Get a partner.
I am hosting a virtual online Bootcamp in March on the 21st & 22nd and have been revising some of my content for the event.
I thought I would do a couple of episodes sharing some of the things I am going to be bringing up that I haven’t necessary focused on in the past.
One of them is going to consider finding partners.
Smaller Investors
Over the past couple of years, I have seen people who partner up with one or more people gain some momentum in the storage space faster.
Not in every case, but more often than not.
The self-storage space has matured. Often today, Brokers want to see proof of funds and history in self-storage when you present an LOI or contract.
Often, newer people who are in the business compete with individuals or groups. I have seen Sellers persuaded to go with a known quantity even if the price is less than theirs.
Often, we compete against groups that can pay all cash, have experience, and are known to the Broker or even the Seller.
This industry attracts very independent people who want to get into this business.
Many of the people I have worked with over the years don’t like the idea of partners. I get it.
I am not saying everyone should get a partner.
But I do.
I did when I first entered the space.
I had one person in the Bootcamp a few years ago come out and struggle for a while to get into the business. He is very detailed, smart, and very quick to grasp finding deals and underwriting them.
He wrote LOI’s on some opportunities but never got a deal.
In the Bootcamp follow-up, he met someone who was also new in the space. He had a background in other asset classes and fundraising.
Together, they complemented each other weaknesses.
They decided to work together for a while. Quickly, they did a number of projects. Some have gone through a complete cycle in just a few years.
I am not trying to promote the Bootcamp and the follow-up as a way to find partners. That would be reckless of me.
But I use it as an example because we each come into this space with whatever skill sets we have and with whatever weaknesses we have.
Finding someone or a small group that can bring to the table what you may not have in skills or resources can accelerate your entry and growth in self-storage today.
It has always been this way to some degree, but I am seeing it more and more today as this industry grows and matures.
My Experience
When I first contemplated getting into self-storage, I was a commercial real estate agent who had sold some self-storage to REITs and other individuals.
What I learned to do was underwrite deals. I could also find opportunities.
I certainly didn’t have enough money to do a deal and wasn’t strong enough at the time to sign a loan.
Two strikes against me.
However, I somewhat knew about the business from my brokerage experience and could find deals and underwrite them.
My strengths.
So, I found a couple of partners who wanted to grow a self-storage business with me, who had more net worth than me, and could and would sign on loans.
Then, I found investors with money who wanted to be in the space but not take the risk of being on loans.
I have since been in many types of partnerships and syndications.
Not that my way is the right way. I just like the idea of having a smaller percentage of more properties than all or most of a few.
I feel I am spreading my risk over more projects.
Again, this is not the right way to think. Necessary, just my approach.
Conclusion
So, if you are new to the space and haven’t found much momentum, perhaps it’s time to consider finding someone or some people you can partner with. Especially if they already have some experience in self-storage.
There are all types of forums, Facebook groups, and masterminds where they can be found. If you have a deal, they will come.
And vice versa. If you can’t find deals but have other strengths like money, management skills, or fundraising ability, you can find people with deals today.
I have never really focused on this in the Bootcamps, but it will be a subject we will talk about.
Hope this helps as you go forth and multiply your self-storage business.
