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Newbie from Chicago burbs!

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  • Newbie from Chicago burbs!

    Evening SST,

    Im new to the forum and the world of self storage in general, but not to real estate. I bought a 4-plex last October, and have been searching for another. In my hunt i came across a 31-unit storage facility 20 mins away from my house and have a LOI signed and in place along with underwriting for a SBA 504 loan in the works. Self-storage seems liek a very lucrative./solid investment and it just CLICKED the more I investigated. I've done a lot of due diligence and with a cap rate of about 8% the building im purchasing has a value of about 250k, and we have an agreement at 220k. There is value add with the rents being pretty low compared to the 1 competitor about 4-5 miles away (im also right in the middle of town vs being on the outskirts). Other then that i could probably add a couple more units but not much more.

    Right off the bat, i will have a nice cash-flowing facility that is 85% occupied (the current owner is old school and has no internet exposure at ALL). I plan to keep it around 99-100%!

    My only main concern is collecting payments for the rents, right now its down via mail/pickup (old-school). Im hoping to purchase a cheap software package to help manage the facility, my main focus is automated payments, and notifications about rent being due/owed. I have a call with "easy storage" tomorrow, has anyone had success for a small facility such as mine with this software, whats the pricing like?

    Thank for listening to me ramble, any input is greatly appreciated!

  • #2
    Welcome to the forum.
    "Never let the inmates run the asylum!"

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    • #3
      Welcome, Futbol! Definitely get a website and a way for online paying. Is the facility gated? Security cameras? Updated? Tell us more!
      Even duct-tape can't fix stupid. But it can muffle the noises.

      WA State

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      • #4
        Welcome!
        You Laugh, I laugh. You cry, I cry. You take my coffee...may God have mercy on your soul....

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        • #5
          Welcome Just went thru your town Monday, WOW what traffic on Interstate 94 and 90. Bumper to bumper and super slow!!
          Dave (Woodee) Scott

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          • #6
            Welcome

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            • #7
              Originally posted by KrisinNC View Post
              Welcome, Futbol! Definitely get a website and a way for online paying. Is the facility gated? Security cameras? Updated? Tell us more!
              The facility is currently not gated, but the structures surround the building. I plan on putting in a gated key pad set up with a camera or two since it doesn't have security either. The cash-flow is there, just curious as to what others are securing these loans under. My banker is setting me up with a 7(a) loan (rates about 8.5%) does this seem legit for my first facility?

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              • #8
                Originally posted by Dave Scott View Post
                Welcome Just went thru your town Monday, WOW what traffic on Interstate 94 and 90. Bumper to bumper and super slow!!
                Thats Chicago for ya! taxation and traffic!

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