All Forum Posts by: Ryan G Cook

@Dmitriy Fomichenko Thank you sir!

@Kerry Pangan , use the Real Estate Analysis Calculator that bigger pockets provides!!

I use it for all of my multifamily deals when analyzing a property for my investor clients - its straight forward, easy to follow, just plug in the numbers ( your purchase price, monthly rent , loan info, expenses , act.) and it spits out all the data. It will answer all of your questions about whether or not you are barking up the right tree with this deal or not in less than 5 minutes !

 Hey @Chris McKenna!

Absolutely, ill send you a private message with my number - feel free to reach out at your convenience 

Congrats man! Im a self-storage investor as well. Two properties to date in Tennessee - First was ground up construction, the second was purchasing an existing facility and building additional units.

Did you find this deal in the Miami market?

 Great question, The Civil will lay out all of the site plans, and then you hand those over to your contractor who will be able to provide quotes on the cost of bringing in utilities. Id ask your civil engineer along with others in the community who have done similar projects for contractor recommendations - get 3 or 4 quotes from highly recommended contractors.

After that brother, its all about good contracts , "Good contracts make great partnerships." 

Hey @Tyler Watson!

Know exactly what you want to build and make sure that the land is zoned appropriately - You can always have land rezoned, but that typically is a lengthy and costly processes (depending on city/county). Once under contract, you due diligence will be KEY. You will want to work with a civil engineer and a geotechnical engineer to 1). ensure that a proper site plan is developed and approved by the planning/zoning commission, and 2). there are no geotechnical barriers to you development plan (such as giant rocks that require blasting for removal, ect.)

Hey @Stacy Wheeler - another alternative option would be to call/connect with the property managers in the area and surrounding markets - the property managers know exactly what their clients (whose properties they already manage) are looking for --- and guess who would be particularly incentivized to make sure their clients buy more investment properties? See where I'm going with this? Property managers have investor relationships, and if they buy more properties, those property managers generate more income!

I hope you pull this off! Keep us updated!

Hey Taylor!

Thanks for reaching out! I started out by reaching out to the engineer who had designed the existing buildings. Spent time discussing the project with him which was extremely insightful - he sent me the original site plans , and after examining these I found that I could further maximize the property beyond what the original developers believed/planned. 

At the time of the auction I was building 16,000SF of storage on another site, so I used by current development costs to estimate replacement cost of the existing buildings, and was able to develop a fairly accurate pro forma based off this. The buildings were 100% occupied and well-under market rate with no web presence. So I used the replacement cost as my "max purchase price," and fortunately we won the auction near that price. 

We also visited the site prior to the auction and saw that there were other tremendous value add opportunities, which included increased security, fencing, automated billing and operations, and improved drive areas.

Investment Info:

Industrial other investment.

Purchase price: $819,000

Purchased at auction - developing an addition 32,000 SF

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

I love storage as an asset class! This is my second storage investment

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

Auction

How did you finance this deal?

bank financing - 20% down

How did you add value to the deal?

Developing an addition 32,000SF of storage

Investment Info:

Other commercial investment investment in Manchester.

The Vault - Boat & RV Storage caters to boaters, RV owners, and those in need of the largest storage units available in the Middle Tennessee market. Currently 16,000 rentable square feet, with an additional 17,000SF to be completed by April 2022.
Developed in Spring 2020, opened May 2020.

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

We saw a need for boat/RV storage in the middle TN market and we decided to fill it!

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

My business partner and I identified a commercial land listing strategically located between 3 popular lake in Middle Tennessee. After purchasing the property, we acquired all approvals and permits from the local county commission (lengthy process), and started development in January of 2020.

What was the outcome?

We achieved max occupancy after a few months. After 1 year of stabilization, we began the refinance process with our lender. We have now began development of an additional 17,000SF of "mega-storage" which will be complete in April 2022.

Lessons learned? Challenges?

This was our first real estate development/ investment , so the entire process has been a great education.
1). Is key to work with an engineer who is trusted by the county commission
2). No matter how much you plan and coordinate, there will always be delays in the development process, whether than be weather, materials delays, ect.