All Forum Posts by: Ari S.

@Keith C.@Zach Quick@Mitch Messer @George Fitz the data is there and I attached the pic above. Thanks for pointing that out Mitch. 
If you look at the bubble chart big national storage chains like Cubesmart, Public Storage, Extra Space storage and four more. These are big national chains and I don't think they can data on Mom and Pops now. But I agree with @Jay Hinrichs that when push comes to shove, people will not pay for SS. 

If you look at REITs Self Storage is not down as much as other asset types, but still down -16%. See graphic below. Source is Green Street Advisors.

We have to continue monitoring to see how this progresses, but SS REITs are down and Big SS Chains are as well. 

@Michael Wagner glad to hear that. If you had to boil down the #1 selling point in self storage, what would it be? I am guessing it would be that it is a very profitable asset type with low maintenance, no plumbing, HVAC and minimal electric. I think somewhere along the way people started talking about it as a recession proof and I think it is definitely more susceptible to a recession vs. multifamily or MHPs because it is discretionary

@Taylor L. Nice hearing from you man. I thought this was a good article that challenged conventional wisdom on self storage. I feel there are assumptions we just accept in Real Estate Investing like SS does better during recession and this looked like data to the contrary so I wanted to share it. SS is much more discretionary than housing. For independent operators if you bought right and don't have too much debt you can weather the storm, but nationally large chains appear to be suffering. A lot of people who left NYC may have taken their stuff with them and they will have more space if they more to a smaller city.

Self Storage has always been touted as recession-proof but data is showing people are spending -50% less on it since Coronavirus quarantining. What do the experts in this space think? Are folks deciding to cancel memberships or monthly subscriptions they don't need now? We've cancelled Gym and others to save costs.

Interesting article below to show where spending is going in the first months of Coronavirus quarantine in the US

https://www.nytimes.com/interactive/2020/04/11/business/economy/coronavirus-us-economy-spending.html

Hello - We are moving into the physical due diligence of a 48 unit property in Pittsburgh PA. Does anyone have any recos for Property Managers who operate in that area? Someone based there who can walk through a property? Thanks!

Hi Paulette

Also recommend you look at bestplaces.net

Williamsport population has been declining at -9% and unemployment is at 7.4% well above national average.

https://www.bestplaces.net/city/pennsylvania/willi...

Lock Haven for example is seeing 7% growth.

@PatrickLiska - I will send you a message. Want to connect with you on this area.

Best

Ari

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Thank both of you for your reponses

@Adrian Smude i give chocolate or warm slippers so they feel nice and cozy in the property. Gifts should promote behavior you want like longer term tenancy for example stuff that makes them enjoy the unit more or things they can enjoy at home. Psychologically can increase their desire to stay longer if it is comfortable and homey.

Hello BP!

I am working with an investor group based out of Latin America. We want to learn more about regulations with borrowing to foreign investors. Specifically, when purchasing a commercial multifamily property that requires commercial financing. Are there any regulations on how much they can borrow, rates and length of time they can be fixed, amortization, time for approval  or any other stipulation we should know about? 

I did some initial research and saw it is hard to get Freddie/Fannie mortgages and rates may be higher and take longer. It is tougher for them to track down borrowers overseas.

What are some ways to work through any of this? Set up an LLC with a US Citizen (myself)? Any other creative entity structuring that can help us work through any of this?

Thanks!

Ari

Thanks for the replies. Looks like no one recommends Venmo so far