I am very interested in developing a self storage business on some family property in Oklahoma. I have done a decent amount of research, but I am curious if there is anyone here who is actually doing it and is willing to provide some advice. I am open to anything and everything you could throw my way. Thank you!
I know what you're looking for here, but I still wanted to just provide a word of caution. I have witnessed many many people fail in real estate because they only relied on the information that others "threw their way".
Again, I know you're a smart guy, and that's not what you meant. But after 24 years in Real Estate, and 10+ years in Self-Storage, here are a few tips I can provide:
1. Hire a consultant to perform a feasibility study on your Parcel. Just because you have the dirt, doesn't mean that the highest and best use is Self Storage, or that there is demand for it at that particular site.
2. Continue to educate yourself OUTSIDE of the advice you'll likely get from the chuckleheads here on BP. Most mean well, but you'll see what I mean after you read a few posts.
3. Grab as much info from Inside Self Storage, THe Self Storage Association, that you can. You may also want to attend one of the Free Developer events held by Janus and/or Trachte if they happen to be coming to your area. And If your site checks out, and you're serious about Self-Storage Development, I'd recommend checking out the Self Storage Developer's Academy.
Josh, I consider myself BP's "Self-Storage Guardian Angel" for people who think that they don't have to do their homework when it comes to buying/developing Self-Storage. That said, I strongly suggest you build yourself a team of Self Storage Professionals to help along the way.
I've seen The Flip side: People who fail to take a business-like approach to commercial real estate since they made a couple hundred thousand in the Single Family rental/wholesaling business, and think they can do it in Self-Storage. And there's nothing wrong with that, cuz either way, I win when I give the advice above:
1. People actually follow it, and my experience is being put to good use, which is why I'm here. OR.....
2. I win because they fail to follow it, buy or build it WITHOUT doing their homework, or using professionals, and then when it fails - I swoop in and buy it for pennies on the dollar from them, or the bank who may have financed it. I'm buying 2 right now due to that exact scenario.
Josh, Don't be Guy #2. I've bought a number of deals this way, and it's great, but also very sad, because I know there's someone on the other side who just got punched in the gut.
At your Service.
Those are true words of wisdom.
I agree with everything you noted.
This is a business that requires a different approach .unlike residential.
I've been fortunate enough to learn about ss by working with a developer investor who built his own self storage developments,me attending ss seminars, and learning and managing 3 facilities hands on to get a full grasp and understanding of ss business. I love it, it's a long term hold investment, my goal now is to acquire a value needed opportunity where it has the potential at the right price...and hopefully repeat.
Rock on Ralph - Living the Dream, all funded with Self-Storage.
I certainly would never only rely on information from here. To me this is a place where I can gather some of how others have succeeded and failed and see what I may get from it. Some of the resources @Scott Meyers provided are new to me and I will be checking those out.
I was also looking at feasibility studies and honestly do not know much about locating consultants to do these. Do you recommend a specific firm or individual or are these typically local guys that you should work with?
Josh, send me a private Message and I can give you 2-3 Self-Storage Feasibility Consultants contact info that we use and trust.
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