All Forum Posts by: Joshua Watts

I own a few self storage  facilities in smaller towns the appraiser has been using a 9% capitalisation rate I believe that was your question 

One more thing that I found odd was one of my banks called me and said  no payment no  interest for the month of April then interest only if I need it. I was happy about that because the payment is around $40,000.00 then another bank offered no  payments for that loan for three months which is about $20,000.00 per month. Right now thinking I might make it just fine out of this unless it goes on for a long long time. Then I might be in trouble. 

We have couple thousand units and we were up for the month of march. ? I don't see how but we were. I would like to see April. We have little less than 90 apartment doors and we had two people not pay but they are just always late. 

@Reese Newell your welcome! Back in the days I had two great mentors that I could call on. As I start to get a little older I just want to try to give back some, the best way I know how. I thought maybe if I post about a couple of my dealings it might help someone to learn and inspire them. Thanks again for letting me know it worked!

Here is an update.Pulled off the siding and lord behold there is not plywood! Looks like they put on some sort of foam board for the backing. We pulled all that crap off and putting up some OSB/plywood. So much for the budget. Good news is all my floors are now completed. Here is a helpful tip for anyone doing a project. I got two prices from my HVAC contractors and both of them were about the same. I told the HVAC contractor that I do most of my business with that my budget is very tight (and it is) and I need a little help on the pricing. By just asking I saved $475.00 per unit or $3,800.00 on the total project due to the fact that there will be eight units. So next time you are doing a project big or small just ask you never know.

Seems to me that we are closing just about the same kind of deals. I like using Austin, Davis & Mitchell. The contact is Jennifer Mitchell she is the attorney and the law firm also has a title co. I have been buying apartments, self storage, and a couple SFH, along with a strip mall and they have helped me close on all of them. The locations were from Chattanooga to almost Nashville. One more thing they always just come to me to close the deal I don't have to go to their offices even when it was a little SFH deal for 140k. I hope this helps.

Thanks @Phillip Vera. While I do want the project and expect the project to make money, I am also feeling really good about the fact I will be offering I nice clean place for someone to live, grow, and have a family. Along with making the area slightly nicer. Seems to me like a win win for everyone.  

I agree like everyone else said.......But we have built climate controlled units many times and what has been working for us is 30%,30%,30%,10% split. That is 10*20, 10*15, 10*10, and 5*10 or somewhere in that neighborhood. That will let you be able to work your numbers and see if this project is worth doing. Also the beauty of a self storage buildout is you can do it in phases so maybe build out 30k sq feet and just kick back and see how it fills up. Then when you see that you don't have enough small units (or whatever) you can adjust for there. Be careful money is so easy, I believe in a lot of places self storage is becoming overbuilt and building out 50k sq feet is going to cost you some money. If you are not in this market area already it might pay to have a feasibility study done.   

Thanks @Marlen Weber. I will update everyone when there is more progress. Right now they are replacing all the floors and most of the joist. It's a 8 unit apartment building so it might take two weeks to do that then siding, doors, windows go in. 

I think if they lived in the house a total of 2 years in the last 5 years they do not own any tax up to $500k. The way I am reading your post they have lived in there home 46 months out of the last 60 months therefore they are well within the rule. With that said I am not a CPA but pretty darn sure I am correct.