The toughest aspects of investing in self storage is negotiating contracts. Coming to an agreement between two parties despite conflicting economic factors is difficult. The buyer thinks the price is too high while the seller thinks it is too low. The ideal scenario is everyone walks out feeling that they have accomplished what they wanted. As much as possible, you want every negotiation to be a win-win.
The world of real estate and especially self-storage is very small. People talk and the last thing you want is a bad reputation and no one even considers doing a deal with you.
Avoid wasting time and energy with letters of intent. There is a very good reason for this.
The seller in the negotiation will end up shopping the offer against other potential buyers. This can be time-consuming and simply delay the entire process. And worse, you could end up in an auction where you are bidding against another investor. Skip the letter of intent and move immediately with a contract.
Fernando O. Angelucci is Founder and President of Titan Wealth Group. He also leads the firm’s finance and acquisitions departments. Fernando Angelucci and Steven Wear founded Titan Wealth Group in 2015, and under his leadership, the firm’s revenue has grown over 100% year over year.