Updated about 5 years ago on . Most recent reply
Storage facility purchase
Investment Info:
commercial investment investment in Tullahoma.
Purchase price: $3,861,000
Cash invested: $1
Purchased 940 unit self storage facility.
What made you interested in investing in this type of deal?
Had a much smaller facility in the area and felt that there was huge opportunity in increasing rents.
How did you find this deal and how did you negotiate it?
Cold called for two years until the family sold the facility to me.
How did you finance this deal?
Local bank
How did you add value to the deal?
Increased the rents, added climate control, added parking, kicked the people that were not paying out, and added retail (locks and packing supplies), cut expenses (cutting personal)
What was the outcome?
good cash flow
Most Popular Reply
Wow! Great move @Joshua Watts! Congratulations. That cash flow is just incredible considering it's your first year owning it and you financed it 100%..... super smart strategy to corner the market in your area and definitely worth the quarterly phone calls over two or three years.
I'm not purchasing my next one, I'm building it! But I do boat & rv storage with a bit of small-office warehouse mixed in. So, slightly different to traditional self-storage but it's very easy to manage which is what I like - minimum responsibilities.