All Forum Posts by: Nick Heil

I just sat in a an awesome real estate meeting last night and a man in his 60's told us about how he retired 9 years ago with millions of dollars worth of paid off rental properties because he started buying 40 years ago. He had a son late in life who is only 14 now and he got emotional talking about how awesome it is he can do whatever he wants everyday and spend his time with his son. American Dream Realized. Countless stories like this. One of the primary reasons real estate is such an effective wealth builder is because debt can be used so efficiently. If debt could be used in a similar fashion in the stock market then the stock market would clearly be better, but you can't. It's much more costly and risky to do so... So yes, there are millions of people still in the real estate game after 10 years utilizing debt. 

Hey Jordan, self storage is an awesome business. They are definitely harder to buy than any of your other real estate asset classes just because there are less of them and generally competition for them is high. I've tried to acquire some over the years, but ended up not working out because the cap rates just didn't make sense in my opinion, so I have grown in the business via portable self storage, which has been awesome. Purchasing can definitely be done though, and Scott Meyers who already posted is a great resource for that. Also, don't forget to pay attention to the public REITS that invest in self storage, too. They have offered some pretty amazing returns over the years. EXR, PSA, CUBE, SELF, IRM, NSA, LSI to name a few.

 Hey Gary, no PODs is not a franchise. They are a privately owned business (Actually owned by a Canadian pension fund). I got started from scratch with my own units and delivery system. There are a lot of different types of units and delivery systems out there so you have to do research and decide on which system is best for you and your particular area. There are some franchise opportunities out there for this business, but I wouldn't recommend that route. It's a simple enough business and concept that I don't think the franchise model is necessary, unless you really want to pay all the additional franchise fees! 

@Mindy Jensen lol, have you ever seen PODS? It’s a self storage container, only you can move them with the right equipment. Customers rent them month to month just like a traditional self storage unit only I can deliver the self storage unit right to their front door. If they want me to move them loaded I can do that too. Or, if a customer just wants to rent a portable container right at our location just like a traditional self storage unit they can do that too at cheaper rates. It’s the best of both worlds. I started in this instead of traditional self storage because you could start small. I started with 4 units and have over 80 units today.

I was lucky in that I was passionate about personal finance and investing from an early age, probably 9th grade. So I started investing in the stock market early, knew the importance of a high savings rate, and have always been cautious about spending. I only use debt for real estate/business deals and I'm well on my way to building some significant wealth and I'm only 28. However, what I would tell myself at 19 is to buy my first house hack sooner. I went to college for Finance and moved to Philadelphia after college to work a finance job for a couple years. I waited until I moved home two years later until I bought my first house hack. It was a great buy, I just wish I would have done one in college, and again when I lived in Philadelphia, and then I would have been on my third by time I moved home. 

Most people go for the land because they can push a lot of the risk onto the mobile home owners. Landlords are no longer responsible for the repairs & maintenance, but still collect the lot rent. That's another reason the mobile home parks that are connected to public utilities are a lot more valuable, less risk on the landowner. Private wells and private septics can be a disaster in those deals. Nothing wrong with your idea, though. I think it's certainly possible, but Chris makes a good point. The mobile homes you are purchasing will likely be decreasing in value, but if you can get great consistent cash flow that might not bother you so much.

Hey Mindy! I'm in portable self storage. I saw demand slow a little during this, but the majority of the units I had rented out stayed rented out and I'm still collecting mostly all rent! Some are on auto-pay, but others provide to log into my website and pay, and some people still prefer old fashioned check in the mail. I try to provide as many payment options as possible. My turnover has largely been unaffected, just renting less brand new units at the moment, but starting to pick up again. I'm anticipating May to continue picking up as a lot of people performing renovations like to use my portable units.

One way you can passively invest in self storage is to buy the publicly traded REITS. Extra Space Storage (EXR), Public Storage (PSA), Cube Smart (CUBE), Uhaul (UHAL), Life Storage (LSI), Global Self Storage (SELF), National Storage Affiliates (NSA), Iron Mountain (IRM), Big Yellow (BYLOF - this one is traded in the U.K.), StorageVault Canada (SVAUF - this one traded in Canada) 

Hey Evan! I got started with house hacking a duplex and since then have acquired several more duplexes. I live in the rural North East so not a lot of appreciation here, but cash flow is great on small multi-families. I think house hacking is definitely hands down the best way to get started for all the reasons already highlight for you; low down payment etc... In addition, you can still pursue any of the other strategies from a start in house hacking. Just a great way to learn and get started. I also started a portable self storage business which has been great for me. 

Keep on reading, get started with your first house hack, develop a high savings rate, work hard, and invest in the stock market and more rental properties and you will do great!

Don't be afraid, just put together your plan and go talk to them anyhow. If they say no, move on to the next one. If you have a good asset position, which sounds like you do, and you can show that you still have income and are working towards something then they will still work with you. In 2018 I quit my job and was just doing my storage/real estate business full time for 6 moths (I had good assets but also a lot of good debt at this time) and during that time I bought my wife and I's personal residence we live in now and the bank didn't even bat an eye. Just depends the lender and the type of relationship you have. You're right in that it could certainly be more difficult, but again persistence and relationships are key here. You can definitely get it done.