All Forum Posts by: Kris Bennett

@Paul Moore Yes, you're right. I'm talking with people in residential and it's starting to slow down. Some buyers are pumping the brakes and sellers don't want people walking through their homes. 

On the storage front, you're 100% right. Yesterday I forwarded an email from a large MFR PE firm that was putting a halt to ALL acquisitions activities and closings! The reason: they wanted to adjust their market expectations and pricing. Translation: those sellers were about to get re-traded at a lower price.

Mom-and-pops need to get realistic (have been needing to for a while now), but as you said, buyers need to be ready. I remember 2008-2009, as you do. I'm sure we both wish we would have jumped in more than we did. 

Great comment, Paul!

@Joseph Cacciapaglia and @Ross Gleason HA! Love it. 

There are people playing this game! Hilarious....

@Karl B. Welcome to Vice City: Landlord Edition, the only game where you get to evict your tenants with guns and grenades. Tenants late on rent, send your "muscle" to collect. Found a new site for 360 unit apartment complex, but the seller won't sell? Then make him an offer he can't refuse!

@Anson Young that's hilarious. I'm tempted to try it as well. I like to play games with my kids. While browsing the Xbox store I stumbled on it and I couldn't believe it. I'll check out the streams on twitch. 

@Justin Frank yeah I agree with everything you said. Paying for future cash flows today has been going on for a while, unfortunately. That definitely makes it harder to compete and remain discipled and conservative. I appreciate the perspective.

@Tracy Selfridge yes, that was the case but it didn’t make the existing facility worth $2M more to me. It was frustrating to spend that time underwriting it, but to be fair I don’t know the cost of capital of the other party or their economies of scale, if any.

@Justin Frank do you think there is a way to get around this issue creatively?

@Justin Frank yeah, that's super frustrating, especially when other buyers are willing to pay for it as you said. I was preparing to make an offer on a facility, but the owner told me he had received one for roughly $2 million above what I thought it was worth. There was adjacent land that could be bought and built on. I get that, but the facility wasn't worth $2M, not including the land that was owned by someone else. 

Self storage investors, or anyone interested in self-storage investing, what hurdles are you facing right now? For me, it is finding deals that make financial sense. Most investors, acquisitions pros, and developers are looking for the facility that is mom-and-pop owned, roughly 30,000 square feet, with land to expand and possibly double the size of the facility. In other words, we're all fishing in the same pond which makes it hard to make reasonable offers. 

Are you able to make those deals work financially? What about markets - are you able to find those deals in good markets with sustainable population growth? What your biggest struggle when it comes to finding deals?