All Forum Posts by: Maris Becers

@Shital Thakkar @Jason Hirko  @Scott Meyers @Account Closed

Yes. Iam not in US. Iam in Sweden. It's in Europe. Self Storage industry is growing.  It's like in 90's in US.  I don't plan to build here yet, it's inaf big players here cityselfstorage, boxgard, shurgard, minilager, pelican self storage and few more. I found good place here also for that but not now. Why!? Because i found better place in another European country. LIke it was in the late 1960s, when first self storage facility chains started to open in Texas. With very big potencial. At the moment in that market working 1.5 company. Actually 2 but i say 1.5 because one is good with 3 good facilitys another is poor with two bad self storage facilitys. So totaly five Self- Storage facilitys in the market. And they have 90% occupancy.  But i heard big player from another country want to come in the market, space will be enough for everybody but i would like to be a head and take my part in the market before him. Yes i don't have self storage expierence, (Its new here in Europe, dont have 40 years history like in US) but i learning a lot about it and i have another kind of real estate experience - individual houses, apartment houses, warehouses and i don't work alone. I have a team with real estate brokers, lawyer, marketers, accountant, economist.

   In that market it's not possible to find existing self storage facility, because simply don't have. Finding a property to build self storage it's option but it's too expensive or not good located. Old warehouse it's possible to rebuild, but price, location, condition.

Cheaper and easyer is to build a brand new, how you want and in the place where you want.

Nobody from existing self storage business in that market will not give me 10% equity for my time and expertise. They will simply take what they want, they have money. Why them need to split money with somebody if they can keep the money and do it without me.

  I can offer myself 10-15% to investor to jumpstart my career. Funding is only problem at the moment.

I discover empty market space.

Lower building and management costs than virtually all other real estate investments and a failure rate only around 8 percent.

IN COMPARISON TO OTHER REAL-ESTATE INVESTMENTS during the past decade.

Multifamily = failure rate of 58 percent

Office = failure rate of 63 percent

Retail = failure rate of 53 percent

Self-storage = failure rate of 8 percent

  Rents are another key to the success of self-storage properties.

Multifamily is similar to self-storage per square foot

Office is littlebit higer but similar to retail per square foot

Multifamily and self-storage are about half price of office and retail

Rent comparison is even more enlightening when comparing rents to average development cost per type of real estate. The average development cost per real-estate property surveyed is as follows:

Multifamily–$60 to $70 per square foot

Office–$50 to $100 per square foot

Retail–$50 to $80 per square foot

Self-storage–$34 to $42 per square foot

When comparing both rents and total development costs, self-storage most often has rents that are slightly less. But self-storage has a total development cost that is a third to one-half that of multifamily, office or retail properties.

 Less operating and the actual management requirements.

Low-risk – multiple units in 1 place, so no single move-out dramatically affects cash flow.

 Minimal Collection Losses – The ability to Lock out non-paying tenants, and then auction their stuff to recoup lost rent.

 When managed well, industry experts estimate that you should be able to generate a 30% Return on Investment when you have a 90% occupancy rate at your storage facility.

No Toilets – Just steel walls and roof, gravel or asphalt driveways, and a steel door. When a tenant moves out, don’t need to fix any appliances or damage, Re-Paint, or Re-Carpet and    NO TOILETS!

 @Shital Thakkar 

@Chet Mazur Yes in Sweden are crowdfunding.  Who say that don't have experience. I don't work alone. i have a team with marketers, real estate brokers, lawyer, accountant, economist. About self storage experience, yes its true, but have another kind of real estate experience - individual houses, apartment houses, warehouses. In the market where i plan to move in, Self storage is new. Only 5 facilities, ( 3 Good, 2 poor). two storage operators. Its free market, with lots of opportunity. LIke it was in the late 1960s, when first self storage facility chains started to open in Texas. Its real opportunity in Europe

Don't have any track records. Do you suggest crowdfunding?

I,m a founder of self storage startup. Searching for money looks like mission impossible.  Need funding up to $1.5M .  Any suggestions !?!

Thank You Matt V. for the comment. Property i find. Yes thats what im looking for partner or investor to fund my project, but i dont think that i will call to self storage places to my direct concurrents and ask money from them. Why you think that i must impress them with a potential property in hand? They will just buy, build and do everything without me. Why them need me after if i show them good located place, they have money not me.

Hello. I am a newbie here. I need to understand from which place to start. I don't have a capital myself for the start. I make a commercial real estate market research and i would like to start a self storage business. First i need to buy a land, it cost between $150.000 - $400.000 and the rest is building costs, totaly up to $1.5M After with 80% self storage occupancy cash flow must be $30.000 in month. Calculated if self storage building will be 2000 m2. Where to start search for funding? Venture capiatal, angel investors, crowdfunding?