Originally posted by @Gregory Thompson:
There's not many forums on investing in storage units. So I would like to start one with the little knowledge I have. I'm active duty navy and I get out honorably in 9 months. I am most definitely investing in my own facility. Wether it's buying land and building or taking over a previously owned facility. Curious on how once the purchase or construction is done, how rough is it starting off considering vacancy? Would like to hear the start up process. I know advertisement as well as marketing comes into play. But just would like to know the start up process once completed. As well as like the monthly payments on the loan. I know y'all would have to see numbers and such forth. But an example of yalls facility numbers would help out a lot to be used as an example.
Greg Thompson
I've been personally involved with the actual development of a storage facility from the ground up and it was funded with a bank loan doing draws throughout the entire process.
Once completed and ready for business, You should count on 6 months to 1 year of working capital to cover overhead till the facility starts getting it's occupancy up and can cover its own.
Yes, it does depend on wether or not you will have a property manager on site throughout the ramp up stage so that's an extra factor to consider.
Other option is without one but then again it just depends on which storage model and size you go with going in.