Self storage facilities in the Upstate NY area for a newbie.
Hello all.
I have been following a few threads on self storage units . Have been interested for a while but apparently good deals are hard to find. I am very interested in the value add (If I can find one). The Upstate NY area would be my focus .
I know Scott is the guru on this topic but I cannot attend his academy.
Any pointers everyone ?
Quote from @Chinyere Ofonagoro:
Do the same thing you would do with any real estate niche: do the hard work and find off-market deals.
Two years ago I decided to try buying a self-storage facility. I got a list of every facility in my area worth considering (there were only about 40 in the County). I called each one, introduced myself, and asked if they would consider selling. Only one said they would consider it in 5-6 months. I called them back four months later and they confirmed they would like to talk. We met, we talked, they shared financials, I made an offer, they accepted, and I have owned it for two years.
I'm sure it was mostly luck, but I intend to repeat this around the country until I find another one in 2023.
Read "Storing Up Profits" by Paul Moore for all the details of buying/managing.
Thanks.
I appreciate your response.
Hey Chinyere,
I work at a real estate investment advisory firm that specializes in helping clients invest in passive syndications. Many of the syndications we have on our platform are from sponsors that specialize in value-added self storage deals. They'll acquire a mom-and-pop owned property that is managed inefficiently and they'll invest in some relatively cheap upgrades to bump rents.
These self storage deals average about 10% annualized cash flow, paid monthly, and average about a 15-25% IRR with about a 2-5 year hold period.
They are only open to accredited investors, but if you're interested in hearing more about these feel free to reach out.
Hello Chinyere. I am from upstate new york but do not invest in real estate there. One thing I have thought about since getting into real estate is the shockingly low availability of self storage in many areas of upstate new york. For instance, I grew up in Canajoharie and I cannot think of a self storage facility in a 45 minute radius. In a market like this it may make more sense to build a facility rather than buy an existing one.
Quote from @Jacob St. Martin:
Hello Chinyere. I am from upstate new york but do not invest in real estate there. One thing I have thought about since getting into real estate is the shockingly low availability of self storage in many areas of upstate new york. For instance, I grew up in Canajoharie and I cannot think of a self storage facility in a 45 minute radius. In a market like this it may make more sense to build a facility rather than buy an existing one.
Building up is always an option but I am more focused on existing and occupied units as a newbie. Just more challenging and costly building up and waiting for occupancy.