storage facility idea - Posted by Jason ELmore

Posted by Don Dion on July 23, 2004 at 11:56:33:

I have done loans for both. The non franchise had a much slower fill up rate and when I delt with him never got past 75%. The franchise was full and I did a construction perm loan for additional units for him. The franchise has all the corners covered - marketing - natioanl tv ads- computer system for sales and accounting - affiliations with other companies for additional income ie:ups for shipping, ameri gas for sale of LP Gas ect for additional income streams. There was no comparison between the two in cashflo and cleints in the office/store area when I was at the two.

storage facility idea - Posted by Jason ELmore

Posted by Jason ELmore on July 22, 2004 at 24:28:42:

Hi all,

I have no experience in commercial real estate but I thought that putting up a self-storage facility in my area would probably be profitable. I don’t really know where to begin. Is it possible to get financingfor this sort of thing? ANy ideas on what kind of $$$ I’m looking at here for say a 100 - 200 unit facility. Any ideas would be appreciated.

Thanks in advance,

Jason

Re: storage facility idea - Posted by Paul

Posted by Paul on March 08, 2010 at 08:32:24:

I need the names of some manufacturers

Re: storage facility idea - Posted by Carlos

Posted by Carlos on July 22, 2004 at 12:26:29:

They can be tremendously lucrative – or not. The key is the market, including the specific location in the market. It’s best to be the only facility in a 3 mile radius of dense population, but if the population is large enough, many facilities can be supported. Think about 5 square feet of storgage required per person, or thereabouts. Then take the number of people, multiply by 5, and that will give you the total requirements (in square feet) for the market. Then figure out how much space is already available from existing storage facilities, and that will give you a ROUGH idea of whether there’s room for a new competitor or not.

It can be a great business in the right location, but a lot of people have figured that out, and some markets are getting overbuilt, mostly in the West.

Check out www.selfstorageguide.com for LOTS more info on this subject. Be sure to read their message board, called “Discussion Forum”.

It can be a lot of work, so you usually have a full-time manager to handle everything. If someone doesn’t pay, you can seize their property in storage and auction it off to get the fees you’re owed. Average rent and expenses vary tremendously as a function of the market, and the type of unit. (Single story, multi-story, climate controlled or not, etc…)

Good luck,

=Carlos=

Re: storage facility idea - Posted by Don Dion

Posted by Don Dion on July 22, 2004 at 09:06:33:

Here is a good source for listings on self storage units avail for sale. They are posted by state or zipcode depending on your search.

The value of your units, downpayment and end loan rate would be impossible to peg for you with such limited information. Are you going with a national chain or doing a non franchised self storage? Also the strength of your portfolio and credit rating will be a factor.
If I can be of any help in the fiancing of your project please feel free to email me directly.

Re: storage facility idea - Posted by Niamh Mastin

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Re: storage facility idea - Posted by Jason Elmore

Posted by Jason Elmore on July 23, 2004 at 11:14:40:

Thanks for the great input, Carlos. I will definitely look at the website. I live in a growing town where there currently is no storage facility. The nearest one is about 15 miles away. I really think it could do well if I can get it going. Financing is probably the greatest hurdle. Thanks again.

Re: storage facility idea - Posted by Jason Elmore

Posted by Jason Elmore on July 22, 2004 at 11:06:01:

Thanks for your suggestion Don, I will check out the website. I am looking at doing a non-franchised self storage. I don’t have a portfolio but do have excellent credit. Do I also need a business plan to present to lenders? Thanks for your help. I really appreciate it

Jason

Re: storage facility idea - Posted by Carlos

Posted by Carlos on July 23, 2004 at 18:49:08:

Your situation sounds like a pretty attractive scenario, Jason. Keep us informed of how things go.

=Carlos=

Re: storage facility idea - Posted by Don Dion

Posted by Don Dion on July 22, 2004 at 13:28:41:

I hope you have deep pockets. Being a non franchise you will need to put more down with the lenders. You will also have to be very concervative on your lease out numbers and time frame.

Re: storage facility idea - Posted by Jason ELmore

Posted by Jason ELmore on July 23, 2004 at 11:17:36:

I never thought about the pros and cons of not going with a franchise. Do you think going with a franchise might be better and easier to get financing? I will consider this now. Thanks a lott, Don.

Jason