All Forum Posts by: Chip Stroz

@Daniel Lioz So if it were you, knowing what you know, assuming there's a reasonably good chance to get it leased up to 85-90%, what would you offer?

@Michael Plante What a novel idea! I’ve done that in the past in situations like these and it’s a very uncomfortable conversation. But I’ll give it a go. Why not? Thanks for the tip!

@Chris Cambridge Thanks for the advice!

@Lucia Rushton Thanks so much for your advice.  I've heard that realtors will sometimes want you to pay for some of "what could be" instead of "what it currently is."  I was just wondering why they would be asking that much. Because if you look at all the numbers right now, a fair asking price (just based on the numbers of the business, and not the value of the building itself), would be somewhere in the $250,000 - $300,000 range.  But I thought that since the building is so new, they'd be just asking that much to try to recoup some of what the seller spent on the buildings themselves.

@Cason Acor The asset class is self storage.  It looks like it is in a decent sub-market in Mississippi. There's about 40,000 Net rentable square feet.  And there is also an empty warehouse that is generating no income.  Climate controlled there are a multitude of different sizes.  Non-climate controlled there are only 3 sizes.  Doesn't seem to be an over-supplied market, but I haven't done a deep dive on that yet. 

I recently ran across a property that was listed by a broker. It was built in 2019, and it is listed as a .70% cap rate. It is only 43% occupied. They gave the proforma, and if ALL the projections of that proforma were to happen, it would be worth 1.9 million. They are asking 1.6 million for the property. But at 43% occupied, and all the expenses, current NOI, etc., it isn't worth anywhere near that price. Why would they try to command such a high price, if it is over half empty?

@Mark Fries I live in Denver, but I would be interested in partnering on a deal. I am in the process of getting educated on it now (actually have been educating myself on it for many years now), but haven't jumped in yet.  Let me know if you need another investor to help share the workload.

@Scott Meyers I didn't mean to say that your course that I attended back in 2014 wasn't awesome.  It really was.  But the piece that I had the most trouble with was the money piece (i.e., finding investors to go in with me on a deal).  I guess that's why I would like to partner with someone, possibly from this Bigger Pockets platform, to go in on a deal with.  As I said earlier, I would be willing to invest in a syndication as well.  However, I want to be involved in the process.  As you said, once you go through it once, and REALLY understand it, there isn't any reason you couldn't repeat it as many times as you'd like.

@Scott Krone

I once came very close to purchasing a storage facility in Colorado Springs that was made up of all shipping containers that he purchased for $750 each from a merchant shipping company.  He divided them up in to different sizes.  What stopped me from purchasing the facility was the same issue that Tim is running into...They couldn't be classified as real estate since they weren't attached to the ground.

@Account Closed Thanks.  Send me some information.

@Steve Cheslock Appreciate the info.  I sent you a connection request.  I would like to know your thoughts.

I am interested in partnering with someone who has experience in Self Storage.  I am very interested in this asset class, and have had some education on it (Scott Myers), but have no ownership experience.  I prefer not to get into syndications, but am not totally closed off to the idea.  I have some capital to invest, and I was hoping to find one or two investors with experience in this space, who I could partner with to do a deal.  Any recommendations on how to proceed would be greatly appreciated.