In a previous newsletter, we discussed how to market and sell your gas station/c-store successfully. We now turn our focus to the buy-side of the equation. We will discuss strategies to help you not only be a successful bidder for a specific property but also to help you create a framework that will bring you more opportune deals.
3. Get your finances in order. They will help you better understand what you can afford. Establish a good relationship with a lender or financier before you find a c-store for sale. This could be a bank, but it could also be a friend or relative. If you’ve built a successful track record, you might be surprised at who would like to invest in you.
If you don’t have any loans currently, you should track down a loan officer at your bank. Some banks are fine with investing in gas stations, some prefer to stay away. Your banker may tell you that they will look at everything, and he or she will. However, that doesn’t mean the committee who approves the loan will.
Ask your banker how many similar loans he or she has done, and where the bank is in relation to their quota of gas station/convenience stores. Banks like to diversify their portfolios. If they are too heavily loaded in one area, they will stop lending there. That is why it’s best to get the lay of the land ahead of time so there are no surprises when it comes time to close.
it. Don’t worry about where the offer is in relation to the price. If the seller is willing to negotiate, he or she will let you know. Be prepared for silence if your offer is too low, but even silence will give you information about how to make your next move.