3-Option Offer Template for Self-Storage Sellers

At StorageLife, we teach a powerful negotiation strategy that helps our students consistently close high-quality deals—even with tough sellers. This strategy is what we call the 3-Option Offer, and it’s a must-have in your self-storage investing toolkit.

Whether you're working on your first deal or scaling up through self-storage syndication, using multiple options in your offer creates flexibility, opens up conversations, and increases the likelihood of getting a "yes."

Let’s break down how the strategy works, why it’s so effective, and how to craft these offers with the right tools.

Why Presenting Only One Option Can Limit Your Success

When a seller hears a single number offer, they see it as an ultimatum. If it doesn’t work for them—either due to financing, expectations, or emotions—they shut down.

But with a 3-option structure, you’re inviting the seller to choose. That subtle difference can be the key to unlocking deals, especially in today’s high-rate environment where bank financing often leads to lower purchase prices.

Here’s a real-life example of how this works in action.

The 3 Options Explained

We were speaking with a seller who wanted $4.5 million for their facility. Instead of pushing back or trying to haggle them down, we gave them three options:

Option 1: Conventional Purchase (Bank Loan)

"If we go through a bank, based on today’s high interest rates and required down payments, we could offer $3.6 million. That’s what pencils out given current financing terms."

This option sets a baseline and shows the reality of what bank financing allows.

Option 2: Seller Financing – 5-Year Note

"If you're open to seller financing, we could increase the offer to $3.9 million. With 15% down and a 4% interest rate, you’d make about $4.3 million over five years—nearly your asking price."

This option introduces a creative structure, giving the seller a near-win, while reducing your capital requirement.

Option 3: Seller Financing – 10-Year Note

"If you’re able to carry the note for 10 years, you'd end up earning over $5.1 million—more than $600,000 above your asking price."

This is the most attractive option for both parties. You reduce your down payment and get favorable terms, while the seller sees the highest return over time.

Why This Strategy Works

Each option appeals to a different seller mindset:

• Some sellers just want out fast—Option 1 fits them.

• Others want top dollar but don’t need all the cash upfront—Options 2 and 3 are perfect.

The key is to show that they can actually make more money through seller financing. This is especially effective with sellers who are comfortable with long-term payments or who want to defer taxes.

It’s not just about price—it’s about self-storage return on investment for both parties.

How to Use a Mortgage Calculator with Balloon Payments

To calculate the total money the seller will receive, use a mortgage calculator with balloon payments. Here’s how:

1. Google "mortgage calculator with balloon payment" — we often use the one from Farmers & Merchants.

2. Input your proposed terms:

   • Purchase price (e.g. $3.75M)

   • Down payment (e.g. 15%)

   • Interest rate (e.g. 4%)

   • Amortization schedule (start with 30–40 years)

   • Balloon term (5 or 10 years)

3. Take the total interest paid + the balloon payoff to calculate total seller earnings.

This allows you to tell the seller: “Here’s how much more you’ll make in five or ten years.”

Pro Tips for Crafting Your Offers

• Use a longer amortization period (even 40–50 years) when possible to lower monthly payments and increase cash flow.

• Option 2 should be the middle-ground offer you’re comfortable with.

• Option 3 is the best-case scenario—usually your ideal structure.

With each, you’re adjusting price, down payment, and interest rate until the numbers work for both sides.

We teach this in our self-storage investing course, and we walk students through live deal examples in our self-storage mastermind.

Tools You Should Be Using

To build your 3-option offer with confidence, keep these tools on hand:

• A reliable mortgage calculator with balloon feature

• Market data from a self-storage broker list

• Local self-storage cap rate by state to guide pricing

• Revenue and expense analysis templates

We provide all of these to our self-storage mentorship students inside the StorageLife program.

Real Benefits to You as the Buyer

When you present a strong 3-option offer:

• You reduce upfront capital requirements

• You gain better cash flow and control over terms

• You build better relationships with sellers

This is especially powerful if you’re still learning how to start a self-storage business or looking to improve your negotiation skills.

It’s also a way to de-risk your deals—something we always emphasize when discussing the risks of self-storage investing.

Final Thoughts & Invitation

The 3-Option Offer is a powerful way to stand out, build trust with sellers, and close more profitable self-storage deals. By giving sellers multiple paths to say “yes,” you reduce risk, improve terms, and gain an edge over the competition.

👉 Want to dive deeper into strategies like this? Join our upcoming webinar!

We’ll show you exactly how top operators source hidden opportunities, build rapport with sellers, and use our self-storage investing strategies to consistently close deals others miss.

And don’t forget to stay until the end of the webinar, we’ll be giving away some of our best self-storage investing tools for free!

This is your chance to learn directly from experienced self-storage investors and start building your own pipeline of high-quality off-market deals. Seats are limited, so don’t miss it!