Success in the World of Self Storage

[Michael Wagner]

I thought I would post the link to my most recent blog article here. It includes a VERY brief (and entirely incomplete) description of what it takes to be successful in real estate. It also links to a case study detailing the success I have recently experienced in my chosen niche of Self Storage. I hope you enjoy reading it!

http://www.biggerpockets.com/blogs/3915/blog_posts/27561-a-case-study-in-self-storage

[Michael Wagner]

Seth Williams, Andrew Herrig- I am more than Happy to answer any specific questions you have about storage.

Seth-As a courtesy to your borrower, you might consider gently telling him that 100% occupancy is actually a problem. Sounds crazy, I know but its true. Granted its a great problem to have but I'm hoping he is using the loan to expand his facility to meet demand. Alternatively he really should be raising rents immediately. With 100% occupancy AND a waiting list, he is vulnerable to an influx of competition. Calling facilities in search of a situation just like his is one way storage investors can identify under-served markets. He can make the same amount of money at 85-88% occupancy by raising rates to off-set the increased "vacancy cost" and, at the same time hold competition at bay. Plus, as he sits now he has no idea how much money he is leaving on the table by keeping prices too low. Turning him onto these tidbits is a great way for you to "add value" even after your commissions are earned....that should generate a lot of goodwill!