Best way to locate Self-Storage deals

[Jon Q.]

Is Loopnet the best source for self-storage deals or is there another website that focuses exclusively on self-storage?  Also, if you're willing to share ways of locating off-market self-storage deals I'd really appreciate that info.

Thanks,

jon.

[Michael Wagner]

Originally posted by @Jay Hinrichs:

try coastar  .. along with there are probably self storage associations.

I have owned self storage.... its not really real estate its a business. \

the one I had I condo converted and sold each unit.. that turned out to be profitable.. took back notes so I did not have to manage the individual units and still enjoyed cash flow

 While I agree that SS is a business....I have to disagree that Self Storage is a business rather than real estate. Its both, but so is any other real estate investment---if done right--NNN might be the closest thing to an exception to this rule. Having come from multi-family (albeit on a small scale- 31 units) I can say beyond a shadow of a doubt that my storage investments (also a proportionally small scale -460 units covering 50,000 sq. ft.) require FAR less of my personal bandwidth than my MF did/does (still have 14 units and dwindling!). And SS makes me far more money that my MF investments. Just like any other RE investment, self storage involves renting space at a rate that exceeds your cost to do so.

As for the Original Poster's question, www.selfstorages.com, loopnet, brokerage specific sites like Marcus and Milichap and Argus, www.investmentrealestatellc.com if you are looking in the mid-atlantic or northeast, and craigslist are all sites that might be useful to you.

Looking at off market property: For a first property, I would recommend using the magic of google to locate all storage facilities that meet your criteria within a 60 mile radius of where you live. Then use property tax records to locate owner and mail to them regularly.  Make a habit of visiting any that you happen by.  You can also call the facilities but its sometimes tough to get to the owner (unless you are calling small facilities). 

Storage is a hot market and has been for some time.  And it appears it will be for the foreseeable future.  Most owners (myself included) are willing to sell but only at prices that are higher than what the "market" could bear.  Simply put, SS facilities are "worth" more to people who already own them because they know better than anyone else how profitable they can be and how tough it can be to find a place to re-deploy any gains at a comparable rate. Because of this, you need to know that self storage is a long game when it comes to sourcing off market deals. I looked for 3 years before I closed my first one which was ultimately found on loopnet-second deal was off market...walked into the place and got owners info....chased him for 18 months....and the rest is history).  I have been helping a friend do the same for almost 2 years and we are still on the wrong side of the search.  Being flexible (considering warehouse conversions, facilities that are "too" small but with room to expand, etc) will increase the supply available to you.