Looking into potential gas station with property purchase. Best plan of action in the early process??

In the present economic times with property values falling, how does a person know if this is the right time to invest? What is the general outlook of the California real estate market?
In Buying Property - Asked by Talwinder G. - Jan 8, 2012
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Answer(s)

J. David F.
Broker/Agent
Brentwood, TN

Best to work with a commercial real estate broker in your market of interest that understands such investments and operations. You need to have a clear goal and plan to proceed. A good broker is worth his fee and then some. They will help you avoid the pitfalls and take advantage of the real opportunities thereby helping you make money which is after all your goal. You employ a physician to make you well, a dentist to maintain your teeth, a mechanic to keep up your car. Investing is no different. Employ a profesional to assist you.

Jan 9, 2012
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Chris R.
Broker/Agent
Denton, TX

Best plan is to find an experience competent professional real estate commercial broker operating in your area. They will help guide you through the process and be knowledgeable of trends and when and where would be a good time and area to invest. Real estate is location oriented and market specific - what is happening in the market area where I am at has no bearing on the market area where you are at or where you are interested in investing. Run a search in Loop Net for your area and particluar type of investment property you want and give several of them a call - discuss your interests with them and choose one that appears to be able to help your particular quest.

Jan 10, 2012
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David S.
Broker/Agent
Bloomingdale, IL

Gas stations are very simple. Any gallons below 100,000 per month means you will not make a profit. Question is - Why is it below 100,000. Is it existing hours of operation or a location issue. The site may accommodate a fast food franchise to supplement the pumping issue. Bottom line is that gasoline does not return a profit. It is the ancillary services that put money back in your pocket.
The station is for sale for a reason. Don't accept owner is retiring.

Jan 10, 2012
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marco o.
Broker/Agent
Saugus, MA

Run !!! Don't ever buy a gas station I owned two and lost my shirt your working on pennies and if your not doing 150,000 gallons a month at over .10 cents a gallon your out of business in 6 months if you last that long. Don't do it !!!!!!!!!!!!!!!!!!!!!!!!

Jan 10, 2012
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Alan E.
Broker/Agent
Saint Petersburg, FL

Beyond the financial/business aspect of it, be very cautious of environmental issues, always get a Phase One Inspection, and if that inspection recommends a Phase Two inspection, get it and make sure it's clean, that or, move on to another deal.

Jan 11, 2012
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Talwinder G.
Owner/Investor
Caruthers, CA

I know several friends in the gas station business, that was my reason behind exploring the possibility. What is the best way to value a gas station business? Is there a specific formula? Is not the current time to invest in this type of business?

Jan 13, 2012
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