Dad wants me to help rent/sell a convenience store he owns
Hey guys, I'm a licensed real estate agent, got licensed a year ago, and have 5 residential deals under my belt so far.

Some background info regarding the commercial property my dad owns: my dad bought a house 10-15 years ago that came with a convenience store. He legally separated the lots and sold off the house but kept the convenient store and leased it out. The convenient store is quite small, would estimate 1000-1200 sq ft (not including the basement). He has freezers, refrigerators for drinks, a smoke shop room (controlled temperature room), and a bathroom in the basement. Due to COVID, the tenant declared bankruptcy and we finally got the keys to the store again. My dad is in Atlanta and I'm in Boston. The property is in the Boston area.  My dad asked me to help rent it out/sell it, and I'm lost on what to do and if I should get it under contract and post it on the MLS as a rental or for sale. Or should I to post it on Craigslist/FBM, etc.?

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My dad also told me to 'sell' the business of the convenience store, so all the inventory in the store. But how possible is this? No one wants to buy old inventory and would people want the place vacant?

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My dad was born outside the United States and I was the 2nd generation. Hence, why is he asking me to help me + there's a little language barrier between us.

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I have a Matterport, so I plan on doing a virtual scan of the place for prospective tenants/buyers. Looking for advice on what to do and steps. Anything will help, thanks!
[{"id": "gbqzo1s", "text": "Refer it to an experienced commercial agent in that state. \n\nIf it were me I would also say that you would appreciate looking over the paperwork so that you can learn and grow from the experience. That way if another opportunity comes available you\u2019ll be able to handle the transaction with confidence. \n\nThe nice aspect about this is you not only get paid, but also get to look out for your families best interest while learning a new skill.", "replies": [{"id": "gbr8oj1", "text": "Thanks! I'll let my dad know about this, he can be a little cheap sometimes, so I'll try to get it leased out on my own and see if we can waive the broker fee. Especially in these market conditions and COVID, not sure if anyone want to open a new store right now + a broker fee.", "replies": [{"id": "gbrav9j", "text": "No worries. Please keep in mind sometimes the least expensive option initially costs the most by the end.", "replies": [{"id": "gbrrpzm", "text": "Or, \"It's the stingy man who pays the most.\"   \n\n\nMy father was like that. Pennywise and pound foolish. Classic stupidity.", "replies": [], "depth": 4}], "depth": 3}, {"id": "gbscdzj", "text": "If you dont want to pay a cre commission you will probably hate this idea because they charge more, but id look at hiring a business broker tbh.  The inventory is going to be confusing to deal with.  These things sell based on revenue and income then inventory is added on top to get the sales price.  That generally assumes an ongoing business though.  Aging inventory is a real potential problem id think.  Id highly reccomend finding someone who brokers specifically gas stations and c stores asap.  It is a bit of a specialty inside the cre industry.  They can reach out to their clients and get you some offers feedback pretty fast hopefully.  If you just toss that on loopnet you probably have a lot of unqualified buyers and people that are going to be difficult to deal with that are going to kill a ton of your time", "replies": [], "depth": 3}], "depth": 2}, {"id": "gbrm0gf", "text": "Agreed 1000%.", "replies": [], "depth": 2}], "depth": 1}, {"id": "gbqzp67", "text": "Step one: address the need for licensing since you\u2019d be working out of state. \n\nStep two: talk to your broker", "replies": [{"id": "gbr3epl", "text": "Sorry, wording was off. My dad moved to Atlanta, but the property is in MA, where I\u2019m licensed.", "replies": [], "depth": 2}], "depth": 1}, {"id": "gbqzs40", "text": "I'm not familiar with the how things get done in Atlanta but you should focus more on commercial listing website (ie: loopnet, costar, crexi, etc)", "replies": [{"id": "gbr8g7h", "text": "Thanks!! I knew there were websites for commercial listings, but didn't know what they were called, appreciate the comment!", "replies": [], "depth": 2}], "depth": 1}, {"id": "gbqzuou", "text": "Is there mechandise on location or is that all gone?", "replies": [{"id": "gbr37un", "text": "Mechandise is still on location, bunch of smoke shop things, random chips, drinks, etc. they took all the lottery tickets and left.", "replies": [{"id": "gbr6w4t", "text": "Lol took the lottery tickets.", "replies": [{"id": "gbr76w3", "text": "Take an inventory of the shop, that stuff honestly can add up. I have a friend who's parents operated a little korean convenience store and the inventory was worth over $100K.\n\nI'd do an inventory of everything, and donate anything that will spoil shortly to the food bank", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "gbr0co1", "text": "You need to post the listing to LoopNet/CoStar (they have the market share of online CRE listings), there are other listing services like 42floors, Yardi has a listing service...etc..\n\nJust google commercial listing service and you will likely find a lot of options.", "replies": [{"id": "gbr3ces", "text": "Thanks I\u2019ll take a look!", "replies": [{"id": "gbulhz3", "text": "You could also interview commercial Landlord reps for taking the listing and see what info you can glean from their proposals to use in your marketing efforts.\n\nSlightly shady but, a decent shortcut.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "gbr0lme", "text": "What you do is a matter of preference. Given that you don't have any experience with this (commercial) though, you are maybe in over your head, although this is a pretty small deal.\n\nI'd look at the lease he had in place. That could be the bones of a new commercial lease. You could also take it to a lawyer to he updated.\n\nMy preference would be to just re-lease the store. Most of the time the landlord delivers the unit in shell condition, so you will want to update that to 'as is where is' if there are still fridges and snacks etc on site. For the right buyer, that stuff has a lot of value.\n\nI suggest that you structure the deal so that everything present on site is all included, unless you believe your new tenant wants a fresh start.\n\nClean up the building.\n\nMake sure your lease is NNN (tripped net).\nResearch rental rates for this type of site in your area.\n\nGood luck", "replies": [{"id": "gbr3bbm", "text": "Very helpful thank you!!", "replies": [{"id": "gbr6s83", "text": "I think this will be a good learning opportunity for you. \n\nCan your managing broker help?", "replies": [{"id": "gbr8i4t", "text": "I asked previously and they don't have any experience with commercial listings.", "replies": [], "depth": 4}], "depth": 3}, {"id": "gbscmzi", "text": "Make sure in your new lease you dont have a responsibility to maintain the equipment or replace it.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "gbrjnwu", "text": "Take inventory of the shop and sell the inventory to the interested tenant at a small discount. Otherwise it will be difficult to sell that inventory elsewhere. I would suggest going to other convenience stores and offering the space to them first, a lot of convenience store owners tend to have multiple stores.", "replies": [], "depth": 1}, {"id": "gbrq4yb", "text": "If you don't do commercial don't do this yourself", "replies": [], "depth": 1}, {"id": "gbsbipt", "text": "I've sold a handful of c-stores, and they are surprisingly difficult.\n\nYou didn't mention fuel sales, so I assume this doesn't have pumps.  \n\nIt would be best to get it leased with a nnn lease and then seem the building with the lease in place to an investor.\n\nYou'll need to check the going cap rate of investment properties in your area. CBRE has good data on that. I would guess you are somewhere in the 8-10% range.  In that case, if you rent the space for $2k/month nnn, the value would be ~$240k-300k. \n\nIf you think that's too low, sell it without the lease, or maybe that lease price is too low. Anyway, that's the idea.", "replies": [], "depth": 1}, {"id": "gbsfqyl", "text": "I would double check and see if there is a trustee for the BK.  I would be nervous to \"sell\" or \"throw out\" a bunch of assets that were listed as assets on the BK paperwork.  It could create liability for you if there is a trustee put there thinking there are a bunch of assets out there (only for you to throw them away because you think they are worrhless).  \n\nOn a side note, both my dad and I are native English speakers.  At times, I swear there is a language barrier.  ;)", "replies": [], "depth": 1}, {"id": "gbshm5w", "text": "&gt; Due to COVID, the tenant declared bankruptcy and we finally got the keys to the store again  \n&gt; My dad also told me to 'sell' the business of the convenience store, so all the inventory in the store.\n\nWhat exactly did you buy from the tenant(s) out of bankruptcy?\n\nThere are financing options for businesses to buy/own the real estate in which they operate. I would say, find a new tenant for the convenience store first. If they want the business but not the real estate, then execute a lease with them and then sell the real estate.\n\nIf there are any existing convenience stores in the area with 2-3 locations, they might be interested in operating the store (if not buying the real estate too).\n\nThere could be options for tenants interested in other general retail businesses as well, depending on the zoning and the neighborhood.", "replies": [], "depth": 1}, {"id": "gbsilxp", "text": "If a patent lawyer was framed for murder do you think he\u2019d defend himself, or would he hire a criminal defense attorney?\n\nRight now your dad has to pay insurance, taxes and maintenance costs making the location a money pit until it\u2019s either leased or sold.\n\nMy advice; hire an expert, they\u2019ll either sell it to an owner operator, or sign a lease and recommend you sell. They latter will likely be more profitable. \n\n3-6% for the best price, the most qualified buyer and with efficiency is a no brainer.\n\nDon\u2019t make the mistake of doing it yourself. Even if you have 10+ years experience in residential you should still use an expert.", "replies": [], "depth": 1}, {"id": "gbsmsfm", "text": "Commercial and residential are different. If you are licensed in MA contact a good commercial realtor in your area and discuss a referral fee and pass the transaction on to them in exchange for a specified fee. The fee will vary depending on whether it is a lease or a sale. Don't do it yourself, there is very little overlap between residential and commercial.", "replies": [], "depth": 1}, {"id": "gbtilgm", "text": "Hi, I'm in a commercial real estate and in the Boston area as well. Shoot me a message if you want to have a quick call, I think I can help you with this.", "replies": [], "depth": 1}, {"id": "gbtt1vk", "text": "If you have literally zero commercial experience please refer this out to an experienced commercial broker.\n\nLook at it this way. What would you say if a potential residential listing client asked you \"Why shouldn't I just list this myself FSBO and save the commission?\"\n\nYou're paying for expertise. And like other comments have already mentioned, the price you pay an experienced broker will likely actually save you headaches and money in the long run.\n\nResidential and commercial transactions are vastly different. It would be like asking a criminal law attorney to advise you on probate law. Just because you're a realtor/lawyer doesn't mean you're an expert on every aspect or real estate/Law.", "replies": [], "depth": 1}, {"id": "gd65oiw", "text": "This is pretty straightforward m process. You don't need any specialized broker because I will tell you what to do.\n\nFind out the revenues of c store. Separate cig sales from everything else. Take the rev and times it by 25% gross profit and add 6% to cigg profit.\n\nRev x 31%  profit equals your gross profit. Now subtract typical expenses leaving you with net income. \n\nBeer : 19% and liquor : 28%\n\nC Store will sell for 4 to  6 .times the net income.\n\nGo on bizbuy and place a listing add. That's it \n\n\nIf you get a potential buyer, hire an attorney to do the transfer of license and for the purchase agreement. \n\nThere I saved you a whole lot of money to pay as a commission.\n\nPut your big boy pants on and learn the business brokerage game.. Pm me if you need help breaking this down.\n\nI've been in c store and restaurant business.", "replies": [{"id": "gd6642y", "text": "This is assuming it's not a gas station. This advice is for the sale of c store business only.", "replies": [], "depth": 2}], "depth": 1}]