Buying Car Washes and Gas Stations

There are two types of buyers of a car wash or gas station: those that want to buy the real estate, which is leased to a tenant who operates the business; and those who are buying the real estate and the business. For these types of specialty real estate, thorough issue spotting is crucial. Consider the following points and Contact REC broker Bridgette Gallagher with additional questions -

1. Environmental due diligence is of paramount importance! Gas stations are notoriously prone to underground leaks, causing environmental harm and expensive remediation. If left unaddressed, the EPA may pursue all known owners on chain of title to cover clean-up costs.
2. Ask yourself if you are prepared to run a business. Automatic car washes and self-serve gas stations may seem easy but they do not run themselves and the principles of running any business certainly apply here as well.
3. "Special assets" like car washes and gas stations often require special financing that may entail higher down payments, higher interest rates and shorter terms. Seek pre-approval from a lending source before you start the real estate search for car washes and gas stations to ensure you can make financial sense of the acquisition.