All Forum Posts by: Will Carter

If you want to get your feet wet in Self Storage this one's for you.

Easy to mange self storage facility that has been at 100% occupancy for years with competitive market rate rents.  Sale also includes neighboring 1 acre property that has been rezoned and permitted to build more self storage units.

Fully automated online recurring payment system with nice website and established online presence. Sale would include subject property, business, phone number, online interests and neighboring 1 acre property.

All self storage is full in this town, I get phone calls daily but I've been full for years.

Recent improvements include paint and roof.

Priced at $265,000 at a no BS 7% cap and also includes the neighboring land.  Can provide 2018 actual finances on request.  Brokers bring your buyers.

www.martinsvilleselfstorage.com

Located in Martinsville, VA. For sale by owner. Shoot me a message and I'll send you my number.

[email protected]

I have a self storage property titled in my name. My other general services LLC manages it. It is automated through a website and deposits into my general services LLC (S-corp) which makes a small lease payment to me personally.

If all goes as planned I should be the owner of 2 more self storage properties in the same town very soon.  I want the same website to manage them all under the same brand which means they'd all deposit into the same account (can't split it up running just the one automated site).  

How do I want to structure all these? My first thoughts are one holding LLC for the properties and then one operating LLC that takes the money. I'd pay minimal lease to the holding LLC just to cover taxes etc. I feel ok with one holding LLC for the three properties as they'd all be significantly leveraged. The operating LLC would have no substantial assets.

And to make it more fun, I live in NC and the three properties are in VA. Maybe that matters.

Thanks for any ideas.

Don't know exactly what category to put this in so I'll stick it here and get my $29 worth this month maybe.

Just looking for strategy advice on a purchase.  I was going to the bank this week to get the ball rolling but maybe there's a better way to do this...

In short:  My mother is one of my private lenders who I also want to buy a property from.  The proceeds from the sale would be used be me to invest more.  Should I 'buy' it or is there a better way to structure the deal?

Longer:  My mother has owned a self storage property for about 20 years.  My dad used it more for storing his personal toys (boats, cars, machines, business stuff) than he did for the rental income.  Dad passed away early 2016 and I've been running the rental side for mom since then.  They're doing fine now at less than 5% vacancy for all of 2017.

I want to buy them from her, she would rather just 'give' them to me.  I want to cash out on them and keep my investing ball rolling.

My current plan was to just treat it as a purchase.  Sale price of $125k or so.  Bank says they'll do 80% at 5%/15 on it.  The property/business would probably appraise for $150-175 pretty easy.  Mother get's her post capital gains money (about $110k it's looking) and I now have access to an additional $110k from this private money lender.

I will immediately be writing an offer as a cash buyer on 2 more (as a package deal, same owner) self storage facilities in the area as soon as I have access to this money.

OR...is there a better way?

Thanks for the help.

So as of March this year I have my provisional brokers license in NC. I'm looking for a BIC that would work with me for MLS access. I'm not looking to sell any homes for people, just wanting to browse the MLS for my own investing. Absolutely don't mind paying for the services or helping out a BIC/firm any way I can.

Pertinent skills include:  HVAC (refrigeration licensed), plumbing, electrical, mild construction, metal fabrication, soon to be licensed NC contractor, grading/excavating, ...etc...I do/know alot of stuff and have alot of tools and equipment...

I wouldn't bring you any headaches. I'm a 10+ year entrepreneur and currently have my own business ventures that take up most of my time. Like I said, I just want to browse the MLS...

I'm in Greensboro.  If you're interested, lets chat.  Thanks.

Raleigh, Winston-Salem, Charlotte, Durham 

In my (brief) shopping around, nothing's cash flowing quite like this one. I definitely don't have to go negative equity to cash flow anything, but other deals I'm looking at (duplex and single family) seem to be $400 at best or less. This one just keep poking me.

I understand the PM %. The gross is there for it. And I'm confident in the analysis. All the pieces are there. Maybe let's even turn this into a hypothetical question instead of just this deal. Say, all other things acceptable in a particular deal, what's an acceptable ratio of negative equity to cash flow? Surely there's already an acronym out there that covers this...

So I'm talking with an off market somewhat motivated seller (he wants to liquidate to fund one larger single project in cash, his own retirement community) about a 4 plex in a grade B- -ish neigborhood.

I'll keep the analysis short...

Comps say the property has an appraisal value of $125k at its best, largely due to neighborhood.  It's probably one of the newer (1985 build date)/best looking properties in several blocks.

Assuming I'm the property manager, which I plan to be in the foreseeable future, this property would cash flow me around $800-$900 per month if I could get it for $150k.  He's at $175k right now.

I also think I could turn that $900 cash flow into $1100 with a few easy changes pretty soon after acquiring the property. 

Even if I got it for $150k i'd be jumping in to $20k+ negative equity right off the bat.  

But...

At what point do you respect the cash flow enough to be ok with the negative equity?

My current 'strategy' (I've yet to implement...) wants cash flow and plans to hold this property long term.

Thanks

What are some usual payment terms for self storage rentals?  I'm revamping a family owned self storage facility that's been operating straight out of 1984...

My current thinking on terms:

You're in default after day 1.

Late fee after day 5

I'm locking you out after day 15

I'm sending you notice of foreclosure/auction date after day 30.

Too harsh?  Too lenient?  

Property is in Virginia so I think I'm good with the 30 day foreclosure after default if my memory serves.

I searched I promise...

Thanks.

And to be clearer-er, and you may already be addressing this @Zak Parks, I was asking about the asset protection of a mortgage vs LLC credit line as it pertains to litigation from say a tenant or injured person on my property. Not so much for the protection of my investors protecting their investments to me.

I think I am envisioning much more hassle/paperwork than it evidently is when it comes to securing the investor to the property.  I haven't done it yet...

I guess I hear/read "I'm so leveraged there's nothing to sue me for". If my LLC holds title to 5 properties with no apparent liens on them (because i'm using my business lines of credit) do I look more vulnerable to a lawsuit because the deeds appear free and clear even though the LLC has all the liabilities?

Or am I overanalyzing, worrying about things that have little probability of happening?

Thanks for the help.

To be more clear, I don't want to just have their cash in my bank account paying interest to them, but if one investor has a 100k cap and I need 104k for a particular deal I just want to make the transfer from the second investor and move on without more paperwork. 

I would really prefer to have the easiest access to the money with the least amount of paperwork. My investors would be fine with this (like I said, they'd probably be fine with a handshake, this isn't my first entrepreneurial rodeo). I guess I'm wondering if I'm missing something on my end that would be detrimental in operating my company this way. One particular concern is the asset protection, if any, that a mortgage on the property might offer over having a broad lines of credit to the LLC.

Clear as mud?