Are you investing in self storage?

Commercial Real Estate Investing
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Are you investing in self storage?

Nathan GesnerBusiness Member
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Real Estate Broker 路 Cody, WY 路 Member since 2010 路 28k+ posts 路 41k+ votes

I'm surprised there's not a category for self storage. In my opinion, it's as lucrative as mobile home parks and easier to come by.

I would love to connect with others that are investing in self storage facilities.

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Paul MoorePro Member
Commercial Real Estate Fund Manager 路 Lynchburg, VA 路 Member since 2015 路 1k+ posts 路 1k+ votes
5y

Hi @Nathan Gesner, @Griffin Schermer, @Nicole Heasley Beitenman, and @Bryan Mitchell.  Great question. I am investing in self-storage with a growing group of passive investors. I am not an operator and never plan to be one.  

After doing residential real estate for years, I broke into commercial as a partner in a multifamily development in North Dakota a decade ago. Then I ended up writing a book on multifamily investing, and told my wife I was in apartments for life (she was tired of all the restarts over the years!).  

After years of banging my head against a wall looking for profitable multifamily deals, I concluded the space was significantly overheated and I branched out into self-storage and mobile home parks.  I have been extremely happy that I did. 

We have profited from 6 asset sales since September (under 5 months). We have been happily surprised at the upside available from paying a full, fair price to a mom-and-pop seller, upgrading, increasing revenues, and selling to a higher level buyer (like an institutional player). I'd love to hear from others about their experiences. 

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  • Paul MoorePro Member
    Commercial Real Estate Fund Manager 路 Lynchburg, VA 路 Member since 2015 路 1k+ posts 路 1k+ votes
    4y

    Hi @Aly W.. Thanks for reaching out!  My new book is out and available at www.Biggerpockets.com/storage. I鈥檓 excited to connect with everyone who wants to discuss this topic and I will be doing a free call most Wednesdays at noon to discuss self storage and other commercial real estate investing topics. You can PM me to get the free conference line number

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  • Mary Morris
    Mission Viejo, CA 路 Member since 2013 路 5 posts 路 1 vote
    4y

    I am interested in learning more about storage units.  Just listened to the podcast with Paul Moore. I am a real estate agent in southern California so I understand the rental market for SFRs and condos but nothing about self storage.  Any suggestions on where to learn about this niche?

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  • Taylor L.
    Rental Property Investor 路 RVA 路 Member since 2016 路 5k+ posts 路 4k+ votes
    4y
    Originally posted by @Mary Morris:

    I am interested in learning more about storage units.  Just listened to the podcast with Paul Moore. I am a real estate agent in southern California so I understand the rental market for SFRs and condos but nothing about self storage.  Any suggestions on where to learn about this niche?

     @Michael Wagner's Storage Rebellion group and AJ Osborne's Self Storage Book and podcast will get you going!

    2Reply
  • Nancy Browne
    Member since 2020 路 7 posts 路 1 vote
    4y
    Quote from @Nathan Gesner:

    I found it by calling storage facilities and asking if they were interested in selling. That's it. No magic formula, no special script. I haven't read any books or even online blogs. I do have the benefit of experience in real estate, own 30 rentals, and manage 200 storage units so I know the business fairly well and am confident in my ability to figure things out on my own.


    Nathan if you don't mind me asking. How did you find their numbers? Did you just call the main line? I've tried this and the person working there did not divulge info. 

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  • Aly W.
    Investor 路 Middletown, NJ 路 Member since 2008 路 2k+ posts 路 1k+ votes
    4y

    I just came back from a trip to Brevard County, FL. My realtor and I literally drove around and found at least 8 facilities in a 10 mile area....all were at capacity with waiting lists, and none were interested in selling. Several were mom and pops, and more than one looked like a dump site. It didn't matter. They know what they've got and have been approached many times. For those who are selling, what they're asking may not be viable for a buyer. My realtor and I will keep looking this way, just to say hello, talk for a bit, leave our contact info and a little gift :)

    My husband and I are residential rental owners, and I get those calls/letters/texts/emails all the time.

    1Reply
  • Bill Snyder
    Member since 2019 路 42 posts 路 22 votes
    2y
    Quote from @Account Closed:

    Investing in self storage is indeed lucrative and has been growing in popularity. Effective self storage management is key to maximizing returns and simplifying operations. Software solutions like Kinnovis and Easy Storage Solutions offer features such as unit rentals, payment processing, and record-keeping. Storeganise and Self Storage Manager are also excellent options, providing flexibility and robust management tools. These systems help streamline operations, enhance customer service, and improve overall efficiency, making self storage management more manageable and profitable. Connecting with other investors can provide insights into best practices and emerging trends in the industry.


     Thank you promotional AI bot.  馃檮

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