hidden gems to invest in that no one is thinking about!!

I started a thread recently about vacancies are increasing in my area. I asked what people are seeing in their area. It seems to be a national thing.
As amany on here know, I purchased a Self Storage facility a couple months ago in FL. One of the reasons, was that I expected RE to start selling again here in FL, and that is when people move their stuff into storage facilities.
I've also noticed the combining families under one roof. This will ALWAYS create a need for storage. There is just too much furniture to fit into just housing! It has to go somewhere.
There are some GREAT deals out there on self storage at the present time. Owners that wee doing great a few years ago, are sick of swimming up stream and willing to bail out. Check out these types of investments.
These are a business, so more overseeing and mgmt needed, but no leaky water heaters or tenants disputes like residential!
Not for the newbies, but lots of reasons to get involved in these, that investors might be missing out on. If interested in these "hidden jewels" type of investments, let me know and I'll post some others soon. Rich, heading home from MS to FL!!!

Edited: 06/26/2010 at 10:04AM

NC Mark

Real Estate Investor · North Carolina

1086 posts
7096 Influence
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Icon_minipost Oct 13 '09, 11:57 PM

Thanks for posting about hidden gems, Rich. And also for pointing out that self storage is a 'business' in different ways than other real estate.

I did a little research on self storage a while ago but kind of paused when I came across what people actually stored (besides furniture). One memory that comes to mind was a bunch of toxic chemicals that required some costly regulatory oversight to remove and dispose of.

Let's hope that was a rare exception!

Edited: 06/26/2010 at 10:04AM

Tony Thompson

Real Estate Investor · Kansas CIty, Missouri

92 posts
754 Influence
3 Awards

Icon_minipost Oct 14 '09, 03:44 AM

I've always been interested in this business. I'm from Kansas City and I see these things everywhere, seems competitive.

Edited: 06/26/2010 at 10:04AM

Just Don

450 posts
2488 Influence
3 Awards

Icon_minipost Oct 14 '09, 04:17 AM

I have a question in that regard also. How do you determine a given market can handle or need another storage facility?? When is enough? No market surveys to KNOW what vacancies are,,is there??

Plus how does one find the perfect property,perfect location to 'build' one??.

Town I am thinking of of about 3/4 Million people seems to be growing in every direction and no sign of let up,,,even in this economy.

Or how to 'locate' the existing self storage somebody doesnt want for the big d reasons??

Edited: 06/26/2010 at 10:04AM

Mark Brian

Real Estate Agent · Anderson, South Carolina

313 posts
2065 Influence
6 Awards

Icon_minipost Oct 14 '09, 04:43 AM

Self Storage Association website:
http://www.selfstorage.org/SSA/Home/AM/ContentManagerNet/HomePages/SSA_1504_20080508T110359HomePage.aspx?Section=Home

Edited: 06/26/2010 at 10:04AM

Steve Babiak

Real Estate Investor · Audubon, Pennsylvania

3895 posts
74586 Influence
14 Awards

Icon_minipost Oct 14 '09, 06:30 AM

Since vacant land produces nothing on a balance sheet except for real estate taxes and insurance bills, some owners of land put self-storage facilities in place while they wait for the "better use" of the land to come along. For example, in my area one of those shopping warehouse clubs is now displacing a self-storage facility; in that shopping area there exist a Lowes and a Target and a movie theater multiplex, so the people are flocking to this shopping center, and the self-storage facility can now be displaced for bigger revenues from the shopping warehouse club that is now moving in.

Another place where I saw self-storage put in was in an old factory where no manufacturing was being done any longer. Again, self-storage was a way to create a revenue stream from a property that was otherwise just a financial drain on the owner.

Edited: 06/26/2010 at 10:04AM by Steve Babiak

Rich Weese

Real Estate Investor · sioux falls, South Dakota

4295 posts
43803 Influence
15 Awards

Icon_minipost Oct 15 '09, 10:38 AM

Thanks for the replies and the votes
Just Don- There are a couple national companies that are listed on the stock exchange. They are buying very expensive land, and building Taj Mahal locations. If I was a couch, I'D want to LIVE there!
It isn't hard to beat their pricing, once they fill up. They offer freebies to get you in for a month or two, and then boom- big price increase. The facility I bought wasn't much more expensive than the assessed land value.
I'm willing to make a nice return now, with little maint and wait for it to fill up. Then, sell for land value down the line.

Mark- I just attended the self storage assn seminat at Caesars Palce in Vegas. I really suggest attending one of those Prior to buying. Good info.

Steve B-as in everything RE oriented- LOCATION LOCATION LOCATION. That gives you an exit strategy. Rich, happy to be in FL.

Edited: 06/26/2010 at 10:05AM