How to Value a Self Storage Facility - Don't Overpay!

[@mcinvestmentsgroup7386]

AJ. You are very professional with your business plan explained. I bought a facility in Hot Springs and I looking to buy my second property in the same area. I agree 100% with you… it’s time to buy! Thanks

[@yoyoflair]

Great video! I would add that because the financing is likely going to be done by any type of bank, an Appraisal will be required, and because these are income produccing properties, the appraiser will likely value the propery based on the Income Capitalization Approach, which is what you are describing, by applying the Appraiser's concluded CAP rate to the NOI.

[@paulbiniasz2278]

Congrats on the deal you shared. Great instruction!

[@SelfStorageIncome]

Thank you!

[@shawnl3151]

Thanks getting into self storage so watching your vids

[@SelfStorageIncome]

Rock on!

[@southerntransplant2724]

Can you explain the large increase in Y4? Did you pay down or recast the loan? Thank you!

[@rromero5693]

Please explain...

[@joe17390]

Great video! Thank you

[@SelfStorageIncome]

Thanks! Glad you liked it!

[@jimmymcgill5572]

How is the vegas market for storage buying right now?

[@AznKEvon]

I am a bit confused. If the income goes up or down wouldn’t it effect the cap rate? Isn’t cap rate noi divided by asset value?

[@IanThecrackerstacker]

Prices are down per sq ft and people are leaving storage as they dont have the money to pay. Auctions bring in low money and can actually loose money

[@sneakerheadlee5984]

How did you learn how to break down the costs like that? Do you have an assist or accountant.? If so what company do you use?

[@SelfStorageIncome]

Years and years of hard work and practice! But yes, we have an awesome accounting team. Plus, my business partner is well versed in the finance world.

[@emoryneely9308]

Generally some good information, especially on intrinsic vs extrinsic information, but your percentage math is WAY off. You can tell without doing any math because you can't have a more than -100% drop unless revenue goes negative (which is impossible). In Section 4, at 10:55, you show a -138% decline. Revenue going from $1.66M down to $625K is a -62.5% drop, not -138% drop. It makes me a little concerned how you can run a successful syndication when you can't do simple math.

[@maverick8312]

They are also considered the cap rate which affects the overall market prices the two combined presents that larger %

[@laleilha]

Gold right here. Thanks!

[@SelfStorageIncome]

@laleilha - glad to hear! Thanks for the comment!

[@ssmoody13]

Cashflow / Price (or Fair Market Value) = Cap Rate === By those numbers it is below 3% Cap Rate, unless you use the Value of the Investment which would be in the high 5% which makes more sense but do not see how you get a fair market value so much higher than the value of the investment, so what is the difference between Value of Investment and Fair Market Value?

[@torontoontarioliving-movin5289]

Good points

[@qoo0z]

Hey, I hope this comment reaches someone who can answer but what is the best way to start learning this business? I been watching videos but still don’t feel like I can just jump right in

[@SelfStorageIncome]

Hey @qoo0z - thanks for the comment! Head over to my site www.selfstorageincome.com/ to get my free self-storage starter pack and join our free newsletters to learn more about investing in self storage! 💪

[@Ricocase]

Cap % < interest + inflation rates = no

[@nesfinance]

I have found a few deals

[@calvinspiff4348]

I stopped paying attention. Get to the point faster.

[@scottmarker-treasurevalley7244]

I love you AJ Osborne why would you give away all your secrets? When you could have done the same thing here in Idaho and across the country over and over again and now you let the genie out of the bottle? Love you but help me understand.😊

[@brianborkowski5977]

👍

[@eyelidmd]

This is possibly the most confusing video I have ever watched. These are pretty simple deals and doesn’t take this many computations to figure out whether it is a good deal or not.

[@BGStorageLLC]

This makes no sense to me...