Getting into self-storage
Hello all and thanks in advance!
My brother and I are looking to pivot into self storage. We have 100+ SF units and are under contract for our 1st MF syndication. We want to continue in MF but looking ahead we want to diversify into self storage. Just looking for tips and advice along with these questions:
- How do you analyze self storage properties? (Spreadsheets, back of napkins? If you’re willing to share any docs or analysis tools I’d appreciate it)
- how do you analyze the market of a self storage space?
- how to find self storage properties for sale? (Outside of loopnet - are there any good brokers in the OK, AR, KS, MO area? I’ve contacted a couple and have heard nada back)
-anything else you have to over from a knowledge/advice perspective!
thank you!
Hi Juwan, I'm also looking to get into self storage so I'm looking forward to reading others' responses on this! I am looking for facilities in KS/MO--would be happy to chat more.
Hi @Juwan Parker and @Hannah Leiker. These are great questions. You might want to start by reading everything that Scott Meyers has written on this topic. I went to several the seminars by Scott and learned the business that way years ago.
For that all important question of choosing the location, I would use an online tool called radius plus. You are going to want to choose a location with under seven or 8 ft.² of self storage per person in a given radius, often about 3 miles if it’s suburban, or more if semi rural. Less if urban. You’ll want to make sure it’s on a highly traveled road with great visibility. And you’re going to want to be in a medium to high income area.
The best deals are almost always found off market. Broker deals can be OK, but they’re typically bid up to higher prices. And brokers have no obligation to return your calls or present your offer to the seller. They often won’t if they don’t know you personally and if they don’t think you can put food on their table or gas in their BMW.
Two new books on self storage were published in 2021. The first one was by BP podcast guest, AJ Osborne. The second one was published by Biggerpockets in November - see www.Biggerpockets.com/storage. Each of these should be helpful. Happy investing!
Hey Juwan & Hannah!
There are numerous threads here on BP that could help you answer those questions. In addition, many of us who post on here also have Podcasts, You Tube Videos, books, and much more to have you learn this business.
I have been investing in Self Storage for about 17 years and teaching folks the business for about 13+.
If I can be of any specific help, please reach out.
@Paul Moore - thank you!
Scott