SELF STORAGE PROFITS, INC. and THE SELF STORAGE INVESTING GROUP
Partnership Criteria
READ THIS FIRST:
1. WE ONLY PARTNER WITH CURRENT STUDENTS WHO HAVE PURCHASED THE HOME STUDY SYSTEM “THE COMPLETE GUIDE TO FINDING, EVALUATING, AND PURCHASING SELF STORAGE FACILITIES”, OR WHO HAVE ATTENDED THE SELF STORAGE ACADEMY™ THEREBY POSSESSING THE PROPER SOFTWARE AND FORMS REQUIRED TO SUBMIT PROSPECTIVE DEALS.
2. ALL DEALS MUST MEET THE FOLLOWING CRITERIA FOR PARTNERSHIP CONSIDERATION:
A. PURCHASE PRICE REPRESENTS A MINIMUM CAP RATE OF 9.5% ON 12 MONTHS TRAILING PROFIT & LOSS STATEMENTS
B. MINIMUM PURCHASE PRICE OF $500,000.00 US
C. MUST POSSESS A SIGNIFICANT VALUE ADD COMPONENT – BELOW MARKET RENTS, BELOW MARKET OCCUPANCY, VACANT LAND FOR EXPANSION, COULD REPLACE MANAGEMENT WITH KIOSK, ETC.
D. DEALS THAT CAN BE PURCHASED USING A MASTER LEASE OPTION WHERE THE PROJECTED EQUITY EQUALS 65% OR LESS OF PROJECTED MARKET VALUE AFTER THE PROPERTY IS STABILIZED AT MARKET OCCUPANCY. (EXAMPLE: PROJECTED VALUE IS $2M. THE OPTION PRICE $1M, OR 50% OF PROJECTED VALUE)
3. NO NEGATIVE CASH FLOW WHEN MONTHLY MORTGAGE PAYMENT(S) IS SUBTRACTED FROM CURRENT NET OPERATING INCOME (NOI)
4. PROPERTIES THAT ARE FUNCTIONALLY OBSOLETE OR THAT REQUIRE A MAJOR REHAB ($100,000 OR MORE) WILL NOT BE CONSIDERED.
5. STUDENT REALIZES HE/SHE IS RESPONSIBLE FOR SOURCING THE DEAL AND ACTIVELY PARTICIPATING IN STAGES OF THE ANALYSIS, DUE DILIGENCE, AND SECURING THE FINANCING/FUNDING TO CLOSE THE PURCHASE TRANSACTION AND SUBSEQUENT MANAGEMENT POST ACQUISITION.
In Simple terms:
“Non-students who attempt to email us overpriced listings expecting us to negotiate the deal, find the funding, close the deal, manage the property, and then magically receive a monthly check for 50% of the profits will not be considered for partnerships!”
HOW TO SUBMIT DEALS FOR CONSIDERATION:
1. All deals must be submitted using the Self Storage Valuator® Software form. Any deal not meeting the minimum requirements listed in items 1-3 above, will automatically be rejected by the system for partnership consideration. All deals need to be submitted to: info@selfstorageinvesting.com for consideration.
2. All deals will be reviewed and a response returned within 3 Business Days (Maximum) by an acquisition manager and/or Scott Meyers
3. Priority Attention will be given to Members of the Various Coaching Programs offered by Self Storage Profits, Inc. All others will be evaluated in the order in which they are submitted.
4. Deals that where the owner is offering seller financing will also receive priority attention
Student Partner Terms and Conditions
PARTNERSHIP INTEREST
Submission of this information will entitle the Student to be a partner in a prospective deal, subject to acceptance, and Student shall receive a specified percentage of ownership commensurate with the program under which the Student is enrolled, as follows:
Partnership percentages will be addressed depending upon each individual deal submitted and what each party may bring to the partnership.
BINDING: The terms described herein shall be binding until such time as an LLC agreement is formed to hold a lease, option and/or partnership interest in the Property. Said LLC shall reflect the ownership terms described herein.
STUDENT OWNERSHIP: I understand that should this prospect become a deal, my ownership shall be held as membership units of the LLC. Ownership shall entitle me to receive my pro rata share of all income and equity/profits.
STUDENT PARTICIPATION: Students enrolled in a Self Storage Profits Support program (SSIG Inner Circle) are entitled to participate in the due diligence, evaluation, negotiation, structuring and operations and management of the deal as part of the education process. The level of involvement and participation is based on the Student's desire, experience and expertise, and thus is subject to the discretion of Self Storage Profits, Inc.
DEAL ACCEPTANCE: Acceptance of the submission online does not imply or guarantee acceptance of the prospect by Self Storage Profits, Inc.
SUBMISSION FEEDBACK: Students who submit a prospect for consideration can expect to receive within 5 business days initial feedback, as follows:
• Rejected
• A Request for More Information or Clarification
• Accepted for Negotiation Upon a successful negotiation, the student will receive, at a minimum, notification of the following critical milestones:
Master Lease Option:
• LOI executed by all parties
• Lease and/or option executed by all parties
• Lease or option contracted for sale
• Property contracted for purchase/refinance
CONSULTATIONS WITH Self Storage Profits, Inc.: Feedback to students is typically performed electronically via email. Members of a Self Storage Profits, Inc. Support Program are allowed to listen live on the negotiation calls for their prospects. Phone consultations with Scott or Self Storage Profits, Inc. Acquisition Managers are reserved solely for members of the Inner Circle. Scott and the acquisition managers are available Monday through Friday during normal business hours Eastern Standard Time and the frequency and duration of calls is unlimited, Vacations Permitting.*
LEGAL AND TAX COUNSEL: Self Storage Profits, Inc. does not offer tax or legal advice, and highly encourages the Student to seek the counsel of an attorney regarding these terms, as well as seek the counsel of a tax professional or CPA to determine if there are any potential tax liabilities or consequences as the result of partnering with Self Storage Profits, Inc. on deals.
NO GUARANTEE: Student understands there are NO GUARANTEES of Student's success or outcome or profitability of any deal, expressed or implied by Self Storage Profits, Inc. or any of its members, officers or affiliates, and the CONSULTANT will NOT be liable for any financial or other losses or damages incurred by the STUDENT.
JURISDICTION: If litigation is necessary to resolve any differences between the parties, Indiana law will govern such litigation and the prevailing party will bear the cost of all attorney's fees and court costs.
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