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...
How to Avoid Mistakes When Making Self Storage Projections
We create a Proforma for every self storage project before putting it into service. If I've had one consistent success in the self storage business it has been hitting or beating the Net Operating Income (NOI) projection in these Proforma. This has been a big part of...
Are CAP Rates Going Up? How to Keep Your Self Storage Business Profitable
Interest rates have gone up and will most likely continue to go up. That has an effect on the self storage industry. As we move into the "Hyper Supply" phase of the real estate cycle (click HERE for details on the phases of the cycle) one of the historic moves of the...
Do You Know What Story Your Numbers Are Telling You? Self Storage Finances Series – Part 5
We are back to where we started as we begin the end of this series on self storage finances. Hopefully, you are starting to understand what the financial reports for your business are telling you. Or the reports your soon to be business are generating....
Do You Know What Story Your Numbers Are Telling You? Self Storage Finances Series – Part 4
Welcome to week four of the Self Storage Finances series. Here are the three statistics we have been discussing. 90% of all business fail within 10 years. The average swing from the bottom of an economic cycle to the top is ten years. 90% of all business owners don’t...
Do You Know What Story Your Numbers Are Telling You? Self Storage Finances Series – Part 3
Remember the 3 statistics we discussed last week? 90% of all business fail within 10 years. The average swing from the bottom of an economic cycle to the top is ten years. 90% of all business owners don’t read, or don’t know how to read a financial statement. We are...
Do You Know What Story Your Numbers Are Telling You? Self Storage Finances Series – Part 2
Over 90% of all business that are started today will fail within ten years. And don’t fool yourself, self storage is a business. Yes, it is real estate play but it’s also a business. In many ways, we are double exposed. We must have real estate knowledge as well as...
Do You Know What Story Your Numbers are Telling you? Self Storage Finances Series
I am amazed at the number of self storage owners, and business owners, that have little or no financial knowledge. I am no expert in reading financial statements. And I have struggled in the past with knowing the numbers for all of our facilities. But I have learned...
Creating Your Annual Self Storage Budget: Powerful Business Tool vs Hopeful Prediction
Most people’s relationship to language and the spoken word is very week. We haven’t really been trained on the true power the spoken word has to shape our experiences and our lives. This becomes very evident this time of year as we begin creating our annual self...
Self Storage Cost Segregation Depreciation – Why You REALLY Want to Know About It Before Tax Time Comes Around Again
April 15th is coming up. I don’t tend to fret over it like I used to. Two reasons I own self storage facilities and, We have had cost segregation reports completed on each one of them. https://youtu.be/mI-ZQC6pKyM Real Estate is perhaps the best way to minimize your...
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