By Marc Goodin
Why?
The answer is simple. Many offline facilities can be bought at almost half price! They are selling at reduced prices for four main reasons:
1) Fewer buyers due to the general gloom and doom feeling.
2) Interest rates are at all-time highs.
3) Many owners are older and are ready to retire and get out of the business (especially given items 1 & 2 and they need to refi soon)
4) Fewer people are moving. People moving make up 40% +_ of self-storage renters.
Here is one possible sample of the Past vs Now comparison
Past Now
Net Operating Income (NOI) $300,000 $290,000
Cap rate 4 7
Purchase price $7,500,000 $4,200,000
That is a savings of $3,300,000. And eventually, things will return to normal bringing the value back up and even higher with the Storage Authority Sales and Marketing platform.
Finding existing facilities offline does take significant work. And while the profits are typically less the profits start much sooner.
We have developed a proven process to find land and existing facilities offline for great discounts. Our land offer caculator allows you to make an offer on the spot which can triple your results.
If you would like to have a zoom conference to learn more let me know.
Marc Goodin is the foounder of Storage Authority. www.StorageAuthorityFranchise.com The only self-storage franchise. He owns 3 self-storages he designed, built, and manages. He has been helping others in the self-storage industry for over 30 years. He can be reached at marc@StorageAuthority.com or directly at 860-830-6764 to answer your franchising, development, marketing, sales, and operations questions. His best-selling self-storage books are available on Amazon.
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