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