Self Storage investing

[Patrick Flanagan]

I hear a lot of people that love investing in self storage. I’ve read about all the fluff and awesome story’s how their value adds made them tons of money after the refi. I’ve heard several investors on the bp podcast say that 80% are owned by mom and pop shops, so it’s easier to land a deal because you are dealing with someone that might want out of the business.

So id like to hear some story’s or things that were nightmares when trying to buy and manage a storage facility. As well as things you did to over come those problems. I’m trying to get the opposite opinion from someone on what things to avoid so I don’t end up making some big mistakes.

I would Just like to see both sides of the story.

Thank you,

Pat

[Greg Dickerson]

Originally posted by @Patrick Flanagan:

I hear a lot of people that love investing in self storage. I’ve read about all the fluff and awesome story’s how their value adds made them tons of money after the refi. I’ve heard several investors on the bp podcast say that 80% are owned by mom and pop shops, so it’s easier to land a deal because you are dealing with someone that might want out of the business.

So id like to hear some story’s or things that were nightmares when trying to buy and manage a storage facility. As well as things you did to over come those problems. I’m trying to get the opposite opinion from someone on what things to avoid so I don’t end up making some big mistakes.

I would Just like to see both sides of the story.

Thank you,

Pat

It's a very simple business. The biggest mistake people make is over paying. Next is not understanding the retail aspects of the business. Location is huge in self storage especially these days. Many investors think they can turn around a half vacant property 20 minutes outside of town and compete with the new buildings in the middle of town. Finally overlooking demand and competition is a huge mistake as well. Most areas are oversupplied and do not need storage. There are some markets that are undersupplied but overall we are reaching the tipping point in supply.