Chase Giles

Here’s how I bought my first Self Storage facility - A story for beginners like me So you’ve been on retwit and lurked in the background. You’re like me and listened to every episode of @sweatystartup start-up, browse loop net, and dream about hitting tenants with rent increases, BUT you haven’t taken any action. This is how I got started and how I bought my first (small) facility. After many late nights on Google Maps, tax records, and Google Sheets, I optimistically started mailing letters to a few facility owners to hopefully land an off-market deal… no luck.. dang @bairdk makes this sound easy. One day I’m cruising Facebook marketplace and think what the heck... I wonder if someone is selling a facility on here. Bingo, small facility in a small town listed for $285,000..Run some numbers… I can do that, let me show the Mrs… like sweet music to my ears she says “We should buy this”. I found out it’s publicly listed on the MLS (poorly) I’m a Realtor and can barely even find this thing. It had been listed for a few months. 95% occupied, no sign, no Google page, the owner accepts cash and lives up the street. I wrote up an offer for $240,000 and a week later it was accepted. Now for financing… boy was it hard to find someone to lend on such a small amount. I reached out to a local-ish credit union that did the financing on on my small apartment complex. Thankful for the relationship as they offered the best terms. 80/20 LTV - 25 year am 10 year term- 5-year arm- 6 month Interest only. 7.625% interest rate. Even with in-place rents I cash flowed day 1. Game plan: Transfer everyone over to digital rent management and start accepting credit cards. Google business page (already getting down calls), QR codes for new leases, and local landscaper is my boots on the ground. We closed in 2023 and EZPZ Mini Storage is off to the races....@PublicStorage watch out! Up next… rent increases.. I gave it about a month onboarded everyone to our digital lease platform, actually got to 100% occupancy from our Google my business page, then started with rent increases. about at 20% increase and were still on the affordable side in town. One tenant, responded to the increase email and actually said he was happy to pay a higher price since he was able to pay with a credit card online. I actually got an undercover call from @CaseyMericle the other day, as he was looking for storage in Texas... ?? He said he was going to check with is wife about pricing so I guess she thought I was too expensive. Also made me realize i listen to @fortworthchris podcast too much since i recognized his voice. Grateful for this app and everyone who shares their wealth of knowledge. Excited for the future… oh and deal number 2 is on the way!

@Storage_Venture @CaseyMericle I just bought my second SS facility on SF, 10% down, 5.75% interest, 30 year am, 12 months IO, balloon in 8 years.

Seller financing has been the single most important tool in building my storage portfolio. I own 12 facilities across 4 states (have owned and sold many more), and my best deals - both on price and terms - have all been seller-financed. Here's how I approach it. Why sellers say yes. Most people assume sellers want all cash at closing. Some do. But a surprising number of small facility owners are open to carrying the note because it solves real problems for them. Tax deferral is the biggest one - an installment sale spreads their capital gains over time instead of taking a massive hit in year one. Consistent monthly income in retirement is another. Many of these sellers are in their 60s and 70s and would rather have a predictable payment than a lump sum sitting in a savings account earning nothing. I have actually had seller's tell me they wouldn't sell to me UNLESS they could seller finance. How I bring it up. I never lead a conversation with "will you seller finance?" That puts the seller on defense. Instead, I ask questions. "What are you planning to do after you sell?" "Are you concerned about the tax hit? I hate that the government takes half of what we earn" "Would it be helpful to have monthly passive income from this instead of a lump sum?" Let them arrive at the idea. Your job is to present it as a solution to their problem, not as a favor to you. The terms I typically target. Every deal is different, but my starting point is usually 10-20% down, 4-5% interest rate, 25-35 year amortization with a 7-10 year balloon. I'm flexible on the rate if I can get better terms elsewhere in the structure. Sometimes a higher rate with lower down payment is the better deal. Run the numbers both ways. Thats the fun part - it's all negotiable. Find the win-win, I promise that 90% of the time it's in there! What to watch out for. Get a proper promissory note and deed of trust drafted by an attorney. Don't shake hands on napkin terms. Make sure the seller has clear title and no existing liens that would complicate the carry. Also make sure the seller actually owns the property free and clear or has a lender who will allow a wrap or subordination - this trips up a lot of first-time buyers. The 2 biggest advantages nobody talks about. Speed. There's no bank committee, no SBA underwriting timeline, no 90-day closing process. I've closed seller-financed deals in under 30 days. When a seller is motivated, speed is a competitive advantage that beats a higher offer every time. No PG. Rarely will a seller require a Personal Guarantee. They know the facility, know it cash flows, and know it can cover the payment. In a worst case scenario, the last thing you want is to PG that loan. Happy to answer specific questions about structuring seller finance deals on storage facilities. Reach out anytime!

@Jeffdthompson What is this white stuff? -Texan

Convince me to move to Florida or Texas. Convinced!

@fortworthchris I’ve never been more decisive then when I’m at a Shipley’s

@mhp_guy I’ve always thought someone should run a car detailing business or vacuum business right next to a Supercharger location. Customers come to you and they’re waiting there for 15-40 mins anyways. Like some high school kid could make $100 an afternoon doing this.

I bet you could make $1k/day doing this. This dude called into my show & tipped me off about his friend in St. Louis that stays super busy fixing curb rash on Teslas, $300 at a time All of his leads come from local FB groups. Wheel repair is huge over in the UK but not in the US (yet). Why not? Why aren't there enterprising entrepreneurs at each of the 2,000+ supercharging stations in the US offering to wash and/or detail their cars in the 20-30 mins they spend charging? Surely that should be a thing, right? These were @therick's ideas BTW. He was the caller. Especially since most Tesla owners (myself included) are hesitant to use automatic car washes. All Tesla wheels come black now. Curb rash stands out like a sore thumb. Watch a few YT videos and start fixing them. Make a GMB profile and start telling your story in Tesla FB groups. Get on Thumbtack as well. Once you build a customer base you can do mobile tire replacement as well. There's an entire industry built up around servicing Teslas only. Why not more mobile wheel repair? Expand to other models as you scale. If I don't have someone offer to wash my car next time I charge at a Buc-ee's I'll throw my brisket sandwich across the parking lot in disgust. Follow me @mhp_guy for more small biz ideas.

@PEoperator Great website and great list. Need to redeem some Audible credits now

I vibe coded a website to share books that actually changed how I think. (It was fun and surprisingly easy.) Check it out here: peoperator.co Appreciate you sharing and sending more recs my way.

@Storage_Venture Interested to see more photos of this property and how you’ve divided it up into 6 units? What do the insides look like?

Bumped rent on our 6 contractor garage units by $40/unit. 6 x $40 = $240 / month $240 x 12 = $2,880 / year $2,880 at an 8 cap exit valuation = $36,000 Small wins add up! ...Still unreal that you can create 36k in value with 3 minutes and the click of a mouse

@GrulkeLamonte I have many clients who have bought DR homes. The super low interest rates or no closing costs outweigh the quality objection for many people. They just de-buildergrade it after they move in

Are DR Horton/production homes really that bad? The data shows they sell nearly everything they build. I don’t get it…

I hate getting my wallet out while at any drive thru line window. After you order, a QR code should pop up on the screen where I can scan with my home and pay via Apple Pay. Increased efficiency at the window & happier customers!

View RN listening to @fortworthchris courtesy of @Starlink

@CaseyMericle Crazy! I didn’t see him at @investing_law’s talk at reconvene. Maybe next year

If you ever get down on yourself about raising money remember this Tai Lopez raised $112M

@kenpozek @bavedikian I also think you should post more here, you’ve got a lot to contribute about building a team and scaling with systems.

@chasingrentals @bavedikian Some would say yes

If you broker commercial real estate and also broker houses, you’re sending a clear message that you aren’t elite, and are likely well below average. Elite CRE brokers know residential is a waste of their time, and elite residential brokers know CRE is a waste of theirs. Smart buyers, sellers, and tenants do not work with brokers who do both.

@kenpozek @bavedikian Are you an elite resi broker tho?

@bavedikian I get 10-15 cre leads a month. 10/10 times I refer them out.

@shawngorham Geez, you’re living in 2021! No inspection is crazy. Even in Texas (North Houston) peak covid we didn’t have that.

Just helped a friend buy a home in OC - to get it we had to go $100k over asking, All Cash, 14 day close, no inspections, full contingency removal with $100k non refundable. What a world we live in.

Bout to bonus depreciate this coffee @recostseg

@buyahause Just landed and Ubering to my hotel! Would love to connect about HTX

Headed to see and meet some reconvener’s.. who will be there?

@MauiPace @moseskagan Can’t speak for Moses, but my contractors don’t require it. I’ve got a good track record with them. Not uncommon for me to pay for some materials upfront, but first labor payment is done at the first milestone.

@moseskagan You don't put a deposit down for a contractor?

We’ve renovated >100 buildings over the past ~17 years. 4 Golden Rules of Construction Management: 1. Momentum is everything; make decisions quickly 2. Tie payments to objective milestones 3. Upon reaching a milestone, pay immediately 4. Never let a contractor owe you work; instead you owe her $

@sweatystartup Should I order the chili queso or pork belly bites as an appetizer for lunch?

65 hours in. In the hurt box! All I can think about is food. Ask me anything 😭

@sweatystartup Stuffing my face with a breakfast taco while eating this …. Oh perfect I’m eating healthy!

Friendly reminder: Skipping breakfast is associated with a 27% increased risk of all-cause mortality. 28% increased risk of cardiovascular death. 34% increased risk of cancer. Intermittent fasting is bullshit! Stop doing it!

@DallasAptGP @MorganBarrettX Probably a new pair of Timberlands

@MorganBarrettX Which shoes should I buy?

TIMBERRRRR

@sweatystartup I’m negotiating a decent fixer upper complex right now. Sent the owner a letter written with a sharpie 3 years ago. Renovate, advertise, lease, expand.

The self storage market isn’t good. Rentals in June were really slow. First half of July was really slow. All the new builds that were planned and financed in 2022 just coming online are in for a long, slow lease up. Good time to buy / get in IMO.