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Updated almost 4 years ago,

User Stats

22
Posts
23
Votes
Chris Piette
  • Green Bay, WI
23
Votes |
22
Posts

First Self-Storage Deal Underway

Chris Piette
  • Green Bay, WI
Posted

Hello everyone, as the title states I am working a deal for a 200 unit self-storage facility here in Wisconsin.

It is by all means already a profitable facility which includes and newly paved entrance/security system/roofs, as well as room for massive upside due to the fact that the rents haven’t been increased in at least the last decade (well below local market rents) as well as the fact that the facility currently has no website or marketing strategy other than word of mouth.

-Currently an 8.5 Cap

-My projected rent increases will take it to a 13 Cap (emphasis on projections of course)

I am currently in the process of gathering insurance quotes and talking to lender and

1. The first quote i got back was twice as much as the current owners current premiums

2. The first lender I spoke with told me that because it is a “single use facility” I would more than likely need 15% Downey opposed to 10% (utilizing SBA 504), but I was under the impression that self storage was classified as “multi use”

If that were the case, I will not be able to come up with the additional 5% down and the seller doesn’t want to carry THAT much..

What are my options in creatively coming up with the difference? I don’t currently have any investors doing the deal with me, and am not really sure how/where to go about seeking investors for commercial deals like this.

Aside from that, any and ALL tips/tricks and advice is welcome, this is my first time venturing into commercial and I’m in complete new territory here..

Thanks!

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