29d • Masterclasses
How to Build Wealth with Storage Units — Full Masterclass Replay
Inside this masterclass, we break down:
1. Market Selection
- Population growth (3–5 year trend)
- Median income + rental demand
- New supply in pipeline (call planning dept)
- SF per capita target (≤ 8–10 SF per person ideal)
- Drive market physically – visibility, access, rooftops
2. Finding the Deal
- Direct-to-owner outreach (mom & pop)
- Broker relationships (Marcus & Millichap, CBRE, local brokers)
- Delinquent tax list
- Call facilities with poor online presence
- Target: poor management, 60–80% occupancy, under-market rents
- Value-add: expansion land, U-Haul, retail conversion
3. Marketing for Off-Market Deals
- Skip trace + cold call campaign
- Direct mail (handwritten style)
- Text drip campaigns
- Google search “storage near me” → call bottom-ranked facilities
- Local bank referrals
- Title company relationships
4. Underwriting / Deal Analysis
- Verify actual occupancy (not owner claimed)
- Rent roll audit (unit mix, rates, delinquency)
- Expense ratio benchmark (30–40% stabilized)
- Property taxes reset after purchase
- Insurance repricing
- Break-even occupancy calculation
- Market rent study (call 5 comps same day)
- Cap rate vs in-place vs pro forma
Key Metric:
- Price per square foot vs local sales
- DSCR ≥ 1.25
- Exit cap assumption conservative (+0.5–1%)
5. Financing Structure
- Local bank portfolio loan (5-year balloon common)
- SBA 504 for owner-use or expansion
- Seller financing negotiation
- 20–30% down typical
- Raise private capital (preferred return 8–10%)
6. Due Diligence
- Unit count verification
- Lien search
- Environmental (Phase I)
- Roof + drainage inspection
- Gate + security audit
- Existing tenant agreements
- Past 2 years financials
7. Operations Optimization
- Raise rents immediately to market
- Implement dynamic pricing software
- Add tenant insurance program
- Add admin fees + late fees
- Auto-pay push
- Improve Google reviews
- Add signage for street visibility
- Implement lock checks + delinquency process
8. Expansion & Upside
- Add climate-controlled units
- Convert unused land
- Add RV/boat parking
- Solar panels for tax benefits
- Add retail packaging supplies
- U-Haul partnership
9. Asset Management KPIs
- Occupancy %
- Physical vs economic occupancy
- Revenue per available square foot
- Cost per new tenant
- Delinquency rate
- Customer lifetime value
10. Exit Strategy
- Stabilize to 90–95% occupancy
- 12 months clean financials
- Sell to REIT or institutional buyer
- Refinance to pull equity
- 3–5 year hold typical
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How to Build Wealth with Storage Units — Full Masterclass Replay
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