A job in Self Storage too extreme? want to learn the business

[Michael Williams]

I am very interested in getting into the self storage investment space. This is due to a podcast from Kris Benson on BP, working for a few developers that owned Self Storage in their portfolio, and looking at the favorable numbers from NAREIT. I am not in a space to invest at this time and would like more boots on the ground knowledge of the industry, so I am considering getting a job in the space in order to get a feel how things work. What are your thoughts? Any feedback is helpful 

[Henry Clark]

@Michael Williams

Michael, looks like your last posts were around 8 years ago.  My question, is this just a casual question, or has something changed in your motivation?

If your motivated "NOW" and not later, be glad to help you.  If you're just kicking the tires, then can't help you.

1.  Join the groups noted above.

2.  Answer the following.  Do you have access to $5mm financing?  That is the beginning price in LA for Storage. No point in learning it, if you will never be able to get into it.

3.  Keep your day job.  You don't make money in Self Storage.  You pay the banker off and you make equity.  You might be able to live there and save on housing.  Plus, there is really minimum "Work" in Self Storage.  You will get bored to death.

4.  Where do you start?  How much money or Collateral at 65% do you have?  How do you plan to finance?  Let's say you have $150,000; and plan to do an SBA loan at 10% down.  Then you can do a$1,500,000 deal.  If traditional loan of 25% then a $600,000 deal.  At 40% then $375,000 deal.  If you don't have $150,000 don't worry, you can get into storage for a lot less, just have to be imaginative.  The exercise above narrows down your focus and makes you more efficient in your thought process.

5.  Now, let's stop waiting for 8 years.  You ready to buy/build a storage place today?  Then let's do it.

You need to do 5 of the following exercises, before you actually make an offer or develop a location.  It is better to buy an existing location, but the premiums are really high.

You have to do the work.  No class, post or podcast is going to get you there.

A.  Pick an existing storage location or a development. Look out on Loopnet at 37631 6th St E, Palmdale, CA.  Don't worry about is this the one, it's not.  Since the info is there, it's an easy case study.  Realize you're in LA, there is a reason, I picked this location.  Let's go develop it.  The key is you're going to develop a system to analyze and develop/buy a location.  Could give it to you or tell you, but most folks learn by doing.

B.  Do this process, on this post.  The above people can add notes as they see fit.

When you get done with this, you will do 4 more sites. Then you will buy/build a Storage facility.

You only need to remember two questions.  1.  What's next?; 2.  Why?  I will walk you through this first one.  What do you "owe" me?  An Abalone dinner with wine my wife and you, looking out over the ocean, if I ever make it back to LA. Probably not happening.

You want to get through this in the next week.  Are you ready? You need to invest about 20 hours into this, and make several calls.   No parachute, time to jump off the cliff.

Start small and Make Your Big Mistakes Early.