Self Storage Facility #6

[Steven May]

Investment Info:

Other buy & hold investment.

Purchase price: $975,000
Cash invested: $39,000

Purchased self storage facility #6. 107 units near our current portfolio - Off market deal direct to seller. We did seller financing on this deal which made it a great deal - 30% down - 5% interest on a 30 year AM with 5 year balloon. Stabilized facility purchased at a true 10 cap. Expecting 30%+ cash on cash return.

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

This was in our market already and seller agrees to great seller finance terms.

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

Cold called the owner and followed up for a year and put 3 different seller finance offers in front of her.

How did you finance this deal?

1031 funds, personal funds, & a line of credit we opened.

How did you add value to the deal?

We will be continuing to raise rents.

What was the outcome?

Just bought it but performing as expected.

Lessons learned? Challenges?

Finding the funds for 30% on a 975k.

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

I am a agent. We opened up a LOC with one of our current lenders on equity in another deal.