First thing's first, I was laid off from my job and thinking of creative ways to support myself and escape the matrix. I have $400k in accessible cash looking to deploy towards real estate. I made another post and connected with many others who seem pretty helpful. One of those individuals was Henry Clark who specializes in self storage. This post is going to be dedicated to my first deal in trying to acquire or develop my own self storage facility. Join me with questions, comments, and additional support.

Here are the outline steps of what I plan to do.

1. Analyze a few deals. Being able to determine demand in a particular area involves a few factors. From my short amount of research, self storage is a retail service now. Folks want to be close to their belongings, they want it to be easily accessible. Some places calculate based on population and square footage per person. I'm not sure what's correct, I have more questions than answers. But being able to find a land even if there is a competitor nearby and determine vacancies, pricing, unit dimension demand etc is something that I will need help on. Currently Henry mentioned a deal in Palmdale. 4 acres asking $240,000 for vacant land. Zoned for self storage, problem is it is not in front of any main roads but has a private dirt road off an exit road next to the freeway. More on this deal in an additional thread.

2. Build a template: This is something I will need guidance on. There are a lot of steps in any real estate venture. Getting organized is important to understand how to orchestrate different parties to align timing wise so no time or money is wasted when locking down a loan and needing to make payments. 

3. Secure financing: I currently am talking to US Bank, I've heard they have the most favorable construction loans in the market as of right now, but they are asking to see projections in order to continue talking to me. I believe for every 100k in the bank they would loan out 1mm dollars so long as you have a high paying job, up to a few million. Going to need help putting together a financial projection to prove the business model will expect to make x dollars in y time. I'm not sure what kind of loan I could even qualify for. I dont have a business with tax returns. I'm just getting started.

4. Partner with a GC and construction company: Construction company will supply the block and steel. The GC is responsible for mostly everything else, leveling, drainage, electrical, security, doors, concrete/asphalt, gates, office. I need clear and accurate estimates with to ensure we don't go over budget and that I can also say with $1mm I can build x units, which would net me y dollars. Another factor which is slowing my projections to share with the bank in order to get approval for a loan. 

5. Close on a property: This may be one closing which could include the land along with my loan or it could be me purchasing the land/space outright working with a commercial real estate agent. I'm located in the Southern California, Los Angeles area. If you know any commercial real estate agents that have experience in self storage I would love to connect. I am going to need representation.

Join me in sharing your stories of how you started, any advice you would give to someone new starting out. And by sharing any relevant material you think you would be helpful. It could be excel, presentation, docs, connections, or wisdom. Thank you in advance.