4 Steps To Find And Buy Self Storage
There’s room to improve, but this is the blueprint for how we look for storage deals.
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First — Our criteria.
I have our VAs dive into various markets and gather information on as many facilities as possible.
The data is entered and then automatically filtered in Google Sheets based on this criteria:
- owner age
- zip code rank based on census data
- county rank based on census data
- facility size
- 1, 3, 5 mile saturation
- 3,5 miles renter percentage
- 5 mile pop
- 5 mile growth percent
- 5 mile HH income
- 5 mile development pipeline
- 5 mile rent trend
- 5 mile Avg rent per SF
Second — Cold Call.
This data is filtered into high priority, medium priority and low priority. Based on how a facility ranks from the criteria will determine what priority it is.
Calls start with high priority and then work down from there.
Third — Follow up.
There will be a ton of not interested, no answers and wrong numbers each month. But there will also be some interested.
Every no is a step closer to a yes.
Last month we had 53 interested.
Fourth — Land the plane.
This is where the rubber meets the road.
You need to be fast here. We use this while we’re on the phone to quickly provide an offer range.
An easy rule of thumb is take the NOI and multiply by 10 for a 10cap.
Lob that out there and see where it lands
[Link in the comment for the calculator]
This is a super high level overview. But it’s really not complicated. It just takes consistency.
We’re calling upwards of 700 facilities a month, which is kind of mind blowing🤯
But MOST either don’t answer or aren’t interested.
That’s ok. We’re focused on the ones that are. All of those no’s are worth the life changing YES.
CTA — (let’s just call it what it is)
I’m not a guru, I don’t have a massive portfolio, but I am actively “doing the thing” as an owner/ operator of a couple facilities.
Here are a couple ways we can work together:
I’m launching a small group at the beginning of the year and sharing everything I know about self storage. DM me if this interests you.
Success in storage requires 3 things— Finding deals, capital, operating. If you have one or two of these things and want to complete the trifecta, let’s talk.
