All Forum Posts by: Michael Wagner

This is the stereotypical "it depends" answer.  There are pros and cons to SBA loans.  Generally speaking, an SBA loan will cost a bit more than a Conventional loan so I only use them on properties that are harder to get a conventional loan on (low occupancy, short seasoning period if a refinance, etc).  The other downside to an SBA loan is that they usually have harsher pre-payment penalties so if its a turn-around property that you want to refinance within 2-4 years, the SBA will take a bite out of you (Usually 5% year 1, 4% year two, etc until the 5 year mark).

The SBA also adds a bit of Bureaucracy to the process so you want o be sure that you are using a bank that has done A LOT of SBA loans...don't be the person that the bank "learns the SBA" on....that will be painful.

SBA will also (generally speaking) let you go up to 90% where traditional loans are usually in the 80% range. That could be good or bad depending on your investment objectives. Are you looking to grow aggressively or do more modest LTV's satisfy your objectives?

Perhaps I can offer some more definitive insights if you share more about your situation...why are you considering SBA? Have you looked at conventional?  I'd pursue both (up until the point of costing you money) so that you can make a direct comparison between the two.

Hope some of that helps!

Mike

 Hi Filipe,

There are a bunch of good discussions about self storage on BP.  My first recommendation would be to search the forums and explore the discussions that are already here.  There are several very experienced storage investors who generously share their knowledge in the forums.  

You might also check out my blog here on BP.  Its called "All things self storage" and though i lost steam after only a few articles, I think you might find some of the info useful as you explore this niche.  I'd also be happy to provide you with some other free resources that I share with people in my network.  Just shoot me a private message and I can get those to you.

Mike

Hey Kevin,I would gladly give you some insight into your question but you've opened up Pandora's box and it would take a multi-page response to provide you with meaningful answers.  If you want to send me a connection request/private message, I will gladly share with you a few resources that might give you a good place to start from.  And if you want to connect by phone after that, we can certainly make that happen too!

Mike

Back of the napkin calcs tell me this one is a bit over priced. If it's currently generating $30k per year, 33% of that will go to operating expenses leaving an NOI of $20k. At a ten cap that equals $200k valuation. Of course this is a 10,000 foot view. If you care to make this shiny object of storage any shinier, shoot me a PM and I will gladly share some free resources that new storage investors usually find valuable.

Mike

If it were me I would broaden your search. Essentially everything you need to know about how to analyze a storage facility in Ohio can be learned from a knowledgeable storage investor in any other state. While they might not have the market specific answers for your state, they should be able to provide you with the specific questions that you should be asking about your market and knowing what questions to ask is far more important. Truth is, Cleveland and Columbus and Cincinnati (not to mention suburban and rural markets where I like to at) are so different that getting answers about the Ohio market is almost useless. Storage investing is a MICRO market strategy meaning your really looking at a 5-7 mile radius around your property. I'm happy to answer any questions you. Feel free to PM me or check out my blog here on BP, "All Things Self Storage"

Thanks to all who have inquired or signed up for this already.  Just wanted to update that we have filled 12 of the 30 available slots.  I expect the price to increase once we get to 15 registrations which could be as soon as this week.  Just an FYI in case you are considering it but hadn't yet registered.

I've got a little blog here on BP that you might find interesting.  Its a little dated but the info is still relevant today.  You can find it by searching the blogs for "All Things Self Storage".  Happy to answer any  other questions as they arise as well.

Mike

 There are a lot of companies that offer self storage.  For a property that's this small you can probably do without software but they do make life easier and much more streamlined.  It is a must for any property over 50 units for sure.  My favorite is Easy Storage Solutions as it is cloud based, allows online rentals and can be integrated into a call center (call center is probably cost prohibitive for a property this small).  Emove/uhaul is another budget option for smaller properties like this.

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My name is Mike Wagner. I live in Farmington, NY with my wife and two young children. I bought my first storage facility in 2011 for $350,000. I sold that facility a few weeks ago for $1.8 Million Dollars!

I bought my second storage facility in November of 2014 for $360,000. Today, it is worth well over $1.1 Million and Cash Flows over $50,000 a year. I tell you all this, not to be boastful, but rather to impress upon you that Storage offers you an INCREDIBLE opportunity.

There is nothing special about me. You can do what I have done and I can show you how!

My wife and I support our two young children working a combined 5-10 hours per week managing our Storage Businesses. Neither of us have traditional jobs and we LOVE being a "stay-at-home" couple. Our most recent endeavor is to help others use self storage to improve their lives.

Simply put, I am qualified to teach you about Investing in Self Storage, because I have done exactly what you hope to do. I have succeeded in Self Storage and I can help you do the same.

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Rest assured you will spend the entire time LEARNING how to invest in Self Storage and you WILL leave this workshop with all the information you need to start Investing in Self Storage.

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Hi KC and thanks for reaching out.  Its no bother at all!  Most of our members come from Wayne, Monroe or Ontario but we do have a few folks who come from other counties!  You are more than welcome to come check us out if you would like.  Certainly the education we offer applies to Livingston County as well.  Its just that most our members are doing deals closer to where they call home.  Our next meeting is November 14th if you'd like to come and see what we are all about.  tricountyreia. com for more details. And I'm happy ot answer any other questions you have.

In Your Service,

Mike