Storage Authority Secret Worth $1,000,000

Jun 14
2 min read

For the first time in several years, it makes sense to buy a facility, including a smaller facility you can buy with $600K!

The Storage Authority Quick Shot Calculator allows you to do a quick initial review of existing self-storage facilities, present and future values based on 3 things: income/expenses and cap rates.

Here is the results for:

$300,000 NOI with 40% expenses to NOI ratio and a 9 cap rate = $2,000,000 purchase price. That may require an owner's $600 cash equity bank loan at 30% down.

Let's say you clean up the place and hire a great sales and marketing manager to implement a detailed sales and marketing plan to raise rents, increase occupancy, and require Tenant insurance.

Specifically your raised the gross income by 33% and sold for a slightly better cap rate (since the place looks so much better and is running smoothly) you would have increased the value of the facility by $1,000,000. If you injected a total of 800,000 cash, you would have more than double your investment.

You are looking for that hard-to-find facility that has been neglected and is for sale at a reasonable price. For the first time in years, we are seeing some smaller facilities sell at reasonable prices. And we are even seeing some larger facilities selling at less than replacement costs.

Think we buy ugly houses, I mean, self-storages. Even if this took 5 years, this would be an awesome return. Don't forget that the monthly cash flow to you was not included in the above numbers.