A New Path to Self-Storage Acquisitions: A Virtual Strategy

Looking from the outside in, finding the money to buy self-storage properties can be a confusing and daunting process, especially if you don’t want to pursue conventional financing. When I raise capital for my own deals, I look for investors I can partner with, not banks I can borrow from. Although there are many ways to find money, one of the most creative and modern is to hit the virtual “curb”.

There aren’t many small, independent self-storage operators taking this approach, but it’s certainly a viable option. I made over 20 million dollars in real estate transactions over the past 10 years, and I haven’t invested a dime of my own money in most of them. Let me share how I leverage a virtual strategy to attract other people’s money for acquisitions.

Begin

There is not a single investor who will lend you money or partner with you unless you look like you know what you are doing. It’s not just based on your background either; it’s also about how you present yourself and your investments.

Once you’ve found a self-service storage deal and are under contract, start by creating a folder on Google Drive (or another cloud-based platform) that includes all the information you want to have before making a decision. You can use these elements to present the property to potential investors. Having these documents at your fingertips makes it easier to cover all the different aspects of the transaction, and they are now easy to share.

Here are the items I suggest you include:

  • Pictures of the property
  • A video of you driving or walking around the entire property
  • A boundary map
  • Analysis of transactions, including transaction numbers
  • All documents provided by the landlord such as unit composition, appraisal, rent register, competitive analysis, balance sheet, profit and loss statements, etc.
  • An executive summary – essentially a presentation for investors that includes a market overview and explains the history of the facility

Presentation to prospects

Once you have put all the above documents in your online file and are ready to present your offer, it is time to schedule a virtual meeting with potential investors, either in groups or through sessions. individual. Who do you invite? Send an email or letter to anyone with a self-storage facility in the same condition as your target property. Explain that you are selling an in-state facility and will be hosting a virtual pitch for anyone interested in buying. Indicate the date, time and link of the meeting.

During the call, review the information you gathered about the transaction. Review all aspects, especially the numbers. Then let everyone know you’re ready to sell the asset or join in the deal.

This is one of the main ways I build my private money list. After people sign up for one of my virtual meetings, I add those contacts to my ongoing email-nurture campaign. We’ll discuss this in more detail in a moment, but once a month I email my list of potential buyers and investors to let them know what I’m up to in regards to self-investing. storage. I have used this method to meet many current owners who could become buyers or partners.

Educate investors

Another key step to raising capital for self-storage deals is to create a website that can act as a hub to build your credibility. Whenever I talk to potential lenders and investors, I always direct them to my website, so they can see what I’m doing in the industry.

If you are already an owner, you can do so simply by adding an investor page to your institution or business website. The purpose of this page is tosummarize the facilities you own and the investment opportunities you have, but also to inform visitors about the advantages of raising private funds. According to the Securities and Exchange Commission (SEC), you are not allowed to request money from strangers or guarantee any type of return; However, you can let them know what you are doing and the benefits of private lending.

Here are some things to cover:

  • Your investment philosophy
  • Minimum investment required
  • Explanation of how you structure your offers, including the expected length of terms
  • An overview of private credit and its benefits
  • How IRAs and Pension Plans Can Be Used to Make Home Loans and the Benefits of Doing It
  • Recourse of the lender in the event of non-payment
  • Documents expected
  • Legal disclaimer

Additionally, I include a form that allows interested people to join my mailing list. The opt-in feature is important because the SEC sets requirements on touchpoints that must be reached before you can ask someone for money. It’s a valuable way to legitimately add people to your sales funnel.

Once someone signs up, I use my monthly emails to nurture them. The first contact is a free presentation in which I explain what the private loan is and its advantages. Instead of talking to them, I tell my self-storage investing story and discuss how I find, finance, and manage my facilities. I also include case studies that detail some of my previous transactions.

I used this system to raise millions of dollars. Using virtual platforms and your website to build credibility is one of the easiest ways to find people who want to lend you money or associate themselves with your investing activities. Surprisingly, however, most people don’t take advantage of the ease of setup.

In summary, use your cloud-based files to stay organized when pitching your self-service storage offerings, and use virtual meeting software (e.g., Zoom) to formally introduce yourself and meet with interested parties about properties you are actively buying. Use email marketing to retain prospects and attract potential buyers, investors, lenders and partners. Add an investor page to your website to build credibility and educate visitors about private lending.

I meet with potential self-storage investors online almost every week because I’ve taken the time to set up these systems and put them into action. So can you!

Stacy Rossetti has over 10 years of residential and self-storage real estate experience, including acquisitions, construction, financing and property management. She owns online education and networking platform REI USA, group coaching mentorship StorageNerds, and investment firm Self-Storage Fund of America LLC. She and her husband, Pete, own 12 facilities in Florida and Georgia. To reach her, send an email [email protected]; visit www.stacyrossetti.com.

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