All Forum Posts by: Scott Meyers

I want to invite you to our special Self Storage Academy LIVE event, because this is an event you absolutely do not want to miss out on. Over the past year my partners and I have purchased more than 5,000 units totaling more than 1 MILLION square feet of self storage across the country. And at this event, we are going to show you exactly how we did it.

Hey Chip!

Please note that when we teach folks how to Actively Invest in Self Storage Facilities, the number one questions is: "How am I going to pay for that?" The answer is that it's about pursuing Value-Add Facilities.  

If there's enough upside you can borrow against this future value now.  Certainly, not through the bank but through Equity Investors, Capital Investors, Private Money, etc.  These folks will invest their own Capital now and expect to get paid out well in a few years when the Value of that facility has increased.

It's also the same model I use for our Passive Investments and investor Capital Raises (aka the Syndications we put together and offer out).

Please remember, that for the smaller investor most folks have "Friends & Family" who may have the Capital to invest, who aren't professional "Equity Investors" and would be willing to partner with you if approached correctly.   

If you like I could explain it better in a conversation.

Please let me know.

Scott 

Hey Dustin!

From a high level, you need the following bullet points answered (numbers where appropriate, narrative & thought-process, too):

1) What is the VALUE? (This is basically REVENUE minus EXPENSES = NOI / CAP RATE = VALUE)

2) What are the FINANCIAL ASSUMPTIONS (how are you gonna pay for that)?

3) Where will you take this Facility in 3-5 years? PRO FORMA

4) How are you going to manage it (IOW, you're buying a business, get away from the spreadsheet and think this through...you need to be able to explain it to yourself, your spouse, the bank, potential partners, etc.)

5) "How am I going to make money?" (That question needs to be answered for whomever might have a financial interest in your Facility, see #4 above)

Again, high level, but that's the best way to describe it in layman's terms. Answer those five and you're well on your way to whether or not to move forward.

Please note that there is a lot more to type or say or teach on how to properly evaluate a Facility, but all of those five above are imperative.

Good luck!  Please contact me if I can be of more in-depth help.

Scott

@Steve Cheslock  Thanks!  I meant to say that when I replied to Chip but pressed POST too soon.  Much appreciated.  

Hey Chip!

I'm glad to know that you were and still are interested in Self Storage and you had leaned on me to get the initial education.

Do you mind if I ask where the hold-up comes from?  

Everything we do is teach and do is geared towards helping that NEW Self Storage investor get into their first Self Storage Facility, and teach you that skillset so that you can do it again & again.

There's the thinking that you can (Mindset), what & how to actually do it (Specialized Knowledge), getting out and actually doing it (Action), and someone to make sure you did it (Accountability).

And, as we've been at this for over a decade, we do indeed have some tips to help and ensure that you can and did.

Please let me know.

Scott

Hey Cole!

Please note that I could type A LOT regarding this.  You should take a look at some of the other threads regarding Self Storage (Henry Clark, Mike Wagner, Scott Krone, just to name a few) on evaluating a Self Storage deal.

From a high level, you need the following bullet points answered (numbers where appropriate, narrative & thought-process, too):

1) What is the VALUE?

2) What are the FINANCIAL ASSUMPTIONS (how are you gonna pay for that)?

3) Where will you take this Facility in 3-5 years? PRO FORMA

4) How are you going to manage it (IOW, you're buying a business, get away from the spreadsheet and think this through...you need to be able to explain it to yourself, your spouse, the bank, potential partners, etc.)

5) "How am I going to make money?" (That question needs to be answered for whomever might have a financial interest in your Facility, see #4 above)

Again, high level, but that's the best way to describe it in layman's terms.  Answer those five and you're well on your way to whether or not this "LEAD" (and they're all leads until you determine if it's a "deal" or not) makes sense to move forward.

HOW you do that...well, that's a whole nother story.

Good luck!

Scott

Hey Nicolai!

Self Storage investing is a simple yet hard business model.  Simple, because it's basically metal sheds on concrete slabs AND that you're buying it by the gallon and selling it by the shot.  Hard, because a lot of the low-hanging fruit is gone and you're going to have to get off the beaten path and turn over a lot of rocks.  

And it can be very easy to get dissuaded by a stranger (or Realtor) telling you you should have done this 4 years ago, or you're unbankable, or you can't do it, or whatever.  Please note that hard work beats brains or talent every time.

I recommend that you learn how to find and source deals, go do it, and the capital will follow.

We've been investing in Self Storage for 15+ years and I've been helping folks new to this business for over a decade. (Thanks for the shoutout @Jay Hinrichs).

Please note that Self Storage investing is NOT a get-rich-quick scheme.  It is taking a proven process (I have one, so does Mike Wagner, Scott Krone, Henry Clark) and working it again & again until you win.  If you truly want to be a Self Storage investor and are relentless and persistent, and stay after it, you will be successful.

Good luck to you!
Scott

Hey All!

Yes, I'm investing in Self Storage and have been for 15+ years. Also, been helping folks learn the business for the past 12.

Self Storage has been very good to me and my family and I highly recommend it.

Yes, it is a simples business model with basically No Toilets, No Tenants, and No Trash.  However, it can be at times a bit hard as the low-hanging fruit is gone and there's a lot of eyes (including institutional money) on the sector.  But if you're willing to get off the beaten path and turn over a lot of rocks, you will be successful.

If I can be of any help, please reach out.

Scott 

Hey Rick!

As you saw from some of the other comments, you'll probably want some more information to truly find the value.  Course, what you supplied could also get you some rough back-of-the-napkin math for a ballpark figure, at least enough to ease your mind. 

My concern, if I were you, would be why don't that rental rates increase or the Facilities appreciate in value?  

Yes, you're buying a Self Storage Facility and you need to know the physical aspects of the Facility as well as the Financials, but you also need to conduct a Market Study (which will include a Supply Index) and Competition Analysis.  

Storage is a commodity so you're basically competing on price.  Too much supply/not enough demand and the price goes down.  If your Market is oversupplied, and there's not a lot of population growth coming in, you'll be hard pressed to get ahead of that.  And flat rates and no appreciation is a good indicator.

And if that's just the way it is, then you'll be buying for the yield: Revenue minus Expenses minus your Loan Payments and then determine if what's left over is truly the best use of your time, effort, and initial cash upfront.  No increase in rents nor value and the juice might not be worth the squeeze. 

Anyhow, just my thoughts.  Good luck to you and please keep us posted as to what you end up doing.

Scott

Hey Ben!

Sorry for the delay in posting. Yes, it's possible and actually quite realistic, IF you go about it with a plan.

The simplest formula for SUCCESS is 1) Make a plan, 2) Work the plan.

Please query the subject of "Self Storage" here on Bigger Pockets and then take a look around.  You will find numerous articles, forum posts, folks who are knowledgeable and willing to share, and so forth.

Please let me know if I can be of any help.

Good luck to you.

Scott