Entering the Self-Storage Space ----- Looking to Learn, Help, Partner and Invest
Member since 2018 · 2 posts · 2 votes
Hi everyone,
I’m brand new to self-storage investing but currently learning and spending a lot of time studying the asset class, underwriting, and operations. My main goal is to connect with experienced investors and operators to learn from those already in the space.
I’m also very open to helping on any self-storage related projects (market research, underwriting, deal analysis, etc.) to gain hands-on experience and add value. Additionally, I’d like to connect with like-minded people who are also interested in self-storage so we can learn together.
If you’re active in self-storage or just getting started, feel free to comment or message me. Looking forward to connecting.
OP. Use the lookup and read my post. Self-Storage Will They Come? Then do the exercise.
I have actually analyzed this area before. You're in a great market.
1. Self Storage is about Strategy and WAR.
2. The competition is upper end REI, Climate controlled mainly, traditional. You do their model, you lose.
3. Most commercial loans require 25% down. Determine the size of your deal first. This will help cut down wasted time. If you have $100,000 then you can do a $400,000 all in deal. $250,000 then $1mm deal all in.
4. Model I recommend. Conexes or Cargo Containers- new 1 trip, RV/Boat parking, Storage units go with 12 foot wide and 10 tall versus the traditional 8 wide and 8 tall. Make them 30 foot deep. Versus 10/15/20. The first two options are low risk, since you can add as you need. Don't do Climate Controlled.
5. Your lifestyle? Can you build a Facility Managers office to live in? And sell your house? My brother for $60,000 built a great 1,200 SF house, tile floors, marble kitchen, etc. Get your house or rental cost to work for you.
6. Cargo Containers- Your near Ports. We are in the middle of the country in Iowa. I can get new 1 trip containers for $2,300. Cheapest they have been in years. Another $300 to deliver, prep ground and set in place. 8 x 20 size. No property tax since they are not attached to the ground. Zoning is an issue. $2,600 in place each. You rent for $80 which blows the competition out of the water. About 1/2 of clients greatly prefer containers to traditional storage. Plus, you have Drive up access. $2,600/$80= 33 months. Does not include interest, and other costs. Less Risky, since you can resale these Retail for $4,500. Also you can buy 2 at a time. Although I would buy at least 10 at a time. Read my post on Containers.
7. Parking- RV/Boat. Rock or someplace with old hard surface even better. 30 and 40 foot spots. rent for $60 per month. Should be able to do about 90 spots on 2 acres. or $5,400 per month. Less Risky, since you just need to hard surface the park, can be rock. See my post on doing parking. Use Engineer Fabric TX 160 or 180 for rock. Read my post on Parking.
8. Storage units 12 x 10 x30- This size is not marketed to by your competitors. Rent for the same per sqft as a drive-up access 20 footer. This is more risky since you have to build the whole building.
9. Location and Market strategy- use the large REITS and large city configurations. I try to use two strategies. Wagon Wheel approach. Or Spider Web. Use the lookup and read my post. You should use the Wagon Wheel approach since you're near a large city.
You're in a target rich environment. Decide how large you want to scale, then put a 5-year plan in place.
Spend a week reading all of my Self Storage posts. Vote on them so I see you invested your personal time and not mine. I will get the notice you voted and read them. Then I will be more than happy to answer more questions if you want on this post.
Start small and Make Your Big Mistakes Early.
So that we plebes may understand,
1. "what is the optimal minimum number of units" of an existing and functioning self-storage, needed to make the effort worth doing?
2. How much should someone expect to spend on buying those units?
3. How many hours a week should someone expect to spend managing an unattended self storage facility?
Welcome, Matthew. Self-storage is a solid asset class, but it rewards discipline more than enthusiasm. If you’re serious about learning it, focus less on national averages and more on micro-markets. Storage is brutally local. Two facilities a mile apart can perform completely differently based on visibility, access, competition density, and local move-in drivers.
Operationally, most early mistakes happen around overestimating lease-up speed, underestimating capex for conversions or expansions, and assuming revenue management software replaces market knowledge. It doesn’t - it just amplifies whatever assumptions you feed it.
Offering to help with underwriting and market work is a smart way to get reps, especially if you're learning how operators actually think about break-even occupancy, expansion phases, and exit timing - not just IRR.
Stay engaged, ask specific questions, and compare real deals instead of theory. That’s where the learning accelerates.
Feel free to reach out if you need any help. Happy to connect and support you on your REI journey.
Stevan
Hi Matthew,
I'm also keenly interested in the self-storage space. If your strategy is sound and market forces cooperate, self-storage could offer tremendous upside. I'm totally new to real estate, so I don't have any pointers other than having read that, when the housing market stalls and homeowners downsize, self-storage facilities benefit greatly. I agree with Stevan in that understanding the local market is essential. Maybe getting an understanding of the way homes in the local area are designed. Where I currently live, most of the homes were built between 2012-2014. These are smaller homes with open floor plans, all spaces maximally utilized, no basements, and limited space to store extra things. Self-storage is more in demand here than it would be in a rural area, or somewhere with older, bigger homes.
OP. What town are you nearby? Your byline says Jersey City? Let me know and I can put some notes together.
Hey Henry, I'm located near South Jersey in a town called Berlin. Any notes would be appreciated. There seems to be a lot of REITS near me and a few mom and pop operations.
OP. Use the lookup and read my post. Self-Storage Will They Come? Then do the exercise.
I have actually analyzed this area before. You're in a great market.
1. Self Storage is about Strategy and WAR.
2. The competition is upper end REI, Climate controlled mainly, traditional. You do their model, you lose.
3. Most commercial loans require 25% down. Determine the size of your deal first. This will help cut down wasted time. If you have $100,000 then you can do a $400,000 all in deal. $250,000 then $1mm deal all in.
4. Model I recommend. Conexes or Cargo Containers- new 1 trip, RV/Boat parking, Storage units go with 12 foot wide and 10 tall versus the traditional 8 wide and 8 tall. Make them 30 foot deep. Versus 10/15/20. The first two options are low risk, since you can add as you need. Don't do Climate Controlled.
5. Your lifestyle? Can you build a Facility Managers office to live in? And sell your house? My brother for $60,000 built a great 1,200 SF house, tile floors, marble kitchen, etc. Get your house or rental cost to work for you.
6. Cargo Containers- Your near Ports. We are in the middle of the country in Iowa. I can get new 1 trip containers for $2,300. Cheapest they have been in years. Another $300 to deliver, prep ground and set in place. 8 x 20 size. No property tax since they are not attached to the ground. Zoning is an issue. $2,600 in place each. You rent for $80 which blows the competition out of the water. About 1/2 of clients greatly prefer containers to traditional storage. Plus, you have Drive up access. $2,600/$80= 33 months. Does not include interest, and other costs. Less Risky, since you can resale these Retail for $4,500. Also you can buy 2 at a time. Although I would buy at least 10 at a time. Read my post on Containers.
7. Parking- RV/Boat. Rock or someplace with old hard surface even better. 30 and 40 foot spots. rent for $60 per month. Should be able to do about 90 spots on 2 acres. or $5,400 per month. Less Risky, since you just need to hard surface the park, can be rock. See my post on doing parking. Use Engineer Fabric TX 160 or 180 for rock. Read my post on Parking.
8. Storage units 12 x 10 x30- This size is not marketed to by your competitors. Rent for the same per sqft as a drive-up access 20 footer. This is more risky since you have to build the whole building.
9. Location and Market strategy- use the large REITS and large city configurations. I try to use two strategies. Wagon Wheel approach. Or Spider Web. Use the lookup and read my post. You should use the Wagon Wheel approach since you're near a large city.
You're in a target rich environment. Decide how large you want to scale, then put a 5-year plan in place.
Spend a week reading all of my Self Storage posts. Vote on them so I see you invested your personal time and not mine. I will get the notice you voted and read them. Then I will be more than happy to answer more questions if you want on this post.
Start small and Make Your Big Mistakes Early.
OP. Use the lookup and read my post. Self-Storage Will They Come? Then do the exercise.
I have actually analyzed this area before. You're in a great market.
1. Self Storage is about Strategy and WAR.
2. The competition is upper end REI, Climate controlled mainly, traditional. You do their model, you lose.
3. Most commercial loans require 25% down. Determine the size of your deal first. This will help cut down wasted time. If you have $100,000 then you can do a $400,000 all in deal. $250,000 then $1mm deal all in.
4. Model I recommend. Conexes or Cargo Containers- new 1 trip, RV/Boat parking, Storage units go with 12 foot wide and 10 tall versus the traditional 8 wide and 8 tall. Make them 30 foot deep. Versus 10/15/20. The first two options are low risk, since you can add as you need. Don't do Climate Controlled.
5. Your lifestyle? Can you build a Facility Managers office to live in? And sell your house? My brother for $60,000 built a great 1,200 SF house, tile floors, marble kitchen, etc. Get your house or rental cost to work for you.
6. Cargo Containers- Your near Ports. We are in the middle of the country in Iowa. I can get new 1 trip containers for $2,300. Cheapest they have been in years. Another $300 to deliver, prep ground and set in place. 8 x 20 size. No property tax since they are not attached to the ground. Zoning is an issue. $2,600 in place each. You rent for $80 which blows the competition out of the water. About 1/2 of clients greatly prefer containers to traditional storage. Plus, you have Drive up access. $2,600/$80= 33 months. Does not include interest, and other costs. Less Risky, since you can resale these Retail for $4,500. Also you can buy 2 at a time. Although I would buy at least 10 at a time. Read my post on Containers.
7. Parking- RV/Boat. Rock or someplace with old hard surface even better. 30 and 40 foot spots. rent for $60 per month. Should be able to do about 90 spots on 2 acres. or $5,400 per month. Less Risky, since you just need to hard surface the park, can be rock. See my post on doing parking. Use Engineer Fabric TX 160 or 180 for rock. Read my post on Parking.
8. Storage units 12 x 10 x30- This size is not marketed to by your competitors. Rent for the same per sqft as a drive-up access 20 footer. This is more risky since you have to build the whole building.
9. Location and Market strategy- use the large REITS and large city configurations. I try to use two strategies. Wagon Wheel approach. Or Spider Web. Use the lookup and read my post. You should use the Wagon Wheel approach since you're near a large city.
You're in a target rich environment. Decide how large you want to scale, then put a 5-year plan in place.
Spend a week reading all of my Self Storage posts. Vote on them so I see you invested your personal time and not mine. I will get the notice you voted and read them. Then I will be more than happy to answer more questions if you want on this post.
Start small and Make Your Big Mistakes Early.
So that we plebes may understand,
1. "what is the optimal minimum number of units" of an existing and functioning self-storage, needed to make the effort worth doing?
2. How much should someone expect to spend on buying those units?
3. How many hours a week should someone expect to spend managing an unattended self storage facility?
OP. Use the lookup and read my post. Self-Storage Will They Come? Then do the exercise.
I have actually analyzed this area before. You're in a great market.
1. Self Storage is about Strategy and WAR.
2. The competition is upper end REI, Climate controlled mainly, traditional. You do their model, you lose.
3. Most commercial loans require 25% down. Determine the size of your deal first. This will help cut down wasted time. If you have $100,000 then you can do a $400,000 all in deal. $250,000 then $1mm deal all in.
4. Model I recommend. Conexes or Cargo Containers- new 1 trip, RV/Boat parking, Storage units go with 12 foot wide and 10 tall versus the traditional 8 wide and 8 tall. Make them 30 foot deep. Versus 10/15/20. The first two options are low risk, since you can add as you need. Don't do Climate Controlled.
5. Your lifestyle? Can you build a Facility Managers office to live in? And sell your house? My brother for $60,000 built a great 1,200 SF house, tile floors, marble kitchen, etc. Get your house or rental cost to work for you.
6. Cargo Containers- Your near Ports. We are in the middle of the country in Iowa. I can get new 1 trip containers for $2,300. Cheapest they have been in years. Another $300 to deliver, prep ground and set in place. 8 x 20 size. No property tax since they are not attached to the ground. Zoning is an issue. $2,600 in place each. You rent for $80 which blows the competition out of the water. About 1/2 of clients greatly prefer containers to traditional storage. Plus, you have Drive up access. $2,600/$80= 33 months. Does not include interest, and other costs. Less Risky, since you can resale these Retail for $4,500. Also you can buy 2 at a time. Although I would buy at least 10 at a time. Read my post on Containers.
7. Parking- RV/Boat. Rock or someplace with old hard surface even better. 30 and 40 foot spots. rent for $60 per month. Should be able to do about 90 spots on 2 acres. or $5,400 per month. Less Risky, since you just need to hard surface the park, can be rock. See my post on doing parking. Use Engineer Fabric TX 160 or 180 for rock. Read my post on Parking.
8. Storage units 12 x 10 x30- This size is not marketed to by your competitors. Rent for the same per sqft as a drive-up access 20 footer. This is more risky since you have to build the whole building.
9. Location and Market strategy- use the large REITS and large city configurations. I try to use two strategies. Wagon Wheel approach. Or Spider Web. Use the lookup and read my post. You should use the Wagon Wheel approach since you're near a large city.
You're in a target rich environment. Decide how large you want to scale, then put a 5-year plan in place.
Spend a week reading all of my Self Storage posts. Vote on them so I see you invested your personal time and not mine. I will get the notice you voted and read them. Then I will be more than happy to answer more questions if you want on this post.
Start small and Make Your Big Mistakes Early.
So that we plebes may understand,
1. "what is the optimal minimum number of units" of an existing and functioning self-storage, needed to make the effort worth doing?
2. How much should someone expect to spend on buying those units?
3. How many hours a week should someone expect to spend managing an unattended self storage facility?
@Matthew Garay welcome to the community and the asset class. My grandfather started developing self-storage in the North Seattle market in the early 80's through 2000, so that's where I cut my teeth when I was coming out of college and entering commercial real estate. As others have said, your capital availability will dictate what/where you can invest for this asset class. Until you're seasoned in this asset class, there's no reason to look outside your local market where you can oversee the business on a day to day basis. Even facilities that have no onsite staff require oversight, so if it's not in your own backyard you'll have to higher someone to oversee it, which reduces profits quickly on smaller deals. Lots of details needed to know for sure what you are trying to do. Happy to connect.