How to Structure a Deal (After the Money is Raised) - Behind the Scenes of Our Past and Current Deals

Self Storage Income

AJ Osborne

How To, Entrepreneurship, Business, Education, Investing

4.9 • 591 Ratings

🗓️ 6 October 2020

⏱️ 41 minutes

🔗️ Recording | iTunes | RSS

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Summary

Hey what’s going on everybody!? Welcome back to the Self Storage Income Podcast, this is your host AJ Osborne. One of the things that’s often talked about throughout the world of real estate investing is the raising of capital for deals. Everybody talks about how to find investors, how to manage investors, how to raise money, and even a bit about how to allocate that money. One of the issues with this is…. No one ever talks about what the actual deals look like AFTER the investors are secured and money is raised. What does the deal structure look like? Is there a industry standard for percentages of ownership in the deal? Who gets what and how much? Well that’s exactly what we’re going to cover in today’s episode. We go behind the veil and share with you guys the exact structure of our past and current deals. We go over the different roles that we and our investors take in in the deal, what that means, and the exact percentages shared of those deals. We talk general partners, limited partners, the rough number of investors we generally like to take on, and more. I’m super excited to share this episode out with you guys because we cover a ton of great topics and help walk you through what a potential deal could like in regard to the deal structure behind the scenes. Enjoy, take notes, and as always, get out there and get after it. Thanks for listening everybody, AJ Be sure to go to Selfstorageincome.com to get your free copy of my Self Storage Playbook. This step by step playbook walks you through from start to finish - how to identify a self storage market, how to perform due diligence, how contact a current owner, and ultimately how to land a storage facility deal. You can also find the Self Storage Income Podcast on: iTunes Spotify Stitcher The Self Storage Income Podcast is Sponsored by: Janus International - https://www.janusintl.com/ Store Local - https://www.selfstorage.coop/aws/SL/pt/sp/home_page

Transcript

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0:00.0	Looking to create wealth and income through high cash flowing real estate, self-storage is the fastest growing and the newest real estate asset that has outperformed all others.
0:10.0	What's it secret?
0:11.0	I'm A.J. Osborne and with over a million square feet that we have built, acquired, expanded, and even converted big box stores,
0:19.0	from small third-tier markets to large hundred plus thousand square foot facilities, we have seen it all.
0:25.7	This is the podcast that we're going to discuss and bring on the best investors and operators in the nation to show you how to create wealth and income with self storage.
0:36.9	Welcome to self-storage Income with Self Storage. Welcome to Self Storage Income.
0:52.0	Welcome everybody to Self Storage Income, the great and wonderful podcast about all things self-storage income, the great and wonderful podcast about all things, self-storage.
0:58.4	Only the best. Only the best. Today, I'm trying to even remember now. I've got to think back.
1:05.1	We cover obviously a lot of things on this podcast and get excited a lot about operations finding deals.
1:14.3	One of the things, though, I don't think we've really dived into on the podcast yet is constructing
1:19.7	deals, not like the assets themselves, but partnerships and things like that.
1:25.5	So that's kind of going to be the focus today. We're going to talk a
1:29.7	little bit about, and we have lots of questions that come in, about what are you guys looking for and how do you guys structure deals?
1:35.9	So, but, okay, why don't we talk about it? Why don't we tell it? Give you some insight into that.
1:42.7	And the focused, although it's on deal construction, I think it's important to know that it's
1:52.6	not standardized, right?
1:54.1	Like, this depends largely on who, when, where.
1:59.2	So none of these things are set in stone when you're formatting the partnership and when
2:06.3	you're formatting how the deal is going to work.
2:09.2	It's these things can be changed and should be.
2:12.9	And we'll give examples to that.
2:15.0	I just don't want anybody listening to this walking away.
	...

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