Storage unit

[Mark Mossman]

hey folks 

I'm new to jnvesting

Looking for some advice here.

Property is a 60 unit storage facilty on 3 acres .

Asking is $449,000

The seller is offering $90,000 VTB does anyone know if it's at possible to buy this property with no money down.

[Scott Meyers]

Mark,

We have purchased MANY Self Storage Facilities with little to $0 Money down, with the seller Carrying back a mortgage (VTB).  But you won't know until you ask him/her.... 

And just an opinion here, but a Master Lease is a VERY Bad idea.   If you don't have the deed, you're entire investment is at risk.  Even if you get in for $0 money, you'll have time invested, plus a fair amount of Money in marketing, maintenance, etc. and you don't know what could happen if the seller bails on his mortgage, gets sued, divorced, etc.  

On a more positive note, Here's how to value your deal: Apply a 9% cap rate to the 12 months trailing NOI, and see if that is anywhere near $449,000.

I would guess that of the 3 acres, 60 units are only taking up about .75 to 1 acre, so there is room to grow if the market has enough demand.  

And for that, you will have to give them SOME consideration for the 2 additional acres, even if the price doesn't work out to be a 9% cap rate on the trailing 12 months NOI.

Good Luck and keep us posted.