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All Forum Posts by: Henry Clark

Henry Clark has started 197 posts and replied 3796 times.

Post: Convert Golf Course to Campground

Henry Clark
#2 Commercial Real Estate Investing Contributor
Posted
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  • Posts 3,868
  • Votes 3,866

Would recommend you do the following actions, before getting to deep:

a.  Check zoning.

b.  Check Sewer, water and electrical system needs.  Pads and roadways.

c.  Do market study in the area.  Competition.  Occupancy percentage.  Get rates for Daily and Season rental spots.  Keep these two areas separate in your park.  Season, gets the best spots.

d.  Clubhouse, is there a need for Wedding/other receptions in the area?

e.  Added services.  Far to the side, put in a RV/vehicle storage facility.  Also use Cargo Containers and make storage rental, near the RV/Vehicle facility.

f.  Personal residence- will you house hack and live in it.  See if you can do a 1031 from your current house into this property.

Sounds like a great REI adventure.

Post: Thoughts & experiences on overseas investing for new REIs?

Henry Clark
#2 Commercial Real Estate Investing Contributor
Posted
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@Julia Stroud

Agree with virtually everything said above. We started later with REI Self Storage and subdivision, wish we had started earlier. Also have made overseas investments in Belize.

Thoughts U.S.:

Invest in Texas first.  Do you have $5,000?  As mentioned above, start building your war chest and more importantly your experience and team.  

a.  Texas has the greatest laws on Tax sales and off list sales.  My brother lives just south of you, and last year bought two properties for $3,000 each.  Off list for $10,000 each.  One is on a major road in town, and they gave to his son who has it listed for $65,000 for 5 acres.  Normal $80,000 per acre.  Has a few issues but at least two nice home sites possible.  Try to buy land and not houses at first, until you understand why?

b.  Purchased subdivision lot for $10,000 back taxes and sold for $40,000 two years later.  Now worth $80,000 about 10 years later.

c.  Don't own anything, but get into the REI game. Your in Austin.  Tons of these BP members want into Austin from other states.  Example:  Offer on site third party tour reviews.  Video the property, neighbor hood.  Develop a review check list.  Charge them $100.  Offer monthly or quarterly onsite property reviews.  Whether new construction or existing rentals.  Charge them $30 to $50 per 30 minute visit.  Develop a review checklist and photo checklist. 

Chump change above?  Here is what is going to happen.  Your going to really get to know your market.  Get to know what other investors see value in.  Research their deals.  After a while one of them is going to ask you to partner with them or throw you a deal, that doesn't work for them, but works for you.  Your going to get to see Flip work going on.  Meet the Trades people and figure out who is good or bad, on someone else's dime.  Meet Realtors.  Etc. Etc. Etc.  Your going to get experience on someone else's dime.

Dumb- keeps making the same mistake.

Smart- Learns from their mistakes.  Has to pay for it.

Brilliant- Learn form other peoples mistakes.

d.  Visited near you two weeks ago, helped a friend identify a property for Self Storage and made an offer.  Spent 3 days and looked at 10 properties.  Not in my wheelhouse, but saw the need and locations for the following types of investments: 1.  Wedding/event center- brand new Oil lay down yard, with nice building, Oil is in a bust mode now., 2.  Need for Childcare center, Dance/Gymnastic/TaeKwonDo location, found great intersection, land, and neighborhood., 3.  Contractor Incubator location.  All other locations filled up.  These are higher priced investments, but your locale due to the growth, has a lot of new opportunities in neighborhoods that have out grown their support businesses.  Key point is your area is in a growth mode creating a lot of investment opportunities.

Overseas:

c.  Use your psychology background.  See the people above recommending you do this or that and why?  Forget whether they are right or not, but they are using Market Psychology.  Two beaches are the exact same and same price, which do you go with?

d. After I Boxed, I loved being close by so I could go home take a shower, get something to eat and go to sleep. No matter what type of REI you do, whether things go good or not, you will be "beat up" to get things done. Start first in the U.S. and more importantly Texas, until you have your experience built up. A lot easier to deal with things at home.

d.  Prior to making your overseas investments I would do the following:  1.  Vacation there several times, 2.  Do at least 2 one week trips (non-vacation) and spend one to two days with a different Realtor per trip and see properties.  You want to get your Expectations established.  Look at the type of properties you want to invest in.  Don't invest yet.  Start to build a team.  Electricians, contractors, lawyers, realtors, landscapers, management firms, etc.

e.  The majority of overseas investing, you will need to bring the "Cash".  Very few if any U.S. banks or investment firms will invest overseas.  With that said, don't wait till you have $300,000 to invest there, once you decide.  You might start doing some land investments for under $50,000 just to get your feet wet and this will cause your to start to develop a "Team" over there and forces you to learn doing business there.

f. In South/Central America, you are not a human. You are "Money". Although that sounds brutal recognize that. After that, make a "Family" down there. You have to have someone watching your property or it will get stolen or vandalized. My family down there is "Marc" my local contractor. Teaching him REI and investing. He could steal from me, but as I have told him, "You can either eat the Chicken or have a Egg per day for the rest of your life.". He understands that. Since I have known him for only a year, he now has a nice free living place, I have a free watch person, he owns a house lot which he bought for $3,000 which you and I would have to pay $30,000 for. Locals, get the Local deals. He has a new side rental equipment business now with a concrete mixer, scaffolds, lawnmower and weed eater. Small things for us, but huge for him. He is my family. Sends pictures once a week and calls as needed.

"Start small and Make Your Big Mistakes Early."

Post: Self Storage- Gates, locks and chains

Henry Clark
#2 Commercial Real Estate Investing Contributor
Posted
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  • Posts 3,868
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Just ordered our entrance gate yesterday. Will give you a run down on gate systems we use. We are in a blizzard so hey, got time. Over all our road ways are 25 foot wide. Use a 20 foot (drivable space) gate, the actual gate may be 30 foot long for offsetting weight and to stay on the rollers. You could go with a shorter gate. Make sure to put Posts or Bollards on each side of the gates, so no one runs into it.

We primarily use three types of gates on our properties. Two sided swinging/hinged gates for construction entrances, Walk thru gates- in case entry gate is down, and Entry gate- we use a Cantilever gate. If in the country side, we will do galvanized. If in the city we will use Black coated.  Two sided hinge gate around $1,000.  Walk thru gate (??).  Cantilever gate by itself without motor (rough $10,000).  Motor (rough $15,000).


Before we get into the entry gate, if you look at the walk through gate you will note a "Blue" chain and lock. PEWEG grade 120, 1/2 inch "square" chain. Get at a "Rigging" store. Use this type of chain since it is impossible for Bolt Cutters to cut; and extremely hard to cut with a cutoff saw. You may see a youtube with a Vise holding it and cutting it, but they won't have a Vise outside. For a lock we use the below which is a Master Lock, model 6127A Key??????. If you keep the model and Key number, you can buy or have the locksmith key to the same Key. This is not even close to the "BEST/BEST" lock out there, but is less expensive and great. Due to the heavy neck and metal strength, no one has been able to cut through this lock with a bolt cutter. I like the moisture cover for the key hole, for our weather.

Don't remember exactly the prices.

Chain is about $20 per foot.

Lock is about $25

​Three pictures above is our Cantilever gate. The next picture shows the Rollers for the gate at the bottom. There are 4 rollers, one at the top and bottom and then about 8 feet away is another set of top and bottom rollers. The gate rides on these rollers, and is called a Cantilever since the weight transferring over the rollers as you close and open, the weight on one side, helps offset the weight on the other.

​Good thing about this gate, is it can be turned off and then easily manually rolled open or shut.

a. Your gate might not being getting electricity. Breaker switch could be thrown- long term you need your electrician to check if that is happening. Make sure your Electrician when installing puts the gate on its own Breaker Switch. Same thing with your NVR and Computers.

b. First thing to check though if gates won't open are the sensors. See next section.


First picture. To access these controls, you must unlock the cover. Then second picture, turn the switch off.

Third picture is the manual latch lever.

Fourth picture. You must use two hands and at the same time, pull back on the Handle sticking up in the air, and lift the latch that is laying down on the locking arm, to the second tooth position. Then just roll the gate open or closed.

Some folks may use "Lift" gates where there is just one fulcrum point. Then the whole gate lifts up in the air, until it is at a 90 degree angle to the ground. My contractor has this gate at his storage. He says the only issue he has ever had is in an ICE storm and the gate was to heavy. He has to go knock off the ice from the gate.

Ice is an issue with the Cantilever gates also. On the top bar, we take a small hammer and knock the ice off. Otherwise it builds up under the roller wheel and blocks the gate as you open. On the bottom bar and Rollers, I usually take windshield wiper fluid and pour on the two bottom rollers and bar.





First thing to check if your gate won't open are the sensors. See if weeds have grown up or trash is near the Beam or reflector. Or if humidity or frost are occurring.

a. Make sure you have hoods on both your Beam and reflectors to protect them from ice and rain.

b. Put Rain X on them to keep them clean of ice, snow or humidity.  If you still have problems in the cold, your Beam may be freezing.  Get your gate company to install a heater on it.

c. You will have two sets of Beams and reflectors. One for the gate opening and one for the rear area where the gate retracts when opening. These sensors should note if there is a vehicle or a human blocking the signal and stop.

d. Also you may have in ground sensors on both sides of the gate where the vehicles drive through. The sensors, sense a vehicle and will stop the gate from closing until the gate moves. See the third picture below. After the driveway is poured, the Gate company will cut tracks in the concrete and lay a sensor wire there and cover up.

e. Some gates may use a Bumper sensor on the edge of the gate and if it hits something it will retract or stop.



​All or none of the above may be required depending on your government/zoning entity, your business model or other considerations. Also the above are what I use, not necessarily all or the best solutions on the market.

These automated gates can be programmed in several fashions.

a. Keypad, we use just a push button. You could use a code or a fob. We don't want the extra calls on I lost my code or fob. To beef up the security just using a push button, we have about $8,000 worth of special cameras. Face camera when you push the button coming in and going out. Special license plate camera that is built just for that. Passenger camera and an overall camera. Both sides of the gate.

b. You can program the time the gate stays open when activated.

c. We have programmed only during the hours 8 am to 9 pm.

d. We have a hard lockdown we communicate at 9pm.

e. Gate is accessible through our phone. We are 25 minutes away. So if someone gets locked in after 9 we can open, or if we want to test because of frost, we can do this over the phone. Or if police need to get in after hours.

Post: Self Storage Day to day Constructing a new facility

Henry Clark
#2 Commercial Real Estate Investing Contributor
Posted
  • Developer
  • Posts 3,868
  • Votes 3,866

​ Just ordered our entrance gate yesterday. Will give you a run down on gate systems we use. We are in a blizzard so hey, got time. Over all our road ways are 25 foot wide. Use a 20 foot (drivable space) gate, the actual gate may be 30 foot long for offsetting weight and to stay on the rollers. You could go with a shorter gate. Make sure to put Posts or Bollards on each side of the gates, so no one runs into it.

We primarily use three types of gates on our properties. Two sided swinging/hinged gates for construction entrances, Walk thru gates- in case entry gate is down, and Entry gate- we use a Cantilever gate. If in the country side, we will do galvanized. If in the city we will use Black coated.


Before we get into the entry gate, if you look at the walk through gate you will note a "Blue" chain and lock. PEWEG grade 120, 1/2 inch "square" chain. Get at a "Rigging" store. Use this type of chain since it is impossible for Bolt Cutters to cut; and extremely hard to cut with a cutoff saw. You may see a youtube with a Vise holding it and cutting it, but they won't have a Vise outside. For a lock we use the below which is a Master Lock, model 6127A Key??????. If you keep the model and Key number, you can buy or have the locksmith key to the same Key. This is not even close to the "BEST/BEST" lock out there, but is less expensive and great. Due to the heavy neck and metal strength, no one has been able to cut through this lock with a bolt cutter. I like the moisture cover for the key hole, for our weather.

Don't remember exactly the prices.

Chain is about $20 per foot.

Lock is about $25


Above is a picture of our Cantilever gate. The next picture shows the Rollers for the gate at the bottom. There are 4 rollers, one at the top and bottom and then about 8 feet away is another set of top and bottom rollers. The gate rides on these rollers, and is called a Cantilever since the weight transferring over the rollers as you close and open, the weight on one side, helps offset the weight on the other.


Good thing about this gate, is it can be turned off and then easily manually rolled open or shut.

a. Your gate might not being getting electricity. Breaker switch could be thrown- long term you need your electrician to check if that is happening. Make sure your Electrician when installing puts the gate on its own Breaker Switch. Same thing with your NVR and Computers.

b. First thing to check though if gates won't open are the sensors. See next section.

First picture. To access these controls, you must unlock the cover. Then second picture, turn the switch off.

Third picture is the manual latch lever.

Fourth picture. You must use two hands and at the same time, pull back on the Handle sticking up in the air, and lift the latch that is laying down on the locking arm, to the second tooth position. Then just roll the gate open or closed.

Some folks may use "Lift" gates where there is just one fulcrum point. Then the whole gate lifts up in the air, until it is at a 90 degree angle to the ground. My contractor has this gate at his storage. He says the only issue he has ever had is in an ICE storm and the gate was to heavy. He has to go knock off the ice from the gate.

Ice is an issue with the Cantilever gates also. On the top bar, we take a small hammer and knock the ice off. Otherwise it builds up under the roller wheel and blocks the gate as you open. On the bottom bar and Rollers, I usually take windshield wiper fluid and pour on the two bottom rollers and bar.





First thing to check if your gate won't open are the sensors. See if weeds have grown up or trash is near the Beam or reflector. Or if humidity or frost are occurring.

a. Make sure you have hoods on both your Beam and reflectors to protect them from ice and rain.

b. Put Rain X on them to keep them clean of ice, snow or humidity.

c. You will have two sets of Beams and reflectors. One for the gate opening and one for the rear area where the gate retracts when opening. These sensors should note if there is a vehicle or a human blocking the signal and stop.

d. Also you may have in ground sensors on both sides of the gate where the vehicles drive through. The sensors, sense a vehicle and will stop the gate from closing until the gate moves. See the third picture below. After the driveway is poured, the Gate company will cut tracks in the concrete and lay a sensor wire there and cover up.

e. Some gates may use a Bumper sensor on the edge of the gate and if it hits something it will retract or stop.




All and none of the above may be required depending on your government/zoning entity, your business model or other considerations. Also the above are what I use, not necessarily all or the best solutions on the market.

These automated gates can be programmed in several fashions.

a. Keypad, we use just a push button. You could use a code or a fob. We don't want the extra calls on I lost my code or fob. To beef up the security just using a push button, we have about $8,000 worth of special cameras. Face camera when you push the button coming in and going out. Special license plate camera that is built just for that. Passenger camera and an overall camera. Both sides of the gate.

b. You can program the time the gate stays open when activated.

c. We have programmed only during the hours 8 am to 9 pm.

d. We have a hard lockdown we communicate at 9pm.

e. Gate is accessible through our phone. We are 25 minutes away. So if someone gets locked in after 9 we can open, or if we want to test because of frost, we can do this over the phone. Or if police need to get in after hours.

Post: Self Storage Day to day Constructing a new facility

Henry Clark
#2 Commercial Real Estate Investing Contributor
Posted
  • Developer
  • Posts 3,868
  • Votes 3,866

​Building framing. They are building the last building for us this phase. 30 x 220. They have nailed the Studs to the concrete and then adding the purlins between the studs. They drill a hole in the concrete first, then they drill a threaded bolt into the concrete.


The next picture shows the side view. This building is a "Single Slope" roof to the right side. Studs on the back are taller and diminishing as they go to the front, where is the low side is. Will show you a side view, then show you the labels on the studs.


The next labels are on the front three studs down at the base. You will notice the last three digits are 118, 318, 518. This tells the erector the sequence to place the studs. These studs are on 5 foot centers. So if this was a 20 foot wide building with a Gable or double sloped roof; you would see 118, 318, 518, 318, 118. With the 518 being in the middle.



Will start setting up the location with signage, cameras, lights, etc. Also will start to finish out the Office and walk through that with you.

​​

Post: SFH MFH for Sale Council Bluffs, Iowa

Henry Clark
#2 Commercial Real Estate Investing Contributor
Posted
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My friend knows of two SFH/MFH investors who are old and want to start to divest in Council Bluffs. Each one has 3 to 4 units for sale. One I have met has up to 37 units in total and is over 80.

This is best for someone who can handle 3 to 4 units per year and can build a relationship to possibly take on more units.

Note, do not ask me any questions.  I have no interest if these sale or not.  If your interested send me your phone number and I will pass it on.

We do Self Storage only and are not interested.  You can check my background and posts.  I do not want to post their phone numbers and names on a forum.

Good luck.  Passing on info, that we can use.

Post: Self-Storage?

Henry Clark
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@Stanley Kallas

You will be way ahead ($) developing your own location. Looking at your background of 18 plus units SFH/MFG, you already know the business game. Just larger scale and a new product and customer.

a.  Look at Loopnet for land.  It is all to expensive in Danbury or along the corridors.

b.  Pulled up Sparefoot and hit the map in the upper left.  You have a lot of competition in the towns and along the corridors.  Easier for zoning there.

c.  Pull up Google- Self Storage Danbury.  Same thing as "b" above.

d.  For your first time out, I would not compete against these folks.  Look for blank areas where no storage shows up.  Look for cross roads and neighborhoods.  

e.  Then look up zoning.  Look also for conditional use.  See my post on Zoning I3?.

Your looking for about 2 acres with road frontage.  In the $200,000 to $300,000 range.  Your rents there are astronomical.  You could go higher even.

The harder it is for you to find a spot, the better.  Risk management, less chance for a competitor to come in.

I would stick with this model, small location drive up.  You win the customers by default because you are closer. 1 to 3 mile range.

You get 2 or 3 under your belt and you want to tackle the competition, then you can switch your location business model.

Do 1 Storage, versus 15 SFH/MFH. Have contractors do all of the concrete work and erection, don't try to save money on this. Get it up and running as fast as possible. Do a construction loan, with interest only payments until you are at 65% occupancy or 18 months from first rental date.

Good luck.

Post: Self Storage Day to day Constructing a new facility

Henry Clark
#2 Commercial Real Estate Investing Contributor
Posted
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Just started doing our year end tax work. Why, I have been doing a lot of posting the last day or so, just forestalling jumping into bookkeeping and taxes. I'm a retired CPA, Controller, and CFO; but I hate doing taxes. I am not giving any tax advice.

Luckily, I think we have gotten to critical mass, so we can start moving our bookkeeping to our CPA firm.

One note on Taxes and this project. The majority of your 15 year or less depreciable life assets can be accelerated in year one. Depending on the project status and the potential to bill prior to year end. I will contact all of our vendors and have them catch up their billings prior to 12/31 so we can pay.

Examples:
Electrical
Plumbing- road drainage
Road contractor
Security systems
Signage

Why do this?
In Self Storage you usually will have significant cash flow later, but at start up/rent up phase, you have less cash. This reduction of Income Tax, is a cash savings in the early stages. You will have to pay more in taxes in the future since you wrote of these assets, but you will have more cash then.

Post: Self Storage- Crime Management

Henry Clark
#2 Commercial Real Estate Investing Contributor
Posted
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Forgot, you need to protect your NVR.

Our security guy added a text alarm to my phone should the NVR either go offline or be detached.  The best thing is for Offsite backup, but this is expensive.

We already have virtually an Air Raid level megaphone in our Office if you don't type in the code quickly.  This literally will force you out of the building if you don't put both hands over your ears.

Post: Self Storage- Crime Management

Henry Clark
#2 Commercial Real Estate Investing Contributor
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Response to a persons question on Crime management at Self Storage

My Brother wrote the Nuclear, Biological and Chemical warfare manuals for all North American Air Force and Army bases. One California Fire Season he was in charge of the overall operations. When the bridges in Minneapolis fell into the river, he was in charge of assembling the Underwater task force for recovery. I'm saying he's trained to think logically and results oriented. On one visit, since I was on the School Board talked with him on School attacks and shootings.

Explained about our Active Shooter training, school kids training, should teachers have guns, etc, etc, etc.

He asked;
"Do you want to stop the Shooter, or prevent the Shooting?" He said we are all approaching it wrong.

Even if you wanted to stop a Shooting, most of the deaths and wounded occur in the first 1 1/2 minutes. Police response time even in a good situation is 5 minutes or longer. Not their fault. School front office has to verify there truly is a shooter, Notify Police, Police have to come, then they have to locate the shooter, and then they have to change their normal tactics and "Attack" versus "Contain".



So what has this got to do with Self Storage?


1. Prevent versus Stop:
a. Signage- cameras, alarms, Website, etc. Let them know your systems. Be a "Hard" target.
b. Customers- get rid of your troublesome customers. See my post on Bad Customers. I believe an article once said 70% of all Self Storage crimes are by people who rent there.

2. Catch them:
a. It takes the following actions to go through the "Legal" prosecution process.
- Catch them (cameras) both breaking and entering the unit. That unit, not a unit. If you camera shows 15 units, its slanted and you can't tell which unit they went into.
- Get a picture of them. I love people with Tattoos.
- Get a vehicle and license plate, so you can find them.
b. Put an alarm system to your night phone. I wouldn't have it go to Police (false alarms). You can re-act in 15 seconds based on your security system. Won't go into detail.