Self Storage- Italy Amalfi to Rome????

Question

Getting ready to take a trip through Italy.  Thought I would spice it up some.  Who knows, maybe even write-off our trip, after I talk with my CPA and schedule a visit with one of you.  Most of Europe is bare ground for Self-Storage.

If you're in Italy and are interested in Self Storage there, respond back in a separate post and copy me on it.  I'll put together an attack plan that you can digest and see if it's a field you want to tackle.  Don't worry about if it is a 10-person town or 10mm population; can develop a plan for you.   Next year working on Croatia.  Already posted helping a young person out there.

Info from you:

1.  Collateralization or cash for the deal.  Example:  $0; $100,000; $200,000; $500,000; $1mm

2.  Financing- Loan to value.  Example: 10%; 20%; 40% collateral

3.  Interest- interest rate and payment terms.  Example:  7%, 5-year balloon, 25-year amortization.

4.  Zoning- you will have to research.  I make some points to check on.

If we meet up, you owe me a Limoncello and a Pistachio Cannoli.

Did Northwest Italy last time.  Doing the typical Tourist sites this time, in the Southern and mid regions.

Actually, next trip is probably Sicily.  Our son Ryan is based with the Navy there for a few years.  He is still earning money on his Self-Storage investment back here.  Double Dipping.

Henry Clark · Answer

Staying at a Bnb in Fiumefreddo, Sicily near Taormina.  Looked at two properties with a Real Estate agent or an Agent Immobiliare.  He also does light development work on projects he flips so he knows costs.  Mainly looked at old home or estates in this area which is on the west side of Mount Etna.   Will discuss separately. Discussing self storage they don’t have any. The concept is foreign.  The translator who was riding with us says you can just rent someone’s garage.  The small town we are near, he said only about 1/2 of the properties are lived in.   Same as the US people moving to the city.  What is different due to the winding roads and fuel costs they don’t live in the countryside like we do.  As I walked around the side roads you can tell people come and stay at their country spots on the weekends or holidays to get out of the city.

If I did proceed forward would take my own advice and “start small and Make My Big Mistakes Early.  Do small locations on the outskirts of major towns where there are less vacant homes and buildings to store in.

Will keep on eating our way through Italy and Sicily.

Ryan Alexander · Answer

Love this, Henry. I was in Italy for 2 weeks in 2015 and also wondered why there was next to no storage. You'd think with smaller living quarters and more folks living in cities that the need for it would be there. Keep us updated on your travels and if you find any facility there. I have a friend outside of Naples and he hasn't seen any yet either.

Henry Clark · Answer

@Tony Guarino. You never turn off your business eye.

Hoarding isn’t a reason for Self storage.  Normally death, divorce, fire, water damage, buying selling homes, etc.   True of all people.

What is different about Italy thus far is the number of abandoned houses.  They are or can be used for storage.  Might have to build near cities that have higher building occupancy percentages.

Tony Guarino · Answer

It sounds like you need to have a secretary record minutes at one of your 'business meetings' there. I will gladly apply for that job!

I'm curious on your fascination on SS in Europe. The culture is a bit different there and perhaps why you don't see too much self storage. Older towns already developed, maybe less of a hoarder culture. Do you see a market for it while your there?

Henry Clark · Answer

Last day in Italy.  Flying out.  Haven’t seen a single storage location.

Planning a trip back first two weeks in January.  Planning to look at some properties to rehab.  Will start looking at storage location properties to build on also.

Might build here, just to write off the travel.  Key thing I have learned is don't dig deep and dig at night if possible.  If you hit anything ancient you have to stop digging and do an archaeological excavation.

Henry Clark · Answer

Got a new property checklist item for you.  If ever buying near a volcano like Mount Etna always make sure you drive around it at night. Ask about where the lava flows will tend to go.

Coming back from dinner.   Can’t see during the day.

Tony Guarino · Answer

Also never turn off my learning eye. Appreciate your insite!

Jon Kelly · Answer

@Henry Clark this is brilliant. Definitely counts as a business trip.

Have you looked around Santorini, Naxos or the other Greek islands? I don't think there's much self storage there! I heard June is the perfect time to go.

Henry Clark · Answer

So here is the question.  How do i write this trip off?  Looked for self storage in Palermo, Catania, Cozenza.   No self storage.  Checking out Amalfi, Positano and Ravello tomorrow.  Then Naples.  Will the IRS allow me to write off $6,000 in travel expenses?

Henry Clark · Answer

In Vierti sul mare Italy.  Still haven’t found any self storage.  Had too much wine.  Forgot my wallet.  Have to wash dishes.

Self Storage- Italy Amalfi to Rome????

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