Day 63: The First-Year Cash Flow Reality Check скачать в хорошем качестве

Day 63: The First-Year Cash Flow Reality Check

In Day 63 of the Storage 100 series, Joe Downs breaks down the harsh reality of Year 1 cash flow and why so many deals that “look great on paper” struggle immediately after closing. Pro formas assume everything goes perfectly. Reality is where deferred maintenance, tenant turnover, ramp-up costs, and surprise expenses show up fast. Joe explains why Year 1 is often when buyers pay for the seller’s deferred problems and walks through the most common issues that kill first-year cash flow, including underestimated expenses, occupancy drops, and capital expenses that drain reserves immediately. You’ll learn why underwriting off T-12 numbers matters more than pro formas, how much buffer you should really build into your budget, and why banks and experienced buyers assume lower cash flow in the first year. Joe also shares practical strategies to protect yourself, including contingency planning, realistic expense assumptions, and reserve requirements that keep you solvent when reality hits. If you’re buying your first self storage deal — or already own one — this episode will change how you think about cash flow forever. Year 1 is not about perfection. It’s about survival, discipline, and planning for what will go wrong. 🎯 Join the Storage Moguls Community Ready to take your storage investing to the next level? Join Storage Moguls at storagemoguls.ai — a free, AI-powered learning platform with GPT tools, multi-modal learning, and content across every storage vertical. Start free. Learn at your own pace. Build real wealth. 👉 storagemoguls.ai Subscribe for daily Storage 100 episodes and real-world self storage investing education. #selfstorage #selfstorageinvesting #cashflow #storage100 #realestateinvesting #NOI #commercialrealestate