February 24, 2023
Self storage investing has rapidly grown in popularity among investors over the last few years. Investors are moving in from other assets looking to find something with similar or better returns, offers less management headaches and can withstand downturns in the economy.
Every day I receive an inquiry from an investor looking to get into storage. Almost all of them are looking for the same exact thing: poor management, below market rates, no marketing, good area, etc. which all equates to value add. So, if you are a buyer, how do you stand out and find deals if you are competing with so many other competitors?
The first thing you do is find a commercial real estate broker that specializes in self storage investing. I don’t mean to just call around to different brokerages and let them know what you are looking for because more than likely they have heard it numerous times before and will just add you to their list of hundreds of other investors that called them looking for the same thing. Unless you commit time to developing a relationship with them and show them you are a ready, able and competent buyer, they more than likely will not exclusively bring you a deal they find. Instead, you will receive notice of the deal once it goes out to the rest of the market just like everyone else on their list.
Even if you find the deal yourself, using a broker is a good idea especially if it is your first deal. The broker you have been working with, that is knowledgeable in storage, will be a key asset to guide you through the process from contract to close.
Secondly, you need to put in some of the leg work yourself. This means setting aside time to prospect just like your broker would be doing. Use Google maps to identify properties in your area. Research ownership using tax records. Visit the property’s website and obtain contact information. Set up a spreadsheet with all of the contact information you have found for each property and begin reaching out in every way possible. If it is a small mom and pop property more than likely the number you call goes directly to the owner and not the manager.
Finally, consider joining your state’s storage association. This is a great way to get connected with owners and vendors in the industry as well as build your knowledge of the asset.
Check out some of our related content:
- Blog: https://crdrealty.com/self-storage-property-or-rv-park-which-investment-is-right-for-you/
- Blog: https://crdrealty.com/self-storage-vs-rv-park-what-should-i-invest-in/
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