Self Storage Facility #4

[Steven May]

Investment Info:

Other buy & hold investment.

Purchase price: $120,000
Cash invested: $13,000

Purchased self storage facility #4 in Missouri. Cold call direct to owner. Nearby our other 3 facilities. Smaller - 30 unit - storage facility but was cheap enough to add it to our portfolio and room to expand the facility if needed. Made an offer, they countered, and we negotiated and met in the middle. Another 10 cap storage facility to add to the portfolio. 12 months interest only debt on a 20 year amortization at 80% LTV. Appraisal came in at 45k over purchase price.

What made you interested in investing in this type of deal?

Self storage is a awesome asset class with lower expenses than residential.

How did you find this deal and how did you negotiate it?

Cold call direct to owner.

How did you finance this deal?

20% down payment - 7.5% interest - 12 months I/O - 20 year amortization with a local bank

How did you add value to the deal?

We will raise rents and improve operations at the facility.

What was the outcome?

Just purchased it, check back in in a year.

Lessons learned? Challenges?

Interest rates are higher so debt is a big factor.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Nope. I am a agent.