World Economic Conditions, etc

So, almost on a regular basis, I am asked about the world economic conditions, in that in the sale of gas stations, http://www.gasstationsamerica.com we are constantly dealing with gas and oil prices, and the international community in general. Thus, I am always looking for articles of insight, etc…and this came to me from a financial advisor, and I found it of interest.

Consumer spending was up 0.4% in December – twice the gain economists polled by Briefing.com had forecast –and by the federal government’s initial estimate, the economy grew 3.2% in the fourth quarter. The last month of the year also witnessed improvements in retail sales (0.2%, 0.7% with auto buying factored out) and industrial
production (0.3%). Thanks in part to a $53.2 billion December surplus, the federal budget deficit was 41% smaller at the end of 2013 than it had been a year before.

This is certainly better news than a year ago….so keep the faith. And, the time may be right to buy a gas station and convenient store. We have a good inventory of listings…and financing is available and readily easy to get. check us out at http://www.gasstationsamerica.com

Gas Station Financing in California and the SBA

One of our associates sent me  the following on SBA loans, and I used it when giving a lecture to agents on gas station financing.  SBA is pretty well known in the industry for financing gas stations, but this is well put and understandable. Part of it is from the government office that deals with SBA…but this is “translated” for all to understand.

Throughout the years, SBA loans have become the only choice of financing for gas station dealers and operators. Since the overall economy has worsened within the last number of years, the gas station retail businesses have become even more difficult. With the constant change in fuel prices and our failing economy, foreclosures on service stations and convenience stores are already at record highs.

Back in 2008 or so, the SBA had made financing for gas stations virtually impossible. The SBA had required all gas stations older than 5 years to get a Phase II environmental and all transactions required a seller indemnification, whether or not there had been an environmental concern or otherwise. To make it more difficult, the SBA also demanded a different business valuation from an impartial and independent evaluation company as well as the appraisal.

What do you think SBA was intending to do with all these requirements? Yes, they didn’t want to do gas station financing and I think they were just not sure how to say it.

There should not be any surprise that the SBA adhered to this position. With some non-bank lenders committing fraud cases in past few years, record default and foreclosures, it’s no surprise they made them difficult at the least to get financing. The truth is, the gas station asset class wasn’t considerably worse than other types of properties.

So with no practical secondary market, many gas station lenders have either discontinued doing SBA loans or any other gas station loans or significantly reduce the volume of SBA gas station financing they’d do. Just the larger banks could lend and portfolio their loans which they choose not to do anyways.

Fortunately with the Government stimulus during 2009, a great deal, but not all, of these conditions have changed. First, the SBA will no longer require indemnification agreements on all transactions except those where environmental conditions exist. And secondly, the SBA won’t demand a Phase II environmental except in situations where environmental conditions exist. It is recommended that buyers check the State’s DEP or DEQ to ensure that there isn’t any environmental issues such as spillage or migration reported so the possibility of decline will be reduced considerably. Of course SBA still has issues with some Oil companies deed restriction and agreements with their dealers so what we recommend and what we usually do for our clients is provide the deeds and dealer agreement to the SBA to check first.

Furthermore, the SBA is currently allowing capital providers to base their loans off of LIBOR as well as Prime, giving financial institutions more options to make loans more profitable.  Of course with the current capital market, almost all gas station lenders would finance gas station properties through SBA 7A loan program which is adjustable rate based on prime.  This way, SBA guarantees 75% of the loan which means less risk for lenders and more profit as well.  There are almost no conventional lender that would do SBA 504 loan for gas station with exceptions of few non-bank lenders.

With the streamlining of SBA operations, SBA financing is still a great source of financing gas stations, car washes and other special purpose business properties. As usual, you should have a good financial package together in order to increase your chances.

Another thing to point out is that the waving of the SBA guarantee fee is over and now borrowers would pay the guarantee fee of 2-3% of the loan amount.  This is a substantial fee to pay for obtaining financing however, as many know, SBA loans are almost the only source of conventional financing with relatively high leverage amount.

Regardless of what type of financing you choose, make sure that when are getting gas station loans, you work with people that specialize in this specific market and know both the lending and gas station business. And, when I get an inquiry on gas stations, I will send them to my associate, as he does a very good job. So, when thinking of buying or selling.,…please contact me at   http://www.gasstationsamerica.com   or call   530-941-0444.

Shell Station for sale in Redding, CA

• Shell Gas Station for Sale in Redding, CA..offered at $2,500,000

  Why buy a Shell Gas Station? Great brand with one of the largest credit card followings in the nation; Consistently quality fuel for excellent repeat business; Opportunity for fleet sales versus unbranded stations and gas; Excellent reputation and branding benefits the local owner; Superb management assistance from company; profitable with good mark up and margins.

  Highlights: Great Location-66,000 gallons/month; Very High Inside Sales-$74,000/month average; Subway Sandwich Shop on Premises; Huge pump access area for RV’s and Boats; Excellent condition both inside and out; Priced to sell based on recent bank appraisal.
  Description: This is one of the most impressive gas stations-convenience stores, with Subway in the building, in the North State. Great location on I5 just north of downtown Redding, and opposite planned Regional Shopping Center. The station has been modernized and is in excellent shape. e-mail for complete listing package.

  Best location on Interstate 5 at the Oasis Road exit just 3 miles north of downtown Redding, CA., which is 165 miles north of Sacramento and is the last major city before Lake Shasta and on over the Cascades into Oregon. Extremely busy location with a great deal of added Lake traffic, including boats, motor homes, and interstate travelers. Subway is a huge draw for business. Additional detail, photos, narrative, and financial info at   http://www.oasisshell.com
  
  http://www.oasisshell.com     Offered at $2,500,000.

What is a Cap Rate? Why it is important in commercial real estate….

Often times we will get a buyer of an investment property….lots of questions, and mostly good ones. One good question that keeps coming up, especially with newer investors…What is the Cap Rate? What cap rates are on the recent sales? So, here is a definition of a Cap Rate…one of the best that I have read….and I think it is from one of the real estate investment text books…

The Capitalization Rate or Cap Rate is a ratio used to estimate the value of income producing properties.The cap rate is the net operating income divided by the sales price or value of a property expressed as a percentage. Investors, lenders, and appraisers use the cap rate to estimate the purchase price for different types of income producing properties, which is a guideline for a new investor. A market cap rate is determined by evaluating the financial data of similar properties which have recently sold in a specific market. It provides a more reliable estimate of value than a market Gross Rent Multiplier since the cap rate calculation utilizes more of a property’s financial detail. The GRM calculation only considers a property’s selling price and gross rents. The Cap Rate calculation incorporates a property’s selling price, gross rents, non rental income, vacancy amount and operating expenses thus providing a more reliable estimate of value. These are all key factors that a buyer should consider in the decision making process.

If you are looking for CREATIVE COMMERCIAL FINANCING for an investment property, give me a call. We have products for almost every possible property…and possibly one for you.

http://www.largentfinancial.com

Foothill HS Gets Rivals.com’s attention in State Football

The following appeared on Tuesday in Rivals.com  Sectionsports.com  section…on Northern California high school football:

Forget everything you know about Northern Section football.

Didn’t take long, did it?

Teams from way up north in California like

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	Zach Ray is the brother former 49er Ricky Ray.

Palo Cedro’s Foothill don’t get the attention from colleges and fans that they sometimes deserve due to relative location, but Cougars’ coach Bryon Hamilton is trying to change that perception.

“Part of the problem with recruiters is they can come up here and see four or five kids, or they can spend the same amount of time in the Bay Area and look at 40 or 50 kids,” Hamilton said. “People forget we’re here sometimes. We’re trying to change that mindset.”

After being snubbed for a state bowl game invitation after a perfect 12-0 season in 2007, Hamilton started scheduling tougher games outside of the Northern Section, and California for that matter. In 2008, the Cougars defeated Oregon’s South Medford, ranked No. 1 in the state of Oregon in some polls. A year later, Foothill beat Washington’s Union High School, a team that was ranked as high as No. 2 in Washington in 2009. Both victories came on the road in hostile environments.

“We tried to upgrade our schedule as much as possible, and we’re doing a better job of going out there and competing with other teams outside of our section,” Hamilton said

One team the Cougars were able to impress was Sacramento’s Grant High School, a perennial powerhouse that won the 2008 open division California state title. The Pacers travelled with Foothill up to Washington in 2009 to play Bellevue.

“The coaches (at Grant) couldn’t believe the level of football we were playing,” Hamilton said. “They really hadn’t seen us play, and there’s the misconception that Northern Section football isn’t very good football.”

Aaron Rodgers, current quarterback of the Green Bay Packers, played at Pleasant Valley in Chico and started to change that mindset. This season, a host of Cougars are trying to continue the notion that quality talent does indeed come out of some of California’s more remote locations.

Ray on the Rise
One current Foothill player who has NFL bloodlines is senior quarterback Zack Ray, whose brother Ricky played for the San Francisco 49ers and New York Jets before starring in the Canadian Football League. Through three games this season, Ray has passed for 538 yards and seven touchdowns in Hamilton’s shotgun zone-fly offense.

“He reminds me a lot of Kellen Moore,” Hamilton said, comparing his senior signal-caller to Boise State’s star quarterback. “He’s got that great poise in the pocket, and I think he’s going to grow to 6-foot-4, so he’s only going to get better.”

Two-headed Monster
The Cougars have a punishing running game,

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	Slaton is averaging close to 10 yards per carry for Foothill.

which can be a quarterback’s best friend. Junior tailbacks Tevin Slaton and Addison Gillam form a powerful rushing attack. Slaton, a 170-pound speedster, gashes defenses after the 210-pound Gillam softens them up.

“I think Gillam is a (Division I) prospect,” Hamilton said. “He’s a 6-foot-3, 210-pound kid with legitimate 4.7 speed. He’s got great redirection skills that you don’t see from a lot of 6-foot-3 football players.”

Slaton has been the more productive of the two thus far, having rushed for 467 yards and five touchdowns, including a huge Week Two performance against Stockton’s Edison, where the junior ran for 233 yards and two touchdowns on 22 carries.

Perfecting the 3-3-5
Part of the reason Slaton has been slightly more productive has been Gillam’s commitment to playing defense. The Cougars have one of the best linebacker units in California, with Gillam leading a group that also includes seniors Mitchell McCarthy, Garrett Miller, Josh Latham and Rocco Taylor.

“We’re blessed with those five guys. We feel really, really good there [at the linebacker position],” Hamilton said.
All five players get significant minutes in

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	Gillam stars at both running back and linebacker for the Cougars.

Hamilton’s 3-5-3 defensive scheme, and each full-time defensive player is averaging over six tackles per game for Foothill. Hamilton continues to be impressed with McCarthy, who earned the top linebacker award at the Boise State camp this summer and is fast approaching the Foothill school record for career tackles.

“He’s our strong safety/linebacker this year, and he’s the kid that gets the most attention,” Hamilton said of McCarthy. “He’s got a chance to be a D1 player, and he can definitely play a lot of places with his (3.6) GPA. Between him and Latham we’ve got two legit linebacker prospects.”

Led by the strong group of linebackers, Foothill’s defense got off to a strong start to the season, holding Dixon and Edison to six points each. The Cougars’ defense, a question mark coming into the season, answered all doubts by picking off six passes against the Vikings, as Trent Knight, Tucker Wilson and Ryan Smith each intercepted a pair of passes in the victory.

“At least they weren’t being selfish,” Hamilton joked.

Hamilton: “I want to get my kids signed”
But the head coach knows that his remote position in the state is no laughing matter, and that the team needs to continue to work to change the perception on Northern Section football. Hamilton isn’t just doing it for the sake of the program, however.

“Slowly but surely we’re changing people’s attitudes for the state games, because that’s obviously what’s on everybody’s mind,” Hamilton said. “But I want to get my kids signed. I’ve legitimately had 10 or 12 Division I players (in my eight years here), and I’ve only signed one.”

“This year I’ve got at least two or three of those type of kids, and if they don’t get looked at or signed it’s going to be a shame.”

Just Listed…Mobile Home Park on Clear Lake

Just listed at $899,000…..beautiful lake front mobile home-RV park right on Clear Lake. Amenities include a dock, fishing platform, boat launch, beach, coin laundry, group showers. Also includes 3 cottages, and a 3/2 home rented all year round….and the owners home, a 3/2 lovely home right on the water. This is clean and neat mobile home park with mature trees, and located right next to the upscale World Mark Resort on Clear Lake. Park is actually located in Nice, CA…which is at the north end of Clearlake, and right on Highway 20. Clear Lake can be reached from  Interstate 5 using Highway 20, or through the Napa Valley from the south or directly from Highway 101 on the Coast. This area is a Resort area and retirement area, but the park is a year round park with permanent residents. For details, financials, photos, etc….    e-mail to   ronlargent@shasta.com    or see   www.ronlargent.com

Gas Station for Sale in Redding, Ca

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Just listed the Atlantis Gas Station on Hilltop at Mistletoe in Redding, CA. $1.200,000, and this includes the real estate at this valuable corner opposite the Holiday Inn and Marie Callendars. This is a former Shell station, and is ideally located on busy Hilltop just off of Cypress Ave and the Hilltop exit from Interstate 5. The station has a smoke shop in part of the building, along with a large convenience store. The corner location gives access from both Hilltop and Mistletoe, and is just a block from busy Churn Creek Road.

Yesterday, we listed the Cypress Chevron at Hilltop and Cypress Ave….and this is another great station…but does not include the real estate, thus listed at $425,000.

e-mail for details,   ronlargent@kw.com     or go to   www.ronlargent.com

Foreclosure Investor Services..huge returns.

If you have been thinking about investing in foreclosed homes, here is an opportunity. We have formed Foreclosure Investor Services to assist investors that are interested in buying homes that are being sold at the “Court House Steps”. We assist investors in purchasing homes in Shasta and Tehama counties in Northern California.

We represent a number of investors, but are looking to add additional investors, in that we are buying homes regularly every week. We use our experience and expertise to totally check out the properties being auctioned, and convey this property condition to the investor. Collectively we agree on the price to be paid at auction, and we go from there.

We buy the bank owned property right….due what is necessary to get the acquired property to market condition, and put it “on the market”. Our advice and follow through are bringing from 25-40% return on the initial investment over a period of 90-150 days. …making this one of the best investments in this “down economy”.

For details, please e-mail for a brief description of the program; how it works; what we expect from the investor and what the investor can expect from us; and minimum investor dollar commitment. This is a time-tested program; no gimmicks; and the investor remains in the control position at all times.

Contact us for details: ronlargent@kw.com http://www.ronlargent.com

Baskin Robbins Ice Cream….OK, So I Am Spoiled

We are trying to sell both of the Baskin Robbins Ice Cream Restaurants in Redding, so today I went in to take some photos…and, of course, today is there “$1.oo a scoop day”. Well, I could not pass it up….and I had an absolutely delicious chocolate and peanut butter single scoop….and with the temperature at 98 degrees…what a treat.

And, it really hit home that this could be a great business for an entrepreneur that wants to have a service business that is selling a product that people really like, eat all year round, and gobble it up on these hot days in Redding in the summer.

So, here is your chance…both the Churn Creek Road location and the Sunset Marketplace locations are for sale for $90,000 for both. Can you believe it?  They are both turn key operations, and the price includes the franchise fee, the fixtures, and the interior displays, and they are impressive.

I’m waiting for your call at 530-248-5601,  ronlargent@kw.com     www.ronlargent.com