What are some steps new investors can take in order to enter the self-storage market?

A. There is more competition today for self-storage deals than ever before, with both experienced and novice operators chasing property opportunities. Currently, experienced owners/operators have the upper hand in winning deals, however there are several ways new market entrants can dramatically improve their chances at success. We suggest that new investors spend as much time as possible learning the self-storage property type. Educate yourself by joining the Self Storage Association and local state associations. Contact area self-storage real estate brokers to request packages for currently listed deals, then review their pro-formas, study their expenses and analyze their income expectations. We’d also suggest you speak with major industry lenders to get a better understanding of current interest rates, loan-to-value ratios, and the variety of available financing programs. By doing your homework, asking a lot of questions and learning about the self-storage property type, your ...  more