So you’re looking at a self-storage property with huge vacancy – let’s say 70% of the space is unrented. That’s a huge issue on many fronts. So how can an investor make a successful transaction out of a property like that? Is it even possible?

We all learn useful lessons in life from a number of teachers. And over the past 40 years – as long as I’ve been in business – I’ve been obtaining real estate loans. While the procedure has remained pretty much the same for all that time, there have been four fundamental concepts that seem to be shared by all bankers – and with good reason. All four of these will have a huge impact on your success in buying self-storage facilities.

Regardless of how much you spend in advertising, there’s no purpose to any of it unless the customer signs the rental agreement. It’s kind of like football, getting to one inch of the goal line is of no value unless you score the touch down. So what are some tips to get the customer to sign that agreement and score one more occupied unit?

Many of today’s self-storage investors think that any product they put out there will be winner. They think that no matter how they treat the customer, they’ll come back or keep paying. But this is bad thinking and is already proven to be wrong in many markets with declining occupancy and rents. So what do customers really want?

Real estate is all about leverage and self-storage is no different. You need to be able to obtain a loan to by a property, and the banker is an integral team member that makes the whole deal possible. But an easy way to make an end-run around traditional banking is to have the seller carry the financing. Not only does seller financing eliminate the stress and effort to find a bank, but it also saves you money on third-party reports, interest rates, and is typically non-recourse. So how can you get it?

Covid-19 has exposed many weaknesses in certain markets that self-storage facilities serve. But much of this weakness began years earlier when investors practiced the standard behavior of moving with a “herd” mentality. Why is a “herd” mentality dangerous in self-storage investing?