Self-Directed IRA's For the Self-Storage Industry
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In my Home Study System, I lay out several different ways to raise the cash for the down payment on your self storage facility. But once again I will caution: I DO NOT RECOMMEND OR APPROVE OF 100% FINANCING, OR THE "NO MONEY DOWN" DEALS THAT YOU HAVE SEEN ON TV, OR HEARD OF BY OTHER AUTHORS AND SPEAKERS! In the early stages of my real estate career, most of my single family houses and apartment complexes were purchased with no money down and my entire portfolio was approached a 95% Loan to value ratio at one point. As... continue reading >>
How to Create a Self Storage Business Plan
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Now for many people, the thought of creating a business plan is akin to the fear of public speaking. However, it does not have to be such an unpleasant task, especially since we already have the information. Our personal financial statement, the project due diligence and the market analysis comprise just about all of the information needed. All we need to do is to organize this information into a coherent document.
Our business plan is an opportunity to present ourselves and the deal in the best possible light. It is designed to give the lender an in-depth look... continue reading >>
The Future of Self Storage
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As we look to the future of self storage, it’s very clear that the future looks bright. There are a few trends afoot backed by solid industry data that justify my positive outlook on this high growth industry. These trends are as follows:
Increasing Demand
The U.S. Population is predicted to reach 400 million by the year 2050. All indicators show that Americans continue to be a highly mobile society with a high propensity to accumulate “stuff”. This means that as of the time of this publication, we stand to add 150 million potential customers to our prospect list... continue reading >>
Five Principles to Success in Self Storage (Or Any Business!)
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The central focus of my company is to arm the self-storage investor with the specific tools necessary to identify potential acquisition candidates, to acquire and manage those facilities once they have identified them, to implement sound techniques for creating value, and finally, to capture all of that value through various exit strategies. The process by which all of this can be accomplished rests on five keys that I feel are crucial to success. These keys do not deal with the mechanical processes involved in buying and selling self storage facilities, but are grounded in principles that are fundamental to life... continue reading >>
Financing Your Self Storage Facility
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Most types of investments won’t allow the use of high leverage using the securities themselves as collateral. This makes real estate investing somewhat unique in its use of financing. The use of leverage in real estate investments is a proven method to accelerate returns and create wealth. But one must be careful not to over-leverage. As we examine a few of the various types and sources of financing available for self storage facilities, I will also point out the dangers that can result from over-leverage and pitfalls of various financing structures.
There is a wide array of financing vehicles... continue reading >>
Baby Boomers Creating Huge Demand for Self Storage
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Most U.S. Businesses including Self Storage owners continue to market to the powerful Baby Boomer generation, but generations X and Y should not be ignored. As the Baby Boomers near retirement, Generation X workers are establishing themselves in careers and starting families. In the meantime, Generation Y is graduating from college and entering the job market.
However, the first group of Baby Boomers are edging closer to retirement with the first wave due in the next few years. Numbering almost 80 million, Baby Boomers make up about on-third of... continue reading >>
Investment Opportunities in Self Storage
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Like all other real estate investments, self storage shares the same attractive qualities as residential rentals, apartments, retail strip centers, office buildings, and industrial properties. Those include leverage (borrowed money), tax advantages, passive income, personal control (being your own boss), and appreciation. However, self storage offers a number of benefits that I feel make it such an attractive investment. Those include the following:
We are becoming a more transient society, moving around more and creating a greater need to store our stuff, thus the demand for self storage is increasing.Americans tend to accumulate a great deal... continue reading >>
Why is Self Storage Suddenly So Hot?
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INVESTORS in self-storage stocks finally have some gains to stow away.
The four real estate investment trusts that together own and operate about 12 percent of the facilities nationwide — most of the other properties are mom-and-pop operations — has soared about 31 percent, on average, this year through Thursday, after finishing 2007 with a nearly 25 percent loss.
This year’s returns far surpass those of all other property REIT categories as well as the broader stock market. Equity REITs are up around 10 percent so far, on average, while the Standard & Poor’s 500-stock index is off about... continue reading >>
Self Storage Crowned this Economy's Cinderella Industry
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March 18, 2009
OKLAHOMA CITY – Self-storage companies seem to be the “Cinderella segment” of commercial real estate in a faltering economy, a national industry spokesman said Tuesday to the agreement of Oklahoma business operators.
Even with unemployment rates and foreclosures rising, people are trying to hold on to their smaller possessions as they move from job to job or home to home, said Michael Scanlon Jr., chief executive of the Self Storage Association trade group, based in Virginia.
“There are some countervailing forces that work in our favor in a down economic cycle,” Scanlon said. “People who... continue reading >>
Self Serve Kiosks
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To compete in today’s economic environment, many self-storage operators are turning to technology to lure customers to their facilities and provide superior service once they sign on the dotted line.
Industry studies show the increasing usage of technology in facilities of all ages. Self-storage operators are employing the Internet for marketing, rental payments and online reservations. Facilities are benefiting from computer-management software, surveillance cameras accessible over the Internet, and digital video recorders.
One emerging item in the technical arsenal is the self-serve kiosk. When looking for ways to increase profitability and... continue reading >>
