All Forum Posts by: David Jones

Investment Info:

Other buy & hold investment in Lincoln.

Purchase price: $500,000
Cash invested: $100,000

62 Unit Self Storage facility. Converted tenants to online payment platform, offered insurance, and raised rates.

What made you interested in investing in this type of deal?

The owner wanted cash for another deal. He was not actively managing the facility. He rarely raised rates.

How did you find this deal and how did you negotiate it?

A friend. He threw out a number and it made sense.

How did you finance this deal?

80/20 LTV. 3 member LLC put up our own cash for deposit and financed the rest.

How did you add value to the deal?

We built a web site, set up automatic payments, implemented late fees, raised rates. In the near term we will expand the sf. by 50%.

What was the outcome?

We only had a 8% drop in tenants leaving the first 3 months but replaced them with tenants at full market rate (20% - 25% higher). We also had a chance to test out new programable overlocks and a new tenant software platform. It went better than expected.

Lessons learned? Challenges?

Don't fear vacancy loss, it provides an opportunity to get someone in at the market rate. There is no suck thing as "fully automated". You will always have to deal with people at some level.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

No agents, we worked direct with the owner.

Thank you for the advice. I think I will just go with the "Bird Dog" method and offer a flat fee. I have already spoken with the planning department and zoning would not be an issue in this town but if a deal is in a different town then all bets are off. I'm not looking to take on the risk of outright buying a property and trusting I have a buyer in my pocket. 

Cheers,

After purchasing a self storage property for $500,000, I was approached from another buyer who offered $1M. Seems like a no-brainer, but the guy wanted to level my facility just to put RV storage up. I though there must be a way to find this guy another plot of land to put RV/boat storage and profit on it without giving up my storage facility. 

How do I make a transaction where I can buy a piece of land and immediately sell it to someone without being a broker, or taking unnecessary risk? 

I'm happy to talk about any upcoming deals. Is there a particular type of investment you are looking for; Buy & hold, invest then refi and cash out, small value add opportunity, or turn key stable investments with less risk and lower rates? 

Investment Info:

Other buy & hold investment.

Purchase price: $500,000
Cash invested: $30,000

62 Unit Self Storage facility. Converted tenants to online payment platform, offered insurance, and raised rates.

What made you interested in investing in this type of deal?

It was a good first deal that was under market, and small enough to test some strategies before purchasing a larger facility.

How did you find this deal and how did you negotiate it?

Family and friends.

How did you finance this deal?

Owners capital for down payment then traditional bank financing.

How did you add value to the deal?

Created a website and offered easy online payments.

What was the outcome?

So far, so good. We had 1 tenant move out but replaced them with someone from a wait list at a higher rate.

Lessons learned? Challenges?

The resistance to change is the challenge. I will keep you posted about lessons learned.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Direct deal with the owner.

Hello BP community,

My name is David. I am retired Army and now do a lot of contract work with the federal Gov. I am also a recent investor/owner in Self Storage (SS) units and co-own a logistics company that delivers alcohol. 

I am excited to start to grow my network here, the same way I have on LinkedIn. If you have any advice or opportunities on Self Storage, then I would love to speak.

Cheers,

David