What Criteria should you use when looking for properties?

It’s fairly easy to find a property for sale. Just throw a rock and there is a for sale sign. However, that doesn’t mean that that property is ideal for self-storage. In fact, most of them won’t be. So, what are we looking for when we want to invest in a property for self-storage?

First of all, we want a property that has a significant upside potential. We’re not looking for properties that are already fully rented and in their prime. We aren’t looking for properties where the seller can charge a top of the market cap rate. Instead, we are looking for fixer uppers. We are looking for properties that are 50% occupied or less. We are looking for properties that have the potential to be expanded or developed. We are looking for industrial buildings that can be converted into a self-storage facility.

We all know what distressed real estate looks like. You are not looking for a turnkey deal. You are looking for something that needs work. You are looking for something that is distressed so you can pick it up at rock bottom prices so that there is a way to make a profit.

You want to look for a property that needs help or that you can add value to. You want something that is on at least 3 acres of land. I am looking at 3+ acres and I want the proper zoning already in place. You may have a different business model, but this is what I want and recommend.

I am also looking for industrial buildings or special purpose building sites or facilities that can be converted into self-storage. This might be a church or a movie theater or a big box retail store or grocery store. There are so many possibilities. You want at least 50,000 square feet. Remember that you can add a second floor if you need to. The key is to make sure that you can convert the property into self-storage and that there is enough land and square footage to make the project worthwhile.

Now that you know the basic criteria of what to look for, start looking at what is out there. Start looking at what is currently on the market in your area. Is there anything that has potential? If so, maybe it is time to do some more research on the property to see if it will work for your investment model. As always, happy investing.