Self Storage Facility #5

[Steven May]

Investment Info:

Other buy & hold investment.

Purchase price: $355,000
Cash invested: $37,000

Purchased self storage facility #5. All five of our storage facilities are within 15 miles of each other. This is a 53 unit outdoor drive up self storage facility. We are completely re-branding this asset. This was another off market direct to seller purchase. Current rents are 40% below market. Will slowly raise rents to increase cash flow and to almost double the value of the facility.

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

Value add off market facility just down the road from all of our other facilities.

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

Cold call direct to seller. Seller came down 30k due to interest rates being so high.

How did you finance this deal?

20% down commercial loan.

How did you add value to the deal?

We will re-brand the facility and raise rents to market.

What was the outcome?

Cash flow and equity increase.

Lessons learned? Challenges?

N/A

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

I am a agent but another off market deal with no brokers involved.