Investing in Small Storage Markets [The Pros and Cons]
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- Опубліковано 8 сер 2024
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Today, we're going to dive into something that you absolutely need to know and understand if you're just starting out in your self storage investing journey.
Like most of us - if you're just starting out, you're looking at small third tier (maybe even fourth tier) markets. My very first storage facility was located in the mountains of nowhere in Idaho where there were more grizzly bears than there were humans.... well maybe not THAT crazy... but seriously, it was a tiny storage facility in a tiny market.
There are aspects about small markets like this that give beginning storage investors a HUGE advantage. However, with those advantages, there are also HUGE disadvantages. These aspects in these small markets can make you and kick off your storage investment journey, or these aspects can break you and set you and your investment goals back for years.
We're going to dive into these subjects today and I'm going to go over where the advantages are, where the disadvantages are, and how you can use these forces to your advantage as a beginning storage investor.
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Great content. That last nugget of advice, talking to the town about land designated for storage, smart!
Thanks Eric! Heck yeah man, gotta cover those bases!
Liked & Subscribed! of course! Thanks for sharing your knowledge.
🙌 Thanks Bryan! You bet, I love being able to share all of this with you guys.
Great video. I bought a smaller 25k sqft facility and has been fun. Watched all your videos and reading your book. Implementing many things you teach. Looking to 1031 into my next larger project.
So awesome to hear man! Thanks for all the support and keep me posted on your progress!
Great video! Thank you for the quick lesson. I’m looking forward to the next one!
Glad you enjoyed it Ben! Oh man, we're just getting started, I have a ton of videos recorded and will be uploading more soon so definitely stay tuned. Thanks for watching!
@@SelfStorageIncome You are the man! I just bought your book yesterday. Everything has been so helpful in getting started.
Awesome! Thanks for picking up a copy! If you're enjoying the videos here, you'll love the book too. It helps having a book to look at numbers and deals and go a little bit more in depth on some of those aspects. Let me know what you think and great work getting started in storage (I love this stuff 😂).
Impressive video! Educational and entertaining at the same time! Great production too 👍👍👍
Thanks Masha! Happy to hear you enjoyed it and thanks for watching!
Sounds like the main threat is that there is no barrier to entry to the business, particularly in the small markets. Anybody can enter at anytime.
AJ - I've recently started watching your site and have jumped around to many of them - In this example of the 150,000 sq. ft. small market with them considering adding 80,000 why wouldn't they consider a smaller 50,000 but in phases ? If there are no other new const. being permitted -- You would likely discourage another/or new self storage operator, additionally in my project in a small market -- none of the existing facilities has any Significate expansion opportunities. Our land cost is less than $3.00 sq. ft. and we can build 42,000 -48,000 @ a 35-40% buildable on our 2.8 ac. tract. We have great viability to a high traffic count on a state highway.
Great question here Mike! That could certainly be a great direction to go - doing smaller phases over time. Sounds like you might have a great opportunity to expand and keep growing your business! That's awesome! Thanks for the support and for tuning Mike!
Great video AJ! Quick question; what is the best way to find out what storage facilities are in a market or city? Thanks & Cheers.
Thanks Michael! We actually go out and look at the facilities in the market. We use Google to find them and then go physically tour them and look at the product offering they have. Thanks again!
Great Video! Is there a way to efficiently find square footage of a market?
Thanks for watching Alex! You bet - we like to use Radius+. Here's a link to their website. It's a pretty cool tool - www.radiusplus.com/product/radius
Hello, thinking about getting into the indoor storage business in a small market. Can you please share what software systems you use to run the business? I saw that you use Noke for the door system, but what management software are you running.
Tx
Hey thanks for hanging out and great to hear you're looking into self storage. I like to use Tenant Inc. - www.tenantinc.com/
@@SelfStorageIncome thanks buddy! If you ever want to explore doing business in Canada let me know. We manufacture trusses floor joist and wall panels. We can build these things cheap! I enjoy your videos.
What factors tend to increase demand for this market?
Growth of an area is a major factor in demand. People moving to or away from the area. You can also have economic factors that affect demand such as inflation, unemployment/employment (and who the major employers are in an area), etc. I talk a lot about this in my book to help paint a better picture. Thanks for hanging out and watching vgman84!
Your video zoom keeps changing and distracting me. Also your audio is really low on this video. Thanks for the great information. 🙂
You're welcome Joe! Thanks for hanging out!