---
title: "Why should you set benchmark returns before looking at self-storage deals?"
description: "**Short answer:** Mark says his business took off once he decided, before looking at any deal, what returns a deal had to meet. Benchmarks keep the analysis disciplined and less emotional. Looking for “a good deal” is a moving target;…"
url: "https://creatingwealththroughselfstorage.com/docs/set-benchmarks-before-evaluating-deals/"
updated: "2026-10-16"
category: Financial Analysis
---

# Why should you set benchmark returns before looking at self-storage deals?

**Short answer:** Mark says his business took off once he decided, before looking at any deal, what returns a deal had to meet. Benchmarks keep the analysis disciplined and less emotional. Looking for “a good deal” is a moving target; a clear benchmark tells you quickly whether to dig in or move on.

## How Mark uses benchmarks

Because he raised money from passive investors, Mark set three: a yearly cash-on-cash return (or one after the value-add plan was finished), an IRR over the life of the investment, and a minimum amount of equity the value-add plan had to create. The specific numbers change with the economic environment, but he always had them before he started looking.

If a deal didn’t appear to work, he asked whether he could reasonably buy it at a price that would. If not, he moved on. If so, he dug in until he either found out why he was wrong or put the property under contract and did due diligence.

## Your benchmarks may differ

Some owners focus on monthly cash flow, some on paying off debt before retirement, some on equity they can create and how fast they can sell or refinance. Mark’s point isn’t that his numbers are right for you; it’s that you should set yours first and avoid getting emotionally attached to a deal.

## Related answers

- [What is the difference between cash-on-cash return (ROI) and IRR in self-storage?](/docs/roi-vs-irr-self-storage/)
- [What is a cap rate, and why is it so often misunderstood in self-storage?](/docs/what-is-a-cap-rate-self-storage/)
- [How can a smaller buyer find off-market self-storage deals?](/docs/finding-off-market-self-storage-deals/)

**Source:** Mark’s posts [Five Decisions I Made That Created My First Million Dollars of Wealth](/five-decisions-i-made-that-created-my-first-million-dollars-of-wealth/) and [Cap Rates, ROI, IRR – Which Matters Most in Self-Storage?](/cap-rates-roi-irr-which-matters-most-in-self-storage/)

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