All Forum Posts by: Henry Clark

@Lexie Greenheck

Lookup my post in BP

Selfstorage. Llc operating agreement.  

@Daniel Paul Goodman

Your biggest issue will be zoning.  Recommend you identify two different communities to test the water. If they allow and the need for engineering drawings which should only be a one time issue.

Also check out chemical and hazardous waste previous cargoes.  If old containers versus 1 trip will probably need to replace the floor boards. 

Great project

@Chris Gossett

Check out Mueller in Texas. 

Check my post on the forum under building a new location. Has pictures and shows everything from cutting trees down to installing the gate. 

The building normally is only about a 1/3 of your cost.  Plus it’s the only thing people will “see”.  Don’t cut corners on the building. 

If your market is $130 or higher for a 10x20 keep analyzing.  If your in the $65 rent level I would recommend you hold up buying till steel prices go down in late spring (no crystal ball on me).

You will probably make more money buying one of your local competitors “today” versus building. Buy the lowest “rent” location.  

@Bill Snyder

We use the same manufacturer.  Its a matter of timing on the order.  Prices have escalated with metal and production very quickly. Talking with our rep, the buildings we are getting in two weeks cost $528k, would be $763k today if ordered.  We ordered them earlier this spring.

Taking a pass on building in our lower rental price areas (10 x 20 for $65 per month), since economics and payback aren't there.  Have to really sharpen the pencil for our City locations where 10 x 20 is $130 per month.

Thanks for sharing.

SBA released the front 4 acres.  Won't get any building done this year, but starting to do planning.  Below is an engineering plat of the buildings we plan to do. 

The two long left to right building foot prints at the top are our 2nd phase of our self storage buildings.  Have decided to make the bottom one into Flex buildings.  45 deep x 25 wide.  12 x 14 tall doors.  Metal walk through door with window above.  Will have some electricity and individually metered.  No set parking out front.

The six square/rectangle buildings at the bottom will be the larger Flex buildings.  70x70 or 70x100.  Will divide.  At this time plan to use a building from Sukup.  My Electrician is also a rep for them.  Did some early quotes on different sizes and he was far less expensive than another company.  Buildings are comparable quality and this contractor has done significant work for me.  Will have water, sewer, electric. Stub out commode, bathroom sink, shop sink, coffee area sink and water.

Subject to cost estimates will probably build the long building above.  Then the first three buildings below, since this is a new market and product for me.  This will reduce the risk and anxiety as we rent up.

Have erected building quote, door quote ($10k per door, chain, insulated, installed.  Have 48 drive thru doors.  wow).  Getting concrete pad and roads, electrical, sewer, water.  The plan above has a lot of concrete driveway and parking.  Have to see if the numbers will allow.  Plan to give so many parking spots to the units, and then the rest have to be rented.  We have Location/Location.  The extra concrete driveways and parking should help set us apart.

As noted above, this 4 acres was appraised at $580,000.  Banker says this collateral is good for project up to $2mm.  So won't need to put any cash down.

Plan to go for a $1 per sqft/month.  They pay insurance (us additional insured), water, electric, maintenance.  Have to figure out if/what we do for deposit or early out charge.  3 to 5 year leases.  We will cover Property taxes, sewer, grounds keeping (very little other than snow removal).  Will split improvement costs with them (hvac, bathroom, offices, etc).  They must leave in place.

Have to get actual building prints to submit, along with engineering for Electric, water, sewer.  Want to get a Fire Marshall determination if Sprinklers are needed. 

We added more buildings from original layout.  Engineer said I need to dig out Storm pond 2 more feet.  Will do that in October.  Use for fill.

Google is building a really large distribution center 1 mile down the road.  See if that has any impact.

Don't make your CPA the trustee.  We have listed three individuals in order who will be our trustees.  If 1 can't do it, then 2,  then 3.  These are people who I trust.  Plus a Trust should be fairly explicit on how things get handled.  Our trustees have very little 
"decision making" to do.

Pick an attorney that specifically does trust and estate planning.  Not your local attorney.  Just ask your CPA's in the area, who they recommend.  This took about 6 meetings before we finalized everything.

You have to go based on your estate.  If simple, then just do a normal Will.  If complex then do a Trust.

Your $6k to $10k shouldn't be that much if the person has a large or complex estate. 

You know how your parents or old people always say I don't want to bother you?  Well dying without a Trust is a huge bother and will lead to a lot of family anger in most instances.

When we get to the end, don't think about buying and selling.  Think about offering them a Solution.  You need to develop a Solution packet.  We will get to that.

@Eric Douros

I don't do SFH or MFH. Do Self storage. But I see a lot of people who need storage.

Going to make you work for this, versus just telling you.

Give me three bullets why people don't want to sell?

Give me three bullets why people do want to sell?

Look up post "Self Storage- Setting up LLC"; Also "Self Storage- LLC operating agreement.

use the Search magnifying glass above.