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$350,000 gas station. Business degree, 30% down, 740 credit. What's my chances on getting a loan?

I want to buy a gas station for $350,000. I have no experience running a gas station , but I have a business degree. I got a 740 point credit score, and I am willing to put down about $90,000. I have no debts. What are my chances on getting a loan right now in this enviroment?

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Answers (3)
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Small Business Underwriters
Founder

In general banks are shying away from gas stations due to the risk of environmental issues. In my experience with gas stations, the key to success is what you are selling other than gas (the typical margin is only pennies per gallon). A nice convenience store and the ability to sell lotto are quite common. A good place to start is to get an understanding of the revenue breakdown (gas, lotto, alcohol, food etc).

Aug 1, 2009
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The BAF Group LLC
MD

You have said nothing about Pool Margin, whether it has a C-Store or Repair Bays, Lotto or other income producing venues, and Profits. What is the Lease? There are a lot of issue that have been unanswered, so is the Station worth the Price? And is it a branded Station or an independent? All of this needs to come into the equation, in order to determine the liklihood of you getting a loan.

Jul 30, 2009
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How to Buy a Business
WA

From a bank? Low. From the seller? Better. Keep in mind that sellers are affected by the economic conditions well. What you have is basically a 25% down payment which is pretty good.

A lot of deals close on the basis of what you can negotiate.

You won't know what that is unless you try.

Jul 29, 2009

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