Using Data to Drive Self-Storage Acquisitions HOW TO INCREASE THE ODDS OF A SUCCESSFUL LONG-TERM DEAL
by Tyler Burke and Scott Lewis
A s a real estate investor, incorrectly identifying a deal can potentially cause catastrophic losses, while proper identification of a deal can set you up for long-term success and wealth creation. In a competitive marketplace, real estate investors must combine a boot-on-the-ground qualitative analysis with data-driven quantita- tive research. It is the combining of these two approaches that paints the most complete picture allowing for additional insight to how a property may perform.
Gone are the days of informa- tion asymmetry where the seller always had more information than the buyer. Technology has levelled the playing field by bring vast data solutions to the public. With the tools and resources available, it would be careless to not utilize a data-driven approach throughout the evaluation process. A winning strategy can be executed in as little as three steps. The first is to analyze the available data sources including those from a third-party consultant. Next, you need to verify
the veracity of the data with a little grunt work of your own, and finally you need to validate that your busi- ness plan for the property can be accomplished based on the research by wargaming various scenarios. When an opportunity hits your desk, the first step in determining if the deal works, is to start by pulling all available datasets in the market you are looking. Data providers such as CoStar, Reonomy, and Radius allow investors the ability to quick- ly analyze a market. Investors can efficiently deduce whether a deal is
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