All Forum Posts by: Michael Wagner

I always say that if the deal is good enough you will find the money!  That's admittedly way more true for value add projects than it is for turn key properties.  There's just more profits to share when you are repositioning a neglected asset, than there is when you buy a turn key property. That said, if the property is bankable from day one, you might be able to give up 10-19% of the equity to an investor in exchange for the cash you need to get the deal done.  I find that most deals can get done if you are able to target a 16-20 return for the equity partner....again that's pretty pedestrian when it comes to value add plays but may be hard to reach on a turn key property that you are leveraging to 80% or so.  Its not inconceivable to find less sophisticated investors that would be very happy with a 10-12% return on their money but you'll likely have to hand hold them for a long while to get them to the finish line with you.  You'll likely need to get creative to structure their return in a way that the bank will allow (likely a preferred return  where they are not "guaranteed" fixed timely payments but instead are promised the % return but it is only payable AFTER the bank is paid and when the cash flow allows...you still owe them the agreed upon percentage but it doesnt have to be paid out until the property can afford it.)...this is just one idea...there are literally thousands of ways to skin this cat!  Hope that helps to get the wheel spinning a little bit.

Hey George,

we met briefly down at Scott's Academy this last January. How are things in your world? If I remember correctly you own back east where you grew up? Still own that one? Any expansion since then?

Mike

Hi Eric,

Im not local to Cali but my advise would be to start calling and visiting Mom and Pop storage joints around town to start making connections that way. 

You might also set up "self storage" as a keyword here on BP so that you are notified anytime the topic is discussed.

Hope that helps some! And if you do decide to spread out, investing remotely is not all that different from local when it comes to SS. I live in NY but own in FL, GA, NC, SC, PA, IN and MO. Sold the two Unowned in NY;)

Best of Luck,

Mike

You might find some value in two blog articles I wrote. They are published right here on BP. Here's a link to the first one. It will give you a bit more Insight into finding listed properties:

https://www.biggerpockets.com/...

From there you can poke around a bit as I also wrote one that seconds George's advice above.

best of luck!

I agree it's over priced especially if you are a "get your hands dirty" kind of guy. You can find neglected storage properties for $15-25 per square foot....fill em up and then sell for 7-9 CAP which often equates to $50-60 per square foot! Personally I would keep looking! Also wanted to mention that you do not need a fu time manager in a property of that size. If go so far as to say you don't need any office hours at all but instead could manage it quite well with an online portal, call center and contracted "boots on the ground" to handle the minimal onsite physical tasks. I live in NY and manage a 24000 square foot property in Florida with this remote structure and it's works perfectly. Took it from 40% full to 95% while increasing rates by 15-30%!

 You'll find tons of good info here on BP.  I would recommend you set up "self Storage" as a keyword alert here on BP.  Doing so will notify you anytime SS is discussed in the forums.  You might also find some entry level value in a little blog I publish here on BP.  Its called "All Things Self Storage" and can be found here:

https://www.biggerpockets.com/member-blogs/3915-all-things-self-storage

Hope that helps some!

You got a lot of great direction from Mark above.  Another resource to dive into would be your local SSA (Self Storage Association)...each state has one (some better than others). 

You might also find some value in a little blog I host here on BP.  Its called "All Things Self Storage" and can be found at:

https://www.biggerpockets.com/member-blogs/3915-all-things-self-storage

Another good option would be to set up a "Keyword Alert" here on BP for Self Storage...that way you will get notified each time people are discussing Self Storage in the forums....that's precisely how I found your post:)!

And if you are really bored, you can search the forums for old threads about the topic.  That might be a bit overwhelming but if you narrow your search to a particular aspect (for example "remote management self storage") you're likely to stumble upon some good info!

Hope that helps some!

 Congrats Mathew!  I don't know anything about you but I know enough about Storage to say that I'd bet you're love affair with it will only strengthen as you expand and grow within the niche!  It really can be life changing! Do you buy local to you or remotely?

OUr collection process is fully automated (with rare exceptions a couple times per year for auctions).  We use ESS and customers get automated mail, email and text messages on a schedule.  And 3-4 times per year I manually process auction notifications.  I will call/text with people and try to work with them to avoid auction if possible.  Typically our accounts receivables (greater than 30 days) 1.5-2% of gross revenue....it creeps a bit higher than that right before auctions and falls to below 1% right after auctions.

Move to credit gradually. We run our properties 100% cashless. I don't think you will get appreciable push back but to be safe, just do it slowly. Start with the 20% of the clients that have the highest discounts relative to current street rates and raise their rates by X percent but offer to only raise it by .5x percent if they go to autopay...then repeat until you moved everybody over. Doing so will allow you to absorb Any "move outs" and you'll replace them with people at higher rates anyways!