“Just wanted to send you an update on how our self storage business is coming along. After attending your academy in Dallas last November, we went to work. The tools you provided helped us to locate a deal, create the business plan, and structure the financing. Here are some of the highlights:
- 95 Unit Facility
- Purchase price = $385,000.00 at 10.0 Cap rate
- Seller was elderly and looking to retire. He was considering putting on the market, we were able to get to him before he contacted a listing agent.
- Purchase price included an additional 1.5 acre corner commercial lot directly next door that appraised for $100,000.00!! Instant 100K equity!!
- Seller did a great job with the upkeep of the buildings, no deferred maintenance.
- Value add opportunity = well below market rents, poor accounting and bookkeeping, seller taking cash payments and hiding revenue, approx. 2.5 acres for expansion.
It will take us several months to turn this facility around. But once we do by cleaning up the bookkeeping, implementing management software, raising rents and improving collections we are on track to have a value of approx. $600,000.00 -not including the vacant land – by the end 2017. Once stabilized we have plenty of room to double in size.
Here’s the cool part. We found this deal by direct mail, using one of the mailer templates you provided. The interesting thing is, the letter was never opened!! the letter was returned to me because the facility did not have a mailbox. When it got returned, I simply made a good ol’ fashioned cold call. The owner answered and we had about a 30 minute conversation about the property and he proceeded to tell me his health was declining and his wife really wanted him to retire. A few months later we closed.”