All Forum Posts by: Jeff Stephenson

Hi, I am a fairly new investor in the OKC area and I am looking for an accountability partner. Someone to hold my feet to the fire and I'll do the same for you. Maybe we could even find a way to gamify our activities. Hit me up to discuss further.

I'm looking for some help in evaluating a deal on a small boat storage at a popular lake, located in very close proximity to the marina and boat ramp.

As you'll soon discover in my meanderings on the subject, I'm very new at this.

It's a small boat storage, 2 buildings, 24 spots. One building is cinder block walls and wood truss framing. The other is all wood framing, both on concrete slabs. Both have metal roofs, of around 15 years age. The owners claim the units stay occupied essentially 100% of the time.

The asking price is 100k, they will do seller financing with 10k down. They currently have a loan on the property, balance unknown to me, but lender told them they can do whatever they want as far as wrapping the loan.

Current annual income, don't laugh, is $12960. I called two other facilities in the same area as this one and they are both charging more for their boat storage. One had one vacancy, the other was not currently vacant.

I called three more facilities at the same lake, but different areas. They were all charging more and all had 1-2 vacancies.

I'm certain the income can be raised immediately to $15,840 and maybe as high as $18,720 in another year or two.

One problem is 8 of the tenants have paid for a year in advance, so I am guessing their rates can't be raised until their year is up. Also, there are no lease agreements with any of the tenants.

Their taxes are: $956 yr

Their Insurance: $1200 yr

Their Electric: $384 yr

Current owner does his own mowing and maintenance. Claims there is very little maintenance... just the occasional door off the track, lost key or light bulb to change out. property is 3 hours from my house and full time job, so will need to hire out grass mowing. They say there is a guy in the area that would be willing to do one off maintenance projects for a minimal fee, like $20 a trip.

My plan is to offer a little less with the 10k down and owner financing. I am planning on amortizing the loan for 30 years with a balloon payment at 5 years. That should make the monthly payment around $600. My goal would be to raise the rents, try to refinance with a bank after one year and eventually resell, hoping to create enough equity to move into something bigger and better.

So, deal or no deal?

She is 18, turning 19 next month. Ideally she would like to be associated with an investor friendly brokerage. Her end goal is to be able to work closely with her dad (me), who is just getting started in wholesaling and lease options.
Any advice, tips etc you could provide would be much appreciated. Bonus points for west metro investor friendly brokerages!