How to find mom and pop self storage deals?

[Jonathan Keena]

Hi all,

I am in San Antonio, Texas and I am trying to break into commercial real estate, specifically self storage. My business strategy is to find mom and pop operations and buy them via seller finance or buy them outright with partnered funds. From there I would increase the NOI and improve the property, setup effective property management, ect. The focus would be to buying properties that are under 30,000sqf and expanding them to over 40,000sqf. After 12-24 months my goal would be to sell the property to an institutional investor and then repeat the process. I guess my main questions are what's the best way to find those type of deals? And does anybody think it's possible to do in the San Antonio / Austin area? Thanks!

[Scott Meyers]

All of this advice is great, but I'd have to add this - if you have a clear understanding of the needs in the area - specifically the 1, 3, and 5 mile radius - then pocket listings, word of mouth, and the usual methods are great.  On the other hand, it may also be a great idea to look into unused properties - empty big-box retail, warehouses, and even odd-sized and shaped lots "no one" wants and consider developing your own self storage facility.  All may offer some of the same financial benefits (owner financing, etc...) and, depending on your own reserves, may allow you to create the premier facility in the area that commands premium rants and can really be a cash cow.  

We've done this quite a few times now and the results have been very rewarding.