All Forum Posts by: Michael Wagner

Once up and running, I think that self storage is the most efficient asset class for building long term wealth and cash flow. Of course both of these metrics are a result of how much heavy lifting you are willing to do up front. I personally like to only invest in value add properties that require a good bit of work up front so I maximize the equity created, minimize stabilized LTV and maximize cash flow. After the first couple months, they only require a couple hours per week to operate. And we've found that this asset class works very well as a remote investment!

The first facility I bought rained INSIDE the building;)  I didn't know that a non climate controlled facility should still have insulation to prevent condensation.  I live in NY and we had a 70 degree sunny day in January...so the hot roof caused the cold air inside the building to condensate in big ways!  Had to pull up 10K square foot of roof, insulate and re-install the roof. Also dealt with the annoyances of glitchy gates before I resolved that issue and have had a few break-ins at various properties but we've always caught the bad guys in the end.  And even with all that stuff, I can safely say Storage is my favorite asset class on the planet.  Even after factoring in those "horror stories" they pale in comparison to the ones from my landlording days!

I also just spent $81K to replace a roof on a 45K square foot conversion project (after spending $15K to TRY but fail to fix it;).....  And that was after spending $40K to replace a wall.  Both were surprises.  Fortunately we bought the property for $3.65 per square foot so the money was there to fix it right!

Rereading this post makes me feel like I don't do anything but screw up;)....I'll resist the urge to counter the above with all the things that have gone well for us in this industry;)!

I'm a self storage guy so that's where I put all my money.  But its not to be entered into blindly.  Lots of benefits and can be highly profitable if done right. Also has nuances that one must be aware of.  Definitely worthy of consideration if you are still trying to narrow down the specific asset class that you deploy your money into.

Just one of the THOUSAND reasons I love storage. Multiply that increase by the 150-300 plus units and that facility and it really starts to get exciting! 

Yes this is a very personal decision. You should FIRST take the time to inventory your investment objectives, risk tolerances, resources outside of the $85k (time energy, desire) and then select a couple inches to get smart on BEFORE spending the money. Personally I think self storage is the most efficient way to grow wealth but it's not magic. Whatever you decide be sure to diligently learn the process so you know what you are signing up for.

Love storage! I started in landlording and will never go back. And I've seen many folks start in storage and do quite well. Clearly there are nuances to be learned and you'll need to do it right but to me, it's the most efficient investment vehicle.

You are spot on here. And it's important to remember that storage is a MICRO market industry. With that, if the primary market you are referring to is anything bigger than a 1-3 mile circle, there could very well be "pockets of opportunity". I wouldn't personally try to thread that needle. Instead, I look to invest only in markets that are underserved...and there are lots of them!

Love Storage and agree with your assertions here. We are currently finding our best deals in the SE. Florida, Georgia, Alabama, NC and SC. We also own in PA, MO and IN. We try to "compound" our buffer to recessionary forces by focusing on neglected properties in small tertiary markets with favorable supply/demand. Generally speaking we try to by at or near $0.50 on the Stabilized Dollar.

 Short on time this morning for a response that these questions deserve. So I shot you a PM to connect!

Single Story Climate controlled might start in the $45 per square foot range and extend up to $85-100 plus per square foot for state of the art class A, multi-story construction.