All Forum Posts by: Ronak Shah

@John Ford congrats, very inspiring!

@Michael Minervini, it will be interesting to learn why a seasoned multi-family investor is switching to self storage.  FYI, on scaling up, I have followed few thought leaders in self storage such as @Scott Meyers and @Michael Wagner and they seem to have made complete transition from MFH to SS so I am also looking to skip MFH and so it will be helpful insight from someone making that transition now. 

I haven’t done this but seems it is actually much easier and cheaper to do this in self storage compared to multifamily.  Actually adding extra square footage is also more of a science than art so that is also another value-add for cheap.  I will let experts chime in though!

@Dan Barli I have 2 friends in Clifton both left their full-time employment with all their properties in your town.  There is no need for you to go too far!

@Joe P. that’s quite a statement that there are no landlords in NJ!  I know people in NJ with portfolio of 300+ properties.  @Tanuja Nihir Shah I unfortunately wasn't aggressive and outsourced portfolio building to my friend in VA and thus I have properties which appreciated much less than the ones in NJ and is harder to manage them now that I am trying to do them remotely. What does all this mean? If you have means, look for properties close by and build up more properties quickly so you can afford to have team to manage the maintenance requests and repairs that come one day or the other! I would say if you have means, go for more units from get go (buy apartment complex, self storage, etc.) and bypass the headache for almost same effort in acquiring and less in managing! You can also go invest in syndications of operators you like in above asset classes and may be build resume to be syndicator yourself one day!

Let me know if you want to connect as I am also in NJ!

@Joe Splitrock valid concern that can only be answered by look at what is happening with millennials and how they are now getting married and buying in suburbs again (granted at older age than earlier generations).  Then again if you are  moving then don’t you have things to store?

Hi @Michael Wagner solid advise as always! Quick question: what kind of properties do you see in the $300k-800k range?  What sort of places do you stay away from?

Hi @Christopher Brown congratulations on accidentally finding a deal in an asset class you had no experience or much knowledge about and making tremendous $ with it!

One of my friend recently went through selling his small multi (16 units) in small market in NC and went through same Marcus & Millichap broker for purchase in same market for larger property (32 units).  He was really pushed by this broker on both sell and buy.  Your mileage may vary but it is quite possible but consider that for what it is worth!

BTW, I am looking to get into self storage myself and would dm you if I can pick your brain somewhat!

There is no typical split.  It depends on sponsor’s experience and risk profile of the project .  What I have seen: acquisition fee (0-2%), asset management fee (1-4%), pref to investor (0-10%), split from cash flow (50 to 20% for sponsor), split from sale (20-40% for sponsor).  

As you can see there is nothing typical except the names of different fees.

Sometimes last 2 fees are also based on hurdles where split % changes beyond certain results.

@Michael Wagner thanks for that link!  I guess this is direct link you are talking about http://mcdc.missouri.edu/applications/capsACS.html.

@Erik 

@Erik Peddle Thanks for that library of models.