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Self Storage Planning……… Chapter 4 & 5



Self Storage Planning……… Chapter 4 & 5

Planning-SiteSelection-Design-Build

Your Self Storage

Planning – Site Selection – Design – Build

Over 150 proven ideas to save you time and money and make you a success!

By Marc Goodin

Chapter 4

Why New Construction Vs. Buying Existing Facilities.

     1.Be Closer to Home.  There Are Very Limited Quality Facilities Presently for        Sale.

  1. Better Locations. “Build It and They Will Come” is a thing of the past. NOW: “Build It in The Right Location and Market it and They Will Come”.
  2. Many Existing Facilities Are Over Priced Due to Bidding Wars and REITs Paying New Record Prices Every Month. As A Facility Owner I Get Unsolicited Request at Least Twice a Month to See If I Want to Sell from Buyers Who Have the Cash to Buy Now.  Buy at 4 Million Vs. Build $2 Million = More Equity and More Profits
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  3. New Facilities Can Be Developed for 1/3 The Equity Requirements of Buying.
  4. You Reap the Rewards of Your Efforts Vs. Paying A Premium for Others Efforts.
  5. You Can Build in Phases So You Can Start Off with Lower Equity Requirements.

 

Chapter 5 

 Why Self Storage Now? – The Top Seven Reasons

  1. There Has Never Been a Better Time to Get Started.
  2. Extremely Profitable – 30% Plus Returns Vs. 0-10% Returns for Other Real Estate Development Like Apartments or Hotels. Self Storage Not Only Provides Present Day Income but It Also Provides Retirement Income.
  3. Abundance of Financing Options with Equity Requirements as Low as 10%. And interest rates at all time lows.
  4. Significant New Construction Is Required to Meet Pent Up and Surging Demand.
  5. Owner Life Style – Replace Your Income with A Manger Driven Self Storage Business with Automation: Franchising; Kiosks; Web Based Automation.
  6. No Painting, No Backed Up Toilets, No Midnight Calls and Just a Couple of Employees.
  7. You Can Keep Your Present Job with A Manger Driven System.
  8. Storage Authority Franchising Is Not Only Ready To Help You Compete With The REITs And Big Boys But Will Help You Surpass Them. They Are Ready to Provide You the How to Knowledge and Help You Need Get Off to A Fast Start and Provide You the Systems and Experience That Will Make a Difference.

 

If you want to have the complete book as a reference you can order it now for just $9.99 at www.SelfStorageMarketing101.com 

Chapter 3 Start Today!

Chapter 3

Start Today!

Thirteen things you can to do this week to get off to a fast start.

  1. Do a personal review to make sure you have sufficient time, energy and money to get off to a great start. After you read this book you will have a much better idea of the time, money and work it takes to build a self storage.
  1. Join your local State Self Storage Association and attend meetings.
  1. Subscribe to one or two Self Storage trade magazines: www.insideselfstorage.com or www.ministoragemessenger.com.
  1. Read the Zoning and Wetland regulations from the Town(s) you may purchase land in. Often they can be found online for free. Meet with the Town Engineer and Planner to discuss the permitting process for a self storage facility, where in Town they are permitted and the zoning regulations on self storage development.

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  1. Find a commercial realtor to help you with your search for land.
  1. Meet with your banker and ask about self storage loans.
  1. Meet with a local civil engineer to get rough time frames and costs for site plan design and approvals.
  1. Stop at every self storage you pass by and talk to the owners. Let them know you are thinking about starting your own self storage. Some owners will be reluctant to say much but many will be happy to give you tons of useful information.
  1. Join our LinkedIn group “Marketing Self Storage” for great marketing ideas and a forum where you can ask any questions you may have. Feel free to ask any questions you have too.
  1. Order your free developers “getting started packet” from http://www.trachte.com a premier self storage building manufacturer.
  1. Start a business plan folder today. A lot of the information you accumulate over the next several weeks will be used to prepare your business plan.  Your business plan will help you understand the costs, planning, work and risks associated with your new project.  When you apply for your loan the submission of a well prepared business plan will let the bank know you understand the self storage business and are well prepared. This can often help the bank make a positive decision in less time and often with better terms.
  1. Check out the fastest and most profitable way to get started in self storage www.StorageAuthorityFranchise.com  Don’t forget to read the blog for tons of great info you will need to build & market your self storage.
  1. Email me at marc@storageauthority.com when you have 3 of the above items completed for a free 1/2-hour phone consultation for faster profits.

You be amazed how quickly you start learning valuable information.

For the three self storage facilities that I built and presently own it took aprox. 1.5 years from when I initially decided (before I found the land) to finish building a facility.  The longest period of time for me was making the decision to build.  The rest went by quickly.  After you make the concrete decision to build self storage you have to find a piece of land that fits your needs, and negotiate an option to buy. If you already have a piece of land under consideration you are already off to a fast start. Then, your engineer has to design the project and get approval from the local municipal boards. After the regulatory approvals you have to do more detailed designs. Next, you have to choose a contractor(s) and, of course, you than have to build the facility. The more realistic you are about your time schedule the better prepared you will be, and certainly it will be a lot less stressful.

Need help – send me an email marc@storageauthority.com

 

 

Chapter 2 Fun Self Storage Facts

Chapter 2     Fun Self Storage Facts

  • The self-storage industry over the past 35 years has been one of the most profitable and fastest growing business opportunities in the United States.
  • The self-storage industry in the United States grossed approximately 24 billion dollars in fiscal year 2013 and is projected to grow approximately 30 billion by year 2019. This is a projected increase in growth of one billion dollars per year for the next five years.
  • Self-Storage new construction is booming throughout the United States, with over $580M spent in 2014.
  • Key drivers impacting the explosive performance in self-storage include the fact that there is little need for tenant improvements or paying lease commissions, which results in a higher net rental income than other commercial alternatives. Low maintenance requirements also contribute to an increased bottom line in performance. Self-storage has a low level of revenue volatility meaning self-storage is generally consistent regardless of economic conditions.

There are over 50,000 self-storage facilities today in the US. Compared this to 1984 when there were 6,601 facilities. Owners who own just one facility comprise over 30,000 of the 50,000 plus self-storages in the U.S. today.  But the word is out and the large REITS and other wealthy organizations are pumping in millions and millions of dollars of smart money, buying recorded numbers of self storage facilities.

  • Increasing population, mobility and rising household formations, together with a limited pipeline, will keep self-storage conditions exceptionally tight.
  • Americans continue to store more stuff year after year. Approximately 9% of all American households currently rent a self-storage unit.
  • There are currently more self-storage facilities in the United States than there are McDonalds and Subways combined.
  • Some 68% of all self-storage renters live in a single-family household; 27% live in an apartment or condo.
  • Some 65% of all self-storage renters have a garage but still rent a unit; 47% have an attic in their home; and 33% have a basement.
  • The approximate self-storage demographic distribution of U.S. households are as follows: 32% urban, 52% suburban and 16% rural
  • The average revenue per square foot varies from facility to facility; however, here is the data for Q3 2014: $1.20 PSF for non-climate controlled 10′ x 10′ unit and $1.53 PSF for 10′ x 10′ climate controlled unit.
  • Some 47 percent of all self storage renters have an annual household income of less than $50,000 per year; 63% have an annual household income of less than $75,000 per year.Planning-SiteSelection-Design-Build
  • As the U.S. economy continues to build momentum, demand for self-storage facilities will continue to rise.

 

 

Chapter 1 Should You Take Control of Your Destiny with Self Storage

Your Self Storage

Planning – Site Selection – Design – Build

Over 150 proven ideas to save you time and money and make you a success!

By Marc Goodin

Chapter 1

Should You Take Control of Your Destiny with Self Storage?

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So you’re looking for something different?  Maybe you were like me and enjoyed a great career but after twenty-five years doing the same thing you thought it was time for a change.  As a civil engineer I worked with a lot of business owners and entrepreneurs but most of them did not have the life style, flexible work schedule and income I desired.

There was one guy who had both time and money and he owned self storage.  His visit to my office over 26 years ago changed my life.  Please let me share what I learned from that visit and later experienced firsthand to be true.

Why Start a Self Storage Business When I Already Owned a Very Successful Business?  (Civil Engineering Company in my case)

Be Your Own Boss:  And just as important for me – there are next to no employees compared to most businesses and no company politics to deal with everyday.

 Flexible Work Schedule:  I was able to keep working at my engineering business full time. Then one day I had replaced my engineering income and retired from engineering.  Now my managers run the day to day business for my 3 self storages while I take care of the big picture and work in the office now and then for the fun of it.

Control Your Own Future and Security:  Even as an owner of an engineering business I was trading dollars for hours.  And there were never enough hours in the day.  Self Storage provides a kind of residual income for life once you get it running on all cylinders.  And all along you are building equity so you can have retirement income when you’re ready!

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Growth Opportunity and Limited Risk:  I was willing to work hard but I did not want to risk everything I had already accomplished so I looked for a growing industry, with high profits and high success rates.  If you check out the self storage industry like I did you will find:

  • Self storage has higher long term return rates of all the major real estate categories including; Apartments, Office buildings, industrial, and retail and cost less to build.
  • “The Self Storage Industry has been one of the fastest growing sectors of the United States Commercial real estate industry for the period of the last 35 years.” Self Storage Association Fact Sheet
  • Self Storage is presently a $25 Billion a year business and projected to grow a whopping Billion dollars a year over the next five years.
  • Self Storage customers are located everywhere and more and more people are using self storage every year.  Self Storage renters are as follows:
    • 41% Long term residential customers
    • 32% Short term residential customers
    • 19% Commercial Customers
    • 4% Military Customers
    • 4% Other
  • Many self storages are under managed or poorly managed, including the REITs, allowing a knowledgeable owner to do better than the industry incredible returns. (Crush The Competition)
  • Building, owning and developing operational systems for my three self storage facilities has made a huge financial difference for my life.  Just as important the personal fulfillment, enjoyment and satisfaction has been very significant.

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What Are Your Next Steps?

Don’t take my word; check out the facts on your own.  Visit a half dozen self storages and see if you can talk to the owners.  This book will give you some more information and places to get additional information as well.

The Good, The Bad & The Ugly

The Ugly

Your success and your dreams are up to you.

We are ready to help but you have to make a decision to start and then pick up the phone and me (860-830-6764).

Unfortunately, we have to admit that perseverance is not the most human trait.  People often refuse the truth because it is inconvenient. Accepting average or status quo is the enemy of great success. Too many people have told me “I was going to build a self storage but you (or someone) beat me to it. There is always an excuse if you’re looking for one.

Don’t wait!  Get started today.  Action will give you the results and belief you need.

The Bad

Your success and your dreams are up to you.

I have so often heard people saying, “I understand” and then I see them doing the exact opposite of what they thought they had understood.  It is only when you put into practice what you have understood that you can really say that you truly understand.

Don’t wait! Get started today!  Actions will give you all the results and belief you need.

The entrepreneur, the professional, the self storage owner, the investor, you – anyone who wants to build a self storage facility and take control their destiny will value the ideas in this book.  It will provide a simple plan and required research that you can use to make your dreams come true; all you need do is make the choice to succeed.  In this book, there are over 150 practices that have been outlined to help you plan, design and build a better self storage facility and make more profits.

“Self storage is easy, does not take a lot of planning or time or out of pocket money and always makes money.” There is nothing further from the truth, but I hear this all the time. For a typical self storage facility of 50,000 square feet you may invest $400,000 or more of your own money, borrow over a million dollars from the bank, and will personally spend many hours learning and planning before you rent the first unit. But a properly planned, operated and funded self storage facility can be a very rewarding and profitable business.

As soon as your self storage business is under construction everyone is going to tell you “I was going to build a self storage” but I never got around to it.  You are taken the first step by reading this book.  The second step is to take action every day until your dream comes true. You Can Do It!

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Why do I mention Storage Authority in this book?

Throughout this book I am going to mention Storage Authority Franchising.  At first you may think my goal is to advertise my Self Storage Franchise company. But I hope you understand, what I have realized after helping others in the self storage business for many years. Plus there is tons of great free information on the Stoage Authority News Room Blog from how do a mini demand study to 150+ K Kamrts that are closing, maybe in your town, that would make a great self storage conversion project.  One out of a hundred people (or less) who read this book will start their own business.  While in many respects, self storage is easy it is not simple and getting more complex everyday with very little help out there to get you started.

If you are the one in a hundred that will start your own self storage business on your own you can skip the Storage Authority information.  Or better yet check out Storage Authority in detail and see how we are changing the self storage industry from customer guarantees, to apps, to reward programs, to internet platforms, to customer satisfaction, to sales and marketing and many other state of the art platforms so you do not get left behind and get crushed by the competition.  Either way I believe this book will help you save and or make tens of thousands or even more before you open your doors.  I know You will definitely get your moneys worth and will even use Storage Authority as your guide.

If you are not sure if you are the one in a hundred, then most likely you are not.  The good news is I have referenced Storage Authority so you can consider joining us and taking what I believe is the fastest way to oversized self storage profits.  Our time, expertise and experience becomes yours and together, your success can be just around the corner.

Chapter 2  Fun Self Storage Facts – coming next week

You can purchase this boo and other books by Marc Goodin at entire www.SelfStorageMarketing101.com