I'm looking at a facility where the owner lives next door. He has an older 3 bedroom and 2 bath house next door which also serves as his office. In fact, the front room is setup as an office for people to walk in and sit down. He has a built-in counter and desk on one half of the office/room. Per tax records, the facility and the house are 2 separate parcels. The facility is own by his LLC and the house/office is owned in his name. His plan is to move out of state after the sale, so he does not want to hold onto the house. He wants to sell the facility and the house as a packaged deal. How would you approach this? I should think of this as 2 separate transactions, right? I was thinking of giving him an offer without the house (my preferred) and also an offer with the house (his preferred). Not sure if he will go for that. If I have to take the house, I don't want to become a landlord. I would have to fix that room with the desk/counter in the middle of it and possibly some small renovation like flooring and paint before I can sell it as a house. The market for selling houses is not great right now so that's a concern. Second option is to rent or sell it as an office. It is on a main road so maybe someone might want to buy or rent it as a work office. The house sits between the storage facility and another business on that main road so it's isolated from other residential homes. Let me know if there are other options I'm missing. Also, let me know if there are some gotchas that I need to be aware of in this scenario or during the underwriting.

Attached is information on the Turn Key Deal I talked about on todays call. Let me know if you have any additional questions?

Most new storage investors do the same thing. They sign up for LoopNet alerts, refresh Crexi a few times a week, and wait for something to pop up that pencils. Then they wonder why six months go by without making a single offer. The deals on those sites are picked over, overpriced, or already under contract by the time you see them. The better way is to flip the whole approach. Instead of waiting for deals, you go find them before they ever hit the market. I've bought several of my 8 facilities through off-market channels, and the system isn't complicated. It's direct mail to owners in your target markets, cold calls using a real script, driving for dollars in towns within 90 minutes of you, and scraping Google for thousands of facility leads for around $50 on Fiverr. Run all four channels at once and deal flow stops being a problem. The other half of this is brokers. Most people email a broker once, get ignored, and give up. The investors actually closing deals build real relationships so they get the first call before a listing ever goes live. I broke down exactly how I do this here: https://youtu.be/pdQMvZhvSJA — worth 15 minutes if you want brokers bringing you deals instead of the other way around. If you want the full Phase 1 sourcing framework, it's all laid out in the Blueprint: https://drive.google.com/file/d/1wkUwltCW9wk7LbsoddYwTfTFn5UgMg2x/view?usp=sharing Which channel are you going to commit to this week — mail, calls, driving, scraping, or brokers? Dave "First Call, Not Last Look" DeMink

Dave has the 5-minute deal analyzer, so I do use that to filter out deals. However, I'm finding myself looking at the market before I even get to that. I would jump on TractIQ and see what the market looks like (medium HHI, supply ratio, population trend, and homeowners vs renters). I figured that if I don't like the market then I don't want a facility there. Do you think I'm missing out on potential good deals by looking at the market first? Sometimes I do still do the 5-minute analyzer. Just wondering if I should really be doing the 5-minute analyzer first always instead of jumping to look at the market first.

How concerned should I be about a facility that does not have the electronic records that we're used to seeing from management systems? The property is being sold by a broker who has created a nice OM. However, the limited info that they got from the older owner was handwritten on notebook paper. I can tell the owners are an older couple that are not tech savvy. How do you go about verifying income, rent roll, and etc? What pitfalls to lookout for?