All Forum Posts by: Michael Wagner

 Whats the minimum loan amount for your programs?

I use Easy Storage Solutions.  They specialize in small to medium properties and, as such, they price based on number of units.  I think you will find them VERY affordable for what they offer. www.storageunitsoftware.com

Mike

I too was intrigued by kiosks until I compared their functionality and cost to that of a web based management software with online rental capabilities.  For me, all customers carry a Kiosk in their pocket (smart phone) and they pay for it:)!  The only thing their phone can't do is provide them a lock.  We simply have our customers bring their own lock and that problems goes away.  Personally, I suspect kiosks are only of real value in Primary Markets at Class A type properties.  And I think their life expectancy might be limited in the same way a Redbox movie rental kiosk is.  Who needs it when you can achieve the same end online?  Just my two cents. Your mileage may vary!

Definitely looks like you might be onto something.  As for the structural integrity of the building, poly barn construction as you described is very common and assuming the posts are pressure treated as they should be, there's no reason that they won't hold up.  If you want to be certain that you know what your getting into, you could have a qualified building inspector out.  Not only would they be able to assess the structural integrity but they would also provide you with a great couple hours of educations relative to all things construction.  You might find my blog here on BP to be of interest.  Its called "All Things Self Storage" and though its a bit dated, there's some good entry level storage info.  

Happy to answer any specific questions that you have in the future.

Mike

Thanks @Paul Bowers!  Happy to talk storage with you @Gabriel Petsios.  Shoot me a PM

 Don't feel bad for missing it David.....nothing earth shattering:)....I just directed the OP to a video that would freely answer some of his preliminary questions about self storage.  It was an inadvertent violation of BP's (very valid) anti-self promotion rules....I thought they only applied to selling stuff and didn't realize that they extended to free content as well.  Mea culpa!

 Hey John,

I'd be happy to shed some light on your questions above as well as any others that you have.  Probably quicker for both of us to do that by phone.  Shoot me a PM if you would like and we can set up a call.  The next couple days are crazy as I prepare for two closings out of state this week but perhaps late next week or thereafter. I'll also put some 10 second answers here for the benefit of others:

How to find tenants--> Mostly via the internet...google, SEO and aggregator sites (think priceline but for storage). ALl of this can be Super easy and automated.

Typical lease agreement lengths--> typically month to month with a 30 day notice requirement.

Problems to avoid signing new tenants --> not something to lose sleep over.  Clearly you need to avoid meth labs but generally speaking, a rental agreement and driver's licence/photo id gives adequate protection.

Remedies for late or non payment--> This is one of the BEST thinks about storage.  Lien laws are used instead of eviction laws and every state has a well spelled out process you need to go through.  Our aging accounts receivables hover in the 1-2% range....meaning the systems we use force people to pay in a timely manner.

How to setup the gate operating software etc.. This takes some coordinating but, again, not something to let stand in your way.  There are a bunch of software providers out there.  I have my favorite and will gladly share but it will also depend on the type and size of facility you are running and how much "management" you want to outsource.

Hope that helps some!

Be well and I look forward to hearing from you if you decide to reach out!

In Your Service,

Mike

Generally speaking I prefer buying and expanding rather than ground up development.  But that's because its what best meets my own personal investing objectives.  Both strategies have their pros and cons.  A lot of it will come down to project size and risk tolerances.  I kind of view development as a home run swing while investing in existing facilities is more like swinging for a base hit.

As for combining with other revenue streams, I love the idea from a diversification standpoint but I'm not sure I would want to simultaneously learn two new businesses.  Storage is not rocket science by any stretch but if you are new to this, it might be advisable to master that before adding to the complexity.

@Scott Meyers has done really well combining storage with other offerings (like co-working space/office space) but unless I'm mistaken, he was already an expert in storage before adding these extra elements...

Just some things to think about!

@Brandon Hobbs, I agree with your assessment that urban areas will be impacted more than suburban and rural areas which is good for me as I operate primarily in secondary and, more accurately, tertiary markets:) I also tend to think that this niche will have a far greater effect on the moving industry than the self storage industry.  Perhaps this is why Uhaul feels so strongly to move into this space...the same way the tobacco industry now invests heavily in the smoking cessation industry. To me, its a different enough offerings than self storage that I won't lose sleep over it for the foreseeable future. There are certainly times when this offering will better meet a customer's need who might otherwise consider storage but self storage also has several advantages that differentiate it from on demand type services. Looking forward to seeing how others see it as well!  Thanks for posting this!

I'd tell them to take of their investor hat and spend a good long while thinking about what they want their life to look like...on a day to day basis.  Do they enjoy what they do for a living?  Do they want to continue doing that day in and day out? If so, find the best passive return possible and create some supplemental income.  Are they looking to make more dramatic changes.  Can they combine sweat equity with their investment to transform what their life looks like right away?  Too often we assume the goal of investing is to "make money" forgetting that the money is just a vehicle to get us what we really want. Every investment decision should be made based on these larger objectives. We'd need much more insight into the OP's life, life goals, skills, strengths and weaknesses, investment objectives and risk tolerances before providing a real good answer to this questions.  Just my two cents.  All that said, I love self storage for how it fits into my life and achieves my investment objectives.