Self storage for beginners- Checklist 101

[Henry Clark]

Response to @P on separate post.

@P, there is a listing on LoopNet for a storage unit for sale in Pacific City.  Don't consider buying it.  Use it to sharpen your approach.  Go through the actual act to make an offer.  I'm going to make several separate posts and you do the homework.  You said you want to approach area owners.  They have already been approached many times.  Start with an offer, subject to your due diligence (30 days).  Ask them to be on your Facebook for your storage business venture.

Remember "Answers" are easy; its knowing the "Questions" before you go down the path.  "Start Small and make your big mistakes early."

This has some specific comments for a new investor in Croatia.  Disregard, make this template your own.

		Storage Startup Checklist 101
		Response to Zagreb, Croatia startup
1	Why Do Storage?
2		Why Storage? Why you?	I’ll do a separate Topic. Don’t know your financial’s, but you will outstrip your collateralization fast. Develop a relationship with someone you trust and bring them along for the ride. Preferably an Apartment developer. They don’t have to invest in the first project, but you will need them later. Make sure this a solid relationship, otherwise they will cut you out once your successful.
3	Market/Demand:
4		Market size	See post, if your the “first”, then you don’t care. You have more than enough Market, in a 800,000 Pop city.
5		Outside or climate controlled?	Let your search and “deal” decide. Look for both an outside Land acquisition or an old industrial building. If you get a large enough building, finish it out in stages.
6		Market location	Seek your higher income areas first. Pick along the A2, A3, A4 corridors first. Stay away from the mountains. Do several small locations, no smaller than 1 hectare. Once you have the experience and Financial support, go for a Climate controlled location in an old neighborhood that is high income or rebuilding itself.
7		Zoning	See post
8		Site location	Have several searches and deals going at once, most of them won’t pan out for the price you are willing to pay. This way you “can walk away”. This gives you negotiating power.
9		Site acquisition
10	Financing:		See “Topic”
11		Financing-construction	Find a banker who knows Apartment building construction
12		Financing- rent up stage	Same as above. You want “interest only” and not principal for a portion of the rent up period.
13		Financing- long-term	If your going to grow, unless you have significant capital at your disposal, find a future business partner.
14		Business Model	I’ll clean up and post one of my spreadsheets later.
15	Construction:		Use local knowledge/availability
16		Permits
17		Building type
18		Building manufacturer
19		Contractor
20	Day to day:
21		Rental Contract	Post a “Topic” on this Forum and ask for some copies sent to you.
22		Rental Rates	Zagreb’s GDP per capita is $19,132 versus where I live $60,246 metro area of 1mm. Thus if I say a 10 x 20 “Foot, not meter” unit is $120, then yours would be around $40. Making this simplistic. Get on Sparefoot and pick a US city similar to Zagreb and pick out prices for 10 x 20/15/10/5. Then take 1/3 of that for your price in US $, then convert. Recommend you don’t use this as your starting prices; go after a richer neighborhood and charge higher prices.
23		Auction rules	Post a “Topic” on this Forum and ask for some copies sent to you.
24		Security system	Situational, work with your local security firm.
25		Fencing	situational
26		Self Service or manager	situational
27		Management software	Since the world is internet based, see if you can use one of the Storage management softwares in Zagreb. Do not do this on a spreadsheet or paper. You need to develop a system to grow with.
28	Marketing:
29		Website	check xxxxx, and others on this forum. Take the best from each and make a template, for a better one.
30		SEO management	Since your the only one, you just need Google Map Pins and build up your google ranking under key words.
31		Marketing Software	Sparefoot or similar in your market area. If none exist for Storage, seek out Apartment, home, AIRBNB, Craigslist sites. If you have Craigslist, put an add out there with your offering and price. Different sizes and prices. Get feedback.
32		Marketing	Something you probably already know.
33		Social Media	Something you probably already know.
34	Insurance:		Leave to you for local knowledge
35		Business
36		Renters
	Sundry:		Leave to you for local knowledge
		Property taxes
		Legal system