Gas Station Loans

"Where can I get a gas station loan?"

How many gas stations are there? you wonder. How much can I make? Well, that depends on a lot of factors that you and Goldman & Klein as your mortgage broker will want to discover as we go through the process of getting your loan. In this country, there about 117,000 gas stations, 80,000 of them with c-stores inside..

"I want to buy a gas station, right by the freeway, so but where do I get the financing?"

Gas stations, convenience stores (c-stores), truck stops, and car washes are among the most lucrative businesses in the world, even with today's high prices, dwindling profits, and declining pool margins. If you're an old-timer in the business, you already know this. But financing isn't always that easy. Banks look at the facts:

Petroleum retail is a cash business. Verifying cash flow is more difficult with owner-run gas stations and successful c-stores than with other commercial income producing properties such as apartment buildings, mini-storages, and office buildings. For example:

• In petroleum retail, there are environmental risks not present in other types of commercial properties. It's easier for a bank to lend on a property where there is less risk of environmental contamination. And while environmental hazards, even in gas stations, can be controlled, they are part-and-parcel the reason why traditionallenders see gas station loans as high risk loans. For you, that means higher interest rates, and shorter terms.
• Although gas stations and c-stores often bring in a load of cash, the bank doesn't want to manage it for you should you default. A gas station requires on-site management and knowledge of day-to-day operations. With an apartment complex, self-storage, or mobile home park, a Wells Fargo or a Bank of America-type bank can step in, inspect the rent roll, fill a few vacancies, and keep the property rented until a new buyer is found.  Believe me, your local credit union doesn't want to run your gas station if you default.
• Gasoline fuel margins are at their lowest point in years. This is because big box retailers like Costco, and Walmart-type stores, along with convenience stores like 7-11, who don't make it on their fuel margins, and don't give a fig about yours, use the price of a gallon of gas as aloss leader to bring in the heavy foot traffic.
• And we've all seen the price of a barrel of oil.

This is why you will often get a "no loan" from your local bank. Time for your blood pressure to go up.

I want to buy a truck stop, you say. Or how about a c-store with video-poker? They make a lot of money!

So what does it take to get a truck stop loan, a c-store with gas and video poker loan? How do I get it funded?

We can tell you that over the years, we've seen many operators, dealers, and small jobbers get funded by the SBA 504 loan. It's a great loan, one of the best loans on the market. Closing on an SBA 504 is your lotto winner day.

But an SBA 504 takes time. It's a sixty to ninety-day deal. Not a 7-day close like we all wish. If you have ninety of due diligence written into your purchase contract, we'll do our best to get you an SBA 504 loan.

This is our promise to you: we'll put your SBA loan package together so tight our investors will cry for joy. You won't lose the deal through inept presentation, inaccurate financials, or a bungled Phase II. We'll go over the numbers before we take it to underwriting. We'll guide you through the loan process step by step. The government guarantee on an SBA loan gives you, the borrower, 30% more purchasing power than a conventional loan, and better terms on your gas station refinance.

Goldman & Klein reps are ready to assist you with your purchase or refi, just give us a call or email us through our web form.

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Call 1-858-602-7800 for a free gas station loan consultation

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