Case Study: The Do’s and Dont’s of Buying Your First Self Storage Facility

Investing in self storage can be highly profitable, but getting started can be daunting. Ben Kall, a seasoned investor, shares how he secured his first facility—a $1.5 million deal—under contract in just 24 hours and closed within 30 days. Initially, his goal was simple: build passive income for financial freedom.

However, he quickly learned that success requires more than just jumping into a deal—it demands clear goals, smart financing, and strategic decision-making.

This post explores key insights from Ben’s journey, including financing strategies, risk management, and the role of technology in self storage investing. Whether you're looking to buy your first facility or scale your portfolio, these lessons will help you navigate the industry with confidence.

Taking the Leap: Buying His First Facility

Instead of starting with residential real estate, Ben Kall’s first investment was a $1.5 million storage facility. His goal? To build passive income and step away from the demands of real estate sales.

The deal moved fast—under contract within 24 hours and closed in 30 days. The seller, a widow whose late husband had built the facility, was ready to move on. Despite initial fears, Ben and his partner took a hands-on approach, managing everything from maintenance to leasing.

With limited resources available, they learned by doing, even drawing insights from the hotel industry to improve operations.

Key Takeaways:

• Storage can be a great first investment—you don’t have to start with residential real estate.
• Motivated sellers create opportunities—Ben’s deal came from a seller looking for a quick exit.
• Hands-on management accelerates learning—operating the facility themselves helped Ben and his partner gain confidence and scale their business.

This experience laid the foundation for Ben’s long-term success in self storage investing.

Treat It Like a Hotel: The Power of Automation

One of the biggest lessons Benl learned early on was that storage operates much like the hospitality industry—convenience and automation are key to success. Rather than treating it like traditional real estate, Ben adopted a customer-first approach, focusing on efficiency and accessibility to attract and retain tenants.

To streamline operations and maximize revenue, he implemented:

• Online leasing and automated payments – Making it easy for customers to rent units 24/7 without in-person interactions.
• Google Ads and SEO strategies – Driving online traffic and increasing occupancy.
• Smart locks and remote access – Eliminating the need for on-site management while improving security.

By treating his storage facility like a hotel, Ben was able to charge higher rates, boost occupancy, and significantly increase the facility’s value.

His approach highlights the growing importance of automation in modern self storage investing.

Expanding With Smart Strategies

After the success of his first storage facility, Ben knew that scaling required a proactive approach. Instead of waiting for perfect deals, he focused on consistently submitting offers, refining his investment criteria, and building relationships within the industry.

Key Scaling Strategies:

• Creative Financing – Many of Ben’s acquisitions leveraged seller financing, reducing the need for large upfront capital.
• Building Relationships – Partnering with contractors, brokers, and operators helped him uncover off-market deals.
• Market Analysis – Studying local demand, competition, and pricing trends ensured each new acquisition fit his long-term goals.

His hands-on learning approach—starting with plowing snow and handling maintenance himself—gave him the confidence to grow.

By actively networking and immersing himself in the industry, Ben expanded his portfolio to 125,000 square feet of self storage across multiple locations.

The First Facility Loan: What You Need to Know

Securing financing is one of the biggest challenges for new storage investors. When Ben purchased his first facility, he followed the bank’s standard terms—25% down with a 20-year amortization—without realizing he could negotiate better terms.

It wasn’t until later that he learned how much flexibility banks have and how strategically structuring debt can significantly impact cash flow and long-term returns.

Lessons Learned:

• Banks aren’t set in stone – Loan terms are negotiable, from interest rates to amortization periods.
• Seller financing is a powerful tool – For his second and third facilities, Ben secured seller financing with a 4% interest rate over 30 years, minimizing upfront costs and improving cash flow.
• Reinvesting in improvements pays off – By putting rental income back into the facility for upgrades like asphalt, lighting, and security, he increased the property’s value by over $1.5 million while adding an extra $100,000 in annual cash flow.

Understanding these financing options allowed Ben to scale faster and improve returns—proving that the right loan structure can make or break an investment.

Working With Banks: How to Negotiate

Many investors assume that bank financing is rigid, but everything is negotiable—if you come prepared. Banks often lack deep knowledge of self storage, so it’s your job to educate them on the property’s value and income potential.

Tips for Negotiating With Banks:

• Be prepared with data – A well-organized package including financials, a feasibility study, and market comps makes it easier for banks to approve favorable terms.
• Showcase your plan – Outline revenue strategies, operational efficiencies, and how improvements will boost cash flow.
• Position yourself as the expert – The more knowledge you demonstrate, the more leverage you have in securing better loan terms.
• Don’t settle for the first offer – If a bank isn’t willing to offer competitive terms, be prepared to walk away and find one that will.

By taking control of financing discussions, Ben secured better loan structures over time, ensuring his investments remained profitable and scalable.

Creative Financing: Structuring Deals That Work

With rising interest rates and shifting market conditions, traditional financing isn't always the best option. Ben has mastered creative financing techniques, allowing him to close deals that others overlook.

His success comes from underwriting conservatively and structuring deals that minimize risk while maximizing long-term potential.

Key Creative Financing Strategies:

• Seller Financing: Negotiating directly with sellers to create flexible terms, often with lower down payments and interest rates.
• Multiple Funding Sources: Combining traditional loans with private capital or partnerships to reduce risk and upfront costs.
• Deferred Payments: Structuring agreements that allow for cash flow reinvestment before full loan payments kick in, easing financial pressure in the early months.

By approaching deals with a three-option strategy, Ben ensures that sellers feel like they have control while structuring terms that work in his favor.

His approach allows him to secure deals when others walk away, proving that understanding and applying creative financing can be a game-changer for real estate investors.

Stop Waiting: The Best Time to Invest Is Now

Many new investors get stuck trying to time the market, waiting for the “perfect” moment to buy. But as Ben emphasizes, opportunities aren’t lost because of bad timing—they’re lost because of inaction.

The best investors focus on finding great deals that perform well in any market, rather than getting caught up in macroeconomic speculation.

Key Takeaways for Taking Action Now:

• Focus on the deal, not the market. A good deal remains profitable in any market cycle.
• Start small but move forward. You don’t need to wait for a massive acquisition—begin with a manageable investment.
• Refine your "buy box." The clearer your investment criteria, the faster you can identify and secure great deals.

By stress-testing every deal, considering worst-case scenarios, and strategically structuring investments, Ben ensures his portfolio remains resilient regardless of market conditions.

Success in self storage isn’t about waiting—it’s about making smart, calculated moves today.

Picking the Right Partners

Expanding his storage portfolio, he realized that choosing the right partners was essential for long-term success. Rather than trying to do everything alone, he teamed up with individuals who had complementary skill sets—particularly those with expertise in financial modelling and underwriting.

This approach allowed him to structure deals more effectively while focusing on operational growth.

What to Look for in a Business Partner:

• Diverse Skill Sets: One partner may specialize in finance and underwriting, while the other focuses on operations and acquisitions.
• Clear Responsibilities: Defining roles upfront helps prevent miscommunication and conflicts.
• Shared Vision: Partners should align on long-term investment goals to ensure smooth collaboration.

Beyond internal partnerships, building a reliable external team—including brokers, lenders, CPAs, and attorneys—further strengthens an investment strategy.

By working with a trusted network, Ben ensures his deals are structured properly, risks are minimized, and long-term financial freedom remains the top priority.

Stress-Testing Your Portfolio

Investing in self-storage isn’t just about buying properties—it’s about making sure they stay profitable through market fluctuations. He emphasizes the importance of continuously stress-testing his portfolio, ensuring his investments remain resilient despite changes in interest rates, occupancy rates, and operating costs.

How to Stress-Test an Investment:

• Model Worst-Case Scenarios: Assume higher cap rates and interest rates to see if the investment remains viable.
• Assess Break-Even Occupancy: Determine the minimum occupancy rate needed to cover all expenses.
• Plan for Unexpected Expenses: Factor in repairs, maintenance, and operational costs to avoid cash flow issues.

Ben highlights that stress testing isn’t just for the initial investment phase—it’s an ongoing process. Even if a third party manages a property, owners must still oversee financial performance and adjust strategies when needed.

By taking a proactive approach, investors can ensure their self-storage portfolios remain strong, profitable, and adaptable in any market condition.

Final Thoughts

Ben’s journey from a first-time investor to a thriving storage operator proves that success in real estate starts with action. Instead of waiting for the perfect moment, he took risks, learned from experience, and leveraged smart strategies to scale his portfolio.

• Take action and learn as you go.
• Leverage automation to maximize efficiency.
• Build strong relationships with lenders, brokers, and industry experts.
• Structure financing strategically to optimize long-term returns.

To hear Ben’s full story and gain deeper insights into his strategies, check out the podcast episode on YouTube: Watch here.