My first storage facility

[Nate Smoyer]

I’m under contract to purchase my first storage facility.

It’s an out of state deal, though just a few hour drive away.

I’m thinking through all I’ll need to keep in mind and want to consider prior to closing. This facility has some immediate opportunities to improve bottom line. I’m confident value can be increased, but not totally confident in operations/management.

Anyone else doing out of state storage and have any advice of important items to do/not so?

Appreciate it advance.

Also, I’ll share details of the deal once I close.

Cheers!

[Henry Clark]

@Nate Smoyer

Your bio, looks like your already set for this type of investment, so I will stick to Storage specific:

1.  Insurance- look at Ponderosa Insurance, owned by Uhaul.  Very inexpensive and Storage specific coverage.  Example: $2,000,000 coverage might be $6,000 annual.

2.  Security system.  Get your security system set up so you can view anytime and anywhere in the world from your phone or computer.  Set various messages or call alarms to your phone.  Office door opening message, after hour intrusion phone call, etc.

3.  Operation software, get a web based software so you can either view or assist any where in the world.  We use Uhaul software, but check out Storedge.  I'm not recommending them and have not researched them.  But a recent competitor uses them and their SEO engine support moved them to the top very quickly.

4.  Your deal.  See if you can do an asset deal.  Talk with your Tax person.  See if you can break out Roads, Security, electrical, security systems, etc. for year one write off.

5.  Your deal.  Ask your tax accountant.  See benefits of a non compete agreement as being part of the cost.  Ask about quicker write off.  Basically you want to take as much value away from Land and building, so you can get the writeoffs.

6.  Security systems, see one of my posts.

7.  Self Service versus on site management.  Go to our website and watch the youtube on how we do it.

Good luck.  Great Passive Income.