First Self Storage Investment Partnered w/ an Expert

12 Replies

Investment Info:

Other other investment in Webb City.

Purchase price: $1,370,000
Cash invested: $250,000

Partnered with a good friend on my first foray into Self Storage Investing. Our facility is called Cardinal Storage and is located in Webb City, MO. It has 300 units.

What made you interested in investing in this type of deal?

The ability to partner with someone who is a storage unit pro.

How did you find this deal and how did you negotiate it?

I was asked to invest in the deal by Zach Quick.

How did you finance this deal?

85% bank loan with a 15% cash down payment which I was responsible for most of.

How did you add value to the deal?

Cash and credit.

What was the outcome?

It has been great so far. Ive been getting a steady distribution monthly. We have been able to raise rents by upwards of 40% across the board for the whole facility without sacrificing occupancy.

That's fantastic. How did you split the ownership & returns with the operator?

Yeah it’s going really well. @Zach Quick is the storage master I’m just along for the ride in that realm. I know what I’m doing in residential, multi family and I’m learning a little about storage..

@Zach Quick 's story is very inspiring. Knows his stuff. Congratulations to the both of you.

This is a great example of what I think many high-income professionals should focus on if they are interested in real estate investing, but lack time and/or experience. Find an experience operator who's doing it full-time. Invest passively first. You'll learn a lot being a part of the deal.

Originally posted by @Scott Krone :

@Tyler Casey  Congrats - welcome to the world of self storage.  It is growing in interest, so much so, that Blackstone is jumping in as well.  https://www.wsj.com/articles/b...  with a $1.4B dollar acquisition.

It's been a solid investment for me so far.  I will be ready to buy again when the opportunity presents itself.

 

Originally posted by @Neil Henderson :

@Zach Quick 's story is very inspiring. Knows his stuff. Congratulations to the both of you.

This is a great example of what I think many high-income professionals should focus on if they are interested in real estate investing, but lack time and/or experience. Find an experience operator who's doing it full-time. Invest passively first. You'll learn a lot being a part of the deal.

Yeah it's been awesome for me.  Zach has been great to work with very honest and reliable.  I like what partnering with an expert in different realms of real estate does for me in terms of diversification as well.

 

@Tyler Casey Congratulations!! Sounds like a great opportunity, especially for your first facility. My wife and I are on the hunt for our first and would love some tips if you have a moment. Would love to know what kind of arrangement did you make with your partner besides the 50/50 equity split? Did you place the partnership under an LLC? Is the cash flow split also 50/50? Was the 85% LTV with a CU, local bank, SBA, etc.? Who's managing it or is it automated? Is there an exit strategy? Was this a value-add property? Would love to know a little more if possible. Thanks and Congrats again!!

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