S2E33: Breaking Down a $2.6M Self-Storage Acquisition (After 4 Years of Follow Up with the Seller)

In this episode of Storage Wins, Alex Pardo welcomes back Dan Wentzel with a major announcement: after months of grinding through deals, cold calls, and follow-ups, Dan is officially under contract on a $2.625 million self-storage facility that has 234 units and 28,000 square feet in a growing market with strong demographics.   What makes this milestone so powerful isn't just the deal itself — it's the journey that led to it. Dan cold called this owner four years ago, followed up for over a year, sent somewhere between six and twelve offers, and refused to quit even when the seller went to a broker and the deal almost died twice. This is a masterclass in what persistence actually looks like in the real world of self-storage investing.   The conversation dives deep into how a single phone call to a local bank, uncovering better lending terms than anything previously available, completely changed what Dan could offer and finally got the deal done. It's a reminder that creative problem-solving and consistent action can unlock opportunities that feel out of reach.   Alex and Dan also work through the deal's financials in real time, breaking down back-of-napkin underwriting: starting with $275,000 in current revenue, applying a 35% expense ratio to arrive at a $178,750 NOI, and exploring what a conservative 20% rent increase could do (pushing projected NOI to over $217,000). With rates sitting 30–40% below market and only two competitors in the area (one of which appears to be at capacity), the upside is real. The episode closes with a cliffhanger. The numbers are promising, but the next episode will tackle how to structure the capital stack: debt vs. equity, investor returns, and whether this deal can fully support itself.   This is one of the most honest and instructive episodes in the series, proof that the deal of your life can be the one you almost walked away from. ⸻ You'll Learn How To: Push through analysis paralysis and doubt by staying in motion even when results aren't showing yet  Follow up with sellers over months and years without burning the relationship  Use simple back-of-napkin math to quickly evaluate any self-storage deal  Apply an expense ratio to calculate NOI and interpret cap rates in context • Identify value-add opportunities from below-market rents and unsophisticated operations  Use bank financing creatively to increase your offer and structure a better deal  Recognize what makes a market worth pursuing: population growth, median income, and limited competition  Build a simple, sustainable follow-up system that doesn't require an expensive CRM ⸻ What You'll Learn in This Episode: [0:00] Dan announces he's under contract on a $2.625 million storage facility [1:00] Alex reflects on Dan's journey — from stuck and overwhelmed to under contract [3:16] What the mindset shift actually looked like: keeping your head down and taking the next step [4:08] Was quitting ever a real thought? Dan's honest answer [5:38] Why Alex's mentor told him to "love the journey" — and what that actually means [6:35] The confidence that comes from persisting when others would have quit [7:40] Deal overview: how did Dan even find this opportunity? [8:43] Cold called the owner four years ago — couldn't get through [9:12] A VA finally made contact: seller wanted $3 million — the follow-up began [10:03] How finding better bank financing changed everything and unlocked the deal [10:41] The numbers: 28,000 sq ft, 234 units, plus 24 containers with upside potential [11:32] How many offers did Dan send this seller? "Somewhere between six and twelve" [12:07] Why seller financing was difficult: the seller wanted 40% down [13:03] What made this deal worth the persistence: unsophisticated owner, strong market [13:28] No Google Maps presence, no online rentals, no rate management — maximum upside [14:22] Dan's follow-up system: a Google spreadsheet and phone reminders [15:14] Why the best CRM is the one you actually use [15:55] Market demographics: 3% annual population growth, $90K median household income [16:22] Seller's motivation: retirement [17:06] Purchase price per square foot: $94 — high, but not the full picture [17:31] Current annual revenue: $275,000 at 95% occupancy [18:01] Walking through back-of-napkin math with Dan live on the show [19:47] NOI calculation: $275K × 65% = $178,750 — what that means as a 7 cap [21:07] Why cap rates alone don't tell the full story [22:22] How much can revenue grow? Rates are 30–40% below market [23:48] Analyzing worst case, likely, and best case revenue scenarios [25:11] Only two competitors — one appears to be at full capacity [26:40] How to review the P&L month by month to project ramp-up revenue [27:17] Conservative scenario: 20% rate increase = $60K in additional top-line revenue [27:41] New projected NOI: $217,750 — now buying at an 8 cap [28:29] What comes next: layering debt and equity onto the deal [30:29] The cliffhanger: tune in to the next episode for full capital stack breakdown ⸻ Who This Episode Is For: Investors who have been grinding without results and are questioning whether to keep going  Anyone trying to source their first off-market self-storage deal through cold calling  Listeners who want to understand how to underwrite a deal from scratch  Entrepreneurs learning how to structure persistent, respectful follow-up with sellers  Investors exploring how bank financing can improve deal terms  Anyone building a value-add self-storage investment thesis  People who need a reminder that the breakthrough is usually just on the other side of the next rep ⸻ Why You Should Listen: Most people give up long before the deal gets done.   Dan Wentzel cold called this seller four years ago, got nowhere, followed up for over a year, sent over half a dozen offers, watched it almost go to other buyers twice — and then found one bank with better terms that changed everything.   This episode is a real-time case study in what persistence, creative financing, and consistent action actually look like in the self-storage business. If you've been putting in the work and not yet seeing the results, this conversation will remind you why you can't afford to stop now. ⸻ Follow Alex Pardo here: Website: https://alexpardo.com/ Facebook: https://www.facebook.com/alexpardo15 Instagram: https://www.instagram.com/alexpardo25 YouTube: https://www.youtube.com/@AlexPardo Storage Wins Website: https://storagewins.com/ ⸻ Have conversations with at least three storage owners, brokers, private lenders, or equity partners inside the Storage Wins Facebook Group. Join for free here: https://www.facebook.com/groups/322064908446514/