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Updated almost 3 years ago on . Most recent reply
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Storage Space Mentor/getting started
Hello,
I am a new grad from dental school and love the thought of real estate as a passive income vehicle. My debt to income ratio will be low but will my current funds low. Scaling though real estate the storage space has always been appealing to me as I have seen the constant need for it throughout my life. Also, looking from the outside in, it feels more passive to me with less tenant and management headaches and something more easily able to be systematized. Are there any tips, books, courses, coach or mentors out there that can help me get into the business?
It would be foolish of me to ask for a mentoring or coaching for nothing in return. I want to add value to you as well whether that be finding leads, partnering via debt or equity, etc.
Thank you!
Most Popular Reply
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@Mason Haley; I'm going to have to meet Bryan Mitchell in person and get him out of that rocking chair.
Looking at your background and posts; your split between MFH and Self storage, keying on passive. I haven't done MFH before, although my family had a trailer park when we were growing up; so I will let other people chime in.
You need to narrow down to one REI type and learn it first. Scale of 1 easy to 10 the hardest REI investment; I would rank Self Storage a 3(can be improved to a 2) and MFH a 6; with Fix/Flip being a 10.
Your main revenue generator for the next 20 years will be dentistry, so your time needs to focus on that; so passive is better.
Self Storage next steps:
A. Financing/project size?
1. How much money do you have? Either money or Collateralizable assets (at 65%). Don't answer. Lets say $50,000. You need this at a minimum for a down Payment.
2. How do you plan to finance? SBA 10% down, Conventional 25% or 40%. Talk with your bank or find a bank that will do construction loans interest only, and also do a SBA loan. Make sure their Federal Lending Cap limit is sufficient for how big you want to get.
3. Construction loan or rent up phase if development?
1/2/3 dictate the deal size and type you can do. Say $50,000 at SBA 10% then you can do a $500,000 project or purchase; $50,000 with a Conventional 25% then a $200,000 deal.
You can start with Self storage for as little as $10,000 but you need to see what your area and lifestyle allows.
B. Coaching
1. Have you read every post or watched every podcast or youtube on the subject? Do that first, before you start down the road. Other wise your not worth engaging with. See the magnifying glass at the top, use it about 100 times.
2. Definitely go to seminars and such, prior to going with a mentor or coach.
C. Deal modeling. Do at least 5 deal models. Make one of them a ground up construction. Bring each model back to this group and ask for improvements and thoughts. By the time you get done with the 5th model you will know all you need to know. Just need to jump off the cliff and do a deal.
See you in two months.
Start small and Make Your Big Mistakes Early.