All Forum Posts by: Henry Clark

Timing:

- Our son graduated and started College.

- I moved to storage fulltime about 3 years ago and my wife retired a year ago from Corporate America.

- Age, I will turn 60 this year, thus between now and 70; having watched my parents, I will have the oomph to get out there.

- Financially, we're good.  We have isolated wealth for retirement, taken care of "Care" issues, identified both long term and near term investments, and have identified "excess" wealth.

- In Iowa the storage business shuts down from December through part of April.  It's also cold and can be nasty up here.  Belize is in their Dry season (temperatures stay around 70 to 92 all year, just the Dry and Rainy seasons are the changes).

-Although we will add buildings to our existing Storage locations, we are in the process of developing our last Storage location ever, which should go on line in Dec/Jan.  We have our Self Service system set up, thus maintenance of our 8 Storage locations, with an end game of about 1,600 units total, will be relatively easy, thus we will have more free time on our hands.  Basically we will have met our, When is Enough target on Storage.  That is the main reason I have posted a lot of Storage Posts, since after next year, we will move on to other adventures, and all of our experiences will become dated.

The main reason I am telling you the above, is it is a large factor of why we are looking at Belize.  If your thinking about it, make sure your ducks are in a row.  If we weren't in our spot now, we probably wouldn't do this.

Couldn't find a place to put this post, so I thought I would stick with Commercial since we do Self Storage and this is one of the benefits of being in Self Storage.

Will take you through our Belize adventure ( its an investment, but not really) over the last 2 years and get you up to date.  Will do in segments, so I might get somethings out of date sequence.  This will be the good, bad and ugly.  If you have a question, ask, but the answer will probably be just because.

Why Belize?

I have had a thought of a foreign home/investment/place to go for about 20 years.  South Korea, Australia, Maui, Brazil, Belize, 

We like Belize because:

- Official language English

- currency is pegged at $2BZD to $1USD

- Property ownership laws are English based since they were ruled by England.  Very similar to the US.

- Living Price- far lower than the Caribbean, but higher than most Central America.

- Crime- Top 10 deadliest countries in the US.  Mainly Belize City drug wars.  Other than that, being a poor country, theft is a normal occurrence.

- Land price- we did look at the Beach, but we went inland to the San Ignacio/Santa Elena/Spanish Lookout area.  Price is all over the board depending on size, close to town, roads, electric, water, sewer, type of ground, size of property, Local or Expat, etc.  All land, housing and rental prices are almost always in US dollars.  The same piece of property could be $500/acre; $1,000; $1,500; $3,000; $10,000 depending on the variables I mentioned.  This is for farm ground and not a house lot.

-Victim- if you are a victim, act like a victim, set yourself up as a victim, you will be a victim in Belize.  No matter whether it is petty theft, your groceries out of the back of your vehicle or buying a beautiful condo overlooking a white sandy beach on the ocean.  Note, Belize does not have White Sandy beaches.

- Flight time- 2 to 2:30 hours from Houston or Dallas for your connection.

- Variety- Inland farming and fishing, snorkeling, golf carts on the Beach fronts, deep sea fishing, Mayan ruins, local people.

- Weather is a perfect offset to Iowa Winters.  Belize dry season is January thru May.

- Bugs/Snakes-   I'm originally from Louisiana; and Belize has far less bugs, Mosquitoes, and snakes than I ever grew up with in a Creek bottom in the middle of a National Forest.

- I love nature and trees.  Gives me a chance to learn a whole new area of the world.

If I don't reply to you, its because I'm telling an adventure and trying to keep it in sequence.  I'll cover all of the Real Estate angles as I go through the path we took.

At the top:

Bigger pockets; Forums; Education; Then Network.

Not knowing your situation (income stream, kids, family, job security, housing cost relative to locale, etc) I'll throw out darts at the board, which most will not apply since we don't know more.

1.  Dave Ramsey budget plan.

2.  Your on a Real Estate forum.  Your $2,200/month; try to get it down to zero.  House hack or Apartment hack.  Look for a 6 to 10 unit apartment complex to live in and own.

3.  I probably misread, but your utilities are running $3k?  

    -  Communications and internet, move to Whatsapp.  Cut who ever is using excess internet service and phone, back.

    - Electricity and Gas, insulate.  Most peoples utility bills are the highest over the winter.  Insulate the pipes, windows, doors, etc.  Put more carpets on the floor.  Put heavy drapes over the windows.  Check all equipment, hot water heater- old?  turn it down.  insulated?; furnace- are ducts air tight or need insulated; HVAC;  Turn heat down at night.  Etc.  Do a youtube on insulating your house.

    - Water,  the biggest water uses.  Bath, clothes, kitchen.  Bath, everyone does quick showers.  Clothes, don't wash unless full loads.  Kitchen, don't use dishwasher- get a dish drying rack and wash from sink.

4.  Food- Eat out only once a week for fun, even for lunch.  Sorry for the lengthy food section, I love food.

   -  Shop at Asian or Spanish grocery stores.  

   - Don't wait till your out of food, actually buy ahead in Bulk.

      -  Buy 50 lb rice ($.65/lb actually in 3 lb bags on sale) and/or beans.  About 1/2 price of 1 pound.  Get some tupperware and seal up in 10 lb increments.

      - might sound gross.  Go to your local animal feed store.  Ask them for a 50 pound bag of green split peas.  This is super cheap and edible.  I love soups.

      - Buy 50lb bags of potatos, carrots, onions, etc.  This is incredibly cheaper than off the shelf.  Talk to the Produce manager and special order.  

       - Meat, I love meat.  Buy big Pork Tenderloins.  Cut a 10 pound, into several 2 pounds into freeze bags.  Hamburger- look for Arm Roasts for sale.  Have the butcher grind it up into hamburger for free, package at home for freezer in bags.  This will be the equivalent of 93% lean, for about $1.50 per pound cheaper.  Chicken- buy Leg/Thigh 10 pound packages and break up into smaller freezer bags.  Right now a lot of Beef cuts are on sale, since the restaurants can't use them.  I can buy 6 to 12 pound restaurant packages of steak for really cheap.  Tbone $7.99;  Rib eye $8.99;  Tenderloin $8.50- this is $20 at the grocery store.  Brisket for $3.00 per pound.

   -College days.  Buy a huge cheap ham.  Cut it up into smaller freezer bag 2 pound sizes.  I used to live on ham for 2 weeks, breakfast/lunch/dinner.  With eggs, sandwiches, soups, chili, pasta, you name it.

-  Eggs are really cheap right now.

-  Asian stores, buy large frozen resealable bags of Gyoza, mondu or pot stickers.  Make a soup of vegetables, carrots, cabbage, onion, green onions, bones from above and cook for a while.  The last 5 to 10 minutes turn the heat way down and put the frozen Gyoza in.  Don't stir to much or they will break.  This makes the best and easiest soup in the world.

Key is to set the budget so you know where your biggest costs are.  For example, I talked about food above. But if it is only 5% of your total spending, your wasting your time on it.

29 September 2020, 03:03 PMGreat weather so far, plus next 14 days. Going through a drought which is good for building. Luckily temperatures are going down and the crops are finishing for the season.

Thus far we have the footings for the Office done. We will not pour the pad on top of it until the Plumber digs his drains and waterline up through the floor. Just marked out all the sinks, commodes, shower, drains, hot water heater with flags. This will be the first building we put up, so the Electrician, plumber, security, etc can start putting their main switches and boxes in the office.

The next two small buildings they have poured the footings and now have: a. placed rock grit on the ground, b. put plastic moisture barrier down, c. laid rebar across. If you can tell the rebar is a green color. They have switched to using Fiber glass rebar versus metal. Its stronger than steel and doesn't rust which can cause problems with the concrete bonding to the metal. Costs a little more, but easier to handle, stronger and doesn't rust. These are ready to pour the pad, but all of the concrete plants and trucks are backed up till Wednesday.

In the mean time they are trenching the next two pads. I have already showed you the machine they use to dig the trenches. After they are done trenching they have to dig the loose dirt out at the corners. Since last week, they have a machine shop and just bought a skidsteer; over the weekend they made an attachment on the skidsteer so they can drag it on the bottom and clean out the loose dirt at the corners. This saves a lot of time since the dirt is about 40 inches down in a narrow trench. Hard to get it out with a shovel.

@James Walker

Check this product out.  "Universal Storage Container".  

Is your ground already hard surfaced?  

Year 1 tax writeoff.

Can add as you need or are successful.

@James Walker

Not to squash a dream, but maybe re-direct it.  Within a mile of you, you have three of the largest indoor storage companies with brand new, great looking facilities.  Within the next mile you have another 3 large nationals.

I would call them all and tell them your redoing your house in two months and ask how far ahead you need to reserve a 10 x 15 unit and what the cost is.  If they are all full then maybe pursue your idea.  If they have units always available, then I would pass.  You could also do a walk tour through the facilities any ways to get a feel for the competition.

The good thing, if as everyone has noted to you, check zoning; you are closer to the population than all of them.  Thus it becomes a "location" question, is yours visible and accessible.

These National companies are playing the Average of numbers game.  One location is bad they have others to average out.  You will only have one location.  

SEO power.  They will always have better SEO power than you.  Even on Sparefoot they will always outrank you.

If you do this, ask for a Construction loan with interest only.  Then a rent up phase interest only. Example 18 months or until 65% occupancy.  The problem with in door storage in multi level buildings, is you generally have to build it all at once and it takes longer to get to break even.  I build outdoor access.  When we need more buildings, we build more.  Or you need extra cash sitting on the sidelines to help if your rent up phase takes longer, or it you get into a Price war with deeper pocket companies.

a.  Go for it.

b.  Sell to one of the nationals.

c.  Sell and if you want to do storage, go further out and do a B/C/D location.

d.  Like everyone said, check the zoning.  Be careful on setbacks and Storm pond requirements.  This will reduce your footprint and units.  .5 acres is a really small footprint.  Your build out cost will be less competitive for the elevator systems, fire sprinklers, exterior parking spots- unless you do drive through load zones, and exterior wall surface.

e.  You might go a different way and consider a Car dominium.

f.  Do contractor garages or incubators.  Look up Kansas City contractor garages for a model.

Great area.  Best of luck.

@Trent Kloter

Really not much unless your doing "A" class RV's and boats.  $250,000 to $1,000,000 RV's example.

You have two types of storage operations.

a.  Straight storage, inexpensive parking spot.  $20,000 to $60,000 RV's and boats.

b.  Premium- you have covered parking $250 to $350 per month.  Then you can do the following services:

1.  Dump station

2.  Electrical hookup

3.  Wash station

4.  Concierge service: plug in refrigerator prior to trip to cool down, check tire pressure and oil, Park and Pull out, Clean out, Wash, dump, 

5.  Insurance your only making about $2 per month per policy.

Depends on your set up.

@Sean Hugo

We do anniversary.

We are at 1,100 units right now with another 360 coming online next year and another 200 the year after that.  In 5 towns and 8 locations. I would hate the first of the months, if we did it then.  Also, we rent out all month long.  Would like units be be resolved and cleared out at different time periods versus based on the first of the month starting the Auction or eviction cycle.

Whatever fits your lifestyle.  Cash flow part isn't that big of a deciding factor for me.

@Musa Elsir

Follow @Michael DeFrancisis notes.

Few reasons:

1.  Don't rush, ever.

2.  "Basis" change after death.  Using just numbers.  If she bought for $10,000 back in 1960.  And then she sells now for $400,000; she has to pay taxes on the difference.  If she doesn't sell and has it go to a trust to be executed against, then the "Basis" will go up to current market value.  Get an appraiser based on time of death.  Lets say it appraises at $360,000 and sells for $400,000; the kids only have to pay taxes on the $40,000.

3.  If she needs cash now, but might pass away soon, still don't sell.  Take a loan out against the appraised amount or other avenue.  Basically don't transact with the old "Basis".

4.  Don't have her "gift" it to the kids.  Same tax issue for old "Basis".