How Parking Could Support You Today in Getting in Self Storage
Sometimes it is hard today to find deals that could work as you look at buying and getting in the self storage business. Let me give you an example of how parking can sometimes support you. I analyze five to ten deals per week most weeks, and I ran across one a few...
How in the World Can I Buy Self Storage Today, Given the Prices?
It is challenging today to purchase existing self storage—no doubt about it. But can we small investors do so. And do it in a way that cash flows and gives us the returns we need? Yes, you absolutely can. It is done every day. However, it requires more work than it...
Becoming Masterful at Reading Financial Statements in the Self Storage Business
Remember, according to Bloomberg, 8 out of 10 entrepreneurs who start businesses fail within the first 18 months. A whopping 80% crash and burn. And yes, the primary reason companies fail is they run out of cash. Warren Buffett says, “The language of business is...
All Cash Is Not Created Equal
Remember, according to Bloomberg, 8 out of 10 entrepreneurs who start businesses fail within the first 18 months. A whopping 80% crash and burn. And yes, at surface level, the primary reason businesses fail is they simply run out of cash. Here are a few other...
What Your Profit & Loss Statement Doesn’t Tell You
It’s amazing how many of us in the self storage business don’t know much about financial statements and financial literacy. I had a big learning curve and still am not as strong as I could be. But then again, balance sheets and profit and loss statements are not very...
The Four Elements That Make a Good Self Storage Site
I recently was traveling looking at some sites for some self storage projects and thought it might be good to write an episode outlining what I think makes a good site. I have made some real mistakes on this in the past. There are four main elements that make a great...
My Takeaways From The Inside Self Storage Convention 2021
It was good to be back in Las Vegas at a self storage convention. I didn’t realize how much I missed it until I was there. Here are a few takeaways from being there that may serve you as you grow or get in this fantastic business of self storage. Construction...
Episode 300 – A Look Back at 300 Self Storage Episodes
This is a different episode than the rest. Let’s look back and see a few highlights from 300 episodes of self-storage over the last six years. The industry has changed, we have changed, but some things stay the same....
Why I Don’t Use CAP Rates In Self Storage & What I Do Use
I don’t use CAP rates much when thinking about self storage, at least when I am buying it. In my opinion, today, they are misleading, not accurate, and not a good way for me to relate the value of a facility. At least not the way they are being used today in our...
Three Reasons Self Storage Has a Bright Future for the Small Investor
I have discussed in my training and classes why I think there is a bright future for the next decade or so for the small investor in self-storage, but I realize I haven’t created an episode for the general public on this topic. Here is it. There are three main reasons...
Why Self Storage Conventions Have Never Been More Important For Small Investors
OK… I have said before our industry is evolving fast, but now I really mean it. I can remember when I met the first person I ever knew in the self storage business. It was an Acquisition Director for a REIT in the mid-1990’s. He told me self storage was a boring...
Mixed-Use Projects In Self Storage Today
There’s no doubt about it. Self-storage is harder to get into, grow, or figure out today than ever. Prices are still high, CAP rates low, lots of new product to compete with, and many other challenges to tackle as a small investor. Here is one way to reduce the...
Budgeting for Self-Storage Capital Expenses
If you are considering getting into the self-storage business or in the self-storage business, one of the attractive features is the low amount of ongoing capital expenses. Unlike multi-family, office, or even retail, there are very few capital expenses required to...
Due Diligence Series # 6 – Putting Your Self Storage Facility Into Service
We are in the sixth and final episode in a series centered around the due diligence process for self storage in today’s world. We have covered a lot. So far, we have discussed: Timelines and what to get from the Seller. Physical inspections and third-party vendors....
Due Diligence Series # 5 – Conversions
We are in the fourth episode in a series centered around the due diligence process for self storage in today’s world. So far, we have discussed: Timelines and what to get from the Seller. Physical inspections and third-party vendors. Financial records and operational...
Due Diligence Series # 4 – Expansions
We are in the fourth episode in a series centered around the due diligence process for self storage in today’s world. So far, we have discussed: Timelines and what to get from the Seller. Physical inspections and third-party vendors. Financial records and operational...
Due Diligence Series #3 – Financial Records and Operational Review
We are in the third episode in a series centered around the due diligence process for self storage in today’s world. So far, we have discussed: Timelines and what to get from the seller. Physical inspections and third-party vendors. Read Last week’s blog here....
Due Diligence Series # 2 – Physical Inspections And Third-Party Vendors
Here is the second episode in a series centered around the due diligence process for self storage in today’s world. Last week we opened the series discussing the building blocks for a successful due diligence period as we discussed the timeline and what to get from...
Due Diligence Series # 1 – Timelines and What to Get From the Seller
I realize I have not done a detailed series on the due diligence process for self storage acquisitions in these episodes yet. We have discussed many aspects of it, but never a series devoted to this topic. Time to remedy that with a five-episode series. In our Self...
Automate Your Self Storage While Creating New Income Streams
We talk a lot about creating new income cash flow streams in the self storage business. Mailboxes, selling propane, ATMs, record storage, and the list goes on. Here is a novel idea. Why not start automating certain aspects of your storage facility by offering it as a...
Using Land Leases to Fuel Your Self Storage Projects
Here is a subject not talked about too often in the world of self storage, land leases. Most people waive them off with the flick of a hand and say, “I’m not interested.” That is fine with me. However, one of our most successful projects has a land lease,...
My Top Three Predictions for the Self Storage Future
I realize I have been spending so much time keeping my eyes on the immediate self storage horizon over the past year. Given the world today, it is hard to look past the next month or six months. What the world will be like in a year is anyone’s guess. But let’s do...
My Biggest Mistake Raising Money For Self Storage And What I Do Now
Over the years, I have shared how I use other people’s money to grow a self storage portfolio. For the most part, it has worked well and been a true win-win. Investors get above-market returns with the safest real estate asset as security generating it, and my team...
The Number One Obstacle For Getting In The Self Storage Business Or Growing A Self Storage Business Today.
It is not what you may think. It is not prices. Although, prices are high. It’s not being overbuilt. Although, many sub-markets are over built. It’s not a lot of stupid money chasing self storage. Although ,there appears to be stupid money chasing self storage. It’s...
A New Approach to Self Storage Innovation in Today’s World – Part 2
Last week I introduced some ideas about my opinion concerning the real source of innovation in the self storage industry. I don’t think it is all the new, shiny, tech solutions to running the business. I think it is the mindset, the thinking we use to approach how we...
A New Approach to Self Storage Innovation in Today’s World – Part 1
We hear a lot about innovation in the self storage industry. At least for me, I immediately jump in my mind to new, shiny, tech solutions to running the business and interacting with customers, vendors, or creating deal-flow to analyze. But, as I began to really think...
Behind The Scenes – My Work-Life Balance (or lack of it)
For whatever reason, people I talk with or coach in getting in the self storage business, sooner or later begin to ask questions about what I really do in a day. My coaches (yes, I have coaches as well) over the past few years have told me I should do some “behind the...
Online Strategies for Leasing up a New Facility
You are bringing on new self storage space for lease. In my opinion, this is the riskiest proposition there is today for the small investor in the self storage business. However, it is usually part of our business strategy today, with prices being where they are....
Practical Automation for Self Storage Facilities
Here is a term you will hear more and more of in the self storage business in the next year or so, “Practical Automation.” For us smaller owners and investors, it can be the difference between long-term success or not. New Shiny Objects The tendency for humans appears...
What Makes A Good Self Storage Business Strategy Today?
Getting into the self storage business can be challenging in today’s world. Any markets are overbuilt. Prices are high—A lot of people with cheap money buying. But those are external factors. I have no control over them. Yes, I could chase industrial warehousing or...
How to Create the Perfect 2021 for Your Self Storage Business & Life
Well, no doubt about it… 2020’s self storage goals I created in Dec. 2019 didn’t come to pass. In the old days, we would create one-year, five-year, & ten-year goals. Hard to do today. It can be challenging to set even quarterly goals now, given how fast things...
Why 2021 Is A Good Year For Smaller Investors To Buy Self Storage
I make many bold statements about self storage, like now is a great time for smaller investors to buy self storage. I will be the first to tell you I make a lot of mistakes (just ask my wife). But I stand by this and want you to know our company is going to be...
Branding Your Self Storage Company
We hear a lot about company brands. Have you heard much about self storage company brands? Most likely not. You know the big ones, Public Storage, Extra Space, etc. But what is the real difference between them? Why would you choose one over the other if both are next...
Are You Losing Passion For Your Self Storage Business?
I found myself in a new space in 2020 concerning my self storage business. I have never been here before. I realized I had lost some of the passion for my self storage business. Have you ever been there? Not the place to be or claim if one of your accountabilities is...
The Two Things Your Self Storage Business Needs to Stay Relevant Moving Into 2021
As I stated last week, I recently attended a virtual business summit. I have been translating what I have been learning onto the self storage industry. I think all too often, we hear our industry voices bouncing back and forth, and it is good to get out and see what...
Three Steps to Growing Your Self Storage Business
I was recently attending a virtual (obviously written in 2020) Business Summit meeting, and one of the sessions was entitled How To grow Your Business. I can insert “self storage” into that, and everything remains exactly the same. My observations about people have...
A Cautionary Tale About Self Storage Development
It can sometimes seem hard to get in the self storage business or to get your next self storage project today with prices being what they are now. People new to the space will often review countless for-sale projects, scratch their heads, and wonder, “How does anyone...
Don’t Be Afraid of All the New Money Flowing Into the Self Storage Space
Just go to the Inside Self Storage new website, or go to the Radius Plus home page, and look at the headlines. Here are some headlines the day I write this: Argus Affiliate Brokers Announce Sale Of Multiple Georgia Self Storage Facilities. Southeast Florida Storage...
The World Of Self Storage Feasibility Reports Today
Here is a recent article I wrote for Inside Self Storage. If there was a self storage soapbox, and I was standing on it, what you would have heard me say over the past few years was “get a feasibility report!” This statement rings louder than ever with so much new...
How to Win In The Self Storage Business in 2020 and Beyond Series (Part 6)
We have been exploring the current challenges our self storage company is focused on to keep our self storage companies going strong over the next year or so. Let’s complete this series. If you want to, you can review Episodes 263,264, 265 , 266 ,267 here. As a...
How to Win In The Self Storage Business 2020 and Beyond Series (Part 5)
We are in the fifth episode of a series, discussing the current challenges our company is focused on to keep our self storage facilities going strong over the next year or so. If you want to, you can review Episodes 263,264, 265 & 266 here. As a review, I laid out...
How to Win in the Self Storage Business in 2020 and Beyond Series (Part 4)
We are in the third episode of a series, discussing the second current challenges our self storage company is focused on to keep our self storage companies going strong over the next year or so. If you want to, you can review Episodes 263,264, & 265 here. As a...
How to Win In The Self Storage Business in 2020 and Beyond Series (Part 3)
We are now in the third episode of the series. We’re discussing the current challenges our self storage company. We’re focused on keeping our self storage companies going strong over the next year or so. If you want to, you can review Episodes 263 here...
How to Win in the Self Storage Business in 2020 and Beyond Series (Part 2)
We started a series last week looking at the current challenges we are in and what I think as owners we should be focused on to help keep our self storage companies going strong over the next year or so. I laid out five things we are focused on: Effective &...
How to Win in the Self Storage Business in 2020 and Beyond Series (Part 1)
The self storage industry is in uncharted territory as an industry. It will be very interesting to see how things turn out for us. We continue to be one of the shining stars in investment real estate, but nothing guarantees things will continue to be the case. As a...
Self Storage Lending in 2020
No doubt about it, 2020 is a year of totally new territory for the self storage industry, and that goes for self storage lending as well. We are currently working on three loans, getting ready to close on them, and it has been a journey. CMBS We are not doing any CMBS...
What the Balance of 2020 Will Most Likely Look Like for Self Storage
I have said it in other episodes, but the fortune-tellers of today are the ones who “interrupt data.” I could get the “data” to predict virtually any outcome I want. But with all this data flying around, it is hard not to predict what is coming...
Marketing in the Age of Coronavirus
I get tired of hearing about the “new reality” we are in due to COVID-19. I am sure many of you do too. However, in the world of self storage, as we try to figure out what works and does not work, let’s stay on the subject a little longer. What we did in 2019 to fill...
The Dark Side of Touchless Move-Ins
I am very grateful that I have figured out how to make money in self storage. Who I am now is someone you could take everything from, drop-off in a strange place where I know no one, and I would be OK, prosper, and soon have all I could ever want. And I don’t think it...
Five Mistakes To Avoid When Developing New Self Storage
Before you dive into self storage ground-up development, it is always good to know other peoples’ mistakes. Fortunately for you today, if you are considering developing storage, I have made a lot of mistakes and can share my experience. I could have made this...
What I Focus on When looking at an Offering Memorandum
In today’s world, if you are getting in the self storage business, or growing your self storage business, you look at a lot of “Offering Memorandums” (OM). We have to develop a strategy for quickly figuring out which ones we should focus on and which...
How I Am Calculating Self Storage Lease-Up Today
I am beginning to re-think how I calculate lease-up in self storage projects. When I first entered into self storage in the mid-1990s as a broker helping a REIT find self storage, they used to assume 5% of their square footage per month would lease-up (wouldn’t...
Too Much Data, What Does It Mean?
I have said before about self storage, “Make data-driven decisions.” I try to do that. But it’s getting hard. Real hard, in my opinion. In my humble opinion, there are two big issues with data today in the self storage industry. The first is how it is collected, and...
Self Storage Online Marketing
Let’s talk about online marketing for a self-storage facility. Let me start by saying I am not an “expert” in online marketing for self-storage facilities. But I have never worked with an “expert” that has generated any results period,...
I Want To Hear From You.
This week it is hard for me to talk about self-storage and ignore what is going on in the country at the moment. So, let’s talk about it. I am not sure when you see this, but at the moment we are slowly coming out of quarantine from COVID-19 (still no vaccine), and...
Two Things the Coivd-19 Crisis Has Taught Me
As a real estate professional and a self storage owner/operator, I am now clear on two things that have emerged from the COVID-19: The office sector will never be the same. Self storage can be leased with minimal customer interaction. Office I am clear that as the...
Car, Boat, and RV Parking: A Way To Hedge In Some Overbuilt Self Storage Markets
In this age of increased self storage per capita in many submarkets across the nation, boat and RV parking may be a way to enter or expand. I have been hesitant to embrace this method and have fallen back on it when necessary. We had a two-building conversion project...
Using Containers to Test Self Storage Demand
I’ll admit it. I have never been a big fan of container self storage, or temporary storage. At best, I thought we could perhaps use it to plug up a few holes we may have in our facilities and maximize our income. When I first looked (a number of years ago I admit),...
Self Storage Industry Update – April 2020 In The Age Of Coronavirus
From attending a number of webinars, researching, and reading between the lines, here is the information I have been able to find out about our self storage industry’s performance last month (April 2020) in the “Age Of Coronavirus.” It was a mixed bag of contradictory...
Self Storage Appears To Be The Asset Class To Be In During COVID-19
As we have stated in the last few episodes, self storage appears to be positioned particularly well to perform better than other segments of the commercial real estate industry during COVID-19. In a recent Marcus & Millichap Special Report (M & M),...
Now Is the Time To Get In Self Storage
I have said this in the past few weeks, and I am going to say it one more time. Now is the time to get off the sidelines and figure out how to get into self storage if this has been a goal for you. I am creating this episode right now primarily because of the training...
How Self Storage Supports The New Work Reality
I mentioned in last week’s episode that I think self storage demand will increase as a result of the COVID-19 pandemic. I believe that even more as I researched what I think “work” is going to look like after the stay in place order, or strong suggestion, depending on...
I Predict Increased Consumer Demand For Self Storage As A Result Of COVID-19
Do you want to make a bet about self storage demand in the age of coronavirus? I bet demand goes up as a result of the quarantine in the US. It is too early to tell here in the US, and we are mostly dealing with how to manage our facilities differently, stay on top of...
Self Storage & COVID-19 – How Do I Manage My Facility Today?
We find ourselves in new territory in terms of running a self storage business in the age of COVID-19. We’ve made some decisions on how to run our self storage business during this “lock-down” time due to the COVID-19 pandemic. First of all, we do...
Self Storage & COVID-19 – Should I Buy Self Storage Today?
I thought I might take a few episodes and discuss what we and others are doing differently and adjusting in our acquisition and management practices, as we go deeper in self storage during COVID-19. This week we will discuss acquisition, next week management. I have...
The Number One Rule For Running A Self Storage Facility
It seems like there have been a lot of self storage facilities lately I have looked at with large amounts of non-paying tenants, or tenants paying an extremely low rent compared to street rate. Have you seen this lately? People I am working with ask why? Well, first...
How To Use This Coronavirus Home Time To Speed Up Your Self Storage Goals
OK, I don’t want to jump on the Coronavirus bandwagon and do an entire episode on it instead of self storage, but indulge me somewhat. Let’s discuss it and how it can relate to you getting in, or expanding your self storage business. Backpedaling I admit it. I am...
Have you ever thought you would be further along in life than you are?
Have you ever looked in the mirror and said to yourself, “I thought I would be further along in life than I am by now?” I know I sure have. For me, a pivotal moment was around 2006. I was a commercial real estate agent earning reasonably good money then,...
To Renovate… Or Not to Renovate My Facility… That Is The Question
There is no doubt about it; if you are in the self-storage business, there will be a moment in time when you ask the question,” Should I renovate my facility?” For many of us, it is when we are looking to purchase an older project, and we want to...
What It Takes To Succeed In Self Storage Today – “Ability To Take Action When There Is Fear” Mindset
Over the last four weeks, we have been studying What It Takes To Succeed In Self Storage Today. Having worked with a lot of people over the last decade and a half, supporting them in getting in this fantastic business of self storage, I have noticed some patterns to...
What It Takes To Succeed In Self Storage Today — “Leaders Inspire” Mindset.
Over the years, I have worked with a lot of people supporting them in getting in this fantastic business of self storage. With some people, I have had to focus harder on one aspect or another depending on their strengths. But in essence, everyone I work with knows...
What It Takes To Succeed In Self Storage Today – A New Relationship With “Problems”
We are in the middle of a series called What It Takes To Succeed In Self Storage Today. I realized after working with so many people assisting them in getting in self storage that what it took to be successful was not the “information” I was teaching. Yes, they had to...
What It Takes To Succeed In Self Storage Today – “I Don’t have to Know Everything At This Moment To Act” Mindset
To be successful in anything, but especially self storage today, it is not a function of what you know. Yes, you have to know a lot of things, but knowing them guarantees nothing. The colossal failures in life know quite a lot. If you know nothing about self storage...
What It Takes To Succeed In Self Storage Today – “Can Do It” Mindset
To be successful in self storage today, it is not a function of what you know about self storage. Yes, you have to know a lot of things, but knowing them guarantees nothing. In fact, if you know nothing about self storage when you start, but have the mindsets we...
What It Takes To Succeed In Self Storage Today
I have just finished a series called Getting Started In Self Storage. Over the years, I have worked with a lot of people supporting them in getting in this fantastic business of self storage. Everyone I have worked with, I have gone into details about what was in that...
Getting Started in Self Storage Series (7) – How To Put Your Self Storage Project Into Service
You are getting ready to close on your first or your next self storage facility. This is where I get the most nervous. If you think I was nervous during the due diligence period, you should see me now. I am sure you are much cooler than I am. How to take over and...
Getting Started in Self Storage Series (6) – Best Due Diligence Practices Today For Self Storage
So we now have a self storage project under contract! Way to go! In last week’s episode, we covered the first few spaces a self storage buyer goes through today to get to the finish line and either close on the project or let it go. In this episode, we are going to...
Getting Started in Self Storage Series (5) – Best Due Diligence Practices Today For Self Storage
You now have a self-storage facility under contract. Congratulations. Now what? This is where it can be exciting, scary, thrilling, and the most fearful thing you have ever done all at the same time. That’s normal, especially if it is your first self-storage facility....
Getting Started In Self Storage Series (4) – How To Get A Self Storage Deal Standing Still
This episode covers best practices for Self Storage Buyer’s getting a Self Storage facility standing still in today’s competitive environment.
Getting Started In Self Storage Series (3) – What You Need To Analyze
Once you find a self storage deal that looks good to you, my coaching is to jump into deal mode quickly. What is essential as you enter deal mode is to know the steps, or more accurately said, the spaces of a deal. As I have developed over the years as a Buyer of self...
Getting Started In Self Storage Series (2) – More Deal Flow Than You Can Handle
There is a real art and science involved in getting in the self storage business or growing your existing self storage business. The “art” I am talking about is getting in front of some real deals to analyze. The “science” is developing a...
Getting Started In Self Storage Series (1) – The Most Important Question
When I ask people why they are getting in the self storage business, I usually hear answers like: “It is a good sector.” “I hear it is doing well today.” I often hear, “I thought about it a long time ago and wished I had then. Now I am...
How We May Re-Shape Our Self Storage Company As A Result Of The Self Storage Convention
In last week’s episode, I share a few things I learned from attending the Self Storage Association’s (SSA’s) national convention in Las Vegas. This week I want to share some of the things our company is exploring doing differently and implementing as a result of what...
Current State Of the Self Storage Industry Second Half 2019
I recently returned from the Self Storage Convention in Las Vegas and have had some time to digest what I learned there and organize it in my mind. The first real take away I received was that the US economy is softening some. The trade wars are starting to have a...
Exchange Your Way Through Your Self-Storage Career
I have had a few people ask me how a 1031 tax-deferred strategy can support them as they create their self-storage business. I just assumed everyone knew about 1031 exchanges, but I realize that unless you have a real estate background, how could you? One of the...
Why To Focus On Secondary Markets For Self-Storage Today
No doubt about it, there is a lot of self-storage out there today. One thing about it, however, is that the majority of the new self-storage construction has been focused in the larger, tier one markets. We have all heard about Dallas/Ft. Worth bringing on 16% to 20%...Interviewed By Kris Bennett For His Self-Storage Show
This week’s episode will be short and sweet because I am attending the Self Storage Association ion Las Vegas. Here is an interview of me that Kris Bennett did for his Self-Storage Show a few weeks ago. I hope you find it interesting and beneficial. We discussed where...
“How Much Can I Pay For Land To Build Self-Storage On?”
I get asked that question a lot? “How much can I pay for land to build self-storage on?” Or… “How much can I pay for a building to put self-storage in?” If you have been following me at all, you most likely know I have a fairly stock answer to most questions…” It...Will CAP Rates Ever Change?
Over the past few years, I have been expecting CAP rates to start going up, making self-storage pricing more realistic. I’m still waiting. How about you? Have you seen much of a change in storage pricing compared to NOI? What would change it, and could that happen in...
Do You Know The Value of A Customer At Your Facility?
Self Storage is a retail play as much as a real estate play. I know the majority of us come from a real estate background, but believe me, if we are going to make it in this business today, we had better start thinking like a retailer. Or at least like a...How Do I Know If A Market Is Overbuilt?
Whatever city you are in, no matter where you go, you see new self-storage being built. Even people who have nothing to do with the industry, when they hear you are involved with self-storage in some way, will comment, “I see it going up everywhere.” All this leads us...
How Do I Know If A Market Is Overbuilt?
Whatever city you are in, no matter where you go, you see new self-storage being built. Even people who have nothing to do with the industry, when they hear you are involved with self-storage in some way, will comment, “I see it going up everywhere.” All this leads us...
Is Self-Storage Over Building Catastrophic?
Is Self-Storage Over Building Catastrophic? Well, I guess it depends. It depends on where you are in the country, where you are in your submarket, but mostly where you are in your lease-up or ownership cycle of the facility. Look, it is bound to happen to every...
How To Analysis A Conversion in Self-Storage
I discussed in last weeks’ episode How To Analysis An Expansion self-storage opportunity. This week, let’s look at a conversion. When we say conversion, what I mean is we take an existing vacant building and convert it to self-storage. In my opinion, in today’s...
How To Analyze A Conversion
I discussed in last weeks’ episode How To Analyze An Expansion self-storage opportunity. This week, lets look at a conversion. When we say conversion, what I mean is we take an existing vacant building and convert it to self-storage. In my opinion, in today’s market,...
How I Analyze Self Storage Opportunities Today
I’ve talked a lot about the benefits of self-storage over other types of commercial investment real estate. Usually, the benefits circle around the fact that self-storage is a steel wall and a concrete floor generating rents comparable to apartments or office...
What Business Are Your In?
Are you in the self storage business? Are you getting in the self storage business? For a long time, I related to myself as someone in the self storage business. For a couple of years in the 1990’s I was someone getting in the self storage business. But really? Lets look at what business you are REALLY in.
Four Pitfalls To Watch Out For When Doing Self-Storage Conversions
It has become very popular in the self-storage industry today, to do conversions as an entry point into the business, or as a way to expand your self-storage business. I like them very much and wrote an article about it for Inside Self-Storage a few months ago....
