Combining commercial/self-storage with a multi-family approach

5 Replies

I've been listening to the podcasts (started from the beginning a few months ago and am on #79) and, at the behest of the guys, have finally gotten started with the forums. So I wanted to start off by introducing myself. I'm a sound mixer for television and film based in Dallas, TX and also have a retail shop that caters to the same industry. That's my day job, which I'm good at and mostly enjoy doing. Every day is unique with its own challenges and opportunities, but I can't help but see the window slowly closing on being physically able to keep it up until a traditional retirement age. I work in a self-employed industry where everyone is freelance and is constantly "unemployed" which is, perhaps ironically, the most secure job I could ever imagine. Being freelance also allows me to experiment with other ventures as well. I've designed and created a few apps, a physical product and in 2016 launched a plan to start building up some type of real estate portfolio, along with my partner-in-sound who is 50/50 with me on everything we do for our location sound business. We decided that we were best served to create our own tenants in the commercial sector rather than going for single family homes or small multi-family units. The basic idea is to operate what essentially is an office complex with a self-storage mentality. Admittedly, it's a bit different and not for everyone, but it's in our wheelhouse of expertise and it's worked well so far. We leased our initial building as a proof of concept and then bought a second property on our own as our first big kid step towards acquiring commercial property. We've learned a lot so far and are happy to be part of Bigger Pockets to continue our education. I'm most interested in learning more about various types of financing strategies but have been thrilled to find out so much more from landlording to absentee ownership in the residential market that I believe has a lot to offer to me. Thanks for everything so far and thanks in advance to all the great people here that are so willing to provide their insight on everything.

Welcome Aboard, Tyler!  You will find great help and benefits being part of BiggerPockets.  It is the best move I've made in 24 years as an entrepreneur.  

Originally posted by @Tyler Faison :

I've been listening to the podcasts (started from the beginning a few months ago and am on #79) and, at the behest of the guys, have finally gotten started with the forums. So I wanted to start off by introducing myself. I'm a sound mixer for television and film based in Dallas, TX and also have a retail shop that caters to the same industry. That's my day job, which I'm good at and mostly enjoy doing. Every day is unique with its own challenges and opportunities, but I can't help but see the window slowly closing on being physically able to keep it up until a traditional retirement age. I work in a self-employed industry where everyone is freelance and is constantly "unemployed" which is, perhaps ironically, the most secure job I could ever imagine. Being freelance also allows me to experiment with other ventures as well. I've designed and created a few apps, a physical product and in 2016 launched a plan to start building up some type of real estate portfolio, along with my partner-in-sound who is 50/50 with me on everything we do for our location sound business. We decided that we were best served to create our own tenants in the commercial sector rather than going for single family homes or small multi-family units. The basic idea is to operate what essentially is an office complex with a self-storage mentality. Admittedly, it's a bit different and not for everyone, but it's in our wheelhouse of expertise and it's worked well so far. We leased our initial building as a proof of concept and then bought a second property on our own as our first big kid step towards acquiring commercial property. We've learned a lot so far and are happy to be part of Bigger Pockets to continue our education. I'm most interested in learning more about various types of financing strategies but have been thrilled to find out so much more from landlording to absentee ownership in the residential market that I believe has a lot to offer to me. Thanks for everything so far and thanks in advance to all the great people here that are so willing to provide their insight on everything.

 Welcome to Bigger Pockets, love the concept, my wife and I have had some interest in doing something kind of in the same vein, small commercial, maybe some shared office space.

Its not something we have done, but I think its an interesting niche to do some sort of small commercial office sharing/storage/ light manufacturing (carpentry, metal fab etc.)

I really like the multiple businesses at a time idea.

Thanks @Bart H. We’ve been at it for about two years now and have a great formula that’s relatively painless to manage. The key is to be able to own the spaces. One of them we currently own and the other we currently lease with an option. Our current problem is the landlord thinks the property is worth way more than it is. All in due time I suppose...

I'm not quite following the concept:

 The basic idea is to operate what essentially is an office complex with a self-storage mentality. Admittedly, it's a bit different and not for everyone, but it's in our wheelhouse of expertise and it's worked well so far. 

Could you elaborate a little more on what you are doing, and what makes it different?

Well it’s dofferent from traditional commercial investment in that we are creating our own tenants/business rather than relying on other businesses. This is mostly because we have more confidence in ourselves than others, but also allows us to qualify for SBA 504 loans (owner occupied) with just 10% down. The business itself is most relatable to self-storage in that it’s mainly month to month tenants as opposed to a 3 or 5 yr lease. We also do things a lot differently than similar “rehearsal spaces,” particularly on the automation side of things. Hope that answers some questions for you!