Gas Station Mortgage Financing.

Obtaining mortgage financing for a gas station is often a challenging task. There are gas stations all over; it is nearly impossible not to drive past a gas station during a commute. You might also notice gas stations listed for sale on the internet with descriptions of the different gas station brands, revenues, number of tanks and the quantity of gas pumped. There is evidently a market with demand for buying and selling gas stations; seemingly, owning a gas station can be an awarding business venture.

The reality is that mortgage financing options for gas stations are considerably fewer than mortgage options for residential and most other commercial real estate types. This presents a liquidity issue for lenders as there isn’t a large audience of lenders who can replace their mortgages if needed. A gas station is primarily a business, so mortgage lenders heavily scrutinize the operation and the operators, particularly their experience operating gas stations and net worth. Gas stations are purpose-built assets and, accordingly, are relatively illiquid. There is a relatively limited buyer audience for gas stations, which presents a marketability risk for lenders. There is a risk that the business experiences difficulty and the property owner has difficulty making payments to the mortgage lender. There are also underlying environmental risks, concerns and liabilities, given the nature of gasoline storage, spills, leaks and improper disposal.

Gas station purchasers and owners contact DV Capital for gas station mortgage financing: Land acquisition financing to secure a property for future development and construction, a construction loan to build a gas station, refinancing to replace an existing mortgage or access equity. 

Do not hesitate to contact DV Capital for gas station mortgage financing to purchase, refinance or build a gas station in Ontario, British Columbia or Nova Scotia.