All Forum Posts by: Peter Lee

Following.  See a good handful of vacant/ abandoned homes in my area.

Hi Joe

We have both the management software + the website through Storedge.  It's roughly $120/ mo for the software + $100/ mo website.  There was a one time set up fee of maybe $700-$1k (cant remember exactly).  

I like how the Sparefoot, Storedge, and the website are all linked which makes things easier and the dashboard/ reporting features are pretty good.  It's pretty easy for me to see everything that is going on on site by logging into the software.  A little sucky though that Sparefoot, selfstorage.com, and few other sites are all owned by the same company that owns Storedge so they have cornered the market there.  Not a big fan of the minimum 1.5 mo commission.

My one big gripe though was the migration from our previous management software.  They screwed up a good handful of things and I spent a LOT of time doing data cleanup/ verification.  Most of the issues revolved around autopay and planned rent increases.  Im guessing there was an easier way to do this but the hassle of annoyed tenants wasnt worth it.  For example I had some tenants who got double billed via autopay bc the data was improperly migrated and I had to clean up all that data.  

Sorry guys for the redundant post.  Found this from a few years ago.

https://www.biggerpockets.com/...

I should clarify here.  Say if total cap gains on the deal is $4 million but the buyer doesn't pay the full amount in yr 1, does that mean the seller in yr 1 only owes cap gains on the amount the buyer contributed? 

I was thinking about this potential change of 1031 law w Biden and was thinking to avoid triggering tax (apparently he is thinking about capping the amount that could be subject to a 1031), to spread out payments received by the buyer for a few years to avoid going over whatever threshold he had in mind.

I understand that this is a question for my tax guy but there are a lot of knowledgeable people here with good ideas so wanted to throw it out there.  

Say if you have a project that sells for $5 million but there is some form of seller financing where the buyer pays $2 million upfront and then the rest is paid over a 3 year period.  

Cost basis is say $1 million and for simplicity assume depreciation is zero.  So total profit is $4 million.

Is it true that the seller would only be liable for cap gains for the $2 million if say that was the only amount received for that tax year?

Any thoughts appreciated.

@Paul Moore  yeh this is a tricky one.  Pretty rare at least in my area that a self storage site gets bought out since they usually cash flow so well, they leave it as is.  So not many comps.  I asked the prop manager who's been in the biz for years and she thinks maybe 25-50% would relocate to the nearby facility but she said it wasn't a sure thing.  

Curious to what people think here.  Imagine if you had a self storage facility that was going to be demolished for future development, what % of the tenants you think would try and find a new facility to move to?  Let's say though most of the tenants have been in the unit for years and rent was 30%-40% below most of its nearby competitors (within 5 mi) but there are places that offer rent in that range but they are 20 mi away (a 40 min drive).

So looks like we are going to give this a shot at least in the design phase.  I heard some of the larger companies make you sign a different lease which has some sort of liability waiver.  This we will definitely need to implement as I imagine the possibility of injury isn't low.  Won't prevent people from doing stupid stuff so will continue doing more research on this.  

The tough part is if you carry a box up the stair ladder, you can't hold the rails if it is a big box.

Yeh I'm sure if we listed these lockers, I'm pretty sure we would get a lot of action.  They are pretty hard to find in general.  I don't know other markets well but I would agree these only make sense in high priced markets.

I'm going to take a look at these mezz units this week and get a sense of how they work.