All Forum Posts by: Nicolas Pierson

@Bill Neves Hi Bill, Why not post your checklist publicly on here so we can all benefit from it?

Hi Everyone, Thank you very much for your replies.  I feel that I should clarify a few things.  

I need to be completely honest here and state that I have zero experience in REI wholesale, or brokerage. I am just a guy who is trying to pursue an opportunity while solving a problem for some investors. My full time job is in digital marketing so real estate is not my expertise.

The CAP rate number was one I received from a wholesaler I contacted here on BP after I shared the property's financial reports with him. I have no idea if that is a correct CAP rate nor do I yet fully understand how a CAP rate is even calculated. I consider myself a smart guy and I learn quickly. Just keep in mind that real estate investing just entered my vocabulary less than a month ago after reading the infamous rich dad poor dad book.

My main interest in this transaction is merely to be a part of it and gain the experience of the process.  Second to that is the potential financial gains from the transaction.  More importantly, I want to be able to help solve the problems of the investors and sellers in a responsible and fair way.  

I am considering investing in Self Storage as I have had much success with keeping several properties at very high occupancy with my marketing work. I am assuming that occupancy would be the most desirable advantage of the industry.  High occupancy means you can raise rates and make more on each unit.  At least that's my logic anyway. 

If you think you can assist me in furthering the progress of this deal, Please contact me directly and I am happy to provide any information and financial reports you may need to assist.   Once again I want to think you all for your feedback. 

CAP is at least 8%. Great area, no flooding and occupancy rates are in the 90%. Motivated seller due to legal issues.

Need Advice on Wholesale-"ish" Self Storage Deal.

Hi Everyone, This is officially my first post on the forums as I wanted to wait until I had an actual real world Deal to discuss and potentially partner up with you on.  To be clear I HAVE ZERO experience in facilitating these deals.  I do, however see the value in facilitating the transaction.

Please forgive the poor grammar and spelling. I just needed to get the info out quick and dirty. 

Here are the basics...

Currently have a few Investors interested in Self storage. Also have connections with self storage property manager that is also selling a few facilities.

I am looking for a way to solve the problems of both the seller and the investors buy connecting the two and making a profit on the service/deal.   I have access to all of the facilities financials and asking price.   Just need to know what my next steps are to make this deal happen and how to make a fair profit from the transaction. The Seller is asking 5 million but I think we would talk them down to much less. 

The commercial self storage facility is in the Houston, TX area.

ALSO-- let me give you a general breakdown of the investors I am talking to right now.

Investor "A"

Is a local Physician who already has a small storage company and he is interested in investing in more. He said his limit is 1.2 Million on he next purchase. He stated that he is very open to partnering with other investors. He is eager to see numbers.

Investor "B"

Is a long time Multi-family and single-fam residential investor whose focus is in the passive income, the monthly net is his main motivation. His budget is 2 million max but he stated that his son is also an investor so if the deal makes sense, he could bring him in on it.

Some negatives on Investor B that we have to overcome:

• He has zero experience in self storage industry so we have to set his expectations.

• He originally said he wanted something in San Antonio but that is pretty much impossible as self storage has exploded there and competition has drove property values way way up. When I mentioned this , he seemed open minded.

• Investor B also stated an aversion to partnering with other investors he doesn't know. I think we can overcome this doubt and all others if we can present good numbers.