In this day and age of recessionary concerns and foreclosures both in the residential and the commercial market, it is a prime time to pick up on some good self storage business deals. The market is ripe for self storage units that are going under amid the weight of the continuing recession and the mortgage banking woes that are affecting each and every American citizen.
Just as the home mortgage meltdown has created an influx of foreclosed on properties that can be had for pennies on the dollar, this is also true in the commercial sector. When self storage units run into trouble they usually call upon the bank to repurchase the loan and if the bank does not want to go through with that deal then they are forced to put the business on the market for the highest bidder. This is where you come into play with a bid that is right below the maximum bid for like kind and quality self storage unit business in the neighborhood and more than likely the property will be yours.
This is not to say that you should drive the price down this is only to say that you would be doing them a favor, them being the business owner of the failed self storage unit endeavor and it will make their load that much lighter. What it takes is a glut of capital and this is not in reference to a few thousand dollars as it takes easily over fifty to one-hundred thousand dollars to even invest in any type of property that is suitable for a self storage unit business.
A quick check of the financials on the actual property that is up for sale will let you know if it is indeed a good deal or bad deal. What must be done is there should be a lien search conducted to see if any other entities have any other vested interest in the property before the sale or worse after the sale. If the lien is not discovered through the course of the pre-offer and then it is disclosed after the ink is dry on the contract then guess who is on the hook for the actual lien? Yes, that will be you and that will be on top of what you have already paid to own the property. It is still a great time to get in on the self storage business if you can find an adequate self storage business that has already gone through the growing pains and has at least a handful of clientele already on the books, as this makes the deal that much sweeter.
In summary, the best way to purchase a self storage unit business is to always be on the lookout for a great deal. The research can be on the Internet yet this should not be considered the end to the exploration, not at all. The good old ‘For Sale’ signs in the neighborhood are some of the best to address and with a little charm and honest-to-goodness sentimentality a great deal can be yours.