Investment Returns on Self Storage | What I Expect and How I Underwrite
Self Storage Income
AJ Osborne
4.9 • 591 Ratings
🗓️ 26 October 2021
⏱️ 33 minutes
🧾️ Download transcript
Summary
Welcome back everybody to the Self Storage Income Podcast! I’m your host AJ Osborne! Today we’re going to take a deep dive into one of my most recent deals. I’m going to share with you all details on what exactly we looked at, how we underwrote the deal, and our expected returns on the deal. There are so many questions that me and my team get when it comes to underwriting and returns on self storage. How much do you expect in expenses? How much for payroll? What’s your internal rate of return? How are your expenses broken down and what do they include?... are just a few of the many questions I’ve received. I’m excited to jump in and share it all with you guys today so you can see exactly how we look at and underwrite these awesome deals. Thanks for listening everybody! AJ Be sure to go to Selfstorageincome.com to get your 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 to contact a current owner, and ultimately how to land a deal and purchase a storage facility. 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 Live Oak Bank - liveoakbank.com/incomepodcast Tenant Inc. - https://www.tenantinc.com/ Cedar Creek Wealth: https://cedarcreekwealth.com/
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. |
| 0:10.2 | What's its secret? |
| 0:11.3 | I'm A.J. Osborne and with over a million square feet that we have built, acquired, expanded, and even converted big box stores from small third tier markets to large 100 plus thousand square foot |
| 0:23.6 | facilities, we have seen it all. This is the podcast that we're going to discuss and bring on |
| 0:29.3 | the best investors and operators in the nation to show you how to create wealth and income |
| 0:35.6 | with self storage. Welcome to Self Storage Income. |
| 0:44.3 | Welcome everybody to Self Storage Income. |
| 0:47.9 | And today we've got a, well, I think it's going to be in a fantastic podcast. |
| 0:53.7 | I hope it doesn't bore you guys, |
| 0:55.4 | but this is like the meat. Oh, the meat. That's right. It's going to be incredible. It's going |
| 1:00.0 | to be fantastic. Amazing. Most amazing episode we've ever had. So one of the things that we're doing |
| 1:07.5 | today on this podcast is we're going to go through numbers. That's right. |
| 1:13.6 | We're going through underwriting and going through numbers. And I'm going to try to keep this. |
| 1:22.2 | I don't want to say it's simple because obviously if we just start spitting out tons of numbers and everything, it doesn't, it won't make a lot of sense because you're not looking at it. So we're going to talk about underwriting and I'm going to start including different things like we're going to talk about expense ratios and adjustments within underwriting, why we make them, how we make them, what should be expected, if that makes sense. And that said, if you guys, like this episode is going to be so packed full of value for |
| 1:48.6 | you guys and your underwriting and how this process looks for us and how you guys can |
| 1:53.1 | apply that to facilities that you're looking at, deals you're looking at, I would suggest |
| 1:58.7 | maybe listening to this when you're able to take notes and actually really |
| 2:03.0 | dive into this and extract all the value out of here, or maybe listen to it once and then sit |
| 2:07.4 | down after the fact with a notebook, go through, kind of write some of the stuff down so |
| 2:11.4 | it can help you better paint the picture of what exactly we're talking about, what we're looking |
| 2:15.6 | at, and where these numbers are coming from. |
| 2:18.5 | Exactly. And now, to start this off until lay the foundation, I will be talking about a project that we have just done recently. |
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