Their expenses don't matter. We don't accept anyone's expenses. So when we're given a deal and they're like, oh, here's the expenses. I don't, it doesn't matter to me. There's reasons sellers are selling. That's why I want to know the reasons. That is money on the table that we're like, we should just be getting. We don't need rents to go up. We don't need. We don't need the market rents to go up. We don't need the market to have more demand up we don't need the market to have more demand we nothing that's just today what's happening existing now is truly the time to not be on the

sidelines it's time to get in the game welcome everybody to self-storage income and today we're talking about underwriting.

This has been one of the harder things to do in the last year and a half.

And we're going to talk about why it has been difficult and how to go about underwriting for self-storage.

Right. Because you got to remember that value, okay, is not the price,

right? Value is what it's worth. And price doesn't mean that it's worth that thing. The price is

simply what market participants will pay for the storage facility. We talk about this a lot,

and this is really important when it comes to underwriting. People that don't understand

the difference between intrinsic and extrinsic value are the ones that get caught. They

overpay for things, right? Market corrections come. They value things at basically momentary points what

market is saying, not what is the reality of the situation. Market participants, buyers and

sellers tell us what the price of an asset is on the market. They do not tell us necessarily what that worth is.

One of the main reasons why is worth is different from every single to every single person.

If you can get a 5% low risk return to one party, that may be worth a lot to you, but to

another party, it may not be, right? So intrinsic value is what you get. It is how much

money the asset makes. Okay. Then we look at what your return is predicated on different prices.

The reason why this is important, everyone, is when you're underwriting assets, this isn't like a

stock where you just hit buy or sell

and whatever the market is is what you get it at. It's not how it works. You go and you negotiate.

The owner wants X. We're not paying X. We're going to pay this. Or other market participants want to

pay X, but to us, it's worth a lot more. So I'll pay this price. Right. So the price doesn't translate into worth. And it's also not a set thing. When I hear people saying, well, every deal that I see come out on the market is too expensive for me. And I go, okay, but the deals that come out of the market, you see their price. Did they sell at those prices? But what's the value? Well,

what's the value of it? Like, it just, it just doesn't matter. And I haven't seen in a year and a

...