All Forum Posts by: Michael Wagner

I've been to two of Scott's events before and will be at this one as well! The content and networking is VERY high level. Easily worth 3-4 times the cost of a ticket. 

Hi Justin,

I too am into the value add storage thing and also shop nationally. That said, I kind of stink at jet lag so I will definitely keep you in mind if I come across any off market deal in your neck of the woods.

Mike

I second the vote for @Scott Meyers!

 I use a 3 pronged remote management strategy to remotely manage properties from NY to Florida.  The role you are referring to here is what I call "boots on the ground".  Very easy to have the onsite tasks done for $300-600 per month.  Finding the right person for that job is clearly a key to success.  Tying in an online portal and call center rounds out the strategy. 

I think you've created a false choice here....you say you need to either buy a $5 million dollar self storage property or switch industries. I have bought 3 storage facilities in the $300-500k range and have spend 5-10 hours per week managing them. Big 3rd party management companies are not the end all and be all for day to day operations. I'm happy to share some resources that you might find helpful (and eye opening). Shoot me a PM if you'd like to connect.

Mike

Be careful jumpting to conclusions about Loopnet....As they say.....One man's trash is another man's treasure.  I've bought two storage facilities that I found on loopnet (and had a student buy a third).  First one was bought for $330K and sold for $1.8 Million after $400K in expansion money infused into it.  Second one was bought $465K and is worth $860K today.  Last one (my students) was bought for $400K and is projected to be worth $850-900K within 24-36 months.  

I follow a strategy very similar to @Ken Jernigan.  Tertiary markets are just about the only place I look for storage:)!!I would advise a newer investor to not get the wrong idea about a university.  While colleges are a great economic driver for a given area (and therefore a good considerations), too often, new storage investors think that students are a great customer...and they are but only from May to August so basing a year round business solely on a seasonal customer can get you in trouble.  

When I talk about investing in self storage, I am speaking about being an OWNER. I see myself as the asset manager but  am not doing much of the day to day stuff required. I use a remote management system that I've developed over the years. All that said, I ay primarily in the value add space so I do have a good bit of hands on during the transition into ownership and early months of ownership while the operational overhaul is put in place. I find this to be the highest and best use of my time. 

@Kevin Ferguson,

I can vouch for Scott's Academy.  Been several times and will be there again in January.  Time and money well spent both from an education as well as from a networking standpoint.  Be there if you can.

Mike

 Ken/Joy,

This certainly sounds like a great deal assuming the market can support the units!  49 units is on the small side for a property this far away from home but the Value add potential seems to make it a worthwhile investment! I own self storage in 3 states (soon to be four) and can say without hesitation that it is absolutely possible to run this remotely.  Doing so is much easier if you have a fence and electronic gate but that might not be a necessity if you have a very attentive manager.  The downside is the manager is an ongoing cost and a fence/gate is a one time cost.  I've developed a three pronged approach to managing small to medium sized self storage properties remotely and would be happy to share what I've learned over the last 8 years.  Shoot me a PM and we can connect.

Mike