Understanding how to effectively buy more storage deals is crucial for anyone looking to expand their portfolio in the self-storage industry.
So, how do you improve your underwriting practices, rather than just increasing marketing efforts or generating leads?
I talk about the essential strategies to enhance your ability to identify and evaluate value-added opportunities within potential investments.
You will learn my insights from conversations with other investors, especially those who are eager to acquire additional facilities but are struggling with their current approaches.
I emphasize the importance of recognizing that most available deals are value-add opportunities, and I outline various misconceptions about underwriting that may hinder your success.
By the end of this episode, you’ll have a clearer understanding of how to approach storage investments more effectively.
Key Takeaways:
- When assessing storage deals, prioritize value-add opportunities to enhance your investment's potential.
- It's crucial to understand that doubling your investment's value is not always necessary for success.
- Do not overlook smaller storage facilities, as they can provide excellent cash flow and strong returns.
- Equity should not be your only means of financing; explore alternative funding options for your deals.
- Square footage per capita is not a reliable metric for evaluating storage demand in specific markets.
- Operating expense ratios can vary significantly; avoid relying solely on the 30-35% benchmark in your assessments.
Thanks for following, subscribing and listening to this episode of The Do More podcast hosted by Jon Farling. To learn more or ask questions, go to l4investing.com.
The Do More Podcast
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