Hi all, I am a residential loan officer and have a couple of gas station loans fall into my lap. The properties are in California, does anyone know how to find a lender that does gas stations? Or what the process is about starting to do such a loan. Any help would be appreciated.


H.

Hello,
If you need help refinancing gas stations, give me a call. I do mainly commercial financing and have done gas stations in the past, and am now working on two more.


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Isobbune 77, Gas stations are one of the toughest commercial properties to get financed because of the # of failures and environmental problems. There is only a handfull of lenders that will look at them.

I was personally in the conv store/gas station business for 26 years. We know how to structure them to get them done. Would love to discuss yours. Please give me a call.

I second larry. Gas station are tough as per enviornmental issue. We used to finance them but dropped out along with other lenders approx 18 months ago. These days its either private financing or a select few lenders that entertain these properties.

I specialize in gas station loans. The first question you should ask the borrower is whether the property is "clean" or contaminated. If the answer is contaminated, walk away because we are talking hard money, difficult to finance, etc. However, if you decide to persue it, there are some sources who will offer short-term financing for contaminated gas stations at rates slightly above bank rates and way below hard-money rates. They are picky.

The next question is whether the station is branded on non-branded gas station. It makes a difference to some lenders.

Since gas stations are single purpose properties, most lenders offer 50% LTV on the value of the real estate. I know a number of them that go 70% to 75% LTV on the value of real estate only. I know one lender who will consider 80% LTV for branded gas stations with good comparable sales and strong financials.

You will need the following documents to get the ball rolling:
1. Two to three years personal and business tax returns
2. Year to date interim financials - income statement and balance sheet through October 2005
3. Personal financial statement. 1003 may work. I prefer to use the SBA personal financial statement.
4. Digital pictures of the gas station

Find out what the value of the real estate is. Please keep in mind that the borrower's estimate of the value of the gas station is often significantly higher than what comes in at appraisal.

Try to get the following documents upfront if possible. It will make the process go smoother and reduce any problems that might arise:
1. Copy of prior Phase 1 environmental report
2. Copy of prior appraisal
3. Copy of note to be refinanced. Watch out for pre-payment penalties.

The total process will take 45-60 days once you have all the documents and if everything goes smoothly. A recent gas station deal took almost 6 months because of an issue with the appraisal but I was able to get another lender to step in and offer better terms than the first lender.

Pricing will be something like Prime + 1% to Prime + 2% floating. Fixed rate would be in the Prime + 1% to Prime + 2% fixed for 5 years (today that would be 8.25-9.25% fixed) on 25 year amortization. I believe a 5 year fixed rate is the best option for most borrowers. Most of them have 5 year pre-payment penalties - one even offers a soft PPP. One lender is offering a special of 7.5% fixed for 5 years for gas stations for borrowers with 720+ FICO score and 65%-70% LTV. They are painfully slow to work with though.

Check my signature and click on the link to visit my website for contact information if you have any question. Hope this helps.

I am looking to buy a gasstation leased from Shell...
Does about 50,000 gallons per month and 60k per month inside sells.

Does anyone have a generic P&L statement with normal budgeted cost % that I could look at?

I just want to see if it makes sense, its ~200k plus inventory (their asking price).

Thanks,

Barry.preece@gmail.com

You should be looking at the actual expenses of the station otherwise you will be just guessing. Expenses and costs are not uniform from station to station or area to area. You'll need to see them eventually anyway. Ask the realtor/seller for income statements for the past three years as well as an interim for 2005. They should not have a prblem providing these unless they are trying to hide something.

No two gas stations are alike.

I just looked at two spreads for gas stations that we have financed / contemplated financing and I can see that one has a gross margin of 19.4% and the other one has a gross margin of 13%. One has operating expenses of 14.8% and the other one has operating expenses of 7%.

- You need to take a look at the actual financials of the business.
- The product mix is very important as the profits are going to be coming in from the convenience store more than the gas.

I am seeking funding in the amount of $10 million for the purchase of a major Sunoco Gas Station located in Rochester. Any help is greatly appreciated. If you need to contact me I can be reached at 203-345-6571

I have a number of questions regarding this property.

1. Is this property leased or owner occupied/managed?
2. If the property is leased, who is the tenant and what are the leased terms?
3. What does $10 million loan request include - real estate or real estate and business?
4. What is the value of the real estate? What is the business valued as an ongoing concern?

Based on these answers I can direct you to the right lender - banks, finance companies or Wall Street funds.

Charlie Thomas - what is your phone number? I have a gas station/food mart in fl that I need to refinance. Thanks

I am in the process of purchasing a gas station and is in need of funding .for the amount of 2 million. Any help is greatly appreciated . I can be reached at 20.-345-6571 or E-mail crjackon1972@optoline.net

Hi, Can you please call me <snip>. We do difficult finance deals. All credits can apply, and all types of equipment, Barb


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JUST PURCHASED BRANDED SHELL/CONV. STORE/LOTTERY IN ASHTABULA AND PAID CASH FOR THE PROPERTY AND WOULD LIKE TO FINANCE FIRST MORT. FOR 100K TO START UP. TRUE NORTH IN TOLEDO,OHIO OWNED AND SOLD TO ME. THEY CLOSED STATION IN JULY 05 BECAUSE OF INTRENAL PROBLEMS . THEY OWN 200 STATIONS AND CLOSED 70 OF THE SMALL ONES TO REINVEST THEIR FUNDS IN LARGER MARKETS. THEY SOLD 956,000 GALLONS OF GAS, DID 440000 IN STORE AND 130000IN LOTTERY. I CAN PRODUCE THEIR BOOKS, BUT FOR ME IT IS A RESTART. MY LOCAL BANK LENT ME 75K WITHOUT APPRAISAL ,AND I WOULD LIKE TO REFINANCE THEM OUT AND GET ANOTHER 30 K, AS I DONT NEED IT TO OPEN , BUT I BORROWED 30K TO BUY PROPERTY ON MY HOME AND WOULD LIKE TO CLEAN THAT UP. DO YOU THINK YOU CAN HELP. MT WIFE AND I MAK 94K ANNUALLY AND ARE DEPT FREE EXCEPT FOR HOME. GAS STATION IS TITLED IN NAME GB&CW PROPERTIES, LTD THANKS

CHUCK WEBB 440-466-1631