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4 contributions to StorageAce
9h •
seller pushback that didn't budge?
self storage folks - anyone dealt with seller pushback lately that didn't respond to the usual approach? curious what's actually worked for people here
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2d •
Hey everyone, glad to be here
I've been in real estate investing for almost 10 years now and I'm mainly here to learn from people actually doing this day to day. I also run a small software company, but that's not why I joined, just want to learn, add value where I can, and get to know some of you. Feel free to say hi.
0 likes • 18h
@Dave DeMink honestly mostly here to learn, a buddy who owns a couple facilities keeps telling me the cash flow and lower tenant headache beats residential, so want to see if that holds up before I'd ever put money into it
24d •
Capital raising
Hi @Dave DeMink and everyone . I’m getting some conflicting advice and would really appreciate insight from those of you who have actually closed on a self-storage facility. I’m hearing two different approaches: One side says to identify a deal, complete enough initial underwriting to determine that it fits your criteria, submit the LOI, get it accepted, and then begin raising or securing the capital. The other side says to establish your capital structure and investor base first, whether through a fund or another vehicle, and then aggressively pursue deals. The reasoning is that once an LOI is accepted, the clock starts. Due diligence, financing, legal, inspections, and everything else begin moving quickly, and that may not be the ideal time to also start figuring out where the equity is coming from. As a longtime business owner, the idea of committing to a transaction before having a clear path to the capital feels somewhat backwards to me. At the same time, I understand that investors generally want to see an actual opportunity before committing capital. For those of you who have successfully closed self-storage acquisitions, how did you approach this on your first few deals? Did you build the investor relationships and capital pipeline first, find the deal first, or develop both simultaneously? I’m especially interested in what worked in the real world, not just what works on paper. Thank you. I appreciate the insight.
0 likes • 1d
One tactic that bridges both camps: build the relationships before you need them, but don't formalize a fund or blind-pool vehicle before you have a deal. First-time sponsors especially struggle to raise for a blind-pool because investors are betting on you AND an unknown asset at once - much easier ask is deal-specific. So the sequence that's worked for people I know: build a warm list of 20-30 people who've said yes in principle to "investing with you when the right deal comes along," keep them updated periodically so you're not cold when you finally call, then when you get a deal under LOI, you're not starting the relationship from zero, you're just presenting the specific opportunity to people who already know and trust you. On the timing pressure Dave mentioned - a lot of first-time buyers also use a short-term bridge (hard money or a JV partner's balance sheet) to cover the gap between LOI acceptance and closing the equity raise, so the DD clock doesn't force you to rush investor conversations. It costs a bit in bridge financing fees, but it buys you the time to raise properly instead of under duress.
2d •
Does it matter if Seller or Purchaser selects the title company?
Looking at a contract where the seller selected the title company (local to seller) since he had his attorney draft the contract. Should I insist on selecting the title company to ensure they are not bias? I was not concerned about it, but my attorney is.
1 like • 1d
Your attorney's right to be cautious, but it's less about who "selects" the company and more about making sure you're not locked out of protecting your own interest. In most states the buyer can insist on their own title company/closing attorney regardless of who drafted the contract — it's a negotiable term, not something the seller's side gets to unilaterally impose (a handful of states are different). Two things I'd actually push on: 1) get your own owner's title insurance quote and compare it to whatever the seller's company quotes — rates for commercial/storage parcels can vary more than people expect, and 2) make sure title pulls a full commitment early (not just at closing) so you can see easements, access/ingress-egress rights for tenant driving lanes, and any deed restrictions on use before you're past your inspection period. A biased title company mostly matters if it delays your ability to walk from a bad title issue — make sure your PSA gives you a real review period regardless of who's running the file.
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