Start With Your End Game in Mind!

If you are going to invest in self-storage, you need to make sure that you know your exit strategy before you make an offer. Knowing what you are going to do with a property affects your offer. If you go in with no exit strategy, you may end up paying too much for the property or even completely buying the wrong property. To be a successful self-storage investor, you need a business plan and a business plan for each property that you purchase.

If you are going to buy properties with other people’s money, you need to have an exit strategy. Most people don’t want to leave their money in a project indefinitely. They want to know how much they are going to make and when they are going to get paid. In most cases, you will only hold a property for three to five years when you are working with cash investors. Your exit strategy may be that you intend to refinance to cash them out, but that is still a strategy.

If you are planning on selling or refinancing in a short period of time, then you need to know going into the property that you have a great upside potential and that you can make the property cash flow within a few months. If you are not sure of these two things, you are probably not buying the best property for your investors.

When you are selling a property fast, you need to know that there is going to be enough equity in the property to make the deal profitable for you and your investors. If they don’t make any money working with you, then they are going to go elsewhere.

If you are going to refinance, you still need enough equity in the property that a bank is willing to work with you. You don’t want to have to bring more money to the table because the bank doesn’t feel safe lending you enough money to cash out your investors.

When you are buying a property, make sure that you outline how you are going to improve the property, how long it will take and what resources will be required to make those changes. Set an exit date that you and your investors will be happy with. Always make sure that you get the property at the right price to make it a good investment. As always, happy investing.