320. How to Make Offers on Self Storage Facilities (LOI vs. PSA)
Self Storage Income
AJ Osborne
4.9 • 591 Ratings
🗓️ 28 October 2025
⏱️ 44 minutes
🧾️ Download transcript
Summary
You’re about to make an offer on a self storage investment. You’ll need two things: an LOI (letter of intent) and a PSA (purchase and sale agreement). You may need to use one or the other or both, depending on your situation, but not having these two contracts could be stopping you from getting your first or next deal done.
Today, AJ and Conner explain precisely what a PSA and LOI in real estate are, the key difference between these two crucial contracts, and how to use them to make offers on facilities that owners can’t ignore. This is how the pros get self storage deals done. No verbal offers. No handshakes. This is when it gets legit.
You found a self storage investment you like…what do you do now? Do you use an LOI vs. PSA first in commercial real estate? We’ll walk through which contract to use when, what to include in an LOI and PSA, the contingencies to add that ensure a seller can’t wrongfully back out, and why you always negotiate with the seller before you get one of these signed.
The next time you and a seller sign these agreements, you’ll be on your way to your next self storage deal.
What you’ll learn in today’s show:
- What an LOI and PSA are in real estate (and when to use each of them)
- What to include in your initial offer to a seller (timeline, price, contingencies, and more)
- The one contract that stops a seller from coming back to you to ask for more
- Why you always negotiate with a seller before you sign one of these contracts
- Seller not responding? What to send them to show that you’re a legit buyer
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🌳 Work with someone experienced in self storage loans at Live Oak Bank! We seriously love them. https://www.liveoakbank.com/business-loans/self-storage/
📑 Our Self-Storage Feasibility Studies will help you speed up the process in understanding markets, potential risks, and analyzing the facility itself. https://cedar.cc/feasibility-studies/
Transcript
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| 0:00.0 | Welcome everybody to self-storage income and the PSA or an LOI. And I know you're probably going, |
| 0:08.9 | what did you just say? Like, I just thought about it. So, okay, we're talking about the difference |
| 0:13.2 | between a letter of intent versus the actual purchase sale agreement. |
| 0:24.2 | Why you use at what time, different ones, |
| 0:27.4 | why an LOI would even be necessary, |
| 0:30.3 | and what that process looks like. |
| 0:33.5 | You find a good deal, then you want to go into it, |
| 0:35.1 | you want to get it under contract. |
| 0:36.4 | What does that mean? What does that mean? |
| 0:37.2 | Like, let's talk about this. |
| 0:38.3 | The difference between an LOI, PSA, and then how we utilize these things and the actual |
| 0:45.3 | transaction, getting something under contract, looking at the deal. |
| 0:48.3 | Why not just jump into a PSA all the above? |
| 0:57.6 | Really good questions, man. |
| 0:58.7 | And this is stuff that we see in our community all the time. |
| 1:01.3 | People are curious on the timeframes. |
| 1:03.2 | Like, yes. |
| 1:03.7 | When do you do the LOI versus PSA? |
| 1:06.3 | And what does the process in between look like? |
| 1:08.8 | How do you navigate these things? |
| 1:10.7 | And it's really important not only to |
| 1:12.4 | streamline things for you but to also streamline things for the seller and to make sure that you guys |
... |
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