shipping container storage

[Joshua Chapin]

Hello I am hoping to gain some knowledge and or insight in using shipping containers for mini storage. This idea has come up because my father is currently doing the same thing. His containers are on the same property as his small business and he does it on the side for extra cash. 15 or so containers and at least 12 are full at all times. 

What are your thoughts on doing this? Any potential problems I am not seeing?

Thank you -Josh

[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!