Invest in Self Storage

[Yiftach Ilyov]

Hello, my name is Yiftach Ilyov, i'm a reader in BP for roughly 2 years now and decided to sign up and write my first post – Mazal Tov:)

Im 26 and In the past 5 years I was deep deep in the retail world,actively and passively, I saved an amount of money and inherited a great amount of money and decided to move on and start a new chapter.

So far I spoke on where I'm coming from and now where I'm going, and the reason I'm here;

In the last year the Self Storage field caught my eye while looking for a a storage for my businesses in Utah and study it with no one to ask some questions(hello BP!). I know there's a few S.S experts here( @Michael Rogers , @Michael Wagner , @Rich Weese , @Scott Meyers – Very nice to make the acquaintance and I'm full of expectation to keep and network in regard of self storage and other things – with you and everybody).

My plan is to go in the self storage business,obviously start small, and develop. In the future I would it to be my main field and im about to do it full time in the next years, the nature of the business is perfect for me.

So the questions I gathered are:

• Should I buy or build? - in a podcast @Michael Rogers said that the bargains found in distressed owners bringing a price point that make development unworthy. I have to ask- SOMEONE has to build right? How does it become worth of building?
• Are there Contractors that specialize in storage?

• East coast or west coast? Any specific states self storage is blooming? I think ill mention now that I'm an immigrant and since moving to the states I followed business opportunities when choosing where to live and I tend to keep on doing so.
• What material is commonly used to build self storage units?
• clientele – is the nature of clientele changes from state to state or the same demographic group that rents in the west will be my clientele in the east?
• traffic – comes from billboards or internet or where? How much you invest in publicity ?
• I read about zoning and saw different answers – is the type of zoning for SS is something that changes from state to state?
• Im hard studying market analysis but I know there's companies that do this service- do you guys do/did your analysis yourself or you let a 3th party do it for you? How much a company charge for this service?
• your units have electricity?

• there's storages  in the shape of a building and there's some in the same of a big lot- pros and cons? Whats your take.

• management – do you do it yourself/hire managers or using the service of an external company?

• how much did/do you invest in security? From my studies(of cold numbers and statistics of course) security is something the average Joe takes greatly in consideration when shopping for a storage. Is it what you feel “on the field”?

• I read people building a residential unit on the storage field. How does it work with zoning and all? It could be perfect for me.
• Are climate controlled units are more popular at the east or west? Warm or cold places?
• Is there a certain percentage of occupancy that considered as break-even-point?
• What is the average occupancy percentage?
• Is there any taxes I need to expect?
• Is there any expenses I suppose to expect and to know about?
• Is there any other questions I need to ask and I didn't?

Thank so much for your time and I'm glad to finally be a part:)