Store N Lock

[Aaron Maggard]

What can anyone tell me about owning, managing, purchasing a store n lock?

[Scott Mednick]

They look like a owner who either self manages or third party management. The franchise model in storage has had some issues, the biggest advantage to storage is that brand awareness of storage like Cube Smart, no one really cares. Its usually what is the cleanest, closest to home or office they can find on their phone. Its been shown that most people like will not drive more than 19 minutes to their storage unit and will not move their stuff if the rent goes up 8%. To rent a truck and waste a Saturday to move your stuff for a $15 bump, it usually does not happen. 

[Henry Clark]

What are your general concerns?

The following will help narrow your discussion:

A.  How much money do you have or Collateral at 65% of value?

B.  What is your financing mechanism?  SBA 10%, Conventional 25%, Conventional 40%, etc.

The two above will tell you the deal size you should be looking for.  Example:  If you have $100,000 increment at 25% down, then you can do a$400,000 deal.

[Henry Clark]

Are your concerns on the Storage business itself or doing a Franchise. If a Franchise, it's a matter of value they bring and does it fit your weaknesses/resources. There is so much info out on Self Storage now, that you just have to put one weekend into deep diving, and you will have 80% of the discussion.  If your at all a go getter, I wouldn't go the franchise route.  If your more of an investor, I would stick with Stocks/Bonds, REITS or syndicates.  Less return, but less effort.

[Ronald Rohde]

is that a brand of self storage? or something different ?

[Scott Mednick]

They look like a owner who either self manages or third party management. The franchise model in storage has had some issues, the biggest advantage to storage is that brand awareness of storage like Cube Smart, no one really cares. Its usually what is the cleanest, closest to home or office they can find on their phone. Its been shown that most people like will not drive more than 19 minutes to their storage unit and will not move their stuff if the rent goes up 8%. To rent a truck and waste a Saturday to move your stuff for a $15 bump, it usually does not happen.