Self Storage- Deal 20 Dallas Texas for my Brother in Italy

[Henry Clark]

Well, my younger brother is asleep in Italy and I'm looking for a Self-Storage location for him to build in Dallas metro.  Helped him develop a location south of San Antonio a few years ago, which he sold and then moved to Italy with the Civil Service.  $850k gain in 13 months.  He is headed back to the US to retire in 1 to 2 years, so he wants to find land to develop a Storage location.  

Spent an hour on the internet and found about 4 locations, but 1 great location.  He wants to do Boat/RV storage, both roof covered or 3 sides and ground parking.  But I'm trying to get him to do Cargo Container storage also.  No property taxes.  Avoids Texas high property taxes.  Can add as needed versus a long building.  Can do Year one write-off.  Hopefully he retires, but his wife is retired so they can get Real Estate Investor Status to take the Year one write off deduction.

This is a NASTY property because it has one defect. But I love it for Self Storage.  And if he gets it, I would recommend he makes that one defect into a Jewel feature.

Texas is great because of limited zoning. Normally Self Storage is hard to locate due to zoning.  Easy zoning is also a weakness since competition can come in easily.

Texas is also great because of the higher rates than where we are at in Iowa.  Land is usually more expensive in Texas than Iowa, but the higher rental rates far offset that.  Plus, this property in Texas is less expensive than a similar property I'm looking at in Iowa countryside.

It is always fun looking at "Mature" markets and finding ample opportunities.  Looked several times in NY, MA, CT, CA, AZ areas and it's amazing the opportunities in some of the oldest/expensive areas of the country.

My brother keeps reminding me.  Our dad always told us not to do business with relatives.  But my brother keeps calling me.  I need to finish training him so he can find and do his own deals.

There is Never Too Much Self Storage.

Cargo containers are around $2,300 plus $150 delivered and set.  We rent for $65 per month.  He can rent in Texas for $130 per month.  Can you imagine 2 units at $4,900 total; monthly rental $260 per month; no Property tax, low insurance, no plugged toilets, stained carpets, no maintenance, lock them out when they don't pay and you don't have to go to court and can have them out in 60 days?  Plus, you can write them off in year one.  Gotta love it.