All Forum Posts by: Scott Meyers

Hey Coy!

Yes, on what @Ryan Alexander and @Kevin Bledsoe said.  

You need to know the Value of the Facility (what's it worth?) and the Financial Assumptions (how are you going to pay for it?) And then have these three questions answered: 1) What is the value-add? (aka Pro Forma, 2) How are you going to manage the Facility?, and 3) How are you going to make money?

You answer all that by looking at the Physical Aspects (size, age, # of units, etc.) and the Financials (P&L, Books & Records) so that you can see the Income Stream.  And then you have to put it into context by conducting a market study (1-3-5 mile) for population, income, car counts, etc., as well as a Competition Analysis (what are the other facilities like in that 1-3-5 mile radius, e.g. management, curb appeal, occupancy, street rates, etc.)

If you can determine all of this, you will have a very good indication as to whether it makes sense to move forward or not.

I hope this helps.  Good luck!

Scott

Hey Matt!

Yes, you're going to need to join YOUR specific State Self Storage Association and use the lease they recommend/require.  Overall the concept of Self Storage is fairly simple & straightforward nationwide, but the specifics do indeed differ state to state.

But also, please peruse the current lease the Seller is using - at least you'll know what they've agreed to with the current tenants and vice versa.  And if you need to change it you'll know what & why and be able to explain it to them if need be (your soon-to-be current customers that is).

Best of luck to you!

Scott

Hey Matt!

I'm in agreement with @Zach Quick, meaning we're familiar with Sitelink and StoreEDGE, but am most partial to Easy Storage Solutions.  

And I believe in "aces in their places", so if you're going to own and operate a Self Storage Facility, I highly recommend an exclusive Self Storage Management software.

Good luck to you!

Scott

Hey Adam!

We've put together all of that over the years - both a Self Storage Mastermind and syndications for specific deals (Acquisitions, Conversions, & Developments), as well as a few of the other benefits that you hinted at.  I'd be glad to discuss with you.

Scott 

Hey Jonathan!

I'm bullish on Self Storage investing and have been for quite some time, especially as we stand on the precipice of who-knows-what regarding the market, economy, and so forth.

Self Storage has proven to be historically Recession-Resistant mainly because we're in the Transition & Trauma business, and as long as (unfortunately) there's divorce, death, down-sizing, & so forth, and as long as Americans are addicted to our stuff, there's going to be a need for Self Storage, basically 7 SQ FT per person all across this land.  So all signs point that it is NOT going away any time soon.

Also, there's numerous articles (so it's not just my feelings) that I could link to that show this to be true.  But what is even more exciting is that the move seems to be from the Primary Markets out into the Secondary and Tertiary Markets, a place that we've been advising folks to look at and invest in for years. 

Anyhow, that's my two cents.  Please let me know if I can be of any help to you or any others on Bigger Pockets who might like to learn more about Self Storage investing.

Scott

Hey Robert!

Yes, my partners & I are currently involved with one in Punta Gorda, FL.

Boat & RV Storage is indeed a niche strategy.  You'll typically see them partnered with traditional Self Storage - meaning those Facilities offering Storage Units for folks to store their household treasures AND on-site parking spaces for Boats, RV's, company trucks, etc.  That way you kind of hedge your bets (aka Risk/Reward).

Self Storage is historically Recession-Resistant as it has everything to do with Death, Divorce, Down-sizing, Dislocation, etc. - things that are prevalent in normal times and certainly, in not-so-normal-times, too.

However, RV & Boat Storage is similar but different, in that approx 1 out of 10 folks in the USA rents a Self Storage Unit, and that is not the case with Boats & RV's; hence it being a much more niche strategy.  You don't have the general population to fall back on for your historical & future trends.  

Also, Self Storage is needed in good times & bad, but that is not always the case with Boat & RV's.  When a large corporation is in financial dire straits, one of the first things they get rid of is the company jet.  Same can be said for a household.  The boat & RV is usually the first to go.

But we are certainly in interesting times right now as RV's & Campers seem to be in hot demand with some places having a hard time keeping them in stock and on the lot if it's a good deal.  They're being bought quickly.  And unless they're strictly for living in full time & travelling, they're going to need to be stored somewhere, right?  What I'm saying is you can't necessarily use conventional wisdom for 2020.  Question remains is: what does it look like in the years post-2020?

However, if you do your market research to determine the supply & demand and look at what other Boat & RV Storage Facility's are doing nearby, and pick a good market (Florida - the entire state is practically a boaters paradise, and for those that don't boat, well then, they RV.  Granted that's a broad generalization, but I think you get the point.)  You have to pick & choose your markets just like you have to pick & choose your assets classes.

And yes, the SBA does allow for Boat & RV Facility loans.  Course, I'm sure you know, the SBA doesn't actually lend any funds towards your business, they just underwrite & (partially) guarantee the actual lender who is loaning your business the monies.  So you'd be subject to that banks underwriting (in general & SBA) criteria, as well as their primary focus on businesses.  (Meaning some banks may, some may not - you can't force them to loan you the funds just because they are an SBA-approved lender.)  But if you have a solid plan, most likely a feasibility study, you ought to succeed in finding the funds.  Course that means your plan makes sense with or without government money.

I hope this helps.

If you have any specific questions - please feel free to post here and/or PM me.

Good luck to you!

Scott     

Hey Deshaun!

I second what @Zach Quick said - first start with a search on Biggerpockets regarding Self Storage investing and you will find a plethora of information.  

Probably so much that you'll be overwhelmed , but please remember that there's: Acquisitions (buying of Existing Self Storage Facilities); Development & Conversions (building a facility starting with dirt or converting an industrial warehouse or Big-Box Retail store into Self Storage);  Raising Capital; investing in a Syndication, & so forth.

And there are plenty of folks here on Biggerpockets who have started forum topics, added posts, and greatly contributed by sharing their knowledge & experience.  Again, a quick search and you'll see what I mean.  

After you peruse "Self Storage Investing" here on BP, please let us know if you have any specific questions and we'd be glad to help.  (Granted, I can't speak for anyone else, but most of us are pretty forthcoming in order to help folks out who genuinely want to both learn the business and get out & do it.)

Good luck to you!

Scott

Hey Anik! (and thank you @Paul Moore for the shoutout)

Self Storage is a great industry/business/asset class to be in, and highly recommend that you check Self Storage investing out in its entirety and make an educated decision as to whether or not to get involved and move forward.

It's a simple business model and can be quite lucrative. Of course, that means it also cuts both ways, in that if you're not going about it correctly you can severely hamper yourself, too.

There is a lot of knowledge out there - some that you'll have to pay for (but well worth I like to think) and lots of information & knowledge for FREE. You can contact your State Self Storage Association, watch numerous You Tube videos, and obviously there’s a plethora of posts & forums on Biggerpockets. @Henry Clark has been incredible recently in sharing his knowledge and @Scott Krone certainly knows the business too.

Regardless, of how you piece your learning together, everything (soup to nuts) for an Acquisition is either FINDING a lead, EVALUATING to determine if it's a deal, now you're in the PURCHASING phase, and after you close, it's then all about MANAGING the Operations so that you are increasing both Income & Equity/Value.

Also, you may think that it makes more sense to build than to buy, in which case you’ll want to learn about Development & Conversions. And most folks are stuck on “how am I gonna pay for that?”, so to ease your mind, familiarize yourself on Raising Private Money & Syndications for Self Storage. I cover all of this and have for the past 12 years

Basically, if you want to piecemeal it together, please check out the National & State Self Storage Association, Inside Self Storage, Bigger Pockets (but of course!), & You Tube.

If you want to cut to the chase with an introductory, systematized method that works and has the track record to prove it...I know of one very well.

Best of luck to you and please keep me posted and/or let me know if I can be of any help.

Take care.

Scott

Hey Cody!

I just posted about this on another post, but here's the gist...

There is a lot of knowledge out there - some you'll have to pay for and lots of information & knowledge for FREE. You can reach out to your local (state) Self Storage Association, peruse topics on You Tube, and certainly many, many forums here on Biggerpockets with quality folks & quality content.

Regardless, of how you piece your learning together, everything (soup to nuts) for an Acquisition is FINDING, EVALUATING, PURCHASING, & MANAGING.

If you think that at times it makes more sense to build than to buy, then you'll want to learn about Development & Conversions. And to really ease your mind, familiarize yourself on how to raise all the private money for Self Storage that you'll ever need. Done and done.

If you realize that those above topics are pretty much everything about Self Storage AND you learn those three (precursory will work, in-depth is better), you've got all your bases covered. After that, it's just a matter of getting out & doing it!

So if you want to piecemeal it together, please check out SSA, BP, & YT. 

Good luck! 

Scott

Hey @Matt Smith!

I'm partial to Scott Meyers (for obvious reasons).  Yes, there is a lot of knowledge out there - some you'll  have to pay for and lots of information & knowledge for FREE.  You can reach out to your local (state) Self Storage Association, peruse topics on You Tube, and certainly many, many forums here on Biggerpockets with quality folks & quality content.

Regardless, of how you piece your learning together, everything (soup to nuts) for an Acquisition is either FINDING a lead, EVALUATING to determine if it's a deal, now you're in the PURCHASING phase, and after you close, now it's all about MANAGING.

If you think that at times it makes more sense to build than to buy, then you'll want to learn about Development & Conversions.  And to really ease your mind, familiarize yourself on how to raise all the private money for Self Storage that you'll ever need.  Done and done.

If you realize that those above topics are pretty much everything about Self Storage AND you learn those three (precursory will work, in-depth is better), you've got all your bases covered.  After that, it's just a matter of getting out & doing it!

So if you want to piecemeal it together, please check out SSA, BP, & YT.  If you want an introductory, systematized method that works and has the track record to prove it...I know of one very well.  And @Michael Wagner is a good resource, too.

Regardless, best of luck!  And please let me know if I can be of any help.

Scott