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by AJ Osborne
The authority on creating wealth and income through self storage.
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The last time this happened, self storage facility values rose 385%. Nobody knew how good an opportunity buying self storage was until it was too late. That was back in 2010, after the Great Financial Crisis knocked self storage values down by 35%. Now, we’re seeing storage values fall 30%-35% in many markets, and that parallel can’t be ignored. Did we just hit the bottom for self storage prices? There’s a lot of distress in the self storage industry right now. High interest rates are expanding cap rates, which means prices are going down—fast. Buyers have been taking advantage, but most of the industry is still on the sidelines, waiting for the “opportunity” right in front of them. This sounds a lot like what happened in 2008. Facilities are selling for far less than people think, and if you’re only looking at the list price a broker gives you, you could miss deals that may not come around for a decade. I’ve been screaming this from the rooftops, but nobody seems to listen, even as I buy self storage facilities for a fraction of what they cost a few years ago. Are you going to miss the opportunity so many begged for? What you’ll learn in today’s show: Why we may be hitting a bottom for self storage prices and valuations The eerily similar opportunity from 2008 that’s mirroring today’s self storage industry Why facilities are selling for far less than most self storage investors think The supply strain that’s keeping new self storage facilities from being built (good for buyers/owners) Cap rates aren’t what you think they are (don’t believe the “5%” push) --- Grab AJ’s Book, Growing Wealth in Self-Storage 2.0 - https://www.amazon.com/Growing-Wealth-Self-Storage-2-0-Post-Pandemic/dp/1735258865
Are you brand-new to self storage investing? It’s easy to become overwhelmed by all of the different terminology, processes, and strategies. But at its core, self storage is a straightforward business. You buy a large metal building, rent units out to customers, and (ideally) make a profit. You don’t need to know every last term, but you do need to build a solid foundation. Today, we’re going to help you fill in the necessary knowledge gaps so you have a better idea of what goes into buying and running a self storage business. We’ll break down some of the lingo you may have heard before, like cap rates, cash flow, net operating income (NOI), and debt service coverage ratio (DSCR). We’ll also compare the roles of general and limited partners and explain why you need a letter of intent before a purchase and sale agreement. Most importantly, we’ll walk you through the three things every self storage investor needs to get started: deal flow, capital, and people. Master these building blocks, and you’ll be well-positioned to buy your first or next self storage facility with confidence! What you’ll learn in today’s show: The three “building blocks” every new self storage investor needs to master How to use depreciation (and cost segregation) to lower your tax bill How to build the capital “stack” for your first or next self storage deal Cap rates, cash flow, debt service, and other self storage industry terms explained Why you need a letter of intent (LOI) before a purchase and sale agreement (PSA) The biggest differences between general partners (GPs) and limited partners (LPs) — Join the Self Storage Income Community to learn how to buy, build, and scale your self storage portfolio: https://www.selfstorageincome.com/learn-yt?el=yt-episode-372 Get AJ's Book: Growing Wealth in Self-Storage 2.0: https://www.amazon.com/Growing-Wealth-Self-Storage-2-0-Post-Pandemic/dp/1735258865
The self storage industry is changing. Fast. In the last six months, we’ve seen rising interest rates push self storage values down, banks tighten their borrowing requirements, and owners reluctantly list more assets for sale. On the surface, things may seem turbulent. But this shift represents a massive window of opportunity for self storage investors, the likes of which we haven’t seen since the wake of the Great Financial Crisis. Naturally, people are worried that property values could continue to fall, not rise. And this is exactly the right time to buy. Self storage fundamentals are stronger than they have been in recent years. Rents have increased, occupancy has recovered, and new supply has been minimal, yet self storage facilities are selling for much lower prices than advertised. We’ve hit the “stabilized” bottom. Today, we break down these macro- and micro-economic factors and explain how the recent AI boom is affecting not just the economy at large but also cap rates. With access to more data, tools, and resources than ever before, new investors have even more opportunities at their fingertips. But if you’re not paying attention, you’ll miss them. What you’ll learn in today’s show: Why self storage’s “window” of opportunity just widened (and what to do) The one thing most investors get wrong when self storage prices fall How the AI “boom” has impacted not only the economy but also cap rates How to structure seller financing on your next self storage deal Why now is the ideal time for new investors to get into self storage __________ Self Storage Income 369 – One Self Storage Facility Made Me a Millionaire w/Alex Quezada - https://www.selfstorageincome.com/podcasts/self-storage-income-2/episodes/2149264165 Get our FREE self storage starter pack to learn how to analyze, underwrite, and operate your next storage investment: https://www.selfstorageincome.com/youtube?el=pc-episode-371 Grab AJ’s Book, Growing Wealth in Self-Storage 2.0 - https://www.amazon.com/Growing-Wealth-Self-Storage-2-0-Post-Pandemic/dp/1735258865
Many people dream of investing in self storage but never pull the trigger for a variety of reasons. Some don’t feel they have the expertise needed to manage the asset. Others assume self storage facilities fall outside their price range. Neither assumption usually holds up. Kirk had been buying rental properties for 15 years but hadn’t worked up the courage to buy a facility for all the same reasons. That changed when his broker brought him a self storage deal he couldn’t turn down—a discounted facility with massive value-add potential, located just 40 minutes from home. After buying that first facility and stabilizing it, Kirk realized just how scalable self storage is compared to other asset classes. Despite starting only two years ago, Kirk has already bought three facilities and wants to own $50 million in self storage in just a few years from now. Today, Kirk is breaking down how he found, negotiated, and funded each of his three deals, as well as the exact strategies he uses to run his self storage business, improve operations, and grow his bottom line. What you’ll learn in today’s show: How Kirk bought his first three self storage facilities in under two years What to know before pivoting from residential to commercial real estate Simple operational improvements that increase your self storage revenue How to bring less money to the closing table by negotiating seller financing Systems and processes for scaling your self storage portfolio (quickly) — Work with someone experienced in self storage loans at Live Oak Bank! https://www.liveoakbank.com/business-loans/self-storage/ Join the Self Storage Income Community to learn how to buy, build, and scale your self storage portfolio: https://www.selfstorageincome.com/learn-yt?el=pc-episode-370
Alex Quezada’s first self storage facility made him over a million dollars. That has to be just luck, right? Over the next six years, he bought 18 more self storage investments, selling several for a $1M+ payday and keeping the others that would cash-flow him to financial freedom. And get this—he did it in Florida, the state with some of the wildest insurance costs and taxes. How did Alex scale so quickly and build a portfolio that takes even the experts decades to do? Back in 2020, Alex was a tired single-family rental landlord. Whether it was holidays, weekends, or birthdays, it didn’t matter—tenants were blowing up his phone. Toilet problems, AC issues—the usual. This wasn’t sustainable; the money wasn't worth it, and he needed a way to build truly scalable wealth. The answer was self storage. Since that first deal, Alex has bought 18 more facilities, sold four, and held on to 15. He’s done seller financing to fund many of them, direct mail campaigns to get off-market owners to the table, and runs call centers with AI for zero downtime and fast customer service, so no tenant is ever locked out of a unit or a gate. Alex is a master in this game, and we got him to share everything, from structuring seller financing to his exact cadence of direct mail for the most lead flow. A $1,000,000 check could change any investor's life. This is how Alex does it routinely. What you’ll learn in today’s show: How to make massive value-add improvements on self storage without spending money Creating a win-win seller financing offer that storage owners gladly accept Alex’s direct mail blueprint that’s scored him over a dozen self storage deals Why self storage is more scalable (and profitable) than single-family homes How to use AI in your storage business to speed up customer service, rentals, and more — Alex’s Instagram: https://www.instagram.com/alex.theinvestor.quezada/ Alex’s YouTube: https://www.youtube.com/@alex.theinvestor.quezada Patchwork Labs (AI Call Center): https://www.patchworklabs.com/ Work with someone experienced in self storage loans at Live Oak Bank! https://www.liveoakbank.com/business-loans/self-storage/
How do you know if a self storage facility is a home-run deal or a ticking time bomb? Right now, the self storage industry is ripe with opportunity. We’ve bought more self storage facilities in the last 12 months than we did in the previous three years combined, and these deals are some of the best we’ve seen in several years. But not every distressed facility is a hidden gem. Some deals look great on paper but are actually traps—facilities that never fill up, attract low-paying tenants, and have little to no value-add potential. So, what really separates a great deal from a bad one? It all comes down to market-driven opportunity and operator-driven vacancy. Today, I’m sharing how to spot the difference using two real-world case studies—a pair of distressed facilities we stabilized through a combination of savvy marketing and strategic rent increases. I’m digging into market signals, rental rates, supply and demand, and other key factors that will tell you whether you’re buying upside or just inheriting someone else’s problem. What you’ll learn in today’s show: The biggest differences between value-add opportunities and “bad” deals Two market demand signals to watch for when analyzing self storage deals How to determine if distress is market- or operator-related A realistic timeline for stabilizing an undervalued self storage facility Real case studies (with real numbers!) from our own self storage portfolio — Grab AJ’s Book, Growing Wealth in Self-Storage 2.0: https://www.amazon.com/Growing-Wealth-Self-Storage-2-0-Post-Pandemic/dp/1735258865 This Just Unlocked REAL Cap Rates, Occupancy, and More for Any US Market w/TractIQ CEO Noah Starr: https://www.selfstorageincome.com/podcasts/self-storage-income-2/episodes/2149256841
People have self storage all wrong. Today, we’re giving you the truth, and it flies in the face of how most view the asset: Self storage investing is not passive. That might sound like a drawback, but it’s actually one of self storage’s greatest advantages. It’s active because it’s a business. And if you treat it like one, you’ll find there are countless ways to increase revenue, cut expenses, and create real value. Too many investors view self storage facilities like residential rental properties. Get a tenant in, charge market rent, and hopefully make a profit. But with a self storage facility, you have far more control over how the property performs. Today, we’re showing you exactly how to do things like optimize pricing, improve occupancy, automate self storage tasks, reduce waste, add new revenue streams, and more. The best part is, if you pull the right operational levers, you’re not just increasing NOI. You’re fundamentally changing the asset’s value. And that’s what most people miss. Yes, self storage is hands-on. It’s definitely not passive. But that’s exactly what makes it such a powerful investment. What you’ll learn in today’s show: The truth about self storage investing (that most get wrong) Simple ways to drive self storage NOI (and value) higher The massive advantage that new self storage investors have right now How to eliminate waste and redundancy within your business Essential tools and software for running your self storage business — Grab AJ’s Book, Growing Wealth in Self-Storage 2.0 : https://www.amazon.com/Growing-Wealth-Self-Storage-2-0-Post-Pandemic/dp/1735258865 Join the Self Storage Income Community to learn how to buy, build, and scale your self storage portfolio: https://www.selfstorageincome.com/learn-yt?el=pc-episode-367
This could be the biggest change to self storage industry data in years. For the entirety of its existence, the self storage industry has relied on guesswork to estimate competitor and market cap rates, occupancy, rental rates, and demand. Most self storage data is tied directly to REIT-run facilities—the biggest, most expensive facilities in the U.S. What about the small investor? Now, they have access to the data only the powerful players had for decades. Earlier this year, when we brought on Noah Starr from TractIQ to announce the biggest data transparency change in self storage history, we didn’t think he’d be back less than a year later to give us so much more to share. We’re giving it all away in today’s show: real cap rates in tertiary markets, actual occupancy rates from operators, the supply pipeline of new facilities coming to the market (and the ones that have been abandoned), and much more. If you’re a small operator in a small town, you can use this data to see what’s happening in your specific market to make better offers, increase your NOI, and beat the competition more easily than you’d imagine. Noah even shares a new announcement that will change the game for anyone building storage. What you’ll learn in today’s show: Real cap rates in smaller markets and why facilities are selling for far less than you’d imagine Cash flow is back! The profit spread is widening for self storage as we speak REITs continue to consolidate (why AJ is buying more self storage than ever before) Will demand boomerang back as home sales begin to edge higher? The surprising statistic that shows just how behind 80% of mom-and-pop operators are (your competition!) - Grab the Full Self Storage Data Report Now!: https://www.selfstorageincome.com/storage-industry-report?el=pc-episode-366 - Self Storage Deals Just Got MUCH Better in 2026 (Huge Announcement) w/Noah Starr: https://youtu.be/eoi825L7ag8?si=8V5VDllc0kMSCqqQ - The #1 Lie Costing Self Storage Investors Millions: https://www.youtube.com/watch?v=wztYSZ5fc90
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