By Garrett Byrd
Expanding on Off-Market Self Storage Acquisitions
When focusing on purchasing off-market self-storage deals from original developers, it's crucial to employ a strategic approach that combines research, networking, and persuasive communication. Here's an expanded strategy to help you secure these valuable opportunities:
Identify Pipeline Projects
Use industry-specific tools like StorTrack or Radius+ to locate self-storage projects in the pipeline within your target area. These platforms provide comprehensive data on planned and ongoing developments, giving you a clear picture of potential opportunities.
Direct Outreach
Once you've identified pipeline projects, take a proactive approach:
1. Contact developers directly: Reach out to the original developers of these projects. Express your interest in potentially acquiring their project before it goes to market.
2. Personalized communication: Write personalized letters or emails to developers, emphasizing the benefits of selling off-market, such as avoiding broker fees and streamlining the sale process.
3. Follow up with phone calls: After sending written communication, follow up with phone calls to establish a personal connection and discuss potential opportunities.
Highlight the Advantages
When communicating with developers, emphasize the benefits of selling to you:
Quick closing: Stress your ability to close deals quickly, which can be attractive to developers looking to exit a project.
Reduced hassle: Emphasize the simplicity of an off-market transaction compared to a public listing.
Confidentiality: Highlight the discretion an off-market deal offers, which can be appealing to developers.
Build Relationships
Networking is crucial in finding off-market deals:
Attend industry events: Participate in self-storage conferences, trade shows, and local real estate meetups.
Connect with brokers: Establish relationships with commercial real estate brokers specializing in self-storage. They often have insider knowledge of developers looking to sell.
Engage with attorneys and accountants: These professionals often work closely with developers and may provide leads on off-market opportunities.
Leverage Online Platforms
Utilize online resources to supplement your off-market search:
Specialized listing services: Subscribe to platforms that offer exclusive access to off-market and pre-market deals.
Social media presence: Establish yourself as a credible buyer on platforms like LinkedIn, sharing your interest in acquiring self-storage project.
Negotiation Strategies
When negotiating with developers:
Understand their motivations: Learn why they're considering selling. This insight can help you tailor your offer.
Offer flexibility- Be open to various deal structures, such as partnerships or phased acquisitions, which might appeal to developers.
Present a win-win scenario: Demonstrate how selling to you benefits both parties, focusing on mutual gains.
Due Diligence
Remember that not all pipeline projects will come to fruition. Typically, only about 50% of planned self-storage projects are actually built. Use this knowledge to your advantage when negotiating and assessing opportunities.
By employing these strategies and maintaining a persistent, professional approach, you can increase your chances of securing off-market self storage deals directly from original developers. This method can lead to unique investment opportunities with potentially higher returns due to reduced competition and more favorable terms.
Storage Authority Franchising is all about owning your own local self-storage business, supported by professional systems and expertise. We like to say, "You're in business for yourself but not by yourself." If self-storage is on your mind, don't hesitate to reach out to me, Garrett Byrd at Direct: 941-928-1354 or Garrett@StorageAuthority.com to learn more about the Storage Authority Franchise opportunity.
If you would like to learn more and start your journey to self-storage ownership click the link here: http://www.storageauthorityfranchise.com/opportunity2
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