In 2021, Charlie Kao and I were considering buying an off-market self-storage facility in northern Michigan. All of the numbers looked great, but the one sticking point was that the seller wanted to stay on as property manager. On top of that, he insisted on being paid twice the going rate for a property manager on a facility of that size.
As a rule, it's never a good idea to hire the seller as your property manager, especially when you're investing in a value-add property. But in this case, there was another group that was willing to hire him at his price. We couldn't understand why they were willing to do that.
Charlie and I were about to walk away from the deal. But then we asked ourselves, "Why is the other group willing to hire him, and how does it actually make sense in this case?"
Check out this week's episode of Next Level Thursday to find out.
Find out more about Charlie Kao:
https://www.twinoakscap.com/
Rental Property Owner & Real Estate Investor Podcast