Falmouth Gas Stations

As with other coastal communities in Massachusetts, the town of Falmouth is a major vacation town during the summer months. Currently, the real estate market is considered very hot, which means that the town is also excellent for both commercial and residential real estate market. As part of the Cape Cod Metro area, this town also has a lot of motorists, which is why this is a strong area in which to invest in a service station, especially during the vacation season.

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Purchasing and Leasing Gas Stations

Wondering where to start with a gas station investment? First, it's important to understand that you'll have a choice between both purchasing your station and just leasing it from a current owner. Both of these options have their pluses and minuses, so let's take a look at each:

Purchasing – If you want to have more control, there simply isn't any better way to do so than purchasing the property outright. While you will have to have better credit and you'll most likely be financing your purchase through a major lender, you should be able to capitalize on your investment within 10 years if you pick the right location. Also, with greater control, things like finding the best gas suppliers and the best employees fall squarely into your lap.

Additionally, when you're ready to exit the business, you can opt to either sell or lease out your service station – both options can provide excellent retirement income, either in a large nest egg format or via steady cash flow from your lessees.

Leasing – For those that lack the credit or on-hand capital for purchasing a service station or for those that don't want to put in the level of commitment for an outright purchase, there is the option to lease. With a lease, you can also start to profit much quicker because of the fact that you won't have to worry about a large down payment at the beginning of an acquisition.

Additionally, leasing means that you can exit the business venture whenever you want, and you won't have to worry about needing to find a buyer for the service station. You can even exit the lease and seek out another in a more optimal location in town without taking a huge loss.

Opportunities for Expansion

Put simply, it's very hard to make a profit off of gas sales alone due to the fact that much of the sale goes to other sources. In fact, you can expect to only receive about a one to two percent profit off of each sale. For this reason, consider expansion opportunities if you're a purchaser, and always only consider properties that already have expansion businesses if you're looking to rent.

Typically, the types of expansion that you can find in a service station will consist of convenience stores, garages, and car washes, and there are even stations that have a combination of all three potential money makers. In any situation, each of these types of businesses can benefit from the vehicle traffic that your gas sales provide; it's just important to remember that you may have to entice potential business with promotions.

Also, expansions like auto repair shops will require skilled labor, so you can expect to pay higher wages. With that in mind, you can still make quite a lot of profit from one of these businesses due to the value of car maintenance and repair.

Locating Your Investment

If you're considering a service station investment, remember that it's best to find one in an optimal location so that you can capitalize quickly. Give Boston City Properties a call at 617-247-1933, and we'll help you search through our comprehensive listings of service stations in the state of Massachusetts for the property that best fits your needs.

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gas stations