All Forum Posts by: Henry M.

Good idea. Btw, don't pay for a day rate. It needs to be project by project and they don't get paid a draw until complete. I have a Home Depot account and I have my workers pickup material and they (HD) text me to confirm. I always audit my receipts. I don't pay for tools, supplies (of the trade), food or drinks... 

Bottom line, you have to be in control in this business. No one cares about your problems. Everyone (95%) who is a a worker of any skillset typically just care about themselves. A GC will usually find the cheapest labor to get the most profit out of any job.

Don't depend on the city inspectors to watch out for your benefit... Trust me, I have some stories that ultimately cost me more money in the end.

Message me anytime!

"Big" Henry

 Hey Chris,

Before I respond, let me remind you what my post response read, "It is not the fee specifically, but how it is structured."

True story, my wife sold her Kia Forte GT to our daughter at cost and she decided to upgrade to a Kia Sportage X Pro Prestige.

We spoke to a plethora of dealerships who all added a $5K Dealer Market Adjustment on top of the MSRP.

One dealership stated it was due to bc a shortage (they had 20+ Kia Sportages and Sorrentos on their lot). SMH!

Finally, we found a dealership that would sell us a brand new Kia (exact color and model the wife wanted) that was located in Oklahoma. It was worth the trip. So yes, I will ask a dealership.

I know you have not read all my posts, so I'll save you the effort.

Let's use an extreme example:

If a wholesaler brought me a deal that was a "Pretty" House, for argument sake... At a FMV of $300K and the wholesaler was acquiring the property for $100K and selling it to me for $200K... I wouldn't have a problem with it. As long as I had meat on the bone.

Let's take that same scenario and let's say it is in need of $50K in repairs... Now that is not a good deal. No meat on the bone.

I go into great detail on the Post Titled: The Truth About Wholesaling by @WillBarnard.

I've posted lengthy answers on that 13 year running post. I'm sure you can shortcut by clicking on my profile... Not sure.

Either way, I don't have a problem with a wholesaler who structures and assesses a deal correctly.

As a matter of fact, a couple of rehabs ago, I had a wholesale deal that I purchased for $180K and bc of the work I put into it, I sold it for $560K. BUT there were so many issues behind the walls and underground that made this a challenging rehab.

Needless to say, if the deal is a TRUE Old School 70% Rule, then I will take it down. Regardless of who is selling it, but prefer being direct to seller/owner.

I hope this clarifies my post response.

"Big" Henry

I purchased two of these units and their customer service was phenomenal! One went out during a lightning strike and they sent me another unit for FREE!

Senville LETO Series Mini Split Air Conditioner Heat Pump, 12000 BTU 208/230V, Works with Alexa, White https://a.co/d/dsFMYL5

Then you would be rolling in the dough!!! Lol!

 Outside of San Antonio, in surrounding areas rentals go for about the following:

5X5 @ $2.08/SQFT
5X10 @ $1.20/SQFT
10X15 @ $1.07/SQFT
10X20 @ $1.08/SQFT
10X25 @ $1,04/SQFT
10X30 @ $.93/SQFT

And I would agree... It depends on your location and how your facility is set up. 

It is your business, and you have every right to run it how you should. ;)

Out of curiosity, what is your price per sq ft rate? Most that I have seen in our portfolio are going for about $1.25/sq ft.

Congratulations and I love you making that leap into ownership of self-storage.

Your Real Estate Ally,
"Big" Henry

 The smallest facility in the company's 65 store portfolio is just under 28K sq ft, there is a neighboring store five miles away and the manager of the store splits his time between the two 75%/25%... With the smaller portion dedicated to this facility. Now it brings in about $20K/month at about 93% Sq Ft Occupancy.

Now, if you get the occupancy up to over 85% yourself or hire another part-time manager (to do the operational daily duties) then you can most likely back off to a few hours per week, but if I owned the facility, I am going to push the issue and take it as high as possible, then retain as many customers as possible.

Some say that you need at least 400-450 units in order to qualify to obtain a full-time manager.

It just depends on your circumstances. On one hand, no one is going to run your business like you, and with 10K to 15K, you probably should.

However, on the other hand, you can delegate and oversee a part-timer with your expectations so you have more free time to spend either with family or seeking your next investment.

Just my two cents.

"Big" Henry

When hiring a management company or a manager, it is probably the single most important aspect of any business, especially in Self Storage.

Some owners are just glad to have a warm body hold down the office.

In the end, setting up incentives and keeping the drive alive will definitely produce better revenue than most of the competition.

Training and setting up realistic expectations is key to running a successful self storage facility.

Not all managers are created equal.

You have several types of managers:

· The "suck the life out of you" managers,

· The "Give away the farm" managers,

· The" bare minimum" managers,

· The "it's just a job" managers,

· The "average" manager,

· The "good" manager,

· The "great" manager,

· And the what I coin the H.L.O. manager, which is the elite. This is a High Level Operating Manager or "High Level Operator".

Most managers will fall in the 90% (good & under) category, then you'll have the 7% fall into the "great" category" and finally the 3% who will be in the "H.L.O." category.

Profit and revenue can be made with the average manager and up, but with the good and great managers, the store will make above average to good revenue.

However, if you get yourself a killer, such as an assertive, self-motivated, and ambitious H.L.O., then your revenue will go above & beyond expectations. This HLO is capable of going anywhere and is one that can run a store or even multiple stores.

So, a store's true success truly will depend on its manager.

An average manager will not hit budget often. If you have a good manager at a 1,000 unit facility, with units between a 5x5 to 10x30, Non-Climate Controlled... They may hit $80K to $85K, a great manager may hit around $90K- $93K, but an H.L.O. can get you in the upper 90's to $105K per month.

That's a tremendous difference between a good manager to an H.L.O..

What kind of manager do you have running your facility?

What incentives do you have in place to motivate your managers?

Do you have a budget bonus, net rental bonus, delinquency bonus, truck bonus, merchandise bonus, how about a surplus bonus (hitting above budget)?

What kind of training do you offer your management team?

How can you get the most and best out of your management?

What safeguards do you have in place to monitor your numbers on a daily, weekly, and monthly basis?

How much fees are being waived?

How many credits are provided?

How many discounts and promotions are given away?

I hope this gives a glimpse of the importance a manager is in any given facility.

Just my two cents.

"Big" Henry

Storage HLO

Hey Mike,

I like to think I'm the Storage Whisperer 😂, but your response caught my eye. I'm typically getting under 1% (Of 1,140 units), most recently for the month of March 2021 it was at 0.32%... But I can always improve my game. 

We use to begin the auction process at the 60 day mark, but have changed it to begin at 30 days. Our late fees are $20 on the 6th and $20 on the 29th.

Good old fashion follow-up via call, text, and Email with payment methods over the phone, website, in person, or the best option: auto pay.

I would love to read about your system in place to force those Delinquent accounts to pay in a more timely manner.

"Big" Henry