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Updated almost 7 years ago,
Self Storage expansion
Hi, I'm Tyler Morrison and I own and operate a moving business in Winooski VT. I have been trying to purchase real estate for the past year. I recently found a great duplex with a attached trailer lot for sale about 1 hour away from me. It cash flows great (12-18%). Rent is well over the 1% rule, $1.3K/mo on a $60k house, overall a great investment. I even have a partner willing and ready to split the commercial loan down payment with me. In short, I really want to purchase this ideal starter investment property but am a little worried about tying up 90% of my capital in a project while I'm self employed.
On the other hand, I have been doing some research and know that self storage is a overall great return. I believe I read that the average self storage facility returns 18% cash flow on average and there are a lot of bad managers in this business. The self storage facility fits in great with my moving businesses business plan. I have networked with a ton of storage managers and owners in my market and they are all full to capacity or near it. Recently my team unloaded a 5x5 unit and when I spoke with the on site manager of this 600 unit complex he had 1 open unit, the one my team and I just unloaded, 100% capacity and its no the busy season yet. I don't personally have the cash to build a storage facility and am currently working on a pitch deck for investors. Wondering if anyone has any thoughts on how I should go about pitching my businesses expansion opportunity to potential investors?
I would like purchase the small investment property and partner with a hard money lender, VC or a wealthy partner with good enough credit to get a loan for $1m+ for building the commercial self storage facility. Let me know what you think on this overall plan or if I should focus on time task at a time, remember I have a entire business to run on top of any real estate investing projects.