Commercial Real Estate

[John14789]

Are gas stations profitable investments?

Are there any other commercial venues which would generate more profit in long haul?

[Modee]

Gas stations don't make as much money as one would think, and whether or not any investment is profitable depends on the cash flow versus the price paid.

[John14789]

Well actually gas stations do tend to make a pretty sum each month but it would take a couple years to get your investment back and then you'd be making all profit. The ROI is good for the long haul.

Yes I do understand the cash flow versus the price paid principal but that wasn't my question.

I wanted to know the types of commercial real estate one could invest in and make a descent sum each month.

Also franchising would be one course of action.

[Modee]

Any real estate investment where you got your entire investment back in two years would be an incredible one. No one would sell a business for x dollars if it were making x/2 net each year!

[Dr.Yes]

Life tastes better when you eat with your hands.

Gas stations make more money on the convenience store side, selling lotto tickets, snacks, malt beverages, etc... They make money on gas too. I had a friend get in some trouble for price gouging last summer. Put a car wash in too.

As far as investments... I never put all my eggs in one basket. I'd ask yourself if you can afford to lose the investment first.

[John14789]

Well actually yes most of the money gas stations make comes from the convenience store side but a lot of gas station sell about 80k-100k gallons of gas each each month as well. They make about 4-5 cents per gallon. Now that's a lot of money we're talking about. Most gas station make about 4-7k from the grocery sales. Now a gas station in a good area would set you back atleast 2-3 million dollars but if you know people in the inside you can get very good prices on gas stations.

You will not loose money on a gas station if you play all your cards right.

[Modee]

Commercial real estate has been pretty soft for several years now. It may be coming back.

[Bigwinner]

Well actually yes most of the money gas stations make comes from the convenience store side but a lot of gas station sell about 80k-100k gallons of gas each each month as well. They make about 4-5 cents per gallon. Now that's a lot of money we're talking about. Most gas station make about 4-7k from the grocery sales. Now a gas station in a good area would set you back atleast 2-3 million dollars but if you know people in the inside you can get very good prices on gas stations.

You will not loose money on a gas station if you play all your cards right.

You ever dip into the commercial real estate John?