any gas station operators? purchasing my first gas station and looking for insight.
In the process of opening escrow on a gas station, in Southern california. Just needed to get some insight as this is my first step into the gas station business... I've run mostly convenience stores for about 12 years.
Just curious as to what expenses I should be looking out for in the long run relating to tanks, leaks etc.
Thanks
[{"id": "ixhpvj2", "text": "Make sure you know what the compliance testing requirements are and get multiple quotes for the work. Most of your money will be made on the store not the gas.", "replies": [], "depth": 1}, {"id": "ixuhqmv", "text": "Tanks are major expenses - be sure to find out when they were replaced last, what your state requirements are and get some contamination tests done. \n\nThat being said - what can be even worse is what deal does the current property owner have with licensing?  Which \u201cflag\u201d does it fly and what does that deal entail?\n\nGas companies and also distributors usually put up big money to secure their rights to sell gas at a property. The variation of the terms can be mind boggling. From rack pricing(what you pay for the gas), to who covers CC fees, who maintains equipment, it is literally endless. Be sure you know what the licensing agreement is. Tanks can be torn up, replaced and the store can be reopened for a couple hundred thousand $. A bad licensing agreement can cost you hundreds of thousands of $. For years.", "replies": [], "depth": 1}, {"id": "j10vq8q", "text": "saw a gas station recently with $1 outside sale, asking 520k, with 9000 rent. numbers seem too good to be true- How do these survive with EVs coming? Owner shows 40k net profit every month. Mind blown", "replies": [{"id": "j10w92k", "text": "Gas profit per gallon is ranging from .40-$1... so stations selling 70-80k Gallons with .70 margin... its very doable. But with gas proces coming down, I'm not sure how long this will last. Maybe everyone will continue to make the extra money given high inflation and labor costs", "replies": [{"id": "j10yf37", "text": "prices at that exit is controlled by 2-3 owners and they clear .70-1$ with very minimal inside sales. price of gas fluctuate a lot but lot of indians own this business- doubt its not profitable or slim margins", "replies": [{"id": "j118nca", "text": "There'd an individual who build a station close to my house. Cost about 3.5m with land about 6 years ago. He's netting 150k plus a month. He wanted to sell it last year but took it off the market", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}]