Entering the Self-Storage Space ----- Looking to Learn, Help, Partner and Invest

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.