There is a real art involved in getting in the self storage business or growing your self storage business.

The “art” I am talking about is getting in front of some real deals to look at.

I discussed this in the book “Creating Wealth Through Self Storage”. Ultimately, as you develop your skill, or the art of getting in front of deal flow, you want to become known as the “Go To Self Storage Person” in your sphere of influence and your market area.

 

So let’s discuss developing your skills of getting in front of good self storage deal flow.

 

Who You Know

Like everything else in life, it is a function of your relationships.

What? With the internet and all the places online to find deals, what do you mean?

How far you go in this business, or in any endeavor in life you take on, is direct function of the quality of your relationships.

If you want to buy good self storage deals, get to be known and related to as a “Self Storage Buyer” by the people who sell good self storage deals.

My coaching is relate to the internet as a way to find people who sell the deals as well as the deals themselves. These relationships will last long after the deals.

 

How To Create Your Relationships

 

Let’s get specific.

 

Look at your business strategy. Where is the geographical area you want to focus on? I know some people who will go “anywhere”. Well, OK, but I would at least prioritize the areas of the country into the segments:

            Northeast

            Southeast

            Mid West

            Southwest

            West

            West Coast

Or something like that.

Then create a list of websites that you use to find deals. If you are interested in mine (which I am sure is not too different from yours), you can click here.

 

What To Do

 

What you will begin to see are the companies and agents who specialize in selling self storage in certain areas of the country.

These people, these men and women, can make or break you.

Just as important as any deal you may look at that they have, or perhaps even more important, is how you relate to these people.

My coaching is developing relationships with them. Let them know who you are and what you are looking for.

 

Now I am not saying lie, or go and represent yourself as something you are not to them, but be very strategic in how you present yourself to them. Especially if you are just getting in the business.

If you are new to the industry, let them know you are not just some person who woke up one day and decided to buy self storage.

 

Create a story line about who you are, with your past history, emphasizing your strengths and experience that would make you perfect for this industry.

Most importantly, let them know you have (1) the cash to put in the deal, and (2) your financing lined up.

 

If you are working with investors for the cash, like I do, be sure to let them know you have the investors poised and ready to go, and the banks you are working with are just waiting for the specific deals so they can fund a loan.

 

Create Your Future

 

Here is what will happen, you make enough of these calls and talk to enough agents on the deals you see, you will get one under contract.

If you get one or two under contract, you will become a Buyer.

Once you are a “Buyer”, the agents you have the relationships with will start reaching out to you and presenting you “deals”.

You see if you can make those agents look good to their clients, in other words you are someone they relate to as a “Buyer”, they will start making sure you see deals before others do.

They will become invested in your success because they will see their own self interest wrapped up in your success.

You will literally become someone who sees deals before the rest of the market.

Now there are a lot of good strategies that involve direct mailing to a list of self storage owners, knowing bankers who loan on self storage and may have some REO properties, and so forth.

Those are all good and I have done them. But where I have the most success and wake up every morning and have deals in my inbox are from my relationship to the real estate agents and companies that sell self storage.

 

The Steps

 

So here are my step by step suggestions on how to develop the art and skill set of getting in front of good self storage deal flow:

          1.         Develop a list of website you use to find self storage deals for sale (again, if you are interested in mine, click here).

 

          2.        Set up as many auto-responders as you can that deliver new self storage listings into your email inbox.

 

          3.        With each company, even if the deals you are looking at don’t appear to be good, reach out to the agents you see that market in your area or areas, and ask about those listings and tell them who you are and your self storage story.

 

          4.        Go look at deals.

                    –        I now have the practice of never writing an LOI on a deal I haven’t seen. I have jumped in planes or have driven all night so I could be at a facility the day right after receiving a call from an agent on a “deal” to look at it. That keeps deal flow coming.

                    –        I recently wrote and LOI and was selected with a lower price over three other buyers who wrote LOI’s higher than mine because I went to the property and met the Agent and Seller. The knew I was interested and thought their chances were better with us because I went there.

 

          5.        When you see a deal that appears to work for you, quickly analyze it and write the LOI as fast as you can.

                   –        I don’t recommend the practice of just tying up deals to control them. But if a deal appears to work and is one you are truly interested in, tie it up as fast as you can.

                    –        When it gets to contract stage, I really recommend having your attorney already standing by to assist in this portion.

                    –        Having an attorney’s help, even if you know you can do it yourself, makes you look more like a real Buyer to the Agent and Seller, as well as protect you in a litigious environment. You can instruct your attorney as to how to relate on your behalf if you don’t what to argue over every possible thing there is to negotiate on in a contract.

                    –        You do the LOI, or the business deal point negotiating yourself, then turn over the accepted LOI to your lawyer to generate a contract . If you want your Agent or the Seller’s agent to create the contract, you can do that as well. However, you look like a more legitimate Buyer if you tell them after the LOI is signed that “Your lawyer” will generate a contract for everyone’s review with the terms of this LOI”.

During the Due Diligence time period, make sure you do it timely and keep the Agent informed as to what you are doing. If there are issues, I usually wait until towards the end and go over any and all the issues at once.

During this time period my coaching is to do what you say you are going to do and do it timely. That is how you get the agents in this industry to relate to you as someone they want to do more deals with.

If you follow these simple steps, faster than you think, you will be someone on the radar screen of people who make their careers selling self storage.

If you want to be a Buyer of Self Storage, become someone the Sellers of Self Storage want to do business with.