Need Advice on Wholesale-"ish" Self Storage Deal.
Need Advice on Wholesale-"ish" Self Storage Deal.
Hi Everyone, This is officially my first post on the forums as I wanted to wait until I had an actual real world Deal to discuss and potentially partner up with you on. To be clear I HAVE ZERO experience in facilitating these deals. I do, however see the value in facilitating the transaction.
Please forgive the poor grammar and spelling. I just needed to get the info out quick and dirty.
Here are the basics...
Currently have a few Investors interested in Self storage. Also have connections with self storage property manager that is also selling a few facilities.
I am looking for a way to solve the problems of both the seller and the investors buy connecting the two and making a profit on the service/deal. I have access to all of the facilities financials and asking price. Just need to know what my next steps are to make this deal happen and how to make a fair profit from the transaction. The Seller is asking 5 million but I think we would talk them down to much less.
The commercial self storage facility is in the Houston, TX area.
ALSO-- let me give you a general breakdown of the investors I am talking to right now.
Investor "A"
Is a local Physician who already has a small storage company and he is interested in investing in more. He said his limit is 1.2 Million on he next purchase. He stated that he is very open to partnering with other investors. He is eager to see numbers.
Investor "B"
Is a long time Multi-family and single-fam residential investor whose focus is in the passive income, the monthly net is his main motivation. His budget is 2 million max but he stated that his son is also an investor so if the deal makes sense, he could bring him in on it.
Some negatives on Investor B that we have to overcome:
- He has zero experience in self storage industry so we have to set his expectations.
- He originally said he wanted something in San Antonio but that is pretty much impossible as self storage has exploded there and competition has drove property values way way up. When I mentioned this , he seemed open minded.
- Investor B also stated an aversion to partnering with other investors he doesn't know. I think we can overcome this doubt and all others if we can present good numbers.