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How to Get loan for Conv Store Gas purchase with property?

I have 150k and thinking of buying Conv. Store / Gas Station with Property which will be in range of 1 to 1.5 million. With 200k+ Cash Flow. I have full time job and no experience running business. Is it possible to get financing for rest, or should i get just business on lease?

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Answers (4)
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Corporate Financiers
President

I have lent to several gas station / c-stores. Even with higher government guaranty's (90%) on SBA, banks still won't lend more than 65% LTV max on real estate (conventional loans = lower LTV). Lease is more likely and this will require an SBA loan.

I arrange financing for businesses nationwide. Importantly, I am an advisor first and intermediary 2nd. I offer guidance through the entire loan process. Let me know if I can be of assistance. I am an experienced fortune 100 banker (merrill lynch) with an accounting background (U. of Michigan and Northwestern).No obligation and no cost to the borrower.

Jul 28, 2010
Terri Bollman-Wyzkoski
MainStreet Bank
Sr. Commercial Lender
Fairfax County, VA

Banks have always required a minimum 20% from the purchasers for any business acquisition. They require an even higher percentage for high-risk industries like restaurants. In this very tight credit market, most banks are requiring more than the normal 20% from owners unless buyers are approved for an SBA loan.

On a purchase price of $1.5 million, you'd be required to provide a minimum $300k down payment (also called owner injection). Employing an interest rate of 7.5% (probable maximum), the annual payment would be $147k. So, the $200k cash flow would be more than adequate to cover the proposed debt. The debt service coverage (DSC) would be 1.36x earnings, which exceeds the minimum 1.2x to 1.25x DSC required by most banks.

Business Lending Solutions LLC ("BLS") is a commercial loan broker run by former Business Lenders. Our loan consultants work with you to obtain the necessary business financing for the acquisition of a business, its business assets, its fixed assets, working capital, etc. A short list of the primary services we provide are:

(i) Review the details of the proposed business acquisition to verify eligibility for a loan;
(ii) Provide a business valuation to identify if the list price represents premium, or if it is represents a discount. Obtaining a business valuation is the best defense you can have to know if you are in a position to negotiate the price down, or to learn if you're purchasing the business at a discount.
(iii) We underwrite and package the transaction in a form acceptable to and most likely to be approved by a bank. Having been business lenders, we know exactly what the bank requires AND what will kill you deal before it's even presented for approval.
(iv) We prepare and present a professionally packaged loan request to lenders in our national network of lenders who are most likely have an appetite for that particular type of loan or industry, etc.

We are proud of the fact that you do not pay us our Broker Fee unless and until we provide you with an actual signed loan commitment from a bank. Given our process, you don't waste valuable time presenting a loan that may not be approved because it's missing something or it just doesn't fit parameters. Please let us know how we can be of service to you.

Terri B. Wyzkoski
Managing Member
Business Lending Solutions LLC
11654 Plaza America Drive #363
Reston, VA 20191
Twyzkoski@BusinessLendingSolutionsLLC.com
Direct: (703) 655-9939

Jul 14, 2010
Jeff Rauth
Commercial Finance Advisors
Oakland County, MI

Honestly with no direct experiance you will not get any type of financing. Maybe seller but not from a bank or lender. Lease it with an option to buy in 2 -4 years.

Best of Luck, Jeff

Jul 14, 2010
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R A

It may be possible to get a loan for the rest but it depends on what the property value is. Lenders will usually be willing to lend you a percentage of what the property is worth. You would need an appraisal to get a loan for that. If you decide to invest your money instead, please e-mail me at rebecce_acosta23@yahoo.com. I can offer you $ 4,500 a month for an investment of $ 150,000.

Jun 20, 2010

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