Investment Info:
Other commercial investment investment.
Bought the facility in the fall of 2022. There was a disconnected phone line, no website, people living in motorhomes illegally and only about 50 percent occupancy (some of those people weren't paying). There were also no records of any people storing units on the site. I ended up having about 10 abandoned vehicles / RV's (some looked like meth labs...think Breaking Bad).
What made you interested in investing in this type of deal?
I love a challenge. I knew demand was strong for RV and semi truck parking. There are additional acres to expand on.
How did you find this deal and how did you negotiate it?
The deal was poorly marketed. I found it on LoopNet but it was mis-labeled.
How did you finance this deal?
I got a land contract.
How did you add value to the deal?
I added a new software platform, got rid of all abandoned vehicles, raised rents, seal-coated and striped parking lot, took out loads and loads of trash, got the phone number working and started marketing to local community groups. I also took a garage on the property that was storing junk and rented that out. We run at about 98% occupancy.
What was the outcome?
In the process of refinancing to a permanent loan. I've had a few offers of more than twice what I paid for it. I haven't spent a ton of money overall on improvements.
Lessons learned? Challenges?
There is much to learn in finding out who owns vehicles and how to go about getting a title for it as well as auctioning off said item. "Evicting" squatters who were allowed to live on premises from prior complacent owner was interesting to say the least.
