Self Storage Income 320. How to Make Offers on Self Storage Facilities (LOI vs. PSA)
Oct 28, 2025
Clear differences between LOIs and PSAs and when to use each in self storage deals. How to craft offers that sellers take seriously, including timelines, contingencies, and earnest money. Strategies to negotiate major terms before legal drafting and ways to show you are a legitimate buyer. Common seller tactics and red flags to avoid when getting a facility under contract.
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Verbal Offers Are Not Under Contract
- AJ recounts a buyer who called a seller and thought the deal was 'under contract' with only a verbal agreement.
- The hosts emphasize that without an LOI or PSA, verbal offers are not contracts and are unreliable.
Don't Let Attorneys Create The Deal Terms
- Negotiate and agree major deal points in the LOI so attorneys only finalize legal language in the PSA.
- Avoid two attorneys inventing terms early because that back-and-forth kills deals and costs time and money.
Make Third Party Reports Contingencies
- Put clear contingencies and survey/survey-review timelines in the LOI/PSA to protect earnest money if third-party reports delay or fail.
- Make bank-required ALTA, zoning, and PCR timelines contingencies so money isn't stuck if reports are late.