How gas station owners can finance or re-finance gas station property. Kendall Schnieder has been in the commercial real estate finance business since the mid 90's and has a particularly close working relationship with some very aggressive banks.
Monday May 11, 2009
I say that with one clarification; do business with banks that know how gas station financing works. You have to understand that it has been slim pickens for many banks and they most likelywill jump at just about anything at first, but then after you have invested many hours and sent in all you financials, they discover that underwriting a gas station isn't like a single family residence. So be certain to work with 'knowledgeable' brokers and lenders, you will save yourself a lot of time and frustration, and you can end up with some extra money in hand when you're employed with a well informed lender.
ARCOs can be bankrolled thru typical banks, but they are lending only on the value of the property, and will not consider business and inventory values. As of this writing, these rules apply only to ARCO franchises, I don't know of any real problems in obtaining loans for either independents or major distributors. Naturally, the banks are looking very close to credit worries and profitability of the business.
Now for the good news. The time for obtaining loans for gas stations and convenience store mixes, particularly if the loan includes real estate, has never been better. Because of the liquidity crisis, sellers are making some amazing deals on the business and the property. For the clever businessman, now is the time to either purchase a gas station, or refinance your existing business for one amazing reason, INFLATION! Should you are going to buy at reduced costs and fix your value of possession, then inflation is going to be your friend. Make the right adjustments, for example making a clean environment for your patron's visit will increase your business many times. And keep those pumps and islands sparkling, If you will see a dramatic increase in return business.
Gas station financing can be an awfully nice experience. SBA will lend up to ninety percent on qualified gas stations. If your station is in a country area, be certain to ask your lender about a USDA loan. USDA loans are backed by the govt, and they're assertive in their underwriting to place the loan quickly.
Don't include vehicles and other items that depreciate fast. Pay for those items with short term money.
To get approved for Gas Station Financing Click Here
Kendall Schnieder works with preferred SBA banks in the Western US and specializes in commercial real estate loans. He can be reached at http://www.mark4Capital.com .
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