How To Save Money When Selling Your Self Storage Facility
Are you thinking about selling your self storage or mini storage facility? If so, there it's important to understand that the process can be very expensive depending on how you choose to go about it. In this post, we'll discuss some of the ways that you can save money when selling your self storage or mini storage facility.
List the Self Storage Facility Yourself
When you're thinking about selling your self storage facility, many people think that the only way to do it is by listing it with a real estate broker. It's definitely not, but if you do happen to go that route, make sure it's a broker who has experience selling self storage and mini storage facilities! However, listing a self storage facility for sale with a broker will cost you thousands and sometimes tens of thousands depending on the size because of real estate commissions and other fees that brokers can charge. Typically brokers charge a commission between 3-6% of the sale price as their compensation for selling the property. Often, brokers will also charge marketing fees or other types of fees to sell your properties.
When you list your self storage as a "For Sale By Owner" this can help you avoid many of the costs you might incur by listing with a broker. However, you will still need to have professional pictures taken of the site and will still need to compile all applicable financial information to give to prospective self storage buyers. Below is a list of potential sites where you can list your self storage facility by yourself either for free or for a small fee:
Sell Direct to a Self Storage Buyer
Selling your self storage facility directly to a qualified self storage buyer like Sell Self Storage Now is a great way to save on costs when selling your facility. When we buy a mini storage facility, there are no fees and no commissions to pay! You work directly with us throughout the entire process and we make it as easy and straightforward as possible to sell your self storage property quickly. We understand the process and are able to make the transaction simple for our sellers. We have funds available to buy your self storage facility and also work with other self storage buyers around the country if your particular facility might be an even better fit for someone else. No fees, No Commissions, and No Gimmicks. If you are considering selling your self storage facility, give us a call to discuss how we can get you a no-obligation offer for your property @ (717) 687-1883. You can also contact us here.
Owner Finance The Sale
Another option that allows you to save money when selling your self storage facility is to owner finance the property to the buyer either in part or fully.
When you sell a self storage facility, there's often a significant amount of capital gains taxes that you'll need to pay on the profits. However, if you owner finance the self storage facility, you're only needing to "realize" a portion of the profit each year according to the IRS. This is otherwise known as an installment sale and can be an excellent way to preserve the profit of your sale if you're not needing all of the money out at one time. Another advantage is it provides an on-going revenue stream for you just like your facility has in the past, just without any of the management or collections headaches! If you'd like to know more about what it might look like to do an owner financing agreement for your facility to help save money when you sell your mini storage, give us a call today at (717) 687-1883 and we'd love to chat!