BUYER SERVICES

We work with buyers who may be first-time real estate investors to investors in private and publicly traded Real Estate Investment Trusts (REIT's). Although we deal with a majority of buyers who own investment property, not all have experience in self storage.

There are three types of buyers of self storage.

• Those who want to invest to obtain an income flow and not have to deal with day-to-day management.
• Those who want to purchase an up-and-running facility in a particular geographical location and run it themselves.
• Those who are interested in obtaining land with approvals for self storage and building the project from the ground up.

We can give buyers a quick take on the capital that is needed for properties listed in our portfolio and what type of financing they will need to obtain.

We also provide buyers with up-to-date information about the market and what changes may be occurring within the self storage industry. Some of the value-added services we provide are:

FINANCING ASSISTANCE
We constantly monitor the capital markets through local banking institutions, loan brokers and Wall Street contacts, to ensure the most favorable financing for the transaction. Once a lender has been identified, Investment Real Estate can provide assistance preparing the loan package for the underwriter. We also work closely with the other professionals employed by the financial institutions such as appraisers, title insurance companies, environmental consultants, engineers and escrow companies.

Our pricing analysis will include a section on how the financial institution will underwrite the potential transaction. We do this to ensure that the buyer can obtain financing through traditional avenues and avoids having to secure any unnecessary secondary financing.

DUE DILIGENCE
Investment Real Estate can assist in the collection of all the documentation that a buyer will need to conduct proper due diligence. This ensures that transaction momentum is not slowed by missing documentation required by attorneys, lenders and accountants.

We have a "no surprises" approach to due diligence. We strive to uncover any potential transaction-killing issues prior to going under contract. Moreover, if any of these issues are discovered, we address them immediately with the seller and buyer. It has been our experience that most issues can be resolved if they are addressed early in the transaction.

FINANCIAL ANALYSIS
Self storage is a real estate investment that is valued based upon its ability to provide a cash flow stream to the owner. Our financial analysis is presented in an organized, step-by-step format that can be reviewed by buyers, accountants, and lenders alike. Buyers look to our financial pro-formas to make an informed decision as to where to place their capital to get the greatest return within their risk tolerance range. We can also custom tailor financial analyses to meet any specific needs.

DEVELOPMENT EXPERTISE
The owner and founder of Investment Real Estate, LLC, John H. Gilliland, has personally developed eleven facilities from acquisition of the raw land, obtaining approvals, and constructing the facility. This experience allows us to guide sellers and buyers through the development process, helping to minimize the time and cost of the project.

This development knowledge is also important to our clients in that we can fully appreciate their concerns in selling and buying a development project. It also qualifies us to speak confidently from experience when discussing construction costs and the value of pre-approved self storage land. Please see the Investment Real Estate Construction section of our web site for more information.

MANAGEMENT EXPERTISE
Investment Real Estate, LLC's, sister company, Investment Real Estate Management, LLC, provides third-party management services to owners of self storage facilities throughout the Mid Atlantic States. Our management experience enables us to:

1. Develop an income and expense pro-forma that accurately reflects the current and future operation of the facility.
2. Review procedures and policies and offer suggestions for maximizing income and minimizing liability.
3. Offer management services to first-time buyers, eliminating the "how do I manage this thing" objection.

Please see the Investment Real Estate Management section of our web site for more information.

MARKET KNOWLEDGE
As in any industry, what you know about the marketplace has a direct effect on your success. Our market research is vitally important to any self storage investment. This market knowledge is gained by our constant research of the marketplace. We are in contact with a majority of owners of self storage facilities at least twice per year. In addition, we track all properties that are actively being marketed, we verify and catalog all sales, we call municipal officials quarterly to find any proposed new construction, we monitor the internet for any sale, lease or construction news, and we conduct rent surveys regularly as well as market summary analysis to determine demand and supply levels.

OWNERSHIP ISSUES
Although we do not give legal advice, we can give ideas to owners and buyers to explore with their legal counsel on how to maximize their investment and to protect their assets from litigation.

Estate planning is an integral part of real estate ownership. Family limited partnerships, trusts and other estate planning vehicles are commonly employed in estate plans. We are very familiar in dealing with the sale and purchase of assets by these entities and assist our clients in achieving their stated goals.

TAX ISSUES
Again we are not qualified to give tax advice, but we can offer suggestions for you to discuss with your accounting and tax professional to help maximize your sale proceeds. There are several tax strategies that can legally be employed to minimize the tax consequences of real estate ownership.

1031 tax deferred exchanges are a great way to defer paying capital gains taxes to a later date. Investment Real Estate, LLC, personnel are experienced in handling these transactions and can be a valuable resource to ensure the regulations are met for effecting an exchange.

SELLER SERVICES

Investment Real Estate specializes in exclusively representing Sellers of self storage facilities in our eight-state market area. To date, our team has listed and sold over 150 facilities.

There are many reasons that owners may consider selling their facility - retirement, health, redirection of equity, management headaches and estate planning are common examples. The first step in any owner's process to make an intelligent decision is to get a valuation of their facility based upon actual self storage market data and industry knowledge. We would be happy to provide any property owner in Pennsylvania, Maryland, Delaware, Virginia, West Virginia, New York, New Jersey or Connecticut with a free, confidential valuation of their self storage property. Please complete the form in the Free Valuation section of our web site or call our office at 717-779-0804 and speak to John Gilliland.

In addition to the valuation services, we also offer the following:

PRE-SALE VALUE ENHANCEMENT
In preparing your property for sale, we are able to make recommendations that can significantly increase the value of your facility. These recommendations can increase your cash flow. With every $10,000 in income comes a value enhancement of $100,000 at sale. We consult with our clients well before they put their facility on the market to assist them in obtaining the best possible price. Investors like this approach, too, as the income stream is there, without any guessing games of whether it will work or not.

1031 EXCHANGE ASSISTANCE
Our firm's principle has been personally involved in helping clients effect IRS tax code section 1031 "tax deferred exchanges" since 1987. We can give you, your accountant and your legal counsel the basics of the process and introduce you to industry professionals who can conduct all of the technical requirements of this process. This method of deferring taxes can significantly increase your return on your investment and should be considered before each sale of an investment property.

MARKET KNOWLEDGE
As in any industry, what you know about the marketplace has a direct effect on your success. Our market research is vitally important to any self storage investment. This market knowledge is gained by our constant research of the marketplace. We are in contact with a majority of owners of self storage facilities at least twice per year. In addition, we track all properties that are actively being marketed, we verify and catalog all sales, we call municipal officials quarterly to find any proposed new construction, we monitor the internet for any sale, lease or construction news and we conduct rent surveys regularly as well as market summary analysis to determine demand and supply levels.

OWNERSHIP ISSUES
Although we do not give legal advice, we can give ideas to owners and buyers to explore with their legal counsel on how to maximize their investment and to protect their assets from litigation.

Estate planning is an integral part of real estate ownership. Family limited partnerships, trusts and other estate planning vehicles are commonly employed in estate plans. We are very familiar in dealing with the sale and purchase of assets by these entities and assist our clients in achieving their stated goals.

TAX ISSUES
Again we are not qualified to give financial advice, but we can offer suggestions for you to discuss with your accounting and tax professional to help maximize your sale proceeds. There are several tax strategies that can legally be employed to minimize the tax consequences of real estate ownership.

1031 tax deferred exchanges are a great way to defer paying capital gains taxes to a later date. Investment Real Estate, LLC, personnel are experienced in handling these transactions and can be a valuable resource to ensure the regulations are met for effecting an exchange.