All Forum Posts by: Scott Meyers

Hi Gang - We are doing this successfully, and teaching it to our subscribers:    

• Yes they can and are being converted, although the "guestimates" given above in this thread aren't even close to the actual price. However, neither are the rents that some have posted as well - We're achieving a significantly higher ROI than the opinions listed Above. As a matter of fact, Some folks are giving away the farm...
• We purchase the Containers for $1,200 - $3,500 - Modifications can cost an additional $2,000 depending upon how many walls and rollup doors we request.  However, the rents we generate are in the $1-$1.20/sf/month range, not $110 for an entire container! 
• We have been involved in a few of these developments ourselves, and we teach an entire module at our Self Storage Academy on how to do this from A to Z:   www.SelfStorageAcademy.com.   I have done feasibilities and consulted on several others throughout the country for our students.    
• It's EXTREMELY popular near port cities where the shipping is cheap - usually $350 to have it delivered in town, as much as $1,500 to have it delivered a significant distance.
•  Zoning usually isn't an issue, and we have been successful getting a variance in those areas in which it isn't currently permissible. 
• Property taxes don't apply as long as you don't affix them to the ground, but then it's more difficult to secure a Conventional or SBA loan (double edged sword)  
• However, you can lease or get a business equipment loan much easier - both options presents their own unique pros and cons. 
• At the end of the Day, another way to get into Rental Real Estate business without tenants, toilets, trash, or Property Taxes!    

THAT'S Why we love this business Model! 

Let's not forget -  This is a commodity, and it represents a "to-do" for someone.  We Make it easy for them to rent or reserve the unit online or on their smartphone using a responsive website.  They don't have to call the office or talk to someone to rent the unit. And if they do, our phones rollover to a call center that will lease or reserve the unit for them.  How are you equipped to handle virtual leasing?   

Jake,

I once owned over 100 SFR and 400 Multifamily, and, Like Your Mentor, I sold them all to invest in Self Storage and have built a portfolio of 2,500 +. By the way, I live in FIshers, IN and some of my Self storage Facilities were in Muncie Indiana. I won't give advice, but I'll share my experience having gone through this personally, and having coached/mentored Hundreds of other Real Estate Investors over the past 10 years: Single family rentals are tough enough in your back yard, and virtually impossible to manage well from afar. That's why 95% of all real estate investors go belly up within 5 years. I would suggest calling your mentor in Self-Storage and have him show you how to buy a small self storage facility for the same amount of $ as these rentals.

In addition, you can go here to learn more about the storage industry for free:  www.SelfStorageInvesting.com.  

As for Muncie, I no longer own my facilities in that town as the property taxes are higher than in any other county in the state - and one of the highest in the country.   So as the Sharks on Shark Tank say;  "I'm out".  That town is more anti-business than any other I have ever experienced - it's no wonder your friend wants out.  Besides, the town has been dying a slow death for decades, and continues it's decline - that's why taxes are so high - 30% of the population has moved, yet the city Goverrnment continues to grow - you do the math. 

At your service, 

Most facilities aren't set up with a Rollup door as entry into a hallway - we use Exterior, secured, steel entry doors to enter the shared hallways.  SOme have locks, some don't.  If the facility is fenced and gated, the only folks allowed in should be the ones with access.  However, someone could hop a fence and hang out in the hallway if the doors weren't locked.  

so long answer to your question is - just lock the main door and don't worry about it.   However, a picture might be more helpful to provide a different solution. 

Jacobus, 

I don't personally have experience, but I keep abreast of the industry in other parts of Europe and Australia.  However, it is DEFINITELY on the rise.   For more detailed information, check out the Self Storage Association of Germany:  http://www.selfstorage-verband.de/

Happy Investing!

Cap rate is not only market specific but also, Class Specific.

If it's a Class A Site - expect it to be in the 5 to 6% range

Class B - 6-8% 

Class C - 9 + 

Several other factors involved as well, but this might help.  

Hi Susan, 

Excited that you're exploring the wonderful world of Storage.  Agree with all of the above posts - Value is based on market cap rate dependent upon the market, and the class of facility (A, B, or C).   Several other factors may affect the value as well, as each property has its own unique intrinsic value to an investor. 

Pros:  No tenants, No Toilets, no Trash - and about 12 other Reasons why it trumps all other forms of real estate. 

Cons:  Lots of units to track rental payments.  However, it's easily mitigated with the use of kiosks and industry related property management software.

To learn more, you can go here for a free 6 part Video course on how to invest in Self Storage:   www.SelfStorageInvesting.com/freecourse

Good luck! 

Hi Ryan, 

Being a Storage Guy, and formerly a landlord, I completely understand where you're coming from.  We had around 100 single family rentals, and approximately 400 apartment Rentals, and without our property managers, we wouldn't be able to grow our Self Storage Empire.   

I'll also share a bit of experience that I and so many of my other students have benefitted from - and that is weining yourself out of the tenant and toilet business altogether, to eliminate 80% of the stress and work involved with renting out Habitational real estate.  Again, this isn't advice, but my experience (and the experience of thousands of other Self Storage Investors.)   

I'll bet if you put pencil to paper, you'd quickly realize your time is better spent focusing on storage or Industrial investing. Meanwhile, we have had a great deal of success outsourcing all types of tasks, such as giving information to prospects, to a call center or a VA who can handle these tasks for you - for as little as $5 per hour.

Keep us posted, and Keep growing the Storage Business! 

To your success, 

Hi Justin,

Big thanks to William for helping you with this - once you determine your competition's occupancy within 5 miles (really 3) you will have a good handle on your market and can compare/contrast occupancy, and rates to give you a better idea of where you SHOULD be. 

Armed with that - yes, apartment and realtor referrals work well.  However, most of our traffic comes from the aggregators as Mike Wagner mentioned, and I prefer usstoragesearch and sparefoot. 

In addition, if you haven't looked into Uhaul, we get a great deal of additional exposure and door swings by joining the Uhaul dealer network.   

Lastly, along with the aggregators, a strong website from SelfStorage.com or one of the more experienced developers like selfstorage.com and storageahead.com will pay huge dividends.    

I wrote a book called the Ultimate Self Storage Marketing Guide which contains 101 ways to market your facility and keep it full.  You might want to check it out.  

Oh, and naming your facility after the town works wonders for organic Google search; i.e.  if the facility is in potowatomee IL, then acquire potowatomeeSelfStorage.com, change the name of the facility, and boost your rankings without shelling out a huge amount of $ in Google ads. 

Keep us posted. 

Scott Meyers

I echo those sentiments as well Pavel, and thanks for the kudos.  Our next Self Storage Academy is in Orlando Florida the 15-17th www.SelfStorageAcademy.com and then back in Indy in April.   Scott Scheel and Ray Alcorn are also very solid - I speak at their events regularly.  

Happy Investing.