How to Underwrite Self Storage with Sam Whitaker
One of Bitterroot's partners, Sam, joins the podcast to discuss the importance of underwriting. *Note: We had some audio issues towards the end, but the information shared is still very important.
The more you know, the less risk there is. This is the idea behind today's episode. Sam works as an underwriter with AJ and they have learned what to look for in getting involved with deals. Not only do you need to know revenue sources, but also project expenses and the difference between the way it's being run and the way you would run it, if acquired.
It's easy to know how much you're going to spend on a project, because you can always stop spending, but projecting revenue is a much harder game because it's market driven, especially in something like self-storage which is month to month.
With correct underwriting and negotiating, you can score big. Listen to find out how AJ and Sam pulled off one of their biggest deals, all thanks to solid underwriting.
Don't let banks tell you what you can afford or realtors tell you what something's worth.
AJ and Sam are both big proponents of starting small. Start out smaller, learn the basics, and then move up as you become proficient. You may not make a whole ton of money right away, but you'll start to understand how to find good deals, and how to deal with them.
Topics of Discussion include:
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