All Forum Posts by: Bryan Mitchell

@Russell Brazil is active in the area and may be able to help you better understand the market.

@Adam Diaz I used my agent to find out more and personally called the seller agent. Probably handled by a law firm and they will likely not share information.

@Adam Diaz, Estate sales are often subject to total unanimous agreement from those who have inherited the property. Never be afraid to ask questions, but estate sales often take time because many family members will hold out for highest price. They may not be in a rush. Find out if this is the case. 

@Philip Joseph, I think there’s always a balance between affordability (ie entry point) and risk. I liken it to the CF versus appreciation debate. Or better yet, the financial freedom versus net worth debate.

@Gp G., try griffin. It’s closer to you and has similar prices.

@Marv Edelstein, I’m interested as well. I plan to dive in deep next year. Are you interested in syndication, partnerships, or buying yourself? Would you manage it yourself or hiring a third party? 

@Sam M., I’ve seen very little in DFW but I’ve seen them out of state.

Good question as for the priority the property management company gives you. You have to manage the property management company. Call them monthly and go over the issues. What’s trending? Contact the accounting department and get the latest P&L. Make this part of your monthly routine. You’re now the asset manager, but more importantly, you’re building relationships. Consider them (maintenance manager, accounting clerk, etc) part of your team. If you can manage this, you can improve your chances improving CF with more informed and better decision making. You’ll get better and better with this business. Cash flow takes some work, but back to your question, I’m not willing to accept less than $200 a door and even then, I’m looking for under market rents where I can get $300 per door in les than 24 months. 

@Henry Clark as usual, you’ve offered excellent advice and analysis for those interested in the storage space.

@David C., if you’re only cash flowing $100 a door it is going to take you a very long time to build some substantial passive income. And you’re right, more units equals more problems, but adding 10 units to existing portfolio if all of your systems are in place, the additional time required will be inconsequential. I’ve always used a third party property manager and if they are good, you “headaches “ are few. I’d rather have 10 doors with $500 CF than 50 doors at $100. However there is something to be said about having more assets/doors (and diversity) that could possibly insulate you from some risks. And then there’s the exit strategy that changes with more units per property.