Hello everyone,

I'm a first-time self-storage acquisition sponsor based in Wisconsin and have been performing due diligence on a self-storage facility currently listed for approximately $999,000 in the Chicago metro area. My long-term goal is to build a portfolio of small to mid-sized self-storage facilities throughout the Midwest by serving as the operating partner while partnering with passive equity investors.

I've spent the past several weeks reviewing the financials, rent roll, operating reports, and broker responses. My underwriting currently indicates:

• Purchase Price: $999,000
• Approximately 143 units
• Physical occupancy around 90%
• Broker-normalized cap rate of approximately 11%
• Seller is retiring and liquidating their portfolio
• Remote-managed facility with opportunities to improve operations and continue increasing occupancy

I've already requested additional due diligence items, including:

• Property tax history
• Trailing 12-month financials
• Bank deposit verification
• Accounts receivable aging
• Business tax returns
• Capital expenditure history

I'm looking for feedback from experienced self-storage investors on two items:

1. Based on the information above, are there any additional due diligence items you would consider critical before submitting an LOI?
2. I'm interested in structuring this acquisition with an equity partner while serving as the managing/operator partner. For those who have completed similar joint ventures, what ownership structures have worked well for aligning incentives between the capital partner and operating partner?

My long-term objective is to acquire and operate self-storage facilities throughout Wisconsin, Illinois, and the surrounding Midwest, so I'm also interested in connecting with experienced operators and investors who enjoy discussing acquisitions and portfolio growth.

I appreciate any feedback or advice from those who have completed similar transactions.

Thank you!