As a matter of fact, we were notified at least 6-9 months ago by some of our lenders that due to over saturation of (SS)facilities, they were either reducing Loan-to-Value’s or totally refusing to do loans on them at all.
Be careful and do your research before jumping in this direction. Sure there are some great locations, but do not think “if you build it, they will come”…
Posted by Dave Fl. on November 06, 2003 at 08:39:37:
I have been reading and posting on the mobile home board for several years, doing lonnie deals and trying to find an OK deal on a MHP. No luck. The more I read and research, the more I agree with Greg Meade, that MHP’s are overpriced and like the stock market of a few years ago, the bubble will burst. I still want to own a park but not at these inflated prices. All this to preface the idea that a SS (self storage) business is the way to go. Mr. Meade has said that SS is now what MHP’s were 40 years ago. There is much upside to an SS IF you build, not buy. So, are there any experienced SS people here? What should I look for to stay out of trouble while building an SS? I am new to this so I am bound to make some mistakes but am also willing to listen to more experienced people that I. O, I’m in Florida on the west coast and am looking at land east of I-75. I suppose the first step would be to go to the county building dept. and find out the requirements and restrictions. Sorry this is so long but I need all the help I can get.
Thanks in advance
Dave Fl.
Hi Dave, and everyone. SS is a very interesting topic - everyone buys “stuff” and then puts it in storage so they have room for their new “stuff”. (Thank you George Carlin), The demand can only grow. I notice all the posts on this board go back 7 years; any changes in the SS market of Summer 2010? I’m in San Francisco area in case it matter. Thanks for any feedback.
Actually… it was Doc, not Greg, that made those claims about self-storage… unfortunately, I believe his information (and thus his opinion) is abit dated.
Most of the country is already saturated with self-storage properties, with 80% occupancy (at an average of $40/mo) being the norm.
Storage USA (one of the big players) is currently trying to sell off 26 franchised sites (possibly more, but I’m sure on at least this many) as you read this. Why? Because they’re not making any money as an operator… and if they’re not, then it’s unlikely many other operators are either. The reason? Over-saturation.
Personally… I’d hold onto your money, the mobile home park “price bubble” (especially in Florida) won’t last forever. There are (future) bargains to be had by a patient person.