All Forum Posts by: Steven May

Investment Info:

Other buy & hold investment.

Purchase price: $350,000
Cash invested: $74,000

Purchased this 28 unit RV & Boat Storage facility in Missouri. 2023 construction - 100% occupancy at purchase. There is a billboard on site with lease in place. 2.5 acres total with outdoor parking and room for expansion. Purchased this one by myself - 80% LTV. Appraisal came in 115k higher than purchase price. Storage facility #6 added to the portfolio.

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

This is the 7th storage facility I have purchased - new construction at a 9 cap purchase.

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

Direct to seller - cold call.

How did you finance this deal?

80% LTV commercial loan - 25 year AM with a floating rate of wall street prime.

How did you add value to the deal?

It appraised for 115k more than I bought it for so already have six figures in equity - will increase outdoor parking and raise rents over time.

What was the outcome?

More cash flow and equity to the personal financial statement.

Lessons learned? Challenges?

Always double check prepaid rents that get transferred at closing.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

N/A

Investment Info:

Other buy & hold investment.

Purchase price: $975,000
Cash invested: $39,000

Purchased self storage facility #6. 107 units near our current portfolio - Off market deal direct to seller. We did seller financing on this deal which made it a great deal - 30% down - 5% interest on a 30 year AM with 5 year balloon. Stabilized facility purchased at a true 10 cap. Expecting 30%+ cash on cash return.

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

This was in our market already and seller agrees to great seller finance terms.

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

Cold called the owner and followed up for a year and put 3 different seller finance offers in front of her.

How did you finance this deal?

1031 funds, personal funds, & a line of credit we opened.

How did you add value to the deal?

We will be continuing to raise rents.

What was the outcome?

Just bought it but performing as expected.

Lessons learned? Challenges?

Finding the funds for 30% on a 975k.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I am a agent. We opened up a LOC with one of our current lenders on equity in another deal.

Investment Info:

Other buy & hold investment.

Purchase price: $355,000
Cash invested: $37,000

Purchased self storage facility #5. All five of our storage facilities are within 15 miles of each other. This is a 53 unit outdoor drive up self storage facility. We are completely re-branding this asset. This was another off market direct to seller purchase. Current rents are 40% below market. Will slowly raise rents to increase cash flow and to almost double the value of the facility.

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

Value add off market facility just down the road from all of our other facilities.

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

Cold call direct to seller. Seller came down 30k due to interest rates being so high.

How did you finance this deal?

20% down commercial loan.

How did you add value to the deal?

We will re-brand the facility and raise rents to market.

What was the outcome?

Cash flow and equity increase.

Lessons learned? Challenges?

N/A

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I am a agent but another off market deal with no brokers involved.

Buying and Selling all over the Kansas City metro - great market!

Investment Info:

Other buy & hold investment.

Purchase price: $120,000
Cash invested: $13,000

Purchased self storage facility #4 in Missouri. Cold call direct to owner. Nearby our other 3 facilities. Smaller - 30 unit - storage facility but was cheap enough to add it to our portfolio and room to expand the facility if needed. Made an offer, they countered, and we negotiated and met in the middle. Another 10 cap storage facility to add to the portfolio. 12 months interest only debt on a 20 year amortization at 80% LTV. Appraisal came in at 45k over purchase price.

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

Self storage is a awesome asset class with lower expenses than residential.

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

Cold call direct to owner.

How did you finance this deal?

20% down payment - 7.5% interest - 12 months I/O - 20 year amortization with a local bank

How did you add value to the deal?

We will raise rents and improve operations at the facility.

What was the outcome?

Just purchased it, check back in in a year.

Lessons learned? Challenges?

Interest rates are higher so debt is a big factor.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Nope. I am a agent.

Awesome to hear! Local agent and investor here as well - mainly buy and hold. 

 LOL - not sure who you've been talking to but sounds like you need some new resources! Very broad statement that "Kansas City is a very dangerous place" - yes, there are C/D class areas that I walk my clients through to stay away from but Kansas City is one of the most desirable cities to invest and live in in the country right now - very unlike California. Also, Shawnee is a mid-high B class area to invest with - showed a owner occupant house hacker a 3 bed 2 bath house in Shawnee last week - 60 showings day 1 and 20 offers within 24 hours - sounds very dangerous right! - may want to double check your facts if you are planning to invest here because sounds like you are WAY off right now!

Kenlyn, I started with house hacking myself and I assist several house hacking clients. I personally live and invest in South KC so I know the area well. You're on the right path - lets chat!

Kansas City has so many exciting projects going on! Can't wait to watch how well it plays out for buy and hold investors! 

All great points - Kansas City has served as a great rental market for me to build more portfolio in and closed 55 transactions last year with out of state buyers who came here for great cash flow and appreciation. We act as boots on the ground for all aspects of investing to find our out of state clients great returns on their investments!