All Forum Posts by: Justin Frank

Smaller facilities are generally more successful if they are self managed, or self automated with some boots on the ground to help you with lockouts, clean outs, ect...... If your deal was purchased correctly and you are flexible/dynmanic with your management of the 48 units you will have $2k plus added to your income every month. That’s a quick and short answer. PM me if you would like more help or details. If they are in good shape I would keep them. 

@Joshua Watts

Thanks for sharing. You have had some very motivating/inspiring posts Josh. Great deals!!

@Jonathan Cox

I didn’t dig too deep into your analysis and I am not 100% familiar with the area you are investing however if your numbers are solid and you are positive cashflow on first analysis that is a great start. I would decide if you could raise rents a bit and increase cashflow or the second and better option would be to try and buy the home at a lower purchase price. I think you are close to a good deal. I would ask yourself what you would like to cashflow per door, evaluate the lead further and see what your numbers look like at a lower purchase price. If it fits your criteria then go for it and if it doesn’t move on to the next.  

@Thomas Burnett 

It all comes down to the numbers. Your money is made at the very beginning when the deal closes. What is your exit strategy? Fix and flip or buy and hold? One strategy may work for this building while the other may not. Place an offer and do your own due diligence. Maybe the last buyer was correct on rehab. A sellers agent will represent the seller and may have no problem telling you that they feel the last buyer overbid the rehab just so they can get you motivated to make an offer. I would get your contractor and go get eyes on the project yourself. $250-$300k on a 3500sqft home is a hell of a rehab. You could nearly stand a new home for this price lol. One big concern I see is that the home has been for sale for a few months. Right now in the PNW there isn't a good deal that remains on market for this long. I just purchased a small home in Olympia, WA at a great price that had 8 offers in 4 hours. I had another rehab that I offered on and it was bid up over $50k on the sellers asking price within a handful of hours. Not to say it's not a great deal. There is a lot of missing numbers/info on your potential purchase to really form a strong opinion. I feel that if it truly has an ARV of $900k and you can purchase for $450k with a $250k rehab that leaves you in a really awesome spot to either flip or buy and hold if rents are there to support $700k of debt. Those basic numbers sounds awesome. I would just confirm and reconfirm those numbers becuase I have a heard time believing that a deal this good in the Portland area would remain on market for this long. I hope i don't come off as negative. Good luck

There are so many details missing to about this property to form any sort of an opinion in regards to analysis. With that being said, if there is fire damage it is enough reason for me to stay away. If there was fire with a decent amount of smoke in the house it will be a big project to get rid of that smoke damage. 

@Dwad Lane

I will second what @Michael Wagner had to say. If you are very new to storage I would say to jump on YouTube and/or google with a search specific to the questions you are looking to get answered about self storage. I have learned a lot from just talking to storage managers and searching for videos to watch on YouTube. After you learn some basics I would definitely recommend investing in a course such as @Scott Meyers self storage academy. I completely understand not wanting to invest the money into some of the trainings offered. It is a lot of money. The irony is that at the time you need the training most (the beginning) is the time it is hardest to afford. Once you get a few deals under your belt you will have the money but won’t need the training near as much as you did at the beginning. 

And @Scott Meyers, you need to bring all your courses closer to the west coast 😀

@Michael Wagner

Thank you for adding me to this post. I must have overlooked it. 

@Joshua Watts 

That’s an inspiring investment story Josh. I have recently started investing in storage and would be grateful to mirror your success. I live on the west coast and in our current market we have facilities with 150-200 units selling at $3mm or more. Hard to find those deals anywhere but very hard to find here. I have wanted to move my search outside of Washington but am having difficulty deciding what area/market would be best. Thanks for sharing your story. Very cool. 

@Naomi Pinger

I know it is supposed to be a very large and expensive project. I don’t know if you invest in this area but I have the article if you are interested in reading it