I purchased my first self-storage facility - and it is glorious!

[Nathan Gesner]

Investment Info:

Other commercial investment investment in Cody.

Purchase price: $550,000
Cash invested: $120,000

Fair Acres Affordable Storage has 150 self-storage units and three residences. I was working with an investor on the hunt for self-storage units and started cold-calling to see if any local owners were interested in selling. It took six months, but this owner called me back and told me they were ready. Long story short, the property had been mismanaged for years so I bought it for a good price with lots of potential. Only 40 of the 150 units were rented; the rest were occupied by the Seller or empty. The two largest residences were vacant. Once I get the residences occupied and the storage units to 90% occupancy, the income will nearly triple with almost no additional expenses. I anticipate the property will at least double in value after the first year.

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

No toilets, no inspections, tons of upside!

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

Cold-calling storage units. I simply introduced myself and asked if they would consider selling.

How did you finance this deal?

Conventional loan.

How did you add value to the deal?

almost 70% of the units were vacant. I am working to get the current tenants to pay on time, catching up on delinquents, auctioning a few units off, and working hard to fill the vacant units. In my first week I've already increased the income almost $1,200.

What was the outcome?

Still working on it. I'll update in a year or so.

Lessons learned? Challenges?

No lessons, really. I've managed a nicer storage facility for over a year so I'm familiar with the challenges involved.

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

I am an agent and represented myself.