Buying Your Property Right is Important to Your Financial Success

When you are looking at a self-storage facility, you may be wondering if you are buying a good opportunity. There are two times when you make money on a property. When you buy it, and while you are managing it, or collecting rents. While you make think that you make money when you sell the property, this is not completely true.

When you are looking at a property, if you pay top market value for the property, and you have to get out of it immediately for some reason, how will you do that without losing money? On the other hand, if you buy the property at the low end or below market value, what happens if you have to sell the property? You make money. We are able to buy a lot of properties at a great price because bad management put the current owners out of business.

Typically, if you buy a property correctly, and put the right manager into the property, you will be able to force the appreciation of the property so that by the end of three to five years, you will be able to sell the property for a profit. On the other hand, you may decide that you are making enough cash flow with minimal headache that you want to keep the property.

The key word in this is that you must have a good manager. If you put a bad manager in your property, you are likely to ruin the property. If you put a good manager in a bad property, they can turn it around. You want to set your manager up to succeed. In order to do this, you need to have systems in place. If you don’t have systems in place, how do you expect them to meet expectations and goals.

You need to be able to track your tenants, you need to know what services you offer, and which ones are profitable and which ones are not. You need to be able to track and manage your numbers so that you can steadily improve them. Make sure that you buy right and find a good manager so that you can be successful in the self-storage business. As always, happy investing.