain the purpose of the test and your desire to buy the property.

2. Examine each tank. The seller may not provide any voluntary information on the quality of the storage tanks without your request. You should ask the owner for copies of any purchase receipts or technical specifications of the tanks. Make sure the tanks meet the current minimum requirements for your state.

For example, gas station tanks in California must be double walled fiberglass (DWFG) with leak detection sensors.

To find the requirements in your state, you may need to hire an attorney. Alternatively, you can try calling the Secretary of State's office. Each state will have its own office that will set the regulations.

3. Confirm ownership. You must know what you are buying. Buying a business can be separated from buying the property on which the business is based. You must ask to see the title for the property. If you determine that the sale is for the business only and not the property, you need to adjust the purchase price accordingly. Don't pay as much for the store as for the store and land.

A real estate attorney can help you review the paperwork to tell you what your purchase entails.

4. Ask at City Hall. Don't assume that the streets and shops around your future gas station will stay the same. You should check with the City Planning Board and Public Works Office to see if any major changes are imminent. A new road could divert traffic away from your location and seriously devalue the business. If the city plans to change zoning, do some research before committing to a location.

• Complete the agreement

1. Secure financing. If you don't have enough cash to buy the business yourself, you'll need to turn to a bank or other lender for a loan. Search online to compare mortgage rates for business loans. Find a lender whose rates are competitive. Meet with a bank clerk to fill out an application and receive approval.

As part of a loan application, you must provide a lot of personal and financial information. Be prepared to share information about your work history, bank accounts, and tax records.

Many lenders allow you to pre-qualify for a business loan. It's a good idea to start this process and obtain a pre-qualification before completing your search for a specific property.

2. Work with the agent to make an offer. The real estate agent can help you determine the asking price for a particular gas station property. You should consider the prices of other gas stations in the area as well as the recent sales history of similar businesses. The agent should have these records. Analyze the company's sales and financial records to assess the likely success of the company for yourself. When you're ready, let your agent make your offer.

3. Negotiate a reasonable purchase price. Your first offer probably doesn't match the seller's asking price. Also, the seller is unlikely to accept your first offer. Work with your agent to negotiate a purchase price that you think is good. Part of the negotiations can be not only the price itself, but also the terms of payment.

4. Complete all required regulatory details. A good commercial agent should be able to help you with regulatory requirements. You must at least have the tanks and bottom inspected. In addition, each state will have its own expectations and requirements.