Found Some Gas Stations For Sale? Try Getting SBA Financing NOW!

Financing gas stations and convenience stores has never been at the top of the list for most banks and lending institutions. Now it’s gotten even tougher. Because of recent changes in SBA lending guidelines,obtaining a purchase loan got a lot more difficult.

SBA has been perceived as “B” credit financing for many people which is not accurate. SBA could finance things like working capital and inventory which banks frequently would not do on a conventional basis and generally would do a higher loan to value (LTV) loan than many banks. In reality, it was the banks lending the money and the SBA would guarantee the loan.

Effective June 15, 2008, the SBA will require all sellers to provide an environmental indemnification agreement regardless if the site has ever had an environmental issue or not. Fun, huh? Imagine this… you’re buying a station that is a few years old…it’s in pristine condition… the site has never had an environmental concern… now the SBA wants the seller to sign that they will indemnify in case of leakage, spillage or migration for the entire life of the loan if the State’s LUST fund goes insolvent or if private insurance is not effect by the owner. So, even though YOU had nothing to do with the leakage or spillage, you might be responsible for it! Fun stuff… good times! How many sellers do you think will want to sign off on this? The SBA also will now require a Phase I environmental on business only purchases

Secondly, the SBA no longer wants to have appraisals with an income approach in it. Appraisers are in arms about this because this is contradictory to their own guidelines that they go by. They also want to have a business valuation done by a third party company instead of the income approach, adding time and expense to the transaction.

If this isn’t bad enough, if you’re borrowing part of your down payment from a home equity loan, the SBA will require that if you are married, your spouse will need to work in a job that has nothing to do with your business, to assure that the home equity loan is paid.

If this concerns you, it should. It would appear that the not so veiled message is that the SBA does not want to finance gas stations and convenience stores with fuel anymore. I’d complain to your local representative and Senator to make your feelings known.

With all this having been said, it is imperative that you deal with people that specialize in financing gas stations and convenience stores, who hopefully are aware of financing in this asset class.

Personal Finance Articles Finally Show You How to Change Your Mind About Your Personal Finance Now

Many personal finance articles have been written on the issue of money. Can’t say I have been moved to action by many. First I’d like to say it is OK that you feel down about the current situation about your personal finances. I give you permission to feel your feeling for the next 24 hours and then pull yourself by your boot straps and let’s what we can do.

There exist many a definition, I want to share with you my personal finance definition:

Financial freedom is not an event, it is a skill.

I bet right now with the current economic situation you are saying to yourself, “I just wish I could the lotto!” Boy don’t we all and yet statistics and personal finance facts show that the majority of people who win the lottery, end up broke and worse off before their winnings! Imagine that. You among the many seeking wealth, riches, fame few people realize that money isn’t the solution to their problems; the way you think about money is the problem and the solution.

I can almost see you going oh yeah, give me the money and I’ll show you change in mindset! My favorite entrepreneur of all times, Henry Ford was once asked, “What if you lost everything you own?” He responded without missing a beat: “I’d have it all back and more within 5 years.”

Being a master of your own personal finance is not about what is in the bank; it’s about the ability to acquire the skill that will show you how to produce new streams of income and wealth based on your knowledge and experience.

So before we go any further on this issue let us tackle the real problem here that is impeding your personal finance for good! Why you might ask? Well without the mastery of these 5 steps, your desire for your goal for financial success and financial freedom is highly unlikely! This is why big players in any industry have coaches, Oprah has a life coach, football players and basketball players have coaches and mentors. Tiger woods after every bad game will go in for coaching and training. Why? Those who achieve great financial success do not go it alone. They always have a team. Those who achieve great poverty have the do it yourself mentality!

Why is it important to plan personal finances? As you have figured out by now, the cliche is true, when you fail to plan, you are planning to fail!

5 Personal Finance Guidelines That Will Guarantee You Become Master Your Personal Finances

1. How do you think about money? Say you come up with an idea to do something. Do you think that will never work? Are you afraid to follow through? Are you scared of losing money or do you see every dollar spent as an investment?

2. How do you manage and invest your time? The average man has at his disposal 6 discretionary hours. This is time they can do whatever they want. No work, no chores etc. Many will watch T.V., attend pricey sports events, spend money on meals at a restaurant and movies, see where I am going with this? Do you do personal finance budgeting?

3. How do you leverage the talents and life experiences you ALREADY POSSESS?
Most people see their experiences as failures. They only talk of how they tried to do something as failed. Thomas Edison failed more than I care to count, and yet he persisted to light the whole world. Many of life’s failures are people who did not realize how close they were to success when they gave up. Thomas A. Edison

4. Do you have a mentor and coach with a proven personal finance curriculum? This is the true measure of your desire for financial freedom. This is where you literally put your money where your mouth is, can’t afford a mentor you say? Well what was the last book you read? Gossip magazines do not count as literature sorry!

5. What do you think is “risky,” and what do you think is “safe and secure”? Most people never break into the realm of the 5% wealthy group who own 95% of the worlds resources because they want to play it safe. They want the money, the fame, the accolades but they feel they should not have to go through the process of creating this wealth. No wonder the internet and other places are full of scams and get rich quick opportunities. Remember this success does not happen overnight, but one night success does happen. Someone once said to me, it takes 3 years to be an overnight success!

If you’re tired of living paycheck to pay check discover how to build your home party & direct sales business with hot prospects, well attended home parties, and spending less money than you make, then your troubles have ended.

Just Because You Are Able to Get the Financing Now Doesn’t Mean a Franchise Is Right for You

Well, it looks as if we are slowly emerging from recession, and luckily there are business loans still available with very low interest rates. There are also small business loans from the Small Business Administration available, which you might partake in. Now then, just because you can get the financing to start your own small business, or perhaps a franchised outlet, doesn’t mean you should. It is quite possible we could slip into a double dip recession, and be in a less-than-adequate position in our economy sometime between now and the next 15 months.

Therefore, if you were to start your business, and we stay in a recessionary posture in our economy, you may have trouble making a profit. If you can’t make a profit, you can’t run your business at a loss forever, and you will have to file bankruptcy, and you will be unable to pay those loans back. Are you beginning to understand the real risks here? The problem with borrowing money is that you have to pay it back, and it is far too unfortunate that a good amount of our population have over-charged their credit cards, without considering the consequences that they will be paying on those cards for a long time into the future.

Because our economy appears to be very slowly recovering, not all sectors of our economy or all industries are recovering at the same rate. For instance, the real estate market isn’t doing too hot, whereas, retail sales have slowly been on the uptick. Of course all that could change too, and therefore it matters what type of franchise you buy, what industry you will be participating in, and if you have the personal perseverance to stick it out and see it through. You’re also going to need more money than merely the amount needed to purchase the franchise.

If sales are slow and not at optimum then the franchisor’s business model will not be performing at its peak either. This means that it will take longer to get to an operational profit, or retain a reasonable return on investment. Even if you talk to franchisees of the franchise system you are considering on purchasing which have reached their return on investment, it doesn’t mean you will be able to reach it as quickly. The economic times have changed. Before you go sign your name to hundreds of thousands of dollars of loans, so you can start a business of your own, and find yourself gainfully employed again, I hope you will please consider these words of wisdom and think on it.