372. You Don’t Need to Know Everything About Self Storage (Just These 3 Things)
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
