Value-Add Real Estate Investor┃ 3 Self Storage Facilities / 71k SF ┃ 1 Small Bay Industrial / 28k SF ┃ 1 IOS Site ┃ 24 MF Units┃Basis is Forever
Atlanta, GA
Joined October 2020
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About ~5 months ago I started cold calling self-storage owners in search of my first deal and today I put my first deal under contract (off-market from a cold call)!
It's a small deal in just outside of a top 10 MSA. Will share more upon closing, but here are the highlights:
The power of 3rd party management:
Storage facility I’m buying from is managed by a local 3PM.
I get all service contracts and a dumpster is $800/mo.
Current management calls to cancel, gives Republic my info, they immediately offer me $150/mo.
Says “just call me” when rates go up and I can lower them.
3PM doesn’t care about ownerships opex if ownerships isn’t on them.
This deal is now 86% leased with weighted average rents of $10.97 NNN.
We (@listingsarasota and I) bought this for $51 PSF and invested another ~$18 PSF, so our YOC is a 15.5%
We renovated every single unit and have signed leases with 12 different companies.
Three small suites remain!
A few photos of our recent transformation of our 27.5k SF small bay deal.
Props to my partner @listingsarasota for spearheading most of this CAPEX.
Got 3 BOVs on my self storage facility.
$1.0M
$1.3M
$1.55M
Offer pre-market from the one I went with is $1.25M. Highest value doesn’t necessarily win but I new $1M BOV was low.
I went to work last year and make $100k - I invested $0 when I went to my job.
If I had put $0 into the S&P I’d have $0 today!
One of my fun facts is that my brother was the guy that got @TomBrady’s 600th TD pass back in 2021.
I like to take partial credit bc I bought him the @MikeEvans13_ jersey for Christmas, and Mike was the one that gave him the ball.
Just used @Muse to refine all of my ads for Self Storage (Google, Facebook/Meta, Bing/Microsoft). Fine tuned keywords, refined searches, added negative keywords that were burning spend, and set up conversion tracking.
It'll send me weekly reports tracking performance and recommending where to allocate dollars. Took a few hours and mostly connecting / logging in and telling me what to ask Cubby to set up tracking.
Pretty cool stuff.
Charles retweeted
you can either look at a mortgage as a bank letting you long real estate against a perpetual devaluing dollar for a carry cost slightly above the risk free rate of return, or you can choose to be ignorant of how money works, if you spiritually have the mind of a medieval peasant
Every federal reserve meeting I am reminded how 95% of the population has no idea how rates work and believe mortgages / all debt was just increased…
Who’s the best IOS broker for small deals? Looking to possibly sell a sub $1M in NJ.
Want someone who has sold 10+ IOS deals in the last 12 months and knows every player to put the deal in front of.
Don’t tell me your friend / you (unless you or their friend actually do have real IOS brokerage experience).
Anyone can value this thing - just want someone with strong buyer networks
Retwit - I need the lawyer that specializes in cell towers.
Going UC on a deal where there’s a cell tower on site and current owner is not receiving any rent. They bought out of foreclosure and found there was a ground lease signed about 30 years.
Not sure if cell company bought out ground lease or if they just stopped paying when property was foreclosed on.
Who’s the person on this?
Storage customer: there’s a BLACK WIDOW in my unit! I want a refund!!
Me thinking: yeah ok I’m sure it’s a regular spider… not an actual black widow…
Customer: *sends pic*
Me: 😳
Need a good real estate podcast.
Already like and listen to @fortworthchris.
What else do we have?
Not our best deal, but not our worst. Definitely was a little stressful.
1.5 years after @TheREDevGUY and I purchased this, it is now 100% leased.
Leased 50% $2,750/mo NNN 12 mos after closing
Leased remaining 50% at $1,700/mo NNN after 16 months (we dropped to just get this thing rented). Both has strong use of yard space (billboard servicing company with fleet of trucks, and medical transport co with ~15 trucks
Figured it doesn’t hurt to post here.
Me and @TheREDevGUY are closing on a small IOS site in Northfield, NJ.
Space will be vacant and we’re looking for a tenant!
~2,700 SF building and 0.9 acres of outdoor storage
Who’s got a tenant for us?!
Probably worth somewhere around $650-700k now that it's leased, and we bought it for $459k, put maybe $15k into it, and bled cash for a year straight.
Lessons learned:
Need a better/more functional building when trying to lease IOS
Need to be in better markets for this kind of product. This was in southern NJ near the shore (not close to Philly).
I think a lot of people fail to think about why their building a real estate portfolio.
"to get rich!"
Ok, then what?
Nothing wrong at all with wanting money/resources, but thinking of the end goal is something a lot of people fail to consider it seems to me.
