269. How to Get Money for Your First (or Next) Self Storage Deal

Self Storage Income

AJ Osborne

Entrepreneurship, Education, Investing, Business, How To

4.9 • 591 Ratings

🗓️ 5 November 2024

⏱️ 62 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

If you’re trying to buy your first self storage deal, odds are, you don’t have the entire purchase price sitting in cash in your bank account. So, today, we’re teaching you exactly how to raise capital for real estate, using other people’s money to buy your first or next self storage facility and get the best returns for your investors. If you want to scale in self storage, this is how you do it, and there are many (MANY) takeaways from this episode that you can’t miss.

Most people don’t know this, but I NEVER used to raise money for my self storage deals. We were self-funded for most of our existence, and for the longest time, I never wanted the weight of handling other people’s money on my shoulders. That was until people we knew wanted to get in the self storage game WITHOUT running the facilities themselves. They trusted me, saw my track record, and asked to get in. I accepted, knowing that it was wrong NOT to help others build wealth with an asset that gave me so much.

So, whether you’re someone with multiple facilities who thinks now is the time to raise capital or a brand new beginner with no money (but a lot of energy!) to invest, we’re teaching you exactly how we raise capital, the common pitfalls beginners must avoid, how to form partnership structures, and why I never EVER “ask” for money when doing my self storage deals.

What you’ll learn in today’s show:

How to raise money for your first (or next) self storage deal with partnerships, banks, or funds
Why you never (ever!) “ask” an investor for money, but you should do this instead
Why your #1 priority is NOT the investors in your deal (we’ll explain why)
How always being self-funded will slow your growth and make it hard to scale
What to start doing NOW if you want to buy self storage but have zero experience
Partnership setups to try to get active or passive investors for your deal
What to do at the start of any partnership (before things go wrong!)

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📉 Take advantage of today’s market conditions and invest with us: https://cedar.cc/invest

Transcript

Click on a timestamp to play from that location

0:00.0	You know, if I'm going out into self-storage right now, I'm brand new, I've seen some possibilities for good investments.
0:06.6	We've got maybe a deal I've got an LOI on or something.
0:09.5	How do I go to an investor and say, hey, I've never done this before, but here's this opportunity.
0:14.5	Yeah.
0:14.8	How do they know that this is an opportunity with me?
0:17.5	How do I build my credibility for those investors being new?
0:34.3	Welcome everybody to self-storage income. And today we're talking about money. That's right.
0:40.9	How to get money for your first or frankly any storage deal. And a lot of times we look and say,
0:47.0	okay, this may be directed towards an beginner investor. And sometimes it literally is. Like this is for the beginner. This is something that, of course, a beginner investor needs to know, but it never
0:52.4	ends. And that's the key with the subject and why it's so
0:55.6	important is because it never ends. It will always be the top concern or priority when you're doing
1:02.1	commercial real estate or any kind of real estate is how do I pay for it, right? And so how do I get money?
1:08.8	How do I get investors? How do I get bank loans? Where does that
1:11.4	come from? And how does it look? And that's what we're really diving in today. It is, man. I'm excited to talk about it because listening to you talk about it, listening to even our friend Pace Morby talk about it. He talks about raising capital being one of these most important skills that you can have, starting out in real estate,
1:31.8	business acquisition, all those things. But going back to the experiences even that you've shared as well, if you could start over now today at Ground Zero, you'd be using OPM, other people's
1:38.5	money, bringing in investors a lot sooner than you did. Yeah, absolutely. I mean, we talk about the
1:43.3	velocity of capital,
1:44.6	how that works. And had you started doing that from day one or even, you know, the first
1:51.2	couple of years, totally different game would have been totally different. So I'm excited to dive into it.
1:55.8	There's so much opportunity and so many different things to think about and consider as we're
1:59.8	going through this. And we've learned so much on what to do, what not to do, all the things we've made mistakes on.
2:06.4	And two, a lot of beliefs that I think that I had that were completely wrong.
	...

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