The meeting focused on strategies for entering the self-storage business without managing tenants, toilets, or needing significant personal capital.
Key topics included leveraging other people's money, utilizing relationship capital, and using basic methods like Google Maps and virtual assistants to find and acquire storage facilities.
Multiple case studies were shared demonstrating successful deals funded through SBA loans, private investors, and seller financing.
The call provided actionable steps and mindset shifts for investors looking to transition from single-family to self-storage investments.
Action Items
N/A: No specific dated or designated action items were assigned during the session.
Getting Started in Self-Storage Without Major Capital
The speaker emphasized that it is possible to purchase and manage storage facilities without using personal capital or dealing with typical landlord headaches.
Encouraged leveraging SBA (Small Business Administration) financing, private lenders, and relationship-based equity partners.
Highlighted that storage is both a business and a type of real estate, offering cash flow, tax advantages, and scalability without requiring a large team.
Case Studies & Deal Structures
Example 1: 43,000 sq ft facility in Mississippi purchased via 85% SBA financing and an equity partner for the remaining 15%; sold for a substantial profit after three years.
Example 2: Off-market deal bought entirely with private money; received $250,000 cash at closing due to creative deal structure and later sold at a significant gain.
Example 3: Facility purchased with 90% seller financing and 10% private lender; currently cash flows $3,000–$3,500/month and is being prepped for sale.
All deals were achieved via relationship-building, transparency with partners, and focusing on giving rather than extracting in business relationships.
Finding Opportunities & Market Criteria
Advised targeting secondary or tertiary markets (populations 5,000–70,000, with household income above $50,000 and growing populations).
Google Maps is used to search for facilities lacking a strong online presence, such as outdated/no websites, few reviews, or personal email domains—indicating possible "mom and pop" owners.
Virtual assistants can build lists of prospects for outreach via phone or direct mail, with high success rates from personal calls and customized letters.
Seller Motivation & Value-Add Strategies
Most mom and pop storage owners are motivated by retirement or age, not financial distress.
Many have under-optimized operations (no website, automation, or rental rate increases), creating value-add opportunities for new buyers to quickly improve revenue and facility value.
Strategies include cold-calling, direct mail, and building genuine relationships to stand out to potential sellers.
Wholesaling Self-Storage
The ability to wholesale storage facilities exists just as in the single-family space.
Example given: a direct mail lead resulted in a $150,000 wholesale profit after holding a seller’s letter for two years, credited to the personal touch in communication.
Decisions
Focus on relationship capital over private capital — Building genuine business relationships was deemed the most valuable factor in sourcing and funding storage deals.