Self-Storage: Where are the opportunities hiding?

Sometimes it can feel like everywhere you look there are perfect self-storage facilities. They are all 90% occupied and asking for top dollar. So where do you go to find the junk? Where do you go to find properties with upside potential to keep your investors happy? If it were easy, everyone would be doing it! This is where you roll up your sleeves and get ready for the hard part.

There are several different places that you can go to look for self-storage opportunities. One of the first places that you should look is in your own backyard. Start with a Google search and make a list of all the self-storage facilities in your area. If you are looking within a 30-mile radius, then make sure your search is that big. You are going to create a database.

While it is time-consuming and a lot of work to create that initial database, you need it. This will help you with tracking properties, sending out direct mail, networking, finding potential partners, and the list goes on.

You also want to make a database of 3-to-5-acre parcels of vacant land that is zoned for self-storage. These are properties that have the potential to build your dream self-storage facility.

As you see abandoned warehouses, churches, bowling alleys, industrial buildings, and other buildings that would make a potential conversion, create a separate database for them too. These databases are going to be a source of leads for you so make sure that you do it right the first time.

While most of these people are not in the market to sell today, things happen. Some day they may want to retire, or they may end up with unexpected health problems. They may refinance the property for capital repairs thinking that will fix the bad management problems and when it doesn’t, they are in even more trouble. There can be divorces or tax issues, and any number of things that come up that change someone’s mind and put them in the market to sell. Your job is to make sure that you know about it before anyone else.

Most people that you reach out to assume that they are the only person that you have reached out to. They don’t understand that there are multiple properties that you are marketing to. It can save you a lot of hassle if you get a picture of the property off the internet when you talk to them. This way you can write down your notes next to the picture of the property from the internet. This way when you speak with them the next time, you will sound like they are the only sellers you are talking to. It will also help you jog your memory when you are trying to keep track of properties.

There are several ways to track your database of sellers. You can buy a tracking system that allows you to manage and follow up with leads, or you can use Excel. The critical thing is to make sure that you use something that will help you be consistent and keep track of who you have spoken with and who you haven’t. You must reach out to these owner’s multiple times. They are not all in the market to sell today. If you don’t stay in touch, you won’t know when they are finally ready to sell.

Creating a database of all the properties in the area where you are interested in purchasing self-storage is a start. It gives you an idea of what is available in your area, it helps you know what kind of competition is out there and it helps you create your list of potential properties, partners, and networking opportunities. Start building your database today. As always, happy investing.