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How to Develop Your First Self-Storage With Only $500K Cash Equity and Make an Extra Six-Figure Income.

By Marc Goodin

Land: You need 5 acres plus or minus of usable land excluding steep slopes, wetlands, easement areas, flood planes or other restrictions. It should be zoned for self-storage because zone changes or variances cost money and time and are often turned down. The purchase price of the land cost must be under $900,000 dollars.

Location: The property should be on a main street in town/city with typically 10,000 vehicles a day or more. The property should have easy access and great visibility. If it is too far off the beaten path for a grocery store it may not be the right spot for a self-storage. Remember around 70 to 8O% of self-storage rentals are by the ladies. If the location is not in an area the ladies would go to on their own day or night, it may not be a suitable location. Self-storage in industrial areas is a thing of the past.

Facility size: In order to make a good six-figure income and be large enough for the Reits and larger players to purchase for a good resale value it should be between 50,000 to 60,000 net rentable square feet. In order to keep the cost down to fit the $500K equity model, it will be single-story facility with a total cost of approximately 5.5 Million dollars built in 2 phases. Multi-story facilities cost more to build and typically can’t be built in phases.

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Demand: There must be sufficient demand in the 3-mile radius and no other new or proposed facilities in the 3-mile radius. There could be a large needed demand in the area but if you have multiple facilities renting up at the same time, the rent-up period (and associated carrying costs) can double or even triple. Typically, in the US there is an average of almost 8 Sf of existing self-storage per person with the average capacity at 85 – 90% occupancy. So, until we do research and understand a specific area, we often use a total demand of existing and proposed self-storage of 8 sf of self-storage per person in the 3-mile radius as equilibrium for a quick demand review until we study the area and demand in more detail. Radius can be used to assist in determining the approximate existing self-storage square footage and area unit pricing.

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Further competition review and feasibility study: Not all self-storage is created equal. Many self-storages are ancient, poor shape, have no pavement, no security and are not open most of the time. Often these facilities will not be your competition. Your goal is not simple to be full but to be full at premium rates. So, it is important to visit your competitions to determine rates, occupancy the quality of the facility and management. If all your competition is charging $85 a month for a 10’ x 10’ unit this is not a good sign. Either there is too much competition, so rates are depressed or the owners simply do not raise their rates, either way, a bad sign for future development.

In Houston, the average existing sf or self-storage per person is over double the national average and in New York, the average is less than half the national average. And in both places, there are good and bad locations. Unless you have the years of expertise a feasibility study by a self-storage expert is highly recommended.

Loan: A typical bank loan will require 25 to 35 percent down and will not provide any working capital. A traditional loan would often require one to two million dollars or more cash equity. Many new developers are going with an SBA loan that only requires 10 to 15 percent down. With an SBA loan, the numbers can look like this: $5.5MM project with phase 1 being $3MM. Fifteen percent down is $450,000 leaving $50K, out of your $500,000 cash equity for phase 2 soft cost before the phase two loan. Often phase 2 will not require more than the $50,000 equity because there is equity in phase one to provide for the SBA 10 to 15% owners cash equity.

Team: While listed here last is the most important item and should be done before you make an offer on land as they will help you review the land, make the offer, complete your initial due diligence and then move on to the design and construction phase efficiently. Your team should include a land use attorney, banker, a land broker, civil engineer, architect, and a contractor.

Secret Sauce: There are thousands of questions to be answered in the development process. In addition to the team members above you will also need a self-storage mentor who has built and owns multiple self-storages. None of the previous experts listed are all around self-storage experts. If you do not have a mentor, it will be important you hire a self-storage expert to help answerer those thousands of questions and go around the land mines so planning, design and construction mistakes do not cripple you. Your mentor or expert must also be there to make sure you hit the ground running with a detailed operational plan and the execution of a premier marketing plan.

May 2019 –Proven Checklist, Are You Ready To Develop Your First Self-Storage?

 

 

 

MAY 2019 Newsletter

Storage Authority® News

Construction has started at Storage Authority Millstone NJ. Phase one consist of 30,000 sf of climate and non-climate control units in 3 buildings. The foundations are complete and the buildings are under construction.

If you did not see the recent article in Inside Self Storage by our President Marc Goodin you need to check it out if you’re considering developing from the ground up.  If you leave the development process to your experts I can guarantee you will be sorry!  Here is the minimum you need to do: https://www.insideselfstorage.com/development/self-storage-owners-guide-building-self-storage-project-your-responsibilities

And the great news is Franchise Owners don’t have to guess or hope they have it right because we are there every step of the way.

The Grand Opening celebration went well at Storage Authority Mulberry.  It was great to see so many town employees show up.

The Grand Opening at Storage Authority Walters Rd was a success with over 90 guests.  The kids loved the fire truck and the adults loved the food and a chanced to win a huge new tv.

_____________________________________

As part of our Dynamic Ease Self Storage Development Series, we help our franchisees around the development landmines, including finding land, designing, obtaining approvals, financing and building a premier self-storage facility.

Learn more at: www.StorageAuhorityFranchise.com 
Or email or call Garrett Byrd (Garrett@StorageAuthority.com or Direct 941-928-1354)

Ten boxes to check to determine you’re ready to develop your first self-storage. 

1) Are you part of the 1- 3 percenter ready to own their own business?  ie Have the confidence and willingness to take a risk on yourself and your future.
2) Are you willing to keep your job for the next 3-6 years until you replace your income with self-storage income?  ie work more hours temporarily so you can work many hours less if you choose to.
3) Are you willing to spend time to find land both on and offline?.
4) Do you have $450K minimum cash equity ready to invest in phase one (SBA loan – $3MM loan) And have you talked to a banker?
5) Is your spouse on board?
6) Do you understand the development time frame?
7) Do you understand the rent up time frame?
8) Do you have a reason ( other than money) why you are going to do this?
9) Are you ready to learn?
10) Have you ordered the Self Storage trade magazine from Inside Self Storage?

It is not easy owning your own business., The alternative was even riskier for me and my family.   If your ready to talk and learn more and see if we are a good fit call me.                 Marc – 860-830-6764.

 

Storage Authority Vendor Updates

We are excited to announce Charity Auctions is our newest vendor.  We met Kerry Henrikson, the Executive Director at the April ISS Self Storage Convention and were very impressed.  It is a win – win – win.

It helps you become more active in the community.  Local people who might otherwise visit your facility see what a great place you have when they drop off items for the charity auction.  It helps local residents recycle their Items and provide money for local and national charities.

What more could you ask for? Check out their website www.Charity Storage.org.  Then send Kerry an email at kerry@charityStorage.org and she will provide you the directions you need to get started.  We just signed up our facilities and hope you will too.

And the great news is they are linked into our online auction  vendor StorageTreasures, www.StorageTreasures.com so everything is a breeze

 

Vendors don’t forget we pay you a $2,500 referral fee for each lead you provide that becomes a Franchise.  Call Garrett for detail: 941-928-1354 

Things we love to do besides self-storage.

I love to have a glass of wine and dinner at outdoor restaurants with my beautiful wife GP.  And now it is even more fun when we don’t read the menu left to right.  There are a few rooftop bars in Sarasota and we are going to check them all out.  Check out the view from the Westin rooftop bar we just went to!  (last photo)  We would love to meet you for dinner this winter in Sarasota!

Whats holding you back?  You Can do it!  You deserve it!

____________________________________________________

          ARE YOU READY?

Click here to Get Pre-Qualified to Begin your Journey to Financial Freedom with Storage Authority Franchising!

-“Great things never come from comfort zones! “

Storage Authority Blogs You Will Enjoy!

Complete Storage Authority News Room

The Steps to Storage Authority Mulberry FL Grand Opening.

Where Else Can You………….No Where

Recent Storage Authority News Letters

 

April 2019 -$2,500 Storage Authority Referral Fee +10 Opening Tips

March 2019-Houston We Have Lift Off!

February 2019 Newsletter- 9 Tips for Self Storage Oversized Profits using Merchandise Sales

 Storage Authority Video of the Month

 

Ready to get ahead with the two best number one Self Storage Development and Marketing books?

Check out www.SelfStorageMarketing101.com

 

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Please share!      We Love Referrals.

Storage Authority
677 N Washington Blvd.

Sarasota FL 34236

www.StorageAuthorityFranchise.com         Garrett@StorageAuthority.com
1-941-928-1354

 

The Steps to Storage Authority Mulberry FL Grand Opening.

 

Storage Authority Mulberry FL is open for Business! www.MulberySA.com

First, it was just a thought and then a dream.

1 Planning

And then a sketch

2 Rendering

And then a Rendering.

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Then a Feasibility Report.

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Then a Set of Plans.

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Then Construction.

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And a Lot of pre Opening Marketing!

Grand Opening

And more marketing!

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Of course, if it was just that simple there would be a lot more Self Storage Millionaires. A lot of planning and work goes into turning a dream into a reality. 

Grand Opeing

And the Grand Opening was a huge success!  And in their first month open they already have over 50 units rented.  Great job Scott & Daine!

April 2019 -$2,500 Storage Authority Referral Fee +10 Opening Tips

 

 

 

Storage Authority® News

 We are excited to invite Everyone to the Storage Authority Mulberry Grand Opening celebration on April 25th.  In case you can’t make it here are a couple of photos.


Website Storage Authority Mulberry FL

On May 11 Storage Authority Walters Rd, Houston TX is having its Grand Opening Celebration and you’re invited!  You can even win a 50″ flat screen TV!  Just in case you can’t make it here are a couple of photos.




Website Storage Authority Walters Rd. Houston TX

The Inside Self Storage World Expo earlier this month was a wealth of information.  Here is our President moderating the session on Using Data to make Self Storage Investment Decisions.

Need help with your research for a facility check out Radius!

The Dream team at the ISS expo: Garrett, GP & Marc

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As part of our Dynamic Ease Self Storage Development Series, we help our franchisees around the development landmines, including finding land, designing,obtaining approvals, financing and building a premier self-storage facility.

Learn more at: www.StorageAuhorityFranchise.com 
Or email or call Garrett Byrd (Garrett@StorageAuthority.comor Direct 941-928-1354)

Ten things to make sure your Grand Opening is super successful. 

1) Schedule it out 45 days after you open to get prepared.

2) Have town staff  there for a ribbon cutting

3) Have the local fire dept there with a truck.  Don’t forget to give them a donation

4) Have a person in costume with a sign waving drive-by traffic in.

5) Have lots of great food.

6) Have several giveaways & games for prizes for kids

7) Have a one-day rental special.

8) Have extra staff to give tours, help with parking, food etc.

9) Figure out parking in advance – have signage and a parking person.

10 Invite everyone, send out a newsletter, market your Grand Opening and market some more.  Call and visit the local community and email and hand out Grand Opening flyers.

Storage Authority Vendor Updates

For vendor contacts or recommendations feel free to email marc@storageauthority.com for the best of the best!

G5 continues to update our websites every month! New pictures & Videos and new technology.  Just added Open Tech Storage Genie video to the websites.  What makes your website better every month. Now a social reputation platform tied into your website is a must!

Jenny and the team at signquick have updated our Office & Gate sign manual to make life easy!  I love the magnetic unit size signs for the show units

Our packing & moving supplier Supply Side now provides metal slat walls for product displays – so much better than the wood/particle board that chips and does not have the quality look we demand!  I love the Storage Authority Lock packaging they provide for us!

The new Open Tech Alliance kiosks are just incredible.  And with the new price point, everyone can afford one.  The reality is there is no choice – you need one!

Vendors don’t forget we pay you a $2,500 referral fee for each lead you provide that becomes a Franchise.  Call Garrett for detail: 941-928-1354 

Things we love to do besides self-storage.

Marc our president is more of an engineer than an artist but every once in a while he dabbles in multimedia art.  Here is some of his work.

What would you do with more time & money?

Getting started is the hard part? Or is it? How about just saying yes!

_______________________________________________________________

          ARE YOU READY?

Click here to Get Pre-Qualified to Begin your Journey to Financial Freedom with Storage Authority Franchising!

 

It’s not about money or connections — it’s the willingness to outwork and outlearn everyone… And if it fails, you learn from what happened and do a better job next time.” – Mark Cuban

Storage Authority Blogs You Will Enjoy!

Complete Storage Authority News Room

Alexa how much does my competition charge for a 10 x 10?

Recent Storage Authority News Letters

March 2019-Houston We Have Lift Off!

February 2019 Newsletter- 9 Tips for Self Storage Oversized Profits using Merchandise Sales

January 2019 Goal ~ Build Self Storage Facility ~ Imagine That!

Storage Authority Video of the Month


Storage Authority Gate Entry Hands-Free Access

Ready to get ahead with the two best number one Self Storage Development and Marketing books?

Check out www.SelfStorageMarketing101.com

 

Share
Tweet
Forward

 

Please share!      We Love Referrals.

Storage Authority

677 N Washington Blvd.

Sarasota FL 34236

www.StorageAuthorityFranchise.com         Garrett@StorageAuthority.com

1-941-928-1354

March 2019-Houston We Have Lift Off!

 

 

March 2019 Newsletter

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Storage Authority® News

We just got back from multiple training trips at Storage Authority’s Houston Franchise and the owner, Ed O., is leasing up at a record pace! We want to send a big congratulations to Ed and his team!  Ed really embraced the Storage Authority high-end sales and marketing philosophies, great job and way to hit it out of the park with a first class facility.

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We are also going to be in Las Vegas April 2 & 3 for the Inside Self Storage Convention and would love to get coffee with you. Again, send Garrett an email at garrett@storageauthority.com today so we get you in our calendar.  As you may recall our CEO Marc Goodin will be the Moderator for the session Using Data-Driven Technology to Make Self-Storage Investment Decisions.  See you there.

_________________________________________________________________
As part of our Dynamic Ease Self Storage Development Series, we help our franchisees around the development landmines, including finding land, designing, financing and building a premier self-storage facility. We also help you to understand all the options and prepare accordingly.
_________________________________________________________________
If you want to learn more about Storage Authority Franchise there is a wealth of information on our website www.StorageAuhorityFranchise.com  Don’t forget to check out “Why Storage Authority” and our blog/newsroom. Then the next step is to apply on our website or email or call Garrett Byrd (Garrett@StorageAuthority.com or Direct 941-928-1354)

 Storage Genie App

Vendor Highlight

Storage Genie – Tenant Mobile App
Featuring Hands-Free Access to Your Storage Property

Enhance your customer’s experiences by utilizing the hands-free secure access to your facility using the Storage Genie tenant mobile app. Storage Genie securely grants access to your property all while keeping your phone in your pocket or purse! Customers can also make payments, view access history and contact the facility all through the app. The best part is that Storage Genie comes with OpenTech’s INSOMNIAC CIA, so you do not have to spend thousands of dollars developing, maintaining and supporting a mobile app for your tenants.

“CLICK IMAGE FOR LIVE DEMONSTRATION ”

Five things your facility must have to become a smart connected Facility. 

Having a smart connected facility enhances the customer experience and reduces the facilities overall cost.  Our customers are ultra on demand and expect an extremely convenient state of the art facility.

1. Gate Software with hands-free gate access
Getting out of your car or having to key in your access code is a sign of the times. Our customers expect extreme convenience and through a high touch and hi-tech experience.  We have partnered with the Industry’s First Smart Connected Self Storage Solution: INSOMNIAC Centralized Intelligent Access (CIA) best part is that Storage Genie comes with OpenTech’s INSOMNIAC CIA.

2. Kiosk on site It’s like having a 24/7 assistant manager.
Throw away your “Closed” sign, you will not need it. With an INSOMNIAC kiosk, customers make rentals and payments at their convenience, regardless of whether an actual manager is available. We partnered with Open Tech Alliance to bring the best of the best kiosks to our franchise locations.

“CLICK IMAGE FOR LIVE DEMONSTRATION “

3. A website that can fully rent online, take payments and reservations.
Having a first class website that is mobile responsive and can truly rent, reserve, and take payments online is mandatory. If the customer can complete an online rental but still has to stop in the office for access, that is not a true online rental.  With Storage Authority you can, from lease-ups to online leasing, our partnership with the G5 Intelligent Marketing Cloud we will help you fill your storage units faster.

4. Software management that can implement dynamic pricing 
Stagnant prices are a thing of the past, self-storage pricing is just as sophisticated as the airline industry and the hotel as prices, as your facility fills up, your rates go up.  We partnered with the best of the best in Sitelink to make sure our franchisees have access to automated revenue management.

5. A Call center who can rent, reserve  and field payments form 6am-Midnight
There is nobody who is gonna know the facility better than your skilled trained manager who is fluent in self-storage and understands what it takes to drive your self-storage profits. Although call centers have advanced to where when they answer the phones our customers don’t know if they’re calling the actual site or our service center, the call center becomes a valued extension to the site team. Never miss another call  and always capture the critical marketing metrics to where your calls are coming from.

* Bonus Tip: OpenTech IoE Alexa Connection.

“Alexa, ask Storage Genie to open ‘Front Gate’.”

“Alexa, ask Storage Genie how many visitors are here?”

“Alexa, ask Storage Genie who just entered?”

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Storage Authority® experts are ready to help you every single step of the way, from finding land to building your facility, to operations, to driving your revenue year over year.  If you have a question give us a call. Team up with the experts to save time and maximize your profits. Call Garrett at 941-928-1345 for more information.

         A Partnership for Success!

          ARE YOU READY?

Click here to Get Pre-Qualified to Begin your Journey to Financial Freedom with Storage Authority Franchising!

“Decide what you want, and then act as if it were impossible to fail.”
Brian Tracy

Order your Self Storage Books Here!

Recent Storage Authority Blogs You Will Enjoy

 Complete Storage Authority News Room

 Smart Connected Facilities = High Touch, High Technology

Speaking At ISS Conference

Marc Goodin and Storage Authority Franchise Houston Owner Ed O. From a cup of Coffee to owning a multi-million dollar real estate asset!

 

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Storage Authority
677 N Washington Blvd.
Sarasota FL 34236

www.StorageAuthorityFranchise.com         Garrett@StorageAuthority.com
1-941-928-1354

Smart Connected Facilities = High Touch, High Technology

StorageAuthority_Horz_logo

 

Here are three examples of what it means to have a smart connected facility which enhances the customer experience and reduces the facilites over all cost.

 

1.) Storage Authority Gate Entry Hands-Free Access

Storage Authority Franchise site with Smart Connected gate access capability. Opening the gate via hands-free geo-fence proximity partnered with and powered by Open Tech Alliance Insomniac Centralized Intelligent access(CIA). Re-inventing Access Control with the Industry’s First Smart Connected Self Storage Solution: INSOMNIAC Centralized Intelligent Access (CIA)

 

2.) Storage Authority Demonstrates Alexa Gate Control

With Storage Authority you have a smart connected facility which enhances the sites and customer’s overall experience.

The OpenTech AllianceTM IoE intelligent platform of smart connected self-storage solutions and Amazon Alexa allows Self-storage operators to execute commands and receive information about their facility simply by giving voice instructions.

Tying our software in with Alexa a few verbal examples you can use are…

  • “Alexa, ask Storage Genie to open ‘Front Gate’.”
  • “Alexa, ask Storage Genie how many visitors are here?”
  • “Alexa, ask Storage Genie who just entered?”

3.) Storage Authority Smart Connected Kiosk

Storage Authority Smart Connected Kiosk. Enhancing the customer’s experience, reducing the facility’s cost!  In the same way, ATMs made banking more convenient, the INSOMNIAC kiosks make self-storage renting more convenient. (And more profitable for those who offer that convenience).

 

Garrett Byrd is VP of Development at Storage Authority LLC. www.StorageAuthorityFranchise.com  .   He can be reached at Garrett@StorageAuthority.com or directly at 941-928-1354 to answerer your self-storage franchise, development, marketing, sales, and operational questions.  Storage Authority helps busy professionals make an additional six-figure income while keeping their current career.

February 2019 Newsletter- 9 Tips for Self Storage Oversized Profits using Merchandise Sales

 

Feb. 2019 Newsletter

Storage Authority® News

We are going to be visiting our Walters Road Houston TX facility in March.  If you are in Houston March 7-9 and would like to learn first hand more about Storage Authority send Garrett an email at garrett@storageauthority.com today.

If you want to learn more about Ed & Jenny’s Houston facility check out their website.  And it would be great if you left them a congratulation, way to go, 5-star review on their website. Storage Authority Walters Rd. 

We are also going to be in Las Vegas April 2 & 3 for the Inside Self Storage Convention and would love to get coffee with you. Again send Garrett an email at garrett@storageauthority.com today so we get you in our calendar.  As you may recall our CEO Marc Goodin will be the Moderator for the session Using Data-Driven Technology to Make Self-Storage Investment Decisions.  See you there.

_____________________________________
As part of our Dynamic Ease Self Storage Development Series, we help our franchisees around the development landmines, including finding land, designing, financing and building a premier self-storage facility and to understand the options and prepare accordingly.
_____________________________________
If you want to learn more about Storage Authority Franchise there is a wealth of information on our website www.StorageAuhorityFranchise.com  Don’t forget to check out “Why Storage Authority” and our blog/newsroom. Then the next step is to apply on our website or email or call Garrett Byrd (Garrett@StorageAuthority.com or Direct 941-928-1354)
Vendor Highlight

Supply Side USA

It is amazing how many things you have to consider when you first set up your retail merchandise center in your office. And that is why we are so happy to have Supply Side USA as our supplier of locks, boxes, packing and moving supplies.  Not only do they have higher quality products but they are ready to jump in to help you get set up.

This includes providing a first list order and a planogram for your merchandise.  And they have branded products with great prices with reasonable quantities.
.

They also have steel slat walls than help makes your office have the first class look that is a must. If you have merchandising questions or are ready to make an order send Mark an email and let him know we sent you.
Mark Petro
National Account Manager
mpetro@supplysideusa.com
https://www.supplyside.com

Nine things you need to know about Merchandise Sales. 

1. A minimum of Two – 4′ x 8′ slat walls are needed for a great showroom. My favorite slat wall colors are white, red or steel.  The initial slat walls and hooks take time so order long before it’s time to open.  At least a half of a slat wall should be used for your branded locks

2. Locks will be your number 1 seller.

Here is the Storage Authority branded lock by Supply Side USA.  Notice the $17.50 price. We have them on sale for $12.99 and sell one to every renter.
3. Boxes are your next biggest seller after locks. And 95% of your box sales will be the standard small, medium, larger or clothes boxes. So if your office is limited in size no need for other box sizes.
4. Boxes should also be sold in bundles of 10 to increase volume sales.  We promote ten packs for the price of 9 boxes.
5.  If you make and sell a box combo – 2S, 4M, 2L with tape & tape dispenser it will be your best box seller.
6. For a good look and portable for cleaning and relocating occasionally your ten packs of each size box can be stacked on a dolly.
7. Most self-storage facilities sell considerably under $500 a month in products because managers are not trained well and do not ask for the sale.  A good manager to renter ” Did you know it takes 30 boxes to move an average home.  Will you be needing any boxes today?  We have a special on ten packs or our combo pack”
8. All items prices should be clearly marked with professional signs.  No handwritten signs.
9 In addition to a sales tax number, you need to get a resale certificate from your State so you do not have to pay sales tax on the merchandise you purchase to resell.

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Storage Authority® experts are ready to help you every single step of the way, from finding land to building your facility, to operations, to driving your revenue year over year.  If you have a question give us a call. Team up with the experts to save time and maximize your profits. Call Garrett at 941-928-1345 for more information.

ARE YOU READY?

Click here to Get Pre-Qualified to Begin your Journey to Financial Freedom with Storage Authority Franchising!

“Earn trust, earn trust, earn trust. Then you can worry about the rest.”
– SETH GODIN 

Order your Self Storage Books Here!

Recent Storage Authority Blogs You Will Enjoy!

Complete Storage Authority News Room
How to Make a Million Dollars a Year in Self-Storage. By Marc Goodin
Speaking At ISS Conference

Storage Authority Video of the Month

Storage Authority Pre-Opening Preparations

 

What Makes You Happy and Excited to be Alive?

“I love reading”
Marc Goodin CEO Storage Authority

Reading is relaxing for me because my mind is released from day to day thinking while I read.  

I read mostly motivational books. It strange in a way as you would think after reading a dozen or so you would get tired of them but I never do. The best ones are told in story form.   I will read a novel now and then but it has to grab my attention in the first several pages or there is no chance I will finish it.

Maybe reading helped my dreams, including my self-storage dreams, come true?

I really don’t have favorites I enjoyed the 4 books above.

I offer to purchase any motivation, sales or marketing book my manager would like to read. Only the great managers have taken me up on my offer.

Of course, the first book my employees have to read is my best selling Self Storage Marketing book.  Crush Your Competition You can get your copy here www.SelfStorageMarketing101.com

If you have not read my Self Storage Development book send me an email for your free copy Marc@StorageAuthority.com

 

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Please share!      We Love Referrals.

Storage Authority
677 N Washington Blvd.

Sarasota FL 34236

www.StorageAuthorityFranchise.com         Garrett@StorageAuthority.com
1-941-928-1354

How to Make a Million Dollars a Year in Self-Storage. By Marc Goodin

 

You could be president of one of the major self-storage Reits who makes over 9 million dollars a year. Or you could be one of the 9 guys who work for the same company who make over a million dollars a year.  Not likely to happen for you?  I understand. I don’t want to work for 20 to 30 years and hope I rise the top management either.

Do you think you could build a single self-storage?  If you could do that I am sure you could build one every two years if that was you your career.  People are doing just that and making profits and that is why you see self-storage being sold at the certificate of occupancy (CO)

That is really what this article is about. How profitable is it to build a self storage and sell upon completion?  Apparently very profitable.  I have heard experts say a newly build Class A facility at the certificate of occupancy (CO) is worth up to 40% more than the total invested.  If you build one of the mega 100,000+ square foot highrise’s it is clear it will put millions in your pocket if you sold it upon completion, even before you rented a single unit.

Let’s take a look at the numbers for a more reasonable project.  Let’s look at a single story 60,000 square foot $5,500,000 project. First, let’s see how this looks with some estimated development numbers:

Construction cost & soft costs – $65/sf       $3,900,000

Land cost:                                                     $1,100,000

Additional soft/caring cost                             $500,000

Total Development cost                               $5,500,000

At 40% profit, it would sell for $7,700,00O and leave a $2,200,000 profitless selling cost. Even if we are off by 50% that would leave a $1,000,000 payday.

I went on List Self Storage to see if I could find any facilities for sale at CO.  I immediate came across a 69,000-sf facility being sold at CO in Colorado Springs for $8,700,00.

co

Using approximately the same unit cost from our example we would get:

Construction cost:  69,000 sf x $65/sf            $4,485,000

Land cost                                                               $1,500,000

Additional soft/caring cost                                 $500,000        

Total Development Cost                                $6,485,000

If they got their asking price that would be $8,700,000 – $6,485,00 = $2,215,000 profit.

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Wow! Now you can see there are a lot of variables and the only way to know the answer is to have the actual construction cost and selling price.  But my point is all about sharing why self-storage is a good investment and has one of the lowest failure risks, if not the lowest, for real estate investments. I can not promise these types of profits.  And I would be the first one to recommend a feasibility study early one by a third party expert to help you understand the cost and value of a specific project early on.  I am certainly not advocating you build self-storage and sell at CO.  In the end wealth is not how much money you make every year but how much you save. And owning self-storage naturally puts “money in the bank – retirement income” for when you do decide to sell and pays you well until that point.  And of course, typically pays well once it is rented.

I believe you will make millions more by holding on to your facility for the long run than selling at CO and that it is the best way to build a lifestyle. I would rather see you fill the facility up and make $200,000 profit every year and down the road have an asset that could be sold or refinanced for millions more in profits.  One of my goals is to help future self-storage owners become self-storage multi-millionaires so I can have few more fishing buddies around the US.

If you want to take a look at ways of increasing your profits check out: Make an Extra $3,000,000 by being prepared when you open!

To Success!

Marc

 

Marc Goodin is President of Storage Authority LLC. www.StorageAuthorityFranchise.com  He owns 3 self-storages he designed, built and manages. He has been helping others in the self-storage industry for over 25 years.   He can be reached at marc@StorageAuthority.com or directly at 860-830-6764 to answerer your self-storage franchise, development, marketing, sales, and operational questions.  Storage Authority helps busy professionals make an additional six-figure income while keeping their current career.

Four things you need to become wealthy in America. Simple but not easy, until its done! By Marc Goodin

 

Wealthy in America: You can continue “your lifestyle” without working another day.  For most of the population that would convert into something like a good six-figure income and a multiple millions dollar net worth.  Does $250,000 a year plus income and $4 million net worth work for you? If so, please read on!

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It takes 4 things to become wealthy.  The hardest item is becoming an expert in the subject of your choice.  This is the hardest because it often takes 10 to 15 years.  And of course, most people never become an expert in their lifetime because who has the kind of time? Have you notice most people become overnight millionaires in their 50’s & 60’s.  Many professionals are very good at what they do and have 20 plus years’ experience but that does not necessarily make them an expert.  An expert is someone who you know can get the job done when the guy with 25 years of good experience is a risky choice.  You could become an expert in 5 years if you learned from other people experience and your sole focus was to become an expert.

The second thing you should plan on is owning your own business. If you are an expert working for someone else, they will be making the lion’s share of the profits.

The third item is you need to learn how to multiply your expertise.  If you are a great engineer or attorney charging $500 an hour, you will still be getting paid by the hour so when you stop working you stop getting paid.

The fourth and last item you and your team needs is solid business experience.  This includes development, operations, sales, and marketing.  If you’re the best people need to know it and understand how they are getting the best value from you.   There are so many people that think the best way to compete in the market place is to be the lowest price.  Competing on price is the absolute worst selling feature there is!  There is always someone who will have a lower price. Competing by having the best features is also a short-sighted option.  Great product or services are important, but others will soon copy your features. So once again it comes down to you being an expert at your chosen subject and having the business expertise to monetize your knowledge.  No one can duplicate you but you.

Notice I did not talk about hard work, perseverance, ambition or action.  You will have all these traits and more to become an expert and to own your own business.  Millionaires have been created over and over in just about any business-like engineering, hair stylist, mechanic, retail sales, self-storage, car sales……………to you name it, with these four items.

Let me tell you a few stories in my areas of expertise of Engineering & Self Storage to help you understand how the four items can evolve over time.

When I was 24 years old, Richard, the owner of a local civil engineering firm “Meehan & Associates” agreed to meet with me for a job interview. I had 4 years of good experience and was a project designer at a 50-person firm.  I was looking to be a part of a smaller firm where I could also learn the business side of engineering.   He suggested I come back in 10 years when I have more experience. I think I scared him right off the bat when I told him I wanted to be his partner in the next couple of years. Experts must think big before they are experts.

I did get a job at a small engineering firm (10 people) and got the experience and actually became an expert developers engineer.  About 11 years after my first interview with Richard Meehan he gave me a call and asked if I was still interested in being a partner. He accepted a minimal purchase price for 50 percent of the company because he understood we would be the one who got the call when only the best experts would do and be extremely well paid.    I am sure you called Rich he would tell you it was one of the best decisions he ever made.

It was rough going with the staff for a while.  They could not believe that Richard and I would be billed at $200 an hour when a professional engineer was being billed at $95/hr. at that time.  And then they went crazy when we increased the staff Professional Engineer’s billable rate to $125.  They thought we would never get another job.  But just the opposite happened.  We got so many jobs we traded our c and d customers for happier A & B customers. We went from $800K yearly income to $2.5Million income in one year by being experts in all aspects of development.  And the whole staff and our customers were happier in the end because we always gave our customers much more than they expected and they knew they had the best chances of success on their projects with us.

So, in some respects, I duplicated myself by having engineers on my staff do a lot of the basics

Of course, we were smart enough not to take jobs on an hourly basis.  We would figure the job based upon our expected hours and my hourly rates. And then we added 20%, as we knew from experience every project has unknown special needs that can’t be determined day one.  When these special needs (or extras) came up our clients were amazed we did not charge extra.

To be an expert you cannot think like everyone else.  You get to do things the right way and charge for it.  Here are three examples of “expertise” from my civil engineering days.

We had a housing developer who came to us with 100 acres with a beat up 1800’s historic house on the property.  By the time he came to us the town and neighbors were already up in arms, believing he would develop one of his massive new subdivision on the historical property.  He wanted to live there.  But to meet his requirements he needed to move his horse farm there.  That required a creating a large pond, horse fields, and riding trails.  While this would normally not be a be big deal it turned out much of the site was regulated wetlands.  And the last thing the concerned citizens were going to allow is filling of the wetlands so that someday the property could become house lots.

After sitting with the developer for an hour to listen to his goals, I said we have a good shot of approval, but it will take more than just good engineering to get this approved. I gave him a fee of $10,000 to design the pond, horse trails and fields and an additional fee of $20,000 to convince the neighbors and commission of your goals and integrity.  He needed to have both services for any chance of approvals. In the end, he was shocked but knew we were right as he had already gotten nothing but bad news from others.

The application and presentations included lengthy full color “mini-books” on the history of the property, the proposed historical renovation to the home and barn, the owner’s love of horses and their prize-winning stable of horses.  In the end, it was a win-win for everyone.  But if not for being an expert on both design and marketing and integrity, the proposed pond in the wetlands would have been denied and the historical site would have been one more subdivision.  Today when you drive by the site you are in awe of one of the most beautiful majestic views that were created with the attention to details, we promised the town.

Screen Shot 2019-02-13 at 11.52.19 AM

Regularly I had developers come to my office with projects that appeared impossible because they did not meet the local zoning regulations.  Sometimes the Town staff even directed them to me because they knew I looked deeper than the written word.  For about 8 out of 10, I would let the developers know the chances were basically zero because they did not meet the regulations or the internet of the regulations and there was no reason for the town to change or bend the regulations for them.  For around 20 percent I would tell them there may be a 50 percent chance of getting approvals, even know they did not meet the written words of the regulations. Since we could show how they met the spirit of the regulations and since we could offer a better fit for the site than other uses that met the regulations there may be an opportunity to work with the Town.  When I told them, it would take about 10 hours of my time and cost them $10,000 some would question the seeming $1,000 an hour rate.  But they were paying for my expertise, insights, integrity, and knowledge that took 2O years to obtain.  I simply reminded then that for the risk of our small fee, they could turn a $500,000 property into a Million Dollar property.  And 10K is a bargain for that opportunity.  Of course, I was prepared to provide examples and references, so they further understand the value they were getting.

On the self-storage front, I had a family friend meet with the town staff and inquire about putting self-storage on his 20-acre property.  They told him flat out that the property was in a residential neighborhood and self storage is not permitted in residential zones.  Disappointed he called me.  I knew the local property and regulations and suggested we meet.  Over coffee, I explained he had one long shot to get approval. The regulations had a single sentence that said in any district a non-conforming use may be replaced with a less non-conforming use.  The plans would still require review by the staff and approval by the Planning and Zoning Commission of which both were anti-development.

The site was a gravel pit many years ago that was left in the raw.  I explained If we simple left it up to the staff or Town Commissions the self storage proposal would not meet the lessor non-conforming use regulation. But if he could get each and every one of the 18 neighbors to agree to write a letter in favor of the project or sign a petition in favor of the self storage and then have them come in speak in favor of the project at the public hearing, he would have the self-storage gods on his side.  I explained what to say to the neighbors; no more dirt bikes and kids hanging out at night, no 20-acre subdivision that would create more traffic and use up tax dollars, etc.  I suspected that would be the end of it.

But to my surprise, Jamie came back to see me in two weeks with a petition in favor of the project signed by all the neighbors. (He did know many of them as he had been delivering their oil for many years) At this point, Jamie still had concerns about risking the design costs and getting approval, as the staff and commission chair had told him they were not going to approve self-storage anywhere in Town but in the Industrial Zone.  He asked If I had enough faith in the property to be his partner and I agreed as long as he would get several neighbors to come to the meeting.  We had to insist the project be put on the agenda for the whole commission to decide if our premise of a lessor non-conforming use was valid.  The gravel pit had been abandoned for years so it was easy to get denied if the board that was the right thing to do.

Obviously, the plans were designed to a T and the presentation hit all the hot issues, lots of tax dollars, quiet, no school kids, no traffic, great design feature etc. But what clinched it was the residences response when at the end of our presentation when the commission Chairperson asked, “Is there anyone in the audience who wants to talk in favor or against this project” One lady quickly stood up and spoke for 15 minutes in favor of the project. She said it’s about time someone fixed the problems of this site as the Town has done nothing to police this dangerous kid’s hangout and ongoing noise and headache for the neighbors.  My favorite line was when she said my daughter got pregnant back there.  And right after her speech, 18 more people got up and said “I am in favor of the project and ditto to everything the first speaker said.  We got the project approved and Jamie and I are still partners today.

It took an exceptional design and other expertise to get approvals and build this property but it was well worth it as it made each of Millionaires. And to this day we are still the only self-storage in town.

Enough stories.  I know many of you reading this, are thinking you simply do not have the years to become an expert.  And secondly, you’re not even sure what subject you would like to become an expert where you could duplicate yourself.  While there are many possibilities there is one exceptional business opportunity, I can help you with.  Self Storage!

I am a self-storage expert and developed Storage Authority Franchising to help others become multi-millionaires in the self-storage business.  You can google me, read my best-selling self-storage books, visit my LinkedIn page, read my Inside Self-storage magazine articles, talk to past clients or Storage Authority Franchisees, visit our website www.StorageAuthorityFranchise.com or visit with me for a cup of coffee and you will have no doubt that with Storage Authority on your team you can become a self-storage expert in record time with our systems in place day one for you.

You will learn we can transfer you many years of knowledge, proven systems, platforms expertise, saving you years of time and tons of money it would cost for you to become an expert. The Storage Authority goal for each franchise is simple.  For each one to make a good six-figure income from their self-storage ownership.  And develop a multimillion-dollar nest egg.  And to do it in 5 years after you say go!

I am not saying developing this income will be easy or even close to being guaranteed.  In fact, this kind of financial security does not come easy or everyone would have it, instead of just the 1 percenters out there. But where else can $500K+- cash equity and a bank loan for the project balance provide such wealth.

I understand there is a bit of self-boasting in this article but that is what it takes to get the word out sometimes, and exactly what your manager will be doing day in and day out for your beautiful premium Storage Authority Facility.

To Success!

Marc

 

 

Marc Goodin is President of Storage Authority LLC. www.StorageAuthorityFranchise.com  He owns 3 self storages he designed, built and manages. He has been helping others in the self-storage industry for over 25 years.   He can be reached at marc@StorageAuthority.com or directly at 860-830-6764 to answerer your self-storage franchise, development, marketing, sales, and operational questions.

 

January 2019 Goal ~ Build Self Storage Facility ~ Imagine That!

 

January 2019 Newsletter
Happy New Year!

Storage Authority® News

The Storage Authority word for 2019 is Imagine.

Imagine how an extra $250,000 or more a year would change your lifestyle.
Imagine if you decided to retire early.
Imagine if every day is Saturday.
Imagine………………….

Storage Authority Mulberry Florida Update

The final touches are in progress for an opening in Late Feb. 2019.

Scott understands the value of community and marketing.  Nothing says home town and rent here like a 50-foot flag pole.
You won’t miss this sign.  A high pole sign and a reader board!
A couple of building signs, landscaping, and a kiosk are ready for installation next week to complete this office entrance!
Imagine from a sketch to a beautiful self storage development! Check it out Storage Authority Mulberry FL
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As part of our Dynamic Ease Self Storage Development Series, we help our franchisees around the development landmines, including finding land, designing, financing and building a premier self-storage facility and to understand the options and prepare accordingly.
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If you want to learn more about Storage Authority Franchise there is a wealth of information on our website www.StorageAuhorityFranchise.com  Don’t forget to check out “Why Storage Authority” and our blog/newsroom. Then the next step is to apply on our website or email or call Garrett Byrd (Garrett@StorageAuthority.com or Direct 941-928-1354)

Vendor Highlight

The Rental Lease

The Rental Lease and various addendums are one of the most critical items to protect you and your multimillion dollar investment.  Too often people use outdated leases, leases not suitable for their state or simply put, leases that are lacking several important items.  For your protection, we highly recommend your lease be prepared by a self-storage lease expert. Our Self Storage legal expert and Self Storage lease expert is:

Greenberger & Brewer, LLP

Jeffrey Greenberger Esq

www.GRBRlaw.com       Jeff@GGRBRlaw.com

Phone: 513-698-9350

Nine things that help make a great first impression and let renters you ready to take good care of them. 
1. A large flag – the larger the better!
2. How about a sleek exit office sign.


3. Large office windows to let the sunlight.
4. Perennial garden to add bright colors.

5. A coffee station with sink & fridge
6. A large display of retail products
7. A commercial Vacuum for your renters
8. Granite top for the stand-up customer counter.

9. Bold large quality branded property sign & building signs. Let them know you are proud of who you are and you are different.

There are a lot of different ways to project how you are different.  Two of my favorites are I enjoy planting sunflowers each spring and lights running down the top of the fence along the front of your property.

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Storage Authority® experts are ready to help you every single step of the way, from finding land to building your facility, to operations, to driving your revenue year over year.  If you have a question give us a call. Team up with the experts to save time and maximize your profits. Call Garrett at 941-928-1345 for more information.

 
ARE YOU READY?

Click here to Get Pre-Qualified to Begin your Journey to Financial Freedom with Storage Authority Franchising!

You don’t have to be great to start, but you have to start to be great.
Zig Ziglar

                   Order your Self Storage Books Here!               

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What Makes You Happy and Excited to be Alive?

I love fishing! Marc Goodin CEO Storage Authority

Fishing is a time to relax and forget about the world’s trouble for a couple of hours.

         I have loved fishing ever since I was a kid.  Even when I don’t catch the big one I enjoy being outside!

When you retire or semi-retire what will you do?  When money and time are not an issue what will you do?

Maybe self-storage is the right vehicle to make your dreams come true. It was for me!

Fishing, just like Self Storage having the right tools and knowing where to go helps a ton to make sure the journey is fun.

I am especially lucky because my wife GP enjoys fishing now & then!

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Storage Authority
677 N Washington Blvd.
Sarasota FL 34236

www.StorageAuthorityFranchise.com         Garrett@StorageAuthority.com
1-941-928-1354