How do I price a Gas Station to sell, is it $0.05 X gallons sold x 5x?
What’s the standard multiple on annual sales for selling a gas station. Small station selling 500,000 gallons annually. No c store. Repair shop leases space. $20k rent yr.
[{"id": "iwqi4g1", "text": "Do you have a buyer? I\u2019d like to take a look. I can move gas stations. Never tried one without the C store but I can get a rough valuation.", "replies": [], "depth": 1}, {"id": "iwqouwy", "text": "Use the income capitalization approach. I\u2019m not sure what the standard cap rate is for gas stations, but divide your annual net operating income by the % cap rate\n\nFor example, if your NOI is $100,000 and your cap rate is 10%, you would do 100,000 / 0.1 = $1,000,000 value. Edit: ~~Make sure to also include the value of your land and improvements~~", "replies": [{"id": "iwrk44y", "text": "You don't include the value and land improvements into this calculation. The price is the NOI/CAP rate. Plain and simple.", "replies": [{"id": "iwrnaho", "text": "Ah yeah you\u2019re right, good thing I am not the syndicator for my company lol", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "iwqsbda", "text": "Ask your broker", "replies": [{"id": "iwqurhe", "text": "This. Hire a qualified broker to do it for you.", "replies": [], "depth": 2}], "depth": 1}, {"id": "iwqw8u7", "text": "Which state? When do your ust permits expire?", "replies": [], "depth": 1}, {"id": "iwr13ax", "text": "is that still highest and best use? i think it would be easy to figure out value of gas production, it\u2019s determining value of real estate", "replies": [], "depth": 1}, {"id": "iwrj5yu", "text": "If I remember correctly. if you\u2019re only looking to sell the gas station business (real estate not included), it\u2019s typically 4-6x your gross profit.\n\nIf you're looking to sell the property with a lease in place, you would have to look at the CAP rates of what similar assets sold for. As others mentioned, hire a broker. From just seeing the basics, this a super high CAP deal. Lease entity likely has minimal to no net worth, probably has a short lease term, tenant's sales are terrible, lack of C store hurts. A lot of variables come into play to better understand the value...", "replies": [], "depth": 1}]