Great information. Thank you AJ.. I got a SF which I plan to 1031 this year and SS been on my mind for a long while so time to pull the trigger. Thanks for all the material.
Best Self Storage content on RU-vid AJ. Surprised you dont have more subs, but Im sure in time you'll get there. Quick question, would you be open to sharing this calculator for underwriting? or is this strictly a propriety thing you use? No worries either way, keep up the great work.
Great content as usual AJ! I was just curious if your underwriting sheet is available anywhere? I know you mentioned it at the end but I can’t find a link to get it. Thanks again for providing such valuable content!
Thanks AJ... very helpful... question about cash and on cash return... what is the calculation to get the "on cash" value or the denominator... how initial investment do you include... are you just looking at your cash out for down payment, any immediate capex...or is there other factors
Thanks for this. Similar to a Valuator I’ve been using. The one part I’m not clear about is how you are determining your probabilities- is that built into the spreadsheet or are you estimating that percentage based on your own experience? Thanks
Hi A.J., Thank you for sharing your experience and knowledge. Question, with interest rates higher today, would you assume a higher CAP rate in your valuation analysis? Avid follower, Joe Weston.
Hey @joeweston3185, thanks for your question! In general, when interest rates are higher, it can lead to an increase in cap rates, all else being equal, as investors may require a higher return on their investment to compensate for the higher cost of borrowing. However, it's important to note that there are many factors that can impact cap rates, and they can vary by market and property type. A thorough valuation analysis should take into account all relevant factors to arrive at an accurate assessment of the property's value.
Thank you A.J. I assume based on your response the CAP rate,in your real world example, would be higher today then when this deal was consummated, since rates are higher now. That also assumes your borrowing cost are now higher than the stated rate in the example. Joe Weston
