Storage units - Posted by d.henderson

Real Estate Investing Self Storages
1

Posted by Brian on February 04, 2000 at 08:40:51:

How much money out of pocket do you need for a venture like you put in place. Where can I educate myself on this type of development. Now that you have done one would you do another?

thanks,
Brian

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Storage units - Posted by d.henderson

Posted by d.henderson on February 04, 2000 at 07:27:12:

I have been looking at the storage units. You know the kind metal rooms with a garage door approx. 10x10. Anyone have any experience with these? Money makers or libilities?
Thanks for the input,
Dee-Texas

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Great Business… - Posted by ray@lcorn

Posted by ray@lcorn on February 04, 2000 at 12:08:15:

…but it IS a business, and as such it demands much more time and energy than a passive real estate investment. This is not a bad thing, just a fact of life with the property type, much like a hotel deal being outside normal real estate activity.

Make sure that your evaluation of the venture includes the commitment to take on the management of a business and all it entails. Even if your project is big enough to support an on-site manager, you will still have to administrate the operation. The devil is in the details, but so are the profits!

Two sites that have a lot of great information about the business are: http://selfstorage.com/ (Argus Brokers) and the industry trade magazine at http://www.insideselfstorage.com/ From there you can link to all sorts of resources.

ray

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Re: Storage units - Posted by Bob in Indy

Posted by Bob in Indy on February 04, 2000 at 07:54:18:

I started mine from scratch 3 years ago. I contracted for a demographic study, created my business plan and now operate a facility that has 57,000 sq. ft. THe info on how to do this is well documented in the industry. I’d be glad to share sources of info and tips on how to figure the cash flow. Generally, you can build a facility for $20 per square foot and it will appraise at over $40 per sq. ft. when occupied. Obviously, different locations can make a big difference in the sale price.

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Re: Storage units - Posted by Jonathan Rexford

Posted by Jonathan Rexford on February 04, 2000 at 07:44:28:

Are you looking to build new ones? Buy and existing unit? I have built a few for investors and they tell me to look at the traffic flow. I have thought about doing them for myself but here in this area we are saturated. Their is a magazine call MINI Sorage News They have all types of information about investing and financing.

Hope this helps!
Jonathan Rexford
Mortgage Broker/General Contractor

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Re: Storage units - Posted by Ray (NJ)

Posted by Ray (NJ) on February 05, 2000 at 12:57:39:

Bob,

I, too, would like to know more about building storage units. Could you post where I can learn more about the details (how much land needed, minimum # of units, management wxperience, cash flow, etc.)

Thanks much

Ray