Mini storage

[Brandon Cooper]

Any one have experience with mini storage facilities? As far as investing in One.

[Mark Byrge]

I can say that I got into self storage 2 years ago by purchasing a small 60 unit that I happened to find listed incorrectly on the MLS. I was instantly hooked on it and have now purchased an 84 unit mid-year last year, and just closed on another 124 unit property at the end of January.

The first property I bought with a traditional commercial loan which I utilized some of my SFH rentals as collateral and was able to buy with 100% financing. While I do not recommend that for everyone, it allowed me to get into a space that I had long wanted to try.

The two most recent I have been able to work with the sellers and have purchased both with seller financing terms. I have found that all three of these have been the exact same scenario, in that the owners were all three in their late 60's-early 70's and ready to cash out and retire. None of them NEEDED the money and were more than happy to spread out the gains as well as still have a steady income coming in through the monthly payments. Don't be afraid to ask or you are guaranteed a "NO" for an answer! In fact, both of these properties I was able to get better interest rates that what I would have through the commercial banking loans. (4.5% and 4%) 

There are companies out there that you can setup your management software through as well as even managing all of your calls and rentals too. This has been a life changer for me! It has freed me of the chains of carrying 3 phones, as well as having the anxiety of worrying about "what if I miss a phone call". This is MUCH cheaper than having an onsite manager and seems to probably be more efficient as I have a "team" of people answering phones and they are trained to do this as their only job. This transition has allowed me to finally work ON the business instead of IN the business as so many of the books and "gurus" tell you to do.

To me, it's the best business to be in period. It's not completely passive, but it can be pretty low maintenance with the right automation investments.

Sorry for the book, there's just so much to love about this space.