All Forum Posts by: Scott Krone

@Benjamin McCrite "I have a property I am interested in buying.  Can you assist me. It is not on the market.  If we close and the Seller won't compensate you, we can build that into our pricing."

@Benjamin McCrite  As @Logan Hartle suggests using a broker can help you assess commercial properties and determine the value. Ultimately the zoning (allowable uses), Net Operating Income and CAP rate set the values in commercial properties. Loopnet is a free resource you can use to research properties.

@Paul Moore  -  Kind of you, thank you. 

@Dan L.  You are wise to question the load capacity.  Most building codes required 125 lbs/sf of capacity, so the load has to be reviewed in consideration of the deck, joists, beams and columns.  Size and spacing are all important to evaluate the existing conditions.  It is possible to reinforce the structure, but that does impact rentable space.  Another major consideration for conversions is ceiling heights.  8' lockers, 18" clearance, sprinkler and HVAC all have to be below the structure.

@Benjamin S.  Much like SF or MF, we met them at self storage events, be it Masterminds, or SSA conventions etc.

@Brian Black - To answer your questions:

There are companies that strictly manage self storage facilities.  The fees vary based upon staffing requirements, and what is involved in taking care of the facility.

Self storage fees are typically on site staff (if required), call center (if no on site staff), AR/AP management etc, and marketing fees.  These can all vary from market to market and facility to facility.

When we partner on a facility, these fees are treated like another expense, they are passed onto the company.

30 miles away is not competition between the sites.  Typically competition is 3-5 miles or 20 minutes of driving.

With regard to splits on a partnership, each party should assess their goals and level of risk to determine their comfort level for their roles and level of participation.

@D'Ann Davis - Welcome to BP and self storage.  From your description it appears you are looking for both Class C and possibly Class B self storage.  I would offer there is not any one best practice for acquiring self storage.  We utilize a wide variety of methods:

We acquire commercial buildings and convert them into self storage.  

We also acquire land and build new.  

We utilize brokers for existing facilities.

We utilize wholesalers for existing facilities.

We have our own mailing list.

Our branding is self storage so people also send us deals.

I would suggest the first step is to define what markets, and value you are looking to acquire.  Another technique is driving for self storage.  Driving an area, and identifying every self storage facility in that market and calling them when you are there.  We have associates who have built a good size portfolio implementing this technique.

Hope and trust this assists you in our journey.

@Antonio Estrada - discuss with banks if she can co-sign with you on the mortgage.

Thanks @Paul Moore  @Peter Lee - I don't think price or distance is the issue in this scenario.  I don't think people will have the ability to wait for the site to be demolished and rebuilt.  People rent self storage because they have an immediate need, not something they palm for say 9 months away.

@Account Closed regarding classifying them as equipment.  The other component is how to describe them.  I don't believe shipping containers are the best use for your intended product.  I believe you are referring to portable lockers or PODS.  The companies that manufacture them also work with lenders to finance them.

@Marc Estepa That is the role of the developer is to cast the vision and assemble the team.  The team can be as simple as the architect and GC.  The architect can advise on all engineering and permit fees.  Taxes, insurance, carrying costs are things you can research (pull property taxes, tax with insurance broker, talk with lenders on debt service and title, etc)