The Art of Knowing When to Walk Away in Self-Storage Investments By Frank Rolfe

Saying 'no' isn't always easy. For many, it's a word associated with negativity, often feeling like it's shutting the door on opportunity. But in the world of self-storage investments, understanding when and how to say 'no' is essential for successful dealmaking. It's a tool as crucial as 'yes,' laying the foundation for wise and profitable decisions.

Establish Your Firm Limit

Every negotiation should begin with a clear-cut limit—a definitive price point at which you will not budge. This boundary isn't just for you; it's also a signal to the seller, conveyed through your actions and demeanor. Sellers often test your resolve, pushing to see where your limit lies. Demonstrating a firm stance can make them reconsider. If you can't bring yourself to say 'no' beyond a reasonable price, you risk overpaying and missing out on a great investment.

Stick to Your Boundaries

Setting a price limit only works if you stick to it. It's tempting to compromise, especially when you're eager to close a deal, but breaking your own rules sends a confusing message. A well-defined boundary gives the seller a clear sense of where you stand, whereas constant wavering can diminish your credibility. If you find yourself always bending past your limit, consider whether you're negotiating effectively.

'No' Isn't Always Final

A 'no' at the negotiation table doesn't have to mean the conversation is over. Sometimes, it's a strategic move—a moment to assess, recalibrate, or wait for new information. Sellers might also test your willingness to walk away, only to reconsider when they see you won't cave. Remember, 'no' reflects your position at that particular moment, but circumstances change. Be open to re-engaging if the situation evolves favorably.

Maintain Relationships

Negotiations can take unexpected turns, lasting days, weeks, or even longer. It's vital not to burn bridges. A seller might promise an answer only to delay, and your response matters. Instead of reacting in frustration, exercise patience. Deal-making is often a drawn-out process, and keeping lines of communication open can pay off in the long run.

Pursue Multiple Opportunities

Volume is key when it comes to self-storage investments. The more negotiations you have in progress, the better your odds of securing a favorable deal. By keeping several deals in play, you increase your chances of finding one that meets your criteria. Negotiating effectively is like batting in baseball—the more pitches you swing at, the more likely you are to hit a home run.

Final Thoughts

Successful self-storage investors know when to say 'no.' It isn't about closing every deal; it's about ensuring each agreement is on the right terms. Practicing when and how to say 'no' will lead to more favorable deals and a stronger position in the market.

By Frank Rolfe

Frank Rolfe has been an active self-storage investor for around two decades, with self-storage units in many states throughout the U.S. His nuts and bolts knowledge of what makes for a successful self-storage facility has led to a three-decade career without a single failed property.