All Forum Posts by: Ronak Shah
Ronak Shah has started 9 posts and replied 128 times.
Post: Self Storage Units for Cash Flow
- Northern NJ
- Posts 128
- Votes 39
Congratulations @Brady Basinger! How many square feets and units were you able to get for $100k?
Post: Buying storage units
- Northern NJ
- Posts 128
- Votes 39
@Scott Krone yes I am surprised at people keep floating this idea that self storage is business and labor-intensive when it is probably farthest from truth! But hey, it's good that not everyone is trying to crowd in the same area!
Post: $1 million in capital to get to $20k+ a month in income
- Northern NJ
- Posts 128
- Votes 39
@Paul Ryan one thing you need to determine/specify is by when you need to achieve that cash flow? Immediate cash flow of that kind is hard to imagine in any of the asset classes you mentioned!
Post: Learning Storage Units
- Northern NJ
- Posts 128
- Votes 39
Hai, I didn’t say jump right into acquiring but rather learn about self storage directly rather than learn about other classes which will delay or distract you. But to each his own!
Originally posted by @Hai Loc:
Originally posted by @Ronak Shah:
if you want to learn to be a programmer then you first become civil engineer? If you don’t buy that logic then if your interest is in self storage then there is no need to spend time learning other classes and getting distracted.
Jumping into a niche asset class for your first investment might not be a good idea..
Self storage is like a hybrid between real estate investing and a business..
Not sure where you are capital wise but it's always a good idea to start small to understand the basics of real estate investing and calculating returns etc..
But if your adventurous there are weekend crash courses on learning.. Scott Meyers in Indy is a specialist
By all means.. go ahead..
Would you give the same advice on someone who wanted to be a multi family or residential subdivision developer?
You should at least learn base fundamentals of income statement, cash flow analysis, due diligence, forming a team, opening a business account, structuring an entity, real basic stuff
I didn't even mention any commercial real estate fundamentals yet..
But instead jump into commercial underwriting, figuring out market cap rates that are not black and white, hiring and managing full time employees, understanding lot sizes, values, calculating NOI, cap ex Reserves,
Make sure your holding someone's hand..
Post: Learning Storage Units
- Northern NJ
- Posts 128
- Votes 39
if you want to learn to be a programmer then you first become civil engineer? If you don’t buy that logic then if your interest is in self storage then there is no need to spend time learning other classes and getting distracted.
Jumping into a niche asset class for your first investment might not be a good idea..
Self storage is like a hybrid between real estate investing and a business..
Not sure where you are capital wise but it's always a good idea to start small to understand the basics of real estate investing and calculating returns etc..
But if your adventurous there are weekend crash courses on learning.. Scott Meyers in Indy is a specialist
Post: Interested in starting a buisness in self storage.
- Northern NJ
- Posts 128
- Votes 39
You are in right place @Timothy Wilhoite! Write some more so some experts can chime in.
Post: Searching For our 1st Self Storage Facility
- Northern NJ
- Posts 128
- Votes 39
Yes @Shane W. Chapin I am curious as well on why not self storage around where you live when seems like there are many of same types of properties are within 1 to 2 hours of you. This is same way @Michael Wagner of The Storage Rebellion started too! I agree with you that SFRs are mostly a way to play with appreciation as whatever cash flow we think we’re getting is really not enough with all the sub-standard appliances and mechanicals that’s get put in the homes these days!
Post: Indoor Self Storage Units
- Northern NJ
- Posts 128
- Votes 39
@Jon Kelly Sorry I don’t have experience of this but I have heard of Janus (janusintl.com), rabco and trachte as someone who can help with this.
Post: Self-storage facility - what to look for when inspecting?
- Northern NJ
- Posts 128
- Votes 39
Great info on door price @Cole Bigbee!
Post: Offering on a small Self Storage Facility
- Northern NJ
- Posts 128
- Votes 39
Yes, that would be correct @alan !
Originally posted by @Alan Daniels:
@Michael Wagner you must have visual's on my desktop. lol. Just got your e-book and spreadsheet from your website! Good stuff. I appreciate your thoughts.
@Stephen L. In his words, "I have no idea what this thing is worth". I'm following up to ask him how he will determine if an offer is acceptable or not, and hopefully that will give me more ammunition.
@Ronak Shah Thank you! I hadn't thought of it that way. To ensure I'm with you, you're saying that if annual Revenue from rent is $36k ( x5), then roughly a good offer would be around $180k. Is that right?
I'm wondering if I paid $200k, with $25k down, 6%, 20 yrs (pmt's around $1250), it seems like a good deal. Cash flow a little less than $1000/mo. It's relatively small, but at these #'s, my COC rtn is 48% ($12k/$25k), 5.6% GRM. /i'm just a little bit short on the $25k.