Question #
What strategies can be employed to differentiate and quickly assess potential sellers in the storage market?
Answer #
I have written in the past that asking for a random daily close from their operating system is a non-intrusive way to get a lot of information, but even that today seems beyond the reach of many owners.
Many we contact don’t even have an operating system.
By the way, if you can get a daily close, great.
I have crafted many offers just off that one document.
So I have been thinking about a different approach that would (1) separate us from the rest of the hundreds looking for storage deals and (2) quickly see if we actually have a potential seller.
I have some suggestions.
What if you could give a verbal offer on your first call?
Do a little research before you call.
Let’s say you are calling on a small 20,000-square-foot facility.
You went to your subscription service like Radius+ and the facility wasn’t in their database because it is most likely too small.
Or it is there and there is no real information because there is no website.
Go to Google Earth or Google Maps and look at an aerial.
Try to estimate the size.
Many of these tools have a way to measure the buildings.
Get as close as you can.
Also look up the average rental rates in the market or trade area in which the property is located.
Also look to see if the area appears to be oversupplied, undersupplied, or at equilibrium (the square-feet-per-capita number).
If you think the area is safe, or close to safe, move on with the process.
Source: The First-Call Offer: A Different Approach to Finding Off-Market Self-Storage Deals
