Let's say I have $10 million dollars in my possession
Would buying a gas station at a prime location be a good business to get into or is there other more lucrative business investments I could be making?
The gas station would also have a car wash on site, small coffee shop (Tim Hortons) inside the gas station, and have a small grocery section.
Pic very related
There's no point in these role-playing fantasy threads. Whether its a good or bad idea, what the fuck is that going to do for you? You can't do shit anyway.
gas stations don't make much money (for the owner).
if I had $10 mil and had to buy a business, I would buy a tech business that's already bringing in a lot of money and growing. why would you want to deal with all these physical products when you can make money with software/applications?
literally just buy a 5 bedroom house and rent the rooms out. you'll make more than whatever a gas station makes which is nothing
Gas stations don't make much if what I have heard is correct.
The sell the gas for free (all money goes to the gas companies) in exchange for having access to the building and any profits they can make off sales within the convenience store.
I'd guess a station makes probably $500 - $1000 a day? Then when you take out inventory expenses and employee wages, I doubt it's that much after that.
I wonder how profitable it is to add car wash, oil change service. Anyone know if they get money from state emissions test?
Industry standard is 10 cents per litre
You make 9 dollars profit for every car wash that costs 10 dollars
Then add the convenience items and the coffee shop...
I don't know where you guys are getting this idea that they aren't profitable.
I don't think a gas station is worth 10 million dude
You need to review the numbers man
buy a rentan property...
i just bought an apartment complex in germany for 2.1m Euro...gives me 11k euro a month in rent, thats about 7k after taxes...
there's a waiting list of tenant wanting to move in, hardly any repair/maintainance costs...
and in 10 years i can sell it again for 3m
You can buy a CVS pharmacy with a 20 year lease and two extension options for $9,000,000
and, I forgot to mention, your annual income will be around half a million in rent per year
Buy a ground lease that is improved with a gas station. Your income would be lease income from the gas station owner. Make sure that the lease is guaranteed by the corporation.
With the ground lease you remove the risks associated with operating a gas station.
$10 mil, for a gas station? my dad bought me a gas station/convenience store for 250k, it makes me 90k/yr. i meet with the manager once every few months to see how its going.
most of you guys are fucking stupid and super unrealistic.
>checked
In Florida, you would gross double that rental income. Your taxes would be much lower and you could also deduct all your expenses associated with the rental property.
The general rule of thumb is look to gross 1% of your total investment in monthly rent, so a 2.1m building should gross 21k monthly rent.
Another great alternative is hard money lending on real estate. Rates here are around 12% plus origination points.
10mil you can buy several gas stations, but the opportunity cost is too high.
I say invest in oil pipeline companies if you want to make some stable money off oil. Enbridge corporation pays about a 5% annual dividend, so that $50,000 a year for every million you have invested. If you invest 10 mill, you'll make around 500k a year in dividends, but all your eggs in 1 basket.
If you had that much money, diversify in some dividend paying oil funds, and buy Tim Hortons franchises, just the timmies cause fucking Canadians love that shit and you'll make more bank than with a gas station
why would you tie up your 9m for a lousy 5% return (if you're lucky)
just stop pls
>GET THE CAR WASH, WALTER
Its easier to get a loan in Germany than it is in Florida.
If you have 10 million dollars in cash sitting around, you should invest 9-9.5 million into blue chip stocks. Use the remainder to buy house/sustain yourself, and then live of the dividends. You'd have to be a total autismo to get caught up in a venture like this with that kind of money.
Also, if I recall correctly, a gas station only costs about 500k to set up. So if you did start a business, you better open up a few of them, although you would likely be put out of business by existing companies.
Starting up a new business is almost never a good idea. Buying an existing one is usually the best option.
Also, I remember reading somewhere that gas stations only make like 5% off each transaction. And 3% of that goes to the credit card company.
A while ago there was a filling station in Los Angeles for sale.
Probably one of, if not the biggest in the area with franchised fast food and a lot of other good shit
The price was $30 million, with $40 million turnover, and $2 million in food sales just from the convenience store and a net profit of $3 million per annum.
On the other hand I also saw a portfolio of 20 filling stations in Florida for $15 million.
Kind of seems like a bit of a jump from "I have nothing but money" to "let me get into a real estate asset class with tons of moving parts I dont know anything about"
A guy with lots of money and no clue in the real estate world is like a kid with a loaded gun.
if "pic is very related" then whats the cap rate? cash on cash return? whats depreciation look like on this vs say residential as far as taxes are concerned? What about you're IRR? whats the area look like - jobs? average income? foot and auto traffic?
if none of that made any sense - you need to take a breathe and stand back.