Gas Stations Hard Money Loans are Offered by Gas Stations Hard Money Lenders

Hard Money Loans for A Gas Station

Hard money loans are available for gas stations. Perhaps you currently own a gas station and need funds for improvements. Maybe a new gas station has come up for sale, but your current credit situation, or circumstances surrounding the property won’t allow financing through conventional conforming loan channels like banks and mortgage brokers. You may be a good candidate for a hard money loan.

Reasons for Applying for Hard Money Gas Station Loan

  • Credit maxed out
  • Gas station is in remote location
  • Property not of conventional construction
  • Value based on land alone
  • Value cannot accurately be determined
  • Potential income from property cannot be verified

You can find hard money lenders nationwide: private investors, mortgage companies, or banks that deal in hard money financing to help finance the purchase of gas stations. If you deal with a hard money loan broker, be prepared to pay “points”: an up front percentage that probably will start somewhere around 3%. The gas station itself will be the collateral that secures the loan and lender may ask you to put up other assets to consummate the deal. Hard money lenders typically finance only a percentage of the purchase price or apartment value— usually 65% to 75% (Loan to Value Ratio). Since the gas station will produce income, a loan can be based on the value of the property plus its income producing potential. Interest rates might possibly run anywhere from 8% up, may initially be fixed, but later become variable.

If you have experience in the gas station business, that is typically considered a plus. Be prepared to give the lender the following, in addition to color photos of the land and any buildings.

  • Location of the property
  • Date of purchase
  • Date of closing
  • Purchase price
  • Estimate of fair market value
  • Reason for applying for hard money loan
  • Verifiable gross income or expected income
  • Yearly expenses to be incurred on property
  • Appraisal if available

Disclaimer: The hard money loan calculators found on this website are offered only to estimate monthly loan payments of hard money Gas Stations loans. No guarantee is offered or implied as to their accuracy. Hard money Gas Stations loans are non conforming, they do not conform to the underwriting guidelines of Fannie Mae or Freddie Mac. Each private equity hard money lender has their own fee structures which may include points at closing and early prepayment penalties. Discuss all of the details of your particular hard money Gas Stations loan including all costs and fees with your selected hard money lender.

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