Hey fellow investors! I am looking at making an offer on a distressed storage unit facility. (its not for sale or listed) I need to find the owners and make them an offer. Ok, so here's all I know.... The storage facility (only about 70 units, 8x10's and 12x15's maybe?) I believe it was purchased by an Indian group, from what ive heard the only reason they bought it is because it was attached to a gas station that they bought. I think they also own 5 more gas stations in the area. the storage unit facility is NOT being taken care of and may not even be bringing them ANY income at all. (they are in the gas station business). It looks run down, half the doors are just left open, pretty sure homeless people might be sleeping there. BUT, its not even in a bad part of town... they just dont keep up with it.
SO, sounds like it could be a great opportunity? I hope with your help I can find out!
1. What is the best way to get ahold of the owners, and how?
2. It should bring in about $4,000 month once I get it 90% rented. How much is that worth? Keep in mind, there is a lot more room on this property to build more units 3x as much units.
3. Should I find a commercial real estate agent to work through this deal with me? I've only ever invested into single families before.
4. what are some creative offers you would present to the owners?
Hi @Ethan Moore ,
Sounds like a neat opportunity. We have done the same thing with two storage facilities.
1. Is there a phone number to call if you want to lease? If so, call that number. If not, look up the owners in the county tax records. Or, ask the workers at the gas station how to contact the owners.
2. If you are saying the Net Operating Income (NOI) is going to be $48k ($4k x 12 mo), then maybe you could expect between an 8-10% cap rate, which would value it at $480k - $600k.
3. Don't find a commercial real estate agent on a deal that you find. Just go negotiate that thing with the seller. No need to involve a middleman on a small deal like this (in my opinion).
4. I'd ask the owners what they want to do with the property, etc. before figuring out something creative. There are a lot of creative ways to finance deals like this, but it all depends on the needs of the sellers.
I hope that helps. I wish you the best!