Love the content and looking forward to the conference in a few weeks! I did a seller finance deal with a purchase price of $1,500,000 and put $100,000 down two years ago. The facility has 106 units (mostly 10’x20’) 46 RV spaces and two commercial buildings along with a duplex. Since purchasing the facility I have been able to increase rents significantly and I’m currently in the process of expanding out another 35 units that will put my facility at 32,000 sqft of net rental space. The goal is to expand where the RV parking is and add another 17,500 sqft of net rental space.
FREAKING love it Jordan! What an awesome deal! Thanks a ton for sharing here on UA-cam and hope you enjoyed the conference! Thanks so much for the support and definitely keep in touch!
Should look into having a few dedicated units for people to rent and use as little work shops, maybe have some including car lifts and climate control. Not for them to run business but if they don’t have a garage to work in, I know for me a storage unit is the next best thing.
I'm forming my LLC soon and launching my CRE investing business. I'm doing tons of research on multi family apartment buildings and self storage facilities. By me being a newbie i'm leaning more towards self storage facilities than buying MFA buildings. Seems that SS is much less of a headache to manage than MFA. I'm still trying to wrap my head around how to properly analyze deals and trying to figure out how to raise capital for down payment etc.
"Hey @bdailey8065 - Congratulations on forming your LLC and launching your CRE investing business! Hope you're gonna find this helpful! ua-cam.com/video/zhhJ3SU5D2M/v-deo.html&ab_channel=SelfStorageIncome 💪 If you still want more, head over to our website at www.selfstorageincome.com/ where you can get my self storage starter pack (which includes my book for free!) where I dive DEEP into analyzing deals.
I have land in a fast growing area. I was thinking about putting maybe 4 acres into storage units. I can build them myself. I would hire out any concrete asphalt work. There are 650 homes going in next door. Hundreds more at multiple locations within a couple miles of my property. Can anyone recommend a place to purchase the building materials/kits if there exists such a thing ?
I just purchased 10 acres for 50k. And its paid off. What kind of loan should i get and what type on units should i build. Theres 7 lakes in the area. Id like to accommodate rvs, boats, jetskis and seasonal items
Thanks a ton for the feedback on this Cameron! Thing is, the buying process is pretty much the same whether I'm buying a small or large facility. Not a whole lot changes. Is there something specific you're wanting to know more about? Maybe I can throw that on my list of videos to do. Thanks again for watching and for the great input, much appreciated!
Hey @suhatafe - There are a variety of ways you can find storage deals such as online listing sites like LoopNet or Crexi, RE brokers, industry publications, auctions, and networking. Watch this to find out more! 👉 ua-cam.com/video/qmLrNTrTDhc/v-deo.html&ab_channel=SelfStorageIncome
I am currently working on a purchase of 188 storage. I have no experience nor knowledge. In other words I dont know what I’m doing. I have rental property experience but need a more dependable cash flow. I’m a 70 y.o. Lady and will be 2 1 2 -3 hrs. away . The first one you got in is very similar to what I am facing. Would love more advice. Your video was very beneficial. Thanks
Hey @kiddcosmos - thanks for the comment and congrats on starting your storage journey! Head over to my site www.selfstorageincome.com/ to get my free self-storage starter pack and join our free newsletters to keep your education journey going! 💪😉
First time viewer, looking st many businesses. You mention it’s more about your business buy box or cash flow, but didn’t hear any gross or net monthly numbers to look for
Because it depends. A buy box consists of - property type - property characteristics - market location - budget & price range - investment strategy - return on investment You need a combination of all of these to get any numbers to look for. $10,000 in income a month doesn't mean squat if your facility is 100K square feet, but it can mean everything if it's 10K square feet. No single metric is enough to determine whether a deal is good or not. You need to look at all the factors.
If you are looking to buy an existing storage business, what are things that you request to see from the current owner before making an offer? How do you evaluate the value of the business/property?
Hey @ethanwright2981, Great question! In a perfect world, you have all the information you'd ever need to make an offer but this often isn't the case. At the very least, you'd need to have an idea of the revenue, square footage, and current occupancy. From there, after submitting an LOI you can go further in verifying the expenses from the seller, getting any 3rd party reports done, and diving deeper into your underwriting. Oftentimes the seller won't have all the information you're looking for - as frustrating as this can be it's also an opportunity in that you are finding signs of a mismanaged property! As far as evaluation goes, hope you find this helpful 👉 ua-cam.com/video/-126FYO57eA/v-deo.html&ab_channel=SelfStorageIncome
Great video. I work for a vendor in the industry and I'm looking to purchase my first facility soon. From my research so far I've found that an SBA-7A loan offers financing for as little as 10% down. This is even offered at Live Oak. I'm assuming your 30% down requirement comes from a conventional loan? Thanks in advance for your time!
Hey thanks Nathan! That's awesome! Live Oak (as you probably know) is my go-to. They have a lot of really great options like you mentioned, I love it! You're correct though, that 30% is in regards to conventional. Thanks for watching and for the comment! You'll have to keep in touch on your facility purchase!
I had never paid attention to Storage Units till my mother-in-law passed away ( she live 3 hours away ) so most of her stuff was given away to family up there. What my wife kept we didn't have room for so Storage unit place was 3 mins away from my house so it went there. Rented 10 by 10 for $65 but with CC Draft I got it for $50 a month. Every now & then I would put more stuff in it, one evening had some time to kill I walked the entire lot looking @ how many pad locks were used 115 units, 100% locked. Company had 2nd location 3 minutes away in other direction so went there to look 115 units, 100% padlocks. I got to thinking might want to look into this. I found 100 unit storage for sale in Tennessee, I live in Southeastern NC, what made me nervous was 70% of the units were rented by 2 different tenants if they pulled out cash flow would take a massive hit. I bought some storage unit REIT's instead.
Yes. You can do so with various tools like Radius+ or Yardi, but those will only ever give you a high-level view of the area. Another way is to "secret shop" your competition, something we do quite often behind-the-scenes. Here's a video where we take you on one of our secret shopping excursions! ua-cam.com/video/SfSY2geKUf0/v-deo.html
I have purchased many different businesses from small owners or mom and pops and I’m working on one now that is very typical. They have NO documentation. No financials, no lease agreements, they “just got software” and they have barely run the place. It has 176 units, 28k sqft and they want 2.5 million which I found insane. It is distressed and there is no way to prove actual expenses. In these situations would you do? Walk away or try to find some way of getting accurate financials? Occupancy report is even a struggle.
At 8:06 What do you mean when you say its consolidating? I could be wrong but I feel like people will always wanna place to put their suff? Do you have another video on this subject?
This is a great question (and I actually saw this and recorded a Q&A podcast and included this question) You'll have to check that out. But in short, consolidation - you have mom and pop owned facilities and institutionally owned facilities. The more facilities are purchased by groups/institutions, the more the self storage market becomes consolidated. There are huge benefits and massive opportunity in a fragmented market (a lot of mom and pop/family owned assets). Generally the more the market consolidates, the less growth and opportunity there is going to be. I do a way better job describing this on the podcast, but hope this helped a bit! Thanks a ton for the great question Frank!
Thanks for the comment! Head over to my site www.selfstorageincome.com/ to get my free self-storage starter pack and join our free newsletters to keep your education journey going! 💪😉
Great question here James - far as listings go, build relationships with brokers. Research - check out Radius+ for market research. Thanks for hanging out!
I live in New Jersey. I've been looking around but I can't find an actual answer, how much is a single 10 by 10 storage unit? Can you buy a single unit? I plan to get storage units but I want to start small.
Hey Matt, thanks a bunch for the comment! I'm glad you're enjoying the videos, I'm excited to get these out to you guys. This of course is a great question and one I get all the time. That said, I actually did a video on this exact subject that'll walk you through the process of finding great storage deals. Here's the link: ua-cam.com/video/6nDRuPbOS3g/v-deo.html
Man just stumbled onto this channel and got excited untill I saw you live in the same area I do 😅 imma guess all the good deals have already been had at this point
🤣 You never know! Too funny. Great point to make here though - the deals that fit your criteria, very likely don't fit my criteria. Different investors see different opportunity and are in different stages of investing. So you could very well find a deal in our area that works great for you. Thanks for tuning in Jake!
Great content! I’m looking to start this business with my brother but maybe building it all brand new because many of his friends are in construction and could help us out for cheaper. I would like to know why you think this business only has 10-20 years left? Also I live south of Montreal canada so thing could be a little different. Thank you for your answer!
@adamlamoureux3239 - thanks for the comment! I touched on tech shaking up storage. It's not about the end of the road, but more like a remix! Think about blending in tech, understanding what customers dig, and doing it all in an eco-friendly way. It's about riding the wave of change, not getting wiped out.
Hey Roger! Connecting with some brokers in the area you're wanting to invest in is a great way to start kicking up self storage deals. Thanks a ton for tuning in!
That's going to really depend on your location and the demand in the market. If you're in a large city and in an area that may not have storage near by, you could potentially have a great idea on your hands!
I used to work at a storage facility that got sold from one company to another. We was at 85% full most of the time. We had around 600 units. The smallest was 5*5 the largest 10*40 and everything in-between. About a 100 units was climate control. And about 100 parking spots. We also had a security gate all away around the property. I loved the job just not the pay. If I would of had the money to make a counter offer when it put up for sale I would of made an offer. For the most part it was in good condition. The repairs I had in mind would be upgrades. I was thinking of having the HVAC system updated to a newer more efficient model. The office needed to be updated to more inviting for customers.
@@SelfStorageIncome I’m interested. At the end of this month I’ll have between 70-100k to invest. I’m 30 min from Atlanta. My husband is a heavy equipment operator which means we can use his skills and access to heavy equipment as a way to put additional sweat equity into a deal. Let me know if you have any opportunities you’d like to partner up on. I’m invested in apartments right now but my husband is showing interest in storage facilities and I’d like to venture in that direction to feed his interest :)
@@alphaomega6805Are you still looking for deals? I am currently looking for deals and partners in the commercial real estate space. Let me know if you are interested
Hey Daniel, this is a great question - what I'm referring to is the consolidation of the self storage market as we know it today. Roughly 70% of self storage in the US is owned and operated by mom and pops that have huge upside/value add potential. The other 30% is owned and operated by institutional firms and public companies. As time moves on, more and more of the mom and pop facilities will be purchased by institutional money, which will consolidate/shrink that 70% number. That said, I believe that in the next 10-20 years, the self storage market will look more like multi-family, with the majority of the market being owned by institutional money. Hope that helps and thanks a ton for tuning in!
How expensive is it to build a facility as we are coming into some property this year almost 2 acres in a good part of town near high school, church, residential?
As a 25 year old with $50k saved do you think this is really feasible? Came from dirt and want to get into this. Should I look for a small facility up for sale and manage myself?
Sonny, that's an awesome accomplishment! It really comes down to you and what you want to do. Do you want to invest/own/manage/etc.? Or do you want to invest more passively in others' deals? That's a call you'll have to make. Regardless, getting into self storage investing is feasible with and without your own capital, and finding deals is equally feasible. Thanks a ton for hanging out Sonny!
I just turned 24. Got about 84k and growing. From what I've seen we aren't even close to having the capital to make it worth our time. Self storage seems to be an investment for people that already have a few hundred k to blow. The ROI simply isn't there. Spending ~ 1.5M to net 50-70k per year simply isn't good enough for people like us that are going into generational levels of debt to acquire the property/business. And that's even if we get lucky enough to be financed for a purchase like that. If you get lucky enough to get some cheap bare land that's zoned appropriately and can build the facility yourself then it would be much better. Buying a small facility is more feasible but you aren't going to make hardly any money.
If you need a bank loan to do improvements on the asset that you manage to secure the owner financing for, how will the bank see the equity in your owner financed purchase? Will it essentially mean you need a second down payment? That is, one for the owner through whom you financed and one for the bank for the improvements?
Such a great question here! Almost always, the bank will want to be the primary lien holder, even over the seller. This means you need to bring your bank and the seller together in your negotiations to figure out how exactly everyone is ok structuring the deal. All said and done, coordinate with the bank, coordinate with the seller, and see what kind of a deal you can get put together. Thanks again for the awesome question! This was a great one. And thanks for tuning in!
Hey, Thanks for your great content. We are looking into a storage with 333 units making gross annual income 580k and expenses 180k. It have more potential to add 3 more buildings Price asking is 5.5 million Please give some tips to negotiate a better price Thanks
One thing here is that the expenses you provided don't even reach 37% (which I'm sure this facility would exceed). Given that this facility is only 333 units, it's possible that the expenses could be much higher. This would be a great start in regard to negotiating. All in all, you need to identify and confirm income/expenses, and compare that with your criteria and what your specific investment strategy is going to be on this deal. Thanks a ton for hanging out Canada Investor Club!
Any advice from having a open air Rv space with no debt. Should I invest in carport covered parking ? A 30k investment and going in the grey ( break even to its paid for in a couple of years.
@ariesjalisco1362, Great question! We did a podcast on boat/rv storage that might be helpful for you! podcasts.apple.com/us/podcast/boat-and-rv-storage-critical-considerations-that-can/id1552478638?i=1000525587828
The first thing to do is to scope out the industry and identify some of the drivers behind it. We actually made a full starter's guide here! ua-cam.com/video/gGOJ6ObU1Bo/v-deo.html
I have a huge interest and plan on building a bunch but I would love some advice as the customers where I am from is very different. I live in Cambodia and see a huge market in storage units for foreigners who are coming and going from the country. They need a place to store all their stuff rather than pay full price for their house/apartments. My question is if you were me, would you start off small or go big? It will be a partnership business and my business partner has the land and would build the storage units. Should I risk making 50-100 units or should I keep it under 50 and move from there? Thank you so much!
Hey Jonathan, thanks a ton for tuning in and for the great comment here. This really comes down to demand and what type of units you're going to build (how big the units are and what kind - interior tempurature control, traditional drive up, etc.). You simply would want to build the amount of units that you believe would serve the current demand. If that means 100 units, I'd build 100. If that means only building 50 first, then building the other 50 later, that's also a great strategy. Just remember, demand is key.
Thanks AJ for the amazing info! I'm actively searching for my first deal. Instead of starting small, I will be raising capital for the down payment and had a question when doing sample underwriting. Once I add debt service there seems to be insufficient cashflow to provide investors with (8%) preferred return, especially given the low cap rates. Does that mean I should be getting interest-only loan and is that typical structure when bringing in investors? Thanks!
OBC, awesome to hear you're making moves and thanks for tuning in. This is a great question. The truth is, you can structure a deal in whatever way that your investors will agree to it. Some people offer preferred returns on their deals, and some don't and there are investors willing to invest in numerous kinds of deals so long as it provides them the value they're seeking. The other portion of your question - you should seek to get the best possible financing you can regardless (and there are a ton of great financing options right now). Thanks for watching OBC!
It's costly... lol. It really depends on the type of product you're building. Prices could range from $70 to $120 (multi-level, indoor climate control, traditional drive-up, large boat and RV, etc.). Best solution for this would be to contact a self storage developer and see what they're seeing in the market place for whatever product you're looking to build.
So how do you determine the sale price of said unit. I understand the net income in all that. Do you take the NET income X 5 and that is what the place is worth... I need a starting point.... Yes I also understand the Potential... Is there a rule of thumb that you go by. NET X 10 years Thank you
Hey Corey, this is a great question and one I get a lot (and for good reason). This is super important to get right. I actually talk a lot about the process of valuing a unit in this video here: ua-cam.com/video/9MdIAEPmTaY/v-deo.html Check it out and let me know if you have any more questions. Thanks for the comment and the support!
Good stuff AJ! I'll be spending a lot of time on your channel after this first video watch! Hopeful to be an owner of self storage commercial RE in the near future!
That's awesome man! Thanks for the support. I've been loving getting these videos out. That's exciting to hear, it's an amazing asset class to be in! Thanks again Bryan!
Hey Anthony! You know, I think we've touched on this topic a lot on the podcast and periodically in some of the videos here, but I can't remember if I've done a video on this topic on itself. I'll be sure to add this topic to my list of videos to record. All said and done, it's all about building a good and long term relationship with the facility owners. Find facilities you'd like own and get in contact with the owner (a lot of times the owner is the one managing the facility, but if not, facility managers are generally pretty open to sharing who owns the facility, which you can then begin digging to find their contact info or find mutual contacts). Let the owner who you are, what you're plans are, ask them about the market, their facility, etc. and even see if there's some kind of value you can bring to them. Thanks again!
All the above. We just did a podcast recently with Zach Quick (his second time on), and he talks a lot about his outreach efforts. All said and done though, you can't go wrong combining calls, with mailers, and meetings in person/on site. We've found and closed deals using almost every strategy.
Been getting traditional 75% loan 25% down -- I keep borrowing hard money 10% for my down and now I have a large amount of hard money I will owe in 2 years. Several of my properties I have owned for 2 years + and thought I could get a loan from the equity I built up and pay down my hard money. Have you done that before? Any banks you recommend?
100% YES. Refinancing and paying off that hard money is a fantastic idea. Especially with interest rates being as low as they are. Thanks for watching Denny and for the comment!
Hey Jenny, thanks for the support and happy to help. One of the best ways to generate leads is to build strong relationships with brokers. You can also build relationships with the facility owners themselves which is another great way to generate leads and make deals happen. Thanks again!
Thanks LaTrina for the comment and for tuning in! Love hearing people want to learn more! I don't like to push training courses or coaching a ton. Building communities and surrounding myself and others with great people is really more of my bread and butter. I just launched a commercial real estate community to help fill this gap, so here's a link to that: www.thecrecircle.com
Hey Jake, thanks for watching for this great question. Really what I'm talking about is one, I can't tell the future. I have no idea what may come around the corner that could potentially disrupt the market. Two, there's huge consolidation happening in the storage industry right now. Where just recently you had over 70% of storage facilities owned by single property owners/operators (the mom and pops). I'm sure it's less now with the huge amount of attention that self storage has gotten from institutional investors, and will only continue to consolidate. Meaning, less opportunity for the other smaller players in industry and larger barriers of entry for beginning investors. Good question man, thanks! Might have to do a video on this topic.
@@SelfStorageIncome if that is the case, what has been stopping institutions from doing the same thing to residential? The recent Blackrock acquisitions don't really count since those properties are built ground up to be rentals, not owner-occupied.
Hello Aj, I love your content! I've been following you from the first time I heard you on BP podcast. There is an old abandoned grocery store in my neighborhood (hour outside of Pittsburgh Pa, great area). The building is 43k sf, on a lot that is 4-5 acres. The seller wants $1.3mil for the building and land, the building has been vacant for 4-5 years. In my eyes I would do as many units as possible inside that would be climate controlled and then in the paved parking lot put in as many units as possible. The facility would need a fence and all of the units erected and hopefully minor fixes to the facility. My question is do you think that it is worth it to build this facility or look into a facility that is already built. It is on a extremely busy road in a very, very nice neighborhood. Any and all info would greatly help, in advance I appreciate your time and look forward to your reply.
Thanks a ton for the support from the beginning! It's been an awesome ride building all of this out and bringing you along for it all. This is a great question. The thing is, you would need to look at what it would cost to build that facility vs. simply buying existing. And of course, you would need to measure all the other metrics to ensure it was a good deal (demand, existing and future supply, known rates and price you could rent units for, economic drivers, etc.). I was looking at a conversion similar to this a couple years ago and walked away - the metrics at first looked great (low square feet per capita, growing population, great economic drivers). It seemed like a home run. But then we found out, there was hardly any demand in that area for self storage and the cost of acquisition/building along with the less than ideal rates we could charge, with not enough demand totally killed the deal. All said and done, a good deal is a good deal, we just have to be sure it checks all the boxes. Sounds like you could very well be on to something though! Thanks again for the support!
Hey @lisahicks9617, Thanks for the comment. It really depends on the market - if there is enough demand to add more storage to the area then it definitely can be a great opportunity. I'd start asking around to see what occupancy is like at different facilities and if people are on a waiting list. Check out this video on one of our conversions! 👉 ua-cam.com/video/d7qngXBXX20/v-deo.html&ab_channel=SelfStorageIncome
Amazing info sir!!! This is what I needed to know and thank you so much for this. My only question is how would I go about getting a facility with bad credit and not much money in hand? I understand I would need to put something down but I don’t have much to work with
Hey Tyrell, thanks a bunch for watching for the great question. I actually talked about your question on my most recent podcast and gave some insight on this. All in all, you just need a great deal, a great team, and a great strategy. Put these things together and raising money for deals will come.
Hi AJ, I have learned so much from your videos and I want to thank you for sharing your knowledge. It turns out that buying a mini storage facility isn't so easy if none are available in the area you plan to operate from. Would I be better off building a facility and start smaller than trying to find one for sale? I have $180K of cash on hand before taking out any bank loans and I'm just not sure what way is smartest at this point.
You could do that too! Tons of great opportunity there. Building cost really just depends on what kind of storage product you're building. I'd contact contractors/builders in your area and ask them what they're seeing on costs. Thanks Meesun!
I don't currently offer the forms. But this is a great question and I'm going to look and see if there's something we might be able to put together. Thanks Cindy!
I’m looking to get into storage units. I have a good savings and have many opportunities, I’m just not sure where to begin. Is there any advice you can give me on how to get the ball rolling?
It can definitely seem daunting at first! I have a ton of resources out there to help people like you who are just starting out (this is exactly why I do all this content - I want to help you guys get started off on the right foot. That said, yes here's what you can do: watch my videos here on UA-cam, listen to the Self Storage Income Podcast, and pick up a copy of my book "Growing Wealth in Self Storage" on my website here (all of this will give you everything you need to get going): www.selfstorageincome.com/
@@SelfStorageIncome the more research i do the more i think self storage units is a saturated industry, at least in my city. i was really excited to get started but i just dont think its feasible
@@SelfStorageIncome im listening to your podcast. I think it’s great information if I can ever expand to your levels. But I’d love to hear more how to actually get started in self storage units
Some markets are insanely oversaturated. It sounds like you'll have to start looking at other markets elsewhere. The great news is that storage is very micro-economic. So even in saturated markets, you can find great pockets of opportunity. If you're going through the podcast and watching videos here, that's awesome because in a number of episodes, I've shared how I got started with small facilities in small markets. So keep it up! Thanks again!
I'm just beginning learning about self storage. Really thinking about getting into it but no idea how/where to start. I only understood about 20% of this video.
It's a lot! You can reach out to me and my team here via the comments, on our website, or our instagram! We're happy to help guide you and answer any questions. Thanks for watching!
That's a great question! It really depends on where you live and what's in need. Many people want climate control but then don't realize it's not a drive up type of unit and opt for that instead. However if you're in a humid environment or one with large shifts in weather climate control may be in high demand. I'd suggest asking around in your area and seeing if a mix of unit types or one over the other is in demand. You can also try asking other storage owners near you if they are willing to share their insight on how climate control does. Best of luck to you!
This 74% has probably gone down a bit by now but the main idea here is that storage is super fragmented compared to other assets like apartment buildings. I often say storage is in a "growing up" phase where the asset is going through a consolidation period which creates huge opportunity for those getting into the game - but it won't last forever!
Any tips on negotiating? We are looking at a deal, NOI supports $1.7m, so far we’ve negotiated down to $1.95m. Or a creative financing seller carry option?
First off - congrats on finding a storage facility and working to get it under contract! This really comes down to what your investment criteria is, and what the spread will look like after you take the facility over. Don't ever compromise on your investment criteria, there is always another deal. To go further, I'm actually going to put this on my list of videos to record to give some thoughts and things to look for on negotiating sale price. Thanks for watching and thanks for the comment Janice!
Hey Samuel! Thanks for hanging out man. I'll be doing some more videos on developments - keep in mind though, development costs are very dynamic and are never consistent. Stay tuned!
@@SelfStorageIncome for sure, figured it'd have to be more of a checklist to go out and get quotes than a cost breakdown. Got subscribed so I'll keep an eye out for it!
Sorry about that, it's an older video and that's just an editing technique some people use. Many of our newer videos are smoother. Thanks for watching!
Hello, is there anyway we can get a zoom call in or chat privately? I’m trying to get into this and don’t really have a mentor or form of direction . Get back to me please !
Hey Jarren, I don't do one on one mentorships, but I do have my Inner Circle that you can absolutely be a part of and be able to connect with me and my team directly to get more support: www.selfstorageincome.com/inner-circle. Thanks for tuning in Jarren!
Hey thanks for the support Norm! It means a lot! All this UA-cam and social media stuff takes a ton of time and effort so I always love hearing that it's paying off! Thanks again and glad you're enjoying!
Love the content and looking forward to the conference in a few weeks! I did a seller finance deal with a purchase price of $1,500,000 and put $100,000 down two years ago. The facility has 106 units (mostly 10’x20’) 46 RV spaces and two commercial buildings along with a duplex. Since purchasing the facility I have been able to increase rents significantly and I’m currently in the process of expanding out another 35 units that will put my facility at 32,000 sqft of net rental space. The goal is to expand where the RV parking is and add another 17,500 sqft of net rental space.
How many years of seller financing did the former owner agree to?
FREAKING love it Jordan! What an awesome deal! Thanks a ton for sharing here on UA-cam and hope you enjoyed the conference! Thanks so much for the support and definitely keep in touch!
What state is this in?
Awesome!!!!
Should look into having a few dedicated units for people to rent and use as little work shops, maybe have some including car lifts and climate control. Not for them to run business but if they don’t have a garage to work in, I know for me a storage unit is the next best thing.
11:55 is the answer
I'm forming my LLC soon and launching my CRE investing business. I'm doing tons of research on multi family apartment buildings and self storage facilities. By me being a newbie i'm leaning more towards self storage facilities than buying MFA buildings. Seems that SS is much less of a headache to manage than MFA. I'm still trying to wrap my head around how to properly analyze deals and trying to figure out how to raise capital for down payment etc.
"Hey @bdailey8065 - Congratulations on forming your LLC and launching your CRE investing business! Hope you're gonna find this helpful! ua-cam.com/video/zhhJ3SU5D2M/v-deo.html&ab_channel=SelfStorageIncome 💪
If you still want more, head over to our website at www.selfstorageincome.com/ where you can get my self storage starter pack (which includes my book for free!) where I dive DEEP into analyzing deals.
I have land in a fast growing area. I was thinking about putting maybe 4 acres into storage units. I can build them myself. I would hire out any concrete asphalt work. There are 650 homes going in next door. Hundreds more at multiple locations within a couple miles of my property.
Can anyone recommend a place to purchase the building materials/kits if there exists such a thing ?
Amazing content. Subscribed.
Thank you! Welcome to the group!
Where is the best place online for look for stage facilities for sale.
Is the picture of the white/gray storage unit in Bonners Ferry Idaho?
I just purchased 10 acres for 50k. And its paid off. What kind of loan should i get and what type on units should i build. Theres 7 lakes in the area. Id like to accommodate rvs, boats, jetskis and seasonal items
How much is fencing? Roughly?
Please make a video on buying your first small property and what to expect
Thanks a ton for the feedback on this Cameron! Thing is, the buying process is pretty much the same whether I'm buying a small or large facility. Not a whole lot changes. Is there something specific you're wanting to know more about? Maybe I can throw that on my list of videos to do. Thanks again for watching and for the great input, much appreciated!
How I find commercial listings that are available for purchase? Any websites of interest? Where do you recommend I start looking?
Hey @suhatafe - There are a variety of ways you can find storage deals such as online listing sites like LoopNet or Crexi, RE brokers, industry publications, auctions, and networking. Watch this to find out more! 👉 ua-cam.com/video/qmLrNTrTDhc/v-deo.html&ab_channel=SelfStorageIncome
I am currently working on a purchase of 188 storage. I have no experience nor knowledge. In other words I dont know what I’m doing. I have rental property experience but need a more dependable cash flow. I’m a 70 y.o. Lady and will be 2 1
2 -3 hrs. away . The first one you got in is very similar to what
I am facing. Would love more advice. Your video was very beneficial. Thanks
Hey @kiddcosmos - thanks for the comment and congrats on starting your storage journey! Head over to my site www.selfstorageincome.com/ to get my free self-storage starter pack and join our free newsletters to keep your education journey going! 💪😉
How many facilities do you live near vs. facilities that you manage at arms-length? Facilities near so-cal are too expensive for me to purchase rn.
First time viewer, looking st many businesses. You mention it’s more about your business buy box or cash flow, but didn’t hear any gross or net monthly numbers to look for
Because it depends.
A buy box consists of
- property type
- property characteristics
- market location
- budget & price range
- investment strategy
- return on investment
You need a combination of all of these to get any numbers to look for. $10,000 in income a month doesn't mean squat if your facility is 100K square feet, but it can mean everything if it's 10K square feet. No single metric is enough to determine whether a deal is good or not.
You need to look at all the factors.
I just came across your channel and subscribed! Great info! Thank you for sharing. Merry Christmas!
Hey that's awesome to hear John! Thanks a bunch for the support and (belated) Merry Christmas!
If you are looking to buy an existing storage business, what are things that you request to see from the current owner before making an offer? How do you evaluate the value of the business/property?
Hey @ethanwright2981, Great question! In a perfect world, you have all the information you'd ever need to make an offer but this often isn't the case. At the very least, you'd need to have an idea of the revenue, square footage, and current occupancy. From there, after submitting an LOI you can go further in verifying the expenses from the seller, getting any 3rd party reports done, and diving deeper into your underwriting. Oftentimes the seller won't have all the information you're looking for - as frustrating as this can be it's also an opportunity in that you are finding signs of a mismanaged property! As far as evaluation goes, hope you find this helpful 👉 ua-cam.com/video/-126FYO57eA/v-deo.html&ab_channel=SelfStorageIncome
Was the example of what you did cut from the video? See around 11:35 of the video.
Great video. I work for a vendor in the industry and I'm looking to purchase my first facility soon. From my research so far I've found that an SBA-7A loan offers financing for as little as 10% down. This is even offered at Live Oak. I'm assuming your 30% down requirement comes from a conventional loan? Thanks in advance for your time!
Hey thanks Nathan! That's awesome! Live Oak (as you probably know) is my go-to. They have a lot of really great options like you mentioned, I love it! You're correct though, that 30% is in regards to conventional. Thanks for watching and for the comment! You'll have to keep in touch on your facility purchase!
I’m looking to build a storage unit, do you know how I would structure that? Buy the land first? And finance the construction?
Did you ever figure this out?
I had never paid attention to Storage Units till my mother-in-law passed away ( she live 3 hours away ) so most of her stuff was given away to family up there. What my wife kept we didn't have room for so Storage unit place was 3 mins away from my house so it went there. Rented 10 by 10 for $65 but with CC Draft I got it for $50 a month. Every now & then I would put more stuff in it, one evening had some time to kill I walked the entire lot looking @ how many pad locks were used 115 units, 100% locked. Company had 2nd location 3 minutes away in other direction so went there to look 115 units, 100% padlocks. I got to thinking might want to look into this. I found 100 unit storage for sale in Tennessee, I live in Southeastern NC, what made me nervous was 70% of the units were rented by 2 different tenants if they pulled out cash flow would take a massive hit. I bought some storage unit REIT's instead.
Two tenants...70%?? 😳 that would make me nervous too
How can I get more info on storage unit REITS
How do you check demand for SS in in an area? By what the occupancy rate is in the other SS places in that area?
Yes. You can do so with various tools like Radius+ or Yardi, but those will only ever give you a high-level view of the area. Another way is to "secret shop" your competition, something we do quite often behind-the-scenes. Here's a video where we take you on one of our secret shopping excursions! ua-cam.com/video/SfSY2geKUf0/v-deo.html
I have purchased many different businesses from small owners or mom and pops and I’m working on one now that is very typical. They have NO documentation. No financials, no lease agreements, they “just got software” and they have barely run the place. It has 176 units, 28k sqft and they want 2.5 million which I found insane. It is distressed and there is no way to prove actual expenses. In these situations would you do? Walk away or try to find some way of getting accurate financials? Occupancy report is even a struggle.
At 8:06 What do you mean when you say its consolidating? I could be wrong but I feel like people will always wanna place to put their suff? Do you have another video on this subject?
I’m wondering the same thing. Please let us know why you think it’s not going to be a good industry in 20 years or so. Thanks!
This is a great question (and I actually saw this and recorded a Q&A podcast and included this question) You'll have to check that out. But in short, consolidation - you have mom and pop owned facilities and institutionally owned facilities. The more facilities are purchased by groups/institutions, the more the self storage market becomes consolidated. There are huge benefits and massive opportunity in a fragmented market (a lot of mom and pop/family owned assets). Generally the more the market consolidates, the less growth and opportunity there is going to be. I do a way better job describing this on the podcast, but hope this helped a bit! Thanks a ton for the great question Frank!
I found already established storage facility. Asking price is 2.5 million
lot is huge there is plenty of room for expansion but the area isn't great
Sounds like you're looking at all the right angles. Gotta make sure all those keys of demand and a healthy market are there. Thanks for the comment!
Regarding financing, doesn’t the SBA 504 allow for a 10% DP vs the 30% mentioned?
Sba won’t give loans on investment property
I've been looking. Going to need to be creative with the financial and the building for a minute.
Thanks for the comment! Head over to my site www.selfstorageincome.com/ to get my free self-storage starter pack and join our free newsletters to keep your education journey going! 💪😉
Excellent video, what is your #1 recommended source for self-storage listings and research?
Great question here James - far as listings go, build relationships with brokers. Research - check out Radius+ for market research. Thanks for hanging out!
I live in New Jersey. I've been looking around but I can't find an actual answer, how much is a single 10 by 10 storage unit? Can you buy a single unit? I plan to get storage units but I want to start small.
Hey @marcochavezjr9180 - thanks for the comment! Hope you'd find this helpful! ua-cam.com/video/gGOJ6ObU1Bo/v-deo.html&ab_channel=SelfStorageIncome
Great info AJ! Thanks. As someone looking to get into the business, how does one go about finding and/or soliciting a facility to buy?
Hey Matt, thanks a bunch for the comment! I'm glad you're enjoying the videos, I'm excited to get these out to you guys. This of course is a great question and one I get all the time. That said, I actually did a video on this exact subject that'll walk you through the process of finding great storage deals. Here's the link: ua-cam.com/video/6nDRuPbOS3g/v-deo.html
Good content.
But have a question.
How do you get the money to purchase something like that
Have you thought about robbing a bank?
Man just stumbled onto this channel and got excited untill I saw you live in the same area I do 😅 imma guess all the good deals have already been had at this point
🤣 You never know! Too funny. Great point to make here though - the deals that fit your criteria, very likely don't fit my criteria. Different investors see different opportunity and are in different stages of investing. So you could very well find a deal in our area that works great for you. Thanks for tuning in Jake!
Great content! I’m looking to start this business with my brother but maybe building it all brand new because many of his friends are in construction and could help us out for cheaper. I would like to know why you think this business only has 10-20 years left? Also I live south of Montreal canada so thing could be a little different. Thank you for your answer!
@adamlamoureux3239 - thanks for the comment! I touched on tech shaking up storage. It's not about the end of the road, but more like a remix! Think about blending in tech, understanding what customers dig, and doing it all in an eco-friendly way. It's about riding the wave of change, not getting wiped out.
Where can I get some listings about available self storage facilities for sale. Thank you so much
Hey Roger! Connecting with some brokers in the area you're wanting to invest in is a great way to start kicking up self storage deals. Thanks a ton for tuning in!
So how much does a small self storage cost? I'm new to this I will like to learn
That's going to really depend on your location and the demand in the market. If you're in a large city and in an area that may not have storage near by, you could potentially have a great idea on your hands!
I used to work at a storage facility that got sold from one company to another. We was at 85% full most of the time. We had around 600 units. The smallest was 5*5 the largest 10*40 and everything in-between. About a 100 units was climate control. And about 100 parking spots. We also had a security gate all away around the property. I loved the job just not the pay. If I would of had the money to make a counter offer when it put up for sale I would of made an offer. For the most part it was in good condition. The repairs I had in mind would be upgrades. I was thinking of having the HVAC system updated to a newer more efficient model. The office needed to be updated to more inviting for customers.
@boyscouts5000 Thanks for sharing! Are you looking to invest in storage yourself?
@@SelfStorageIncome I've thought about it.
@@SelfStorageIncome I’m interested. At the end of this month I’ll have between 70-100k to invest. I’m 30 min from Atlanta. My husband is a heavy equipment operator which means we can use his skills and access to heavy equipment as a way to put additional sweat equity into a deal. Let me know if you have any opportunities you’d like to partner up on. I’m invested in apartments right now but my husband is showing interest in storage facilities and I’d like to venture in that direction to feed his interest :)
@@alphaomega6805Are you still looking for deals? I am currently looking for deals and partners in the commercial real estate space. Let me know if you are interested
Why do you say there’s only 10-20 years left for storage lockers? What do you mean by that?
Hey Daniel, this is a great question - what I'm referring to is the consolidation of the self storage market as we know it today. Roughly 70% of self storage in the US is owned and operated by mom and pops that have huge upside/value add potential. The other 30% is owned and operated by institutional firms and public companies. As time moves on, more and more of the mom and pop facilities will be purchased by institutional money, which will consolidate/shrink that 70% number. That said, I believe that in the next 10-20 years, the self storage market will look more like multi-family, with the majority of the market being owned by institutional money. Hope that helps and thanks a ton for tuning in!
@@SelfStorageIncome That makes a lot more sense, thanks!
How expensive is it to build a facility as we are coming into some property this year almost 2 acres in a good part of town near high school, church, residential?
How do I get the 100K down payment though
As a 25 year old with $50k saved do you think this is really feasible? Came from dirt and want to get into this. Should I look for a small facility up for sale and manage myself?
Sonny, that's an awesome accomplishment! It really comes down to you and what you want to do. Do you want to invest/own/manage/etc.? Or do you want to invest more passively in others' deals? That's a call you'll have to make. Regardless, getting into self storage investing is feasible with and without your own capital, and finding deals is equally feasible. Thanks a ton for hanging out Sonny!
I’m 26 with 50k saved let’s make it happen
He had a great answer for you,🤩
I just turned 24. Got about 84k and growing. From what I've seen we aren't even close to having the capital to make it worth our time. Self storage seems to be an investment for people that already have a few hundred k to blow. The ROI simply isn't there. Spending ~ 1.5M to net 50-70k per year simply isn't good enough for people like us that are going into generational levels of debt to acquire the property/business. And that's even if we get lucky enough to be financed for a purchase like that.
If you get lucky enough to get some cheap bare land that's zoned appropriately and can build the facility yourself then it would be much better. Buying a small facility is more feasible but you aren't going to make hardly any money.
@@StackBundle How did you make 84K? Why not keep that going?
Thank you I am very interested In getting into the self storage business and I appreciate the information. Thank you again
If you need a bank loan to do improvements on the asset that you manage to secure the owner financing for, how will the bank see the equity in your owner financed purchase? Will it essentially mean you need a second down payment? That is, one for the owner through whom you financed and one for the bank for the improvements?
Such a great question here! Almost always, the bank will want to be the primary lien holder, even over the seller. This means you need to bring your bank and the seller together in your negotiations to figure out how exactly everyone is ok structuring the deal. All said and done, coordinate with the bank, coordinate with the seller, and see what kind of a deal you can get put together. Thanks again for the awesome question! This was a great one. And thanks for tuning in!
Hey, Thanks for your great content. We are looking into a storage with 333 units making gross annual income 580k and expenses 180k.
It have more potential to add 3 more buildings
Price asking is 5.5 million
Please give some tips to negotiate a better price
Thanks
One thing here is that the expenses you provided don't even reach 37% (which I'm sure this facility would exceed). Given that this facility is only 333 units, it's possible that the expenses could be much higher. This would be a great start in regard to negotiating. All in all, you need to identify and confirm income/expenses, and compare that with your criteria and what your specific investment strategy is going to be on this deal. Thanks a ton for hanging out Canada Investor Club!
@@SelfStorageIncome expenses never include taxes insurance and debt service correct?
Any advice from having a open air Rv space with no debt. Should I invest in carport covered parking ? A 30k investment and going in the grey ( break even to its paid for in a couple of years.
@ariesjalisco1362, Great question! We did a podcast on boat/rv storage that might be helpful for you! podcasts.apple.com/us/podcast/boat-and-rv-storage-critical-considerations-that-can/id1552478638?i=1000525587828
What’s the best way for a new person in getting into storage investing starting from
Scratch?
The first thing to do is to scope out the industry and identify some of the drivers behind it. We actually made a full starter's guide here! ua-cam.com/video/gGOJ6ObU1Bo/v-deo.html
I have a plot of land I'm considering building about 10 to 15 units on. Where I live storage is in demand.
Where do you live
I have a huge interest and plan on building a bunch but I would love some advice as the customers where I am from is very different. I live in Cambodia and see a huge market in storage units for foreigners who are coming and going from the country. They need a place to store all their stuff rather than pay full price for their house/apartments. My question is if you were me, would you start off small or go big? It will be a partnership business and my business partner has the land and would build the storage units. Should I risk making 50-100 units or should I keep it under 50 and move from there? Thank you so much!
Hey Jonathan, thanks a ton for tuning in and for the great comment here. This really comes down to demand and what type of units you're going to build (how big the units are and what kind - interior tempurature control, traditional drive up, etc.). You simply would want to build the amount of units that you believe would serve the current demand. If that means 100 units, I'd build 100. If that means only building 50 first, then building the other 50 later, that's also a great strategy. Just remember, demand is key.
Thanks AJ for the amazing info!
I'm actively searching for my first deal. Instead of starting small, I will be raising capital for the down payment and had a question when doing sample underwriting. Once I add debt service there seems to be insufficient cashflow to provide investors with (8%) preferred return, especially given the low cap rates. Does that mean I should be getting interest-only loan and is that typical structure when bringing in investors? Thanks!
OBC, awesome to hear you're making moves and thanks for tuning in. This is a great question. The truth is, you can structure a deal in whatever way that your investors will agree to it. Some people offer preferred returns on their deals, and some don't and there are investors willing to invest in numerous kinds of deals so long as it provides them the value they're seeking. The other portion of your question - you should seek to get the best possible financing you can regardless (and there are a ton of great financing options right now). Thanks for watching OBC!
Great channel. I took a 140k facility from concept to building permits in 2007. Looking to get back into it.
Thanks! That's awesome! It's definitely a great industry to be in.
What about the cost to build?
It's costly... lol. It really depends on the type of product you're building. Prices could range from $70 to $120 (multi-level, indoor climate control, traditional drive-up, large boat and RV, etc.). Best solution for this would be to contact a self storage developer and see what they're seeing in the market place for whatever product you're looking to build.
So how do you determine the sale price of said unit. I understand the net income in all that. Do you take the NET income X 5 and that is what the place is worth... I need a starting point.... Yes I also understand the Potential... Is there a rule of thumb that you go by. NET X 10 years Thank you
Hey Corey, this is a great question and one I get a lot (and for good reason). This is super important to get right. I actually talk a lot about the process of valuing a unit in this video here: ua-cam.com/video/9MdIAEPmTaY/v-deo.html
Check it out and let me know if you have any more questions. Thanks for the comment and the support!
Good stuff AJ! I'll be spending a lot of time on your channel after this first video watch! Hopeful to be an owner of self storage commercial RE in the near future!
That's awesome man! Thanks for the support. I've been loving getting these videos out. That's exciting to hear, it's an amazing asset class to be in! Thanks again Bryan!
Any videos on how to go direct to seller?
Hey Anthony! You know, I think we've touched on this topic a lot on the podcast and periodically in some of the videos here, but I can't remember if I've done a video on this topic on itself. I'll be sure to add this topic to my list of videos to record. All said and done, it's all about building a good and long term relationship with the facility owners. Find facilities you'd like own and get in contact with the owner (a lot of times the owner is the one managing the facility, but if not, facility managers are generally pretty open to sharing who owns the facility, which you can then begin digging to find their contact info or find mutual contacts). Let the owner who you are, what you're plans are, ask them about the market, their facility, etc. and even see if there's some kind of value you can bring to them. Thanks again!
What outreach efforts are more successful than others ?
All the above. We just did a podcast recently with Zach Quick (his second time on), and he talks a lot about his outreach efforts. All said and done though, you can't go wrong combining calls, with mailers, and meetings in person/on site. We've found and closed deals using almost every strategy.
somebody presented me an offer to go in with them on a deal. I have to do some research to see if this is a good deal
You should!
What about building your own?
@makiahtimpson7420 - thanks for the comment! Hope this helps 👉👉 ua-cam.com/video/fhGpgBCYRUk/v-deo.html&ab_channel=SelfStorageIncome
Great information. I love what you are doing.
Thanks Patty! Love being able to get this stuff out!
Been getting traditional 75% loan 25% down -- I keep borrowing hard money 10% for my down and now I have a large amount of hard money I will owe in 2 years. Several of my properties I have owned for 2 years + and thought I could get a loan from the equity I built up and pay down my hard money. Have you done that before? Any banks you recommend?
100% YES. Refinancing and paying off that hard money is a fantastic idea. Especially with interest rates being as low as they are. Thanks for watching Denny and for the comment!
Great video!! Really appreciated. Learning more about self-storage. Where do you find the listings and get the leads? Thank you.
Hey Jenny, thanks for the support and happy to help. One of the best ways to generate leads is to build strong relationships with brokers. You can also build relationships with the facility owners themselves which is another great way to generate leads and make deals happen. Thanks again!
Does self storage do good in small towns of about 3000 people?
i also want to know this
Hey @jasonlasko3556 - thanks for the comment! Hope you'd find this helpful! ua-cam.com/video/gGOJ6ObU1Bo/v-deo.html&ab_channel=SelfStorageIncome
Do you offer a training course? If so can you please send me the link.
Thanks LaTrina for the comment and for tuning in! Love hearing people want to learn more! I don't like to push training courses or coaching a ton. Building communities and surrounding myself and others with great people is really more of my bread and butter. I just launched a commercial real estate community to help fill this gap, so here's a link to that:
www.thecrecircle.com
Hi AJ how much do you charge for consultant to build Storage
@andrewnguyen612, If you're looking for education to invest in storage, check out our Inner Circle: www.selfstorageincome.com/inner-circle
I'm looking for something small but having a hard time finding anything under 1m...
Awesome Hangfire! Keep hammering away, building broker relations, your network, and outreach efforts.
Is this market saturated or are there still opportunities to make money.
There is a TON of opportunity. Certain markets are saturated, but there are a lot of great markets still out there rip for picking. Thanks Mo!
You said the industry may not last forever. Why? Curious
Hey Jake, thanks for watching for this great question. Really what I'm talking about is one, I can't tell the future. I have no idea what may come around the corner that could potentially disrupt the market. Two, there's huge consolidation happening in the storage industry right now. Where just recently you had over 70% of storage facilities owned by single property owners/operators (the mom and pops). I'm sure it's less now with the huge amount of attention that self storage has gotten from institutional investors, and will only continue to consolidate. Meaning, less opportunity for the other smaller players in industry and larger barriers of entry for beginning investors. Good question man, thanks! Might have to do a video on this topic.
@@SelfStorageIncome if that is the case, what has been stopping institutions from doing the same thing to residential? The recent Blackrock acquisitions don't really count since those properties are built ground up to be rentals, not owner-occupied.
I see a lot of big franchises buying up the mom and pop storage places. I live in Florida, the snowbird capital of the world.
phenomenal thank you!
Hello Aj, I love your content! I've been following you from the first time I heard you on BP podcast. There is an old abandoned grocery store in my neighborhood (hour outside of Pittsburgh Pa, great area). The building is 43k sf, on a lot that is 4-5 acres. The seller wants $1.3mil for the building and land, the building has been vacant for 4-5 years. In my eyes I would do as many units as possible inside that would be climate controlled and then in the paved parking lot put in as many units as possible. The facility would need a fence and all of the units erected and hopefully minor fixes to the facility. My question is do you think that it is worth it to build this facility or look into a facility that is already built. It is on a extremely busy road in a very, very nice neighborhood. Any and all info would greatly help, in advance I appreciate your time and look forward to your reply.
Thanks a ton for the support from the beginning! It's been an awesome ride building all of this out and bringing you along for it all. This is a great question. The thing is, you would need to look at what it would cost to build that facility vs. simply buying existing. And of course, you would need to measure all the other metrics to ensure it was a good deal (demand, existing and future supply, known rates and price you could rent units for, economic drivers, etc.). I was looking at a conversion similar to this a couple years ago and walked away - the metrics at first looked great (low square feet per capita, growing population, great economic drivers). It seemed like a home run. But then we found out, there was hardly any demand in that area for self storage and the cost of acquisition/building along with the less than ideal rates we could charge, with not enough demand totally killed the deal. All said and done, a good deal is a good deal, we just have to be sure it checks all the boxes. Sounds like you could very well be on to something though! Thanks again for the support!
I have a 5000 sf foot commercial building in TN. Would it be worth turning into climate control storage?
Hey @lisahicks9617, Thanks for the comment. It really depends on the market - if there is enough demand to add more storage to the area then it definitely can be a great opportunity. I'd start asking around to see what occupancy is like at different facilities and if people are on a waiting list. Check out this video on one of our conversions! 👉 ua-cam.com/video/d7qngXBXX20/v-deo.html&ab_channel=SelfStorageIncome
Amazing info sir!!! This is what I needed to know and thank you so much for this. My only question is how would I go about getting a facility with bad credit and not much money in hand? I understand I would need to put something down but I don’t have much to work with
Hey Tyrell, thanks a bunch for watching for the great question. I actually talked about your question on my most recent podcast and gave some insight on this. All in all, you just need a great deal, a great team, and a great strategy. Put these things together and raising money for deals will come.
Thank you!
You're welcome! @jessiegreene535
Hi AJ, I have learned so much from your videos and I want to thank you for sharing your knowledge. It turns out that buying a mini storage facility isn't so easy if none are available in the area you plan to operate from. Would I be better off building a facility and start smaller than trying to find one for sale? I have $180K of cash on hand before taking out any bank loans and I'm just not sure what way is smartest at this point.
JEPI
How did you get the 150k down?
Hey Sage, thanks for tuning in. This was a combination of my own money I saved from my sales job and partnering with key people.
How about building a storage facility rather than buying one?
You could do that too! Tons of great opportunity there. Building cost really just depends on what kind of storage product you're building. I'd contact contractors/builders in your area and ask them what they're seeing on costs. Thanks Meesun!
Do you offer the forms for owner financing with Self storage ? I would pay to get them .
I don't currently offer the forms. But this is a great question and I'm going to look and see if there's something we might be able to put together. Thanks Cindy!
I thought we were talking about, how much do you need to start?
Great video
Thanks!
I’m looking to get into storage units. I have a good savings and have many opportunities, I’m just not sure where to begin. Is there any advice you can give me on how to get the ball rolling?
It can definitely seem daunting at first! I have a ton of resources out there to help people like you who are just starting out (this is exactly why I do all this content - I want to help you guys get started off on the right foot. That said, yes here's what you can do: watch my videos here on UA-cam, listen to the Self Storage Income Podcast, and pick up a copy of my book "Growing Wealth in Self Storage" on my website here (all of this will give you everything you need to get going): www.selfstorageincome.com/
@@SelfStorageIncome the more research i do the more i think self storage units is a saturated industry, at least in my city. i was really excited to get started but i just dont think its feasible
@@SelfStorageIncome im listening to your podcast. I think it’s great information if I can ever expand to your levels. But I’d love to hear more how to actually get started in self storage units
Some markets are insanely oversaturated. It sounds like you'll have to start looking at other markets elsewhere. The great news is that storage is very micro-economic. So even in saturated markets, you can find great pockets of opportunity. If you're going through the podcast and watching videos here, that's awesome because in a number of episodes, I've shared how I got started with small facilities in small markets. So keep it up! Thanks again!
I'm just beginning learning about self storage. Really thinking about getting into it but no idea how/where to start. I only understood about 20% of this video.
It's a lot! You can reach out to me and my team here via the comments, on our website, or our instagram! We're happy to help guide you and answer any questions. Thanks for watching!
Is climate controlled systems worth the investment? In how long would my money get made back considering I can charge slightly more
That's a great question! It really depends on where you live and what's in need. Many people want climate control but then don't realize it's not a drive up type of unit and opt for that instead. However if you're in a humid environment or one with large shifts in weather climate control may be in high demand. I'd suggest asking around in your area and seeing if a mix of unit types or one over the other is in demand. You can also try asking other storage owners near you if they are willing to share their insight on how climate control does. Best of luck to you!
10-20 years?! We have been around for over 35🙈
74% are moms and pops? How many are managed by third party management companies?
This 74% has probably gone down a bit by now but the main idea here is that storage is super fragmented compared to other assets like apartment buildings. I often say storage is in a "growing up" phase where the asset is going through a consolidation period which creates huge opportunity for those getting into the game - but it won't last forever!
Any tips on negotiating? We are looking at a deal, NOI supports $1.7m, so far we’ve negotiated down to $1.95m. Or a creative financing seller carry option?
First off - congrats on finding a storage facility and working to get it under contract! This really comes down to what your investment criteria is, and what the spread will look like after you take the facility over. Don't ever compromise on your investment criteria, there is always another deal. To go further, I'm actually going to put this on my list of videos to record to give some thoughts and things to look for on negotiating sale price. Thanks for watching and thanks for the comment Janice!
Long story short: if you don't have a couple hundred thousand dollars, don't even think about it.
This was NOT even one piece of advice given in this video
@@ryanbianchi6582buddies got that poor mindset
Exactly lol
Nah it’s like anything else you just need a job and a down payment
Literally lol
Was hoping this was about building instead of buying second hand facilities
Hey Samuel! Thanks for hanging out man. I'll be doing some more videos on developments - keep in mind though, development costs are very dynamic and are never consistent. Stay tuned!
@@SelfStorageIncome for sure, figured it'd have to be more of a checklist to go out and get quotes than a cost breakdown. Got subscribed so I'll keep an eye out for it!
Do you all think renting an open space and creating storage units within the space would be a good investment?
NOI = Revenue minus expenses. You keep saying it backwards.
A lot more than you think
At this point 22 000 Euro is this much?
whole video is about buying a self storage company not start-up or renting a place to start a self-storage company.
Why does the video keep cutting to zoom in and out? Its quite jarring.
Sorry about that, it's an older video and that's just an editing technique some people use. Many of our newer videos are smoother. Thanks for watching!
Sorry about that! It's just an older video and had a different editing style than our newer content.
So this isn't something you can start with like $250K huh. Dang.
Didnt understand a word
You need to get to the point a bit quicker boss . Too long of a rambling 👍
Advertising the heck out of your video. 2 adverts that you can’t skip on a video with a few thousand views….good job 👎🏿
Didn't realize YT was doing that, thanks for letting us know.
so 50k plus to start? yeah. that's not gonna happen in my lifetime.
Get richer?
Wow such a genius. Find a cheap place and make it more expensive. 🤡🤡🤡🤡
Disappointingly vague and useless.
Hello, is there anyway we can get a zoom call in or chat privately? I’m trying to get into this and don’t really have a mentor or form of direction . Get back to me please !
Hey Jarren, I don't do one on one mentorships, but I do have my Inner Circle that you can absolutely be a part of and be able to connect with me and my team directly to get more support: www.selfstorageincome.com/inner-circle.
Thanks for tuning in Jarren!
Great content AJ. I also follow on Instagram. Thank you
Hey thanks for the support Norm! It means a lot! All this UA-cam and social media stuff takes a ton of time and effort so I always love hearing that it's paying off! Thanks again and glad you're enjoying!