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Storage Authority -Jan. 2018 Newsletter- SBA Lending Updates



Storage Authority -Jan. 2018 Newsletter- SBA Lending Updates

January 2018 Newsletter

SBA Lending Updates

The Small Business Administration has issued new Standard Operating Procedures (SOP) for 2018. While there are several changes the major one is the requirement that employees be hired and paid by the owners and owners must have oversight of the employees.  Essentially this means that if you decide to go with a management company you can NOT get an SBA Loan.

The difference between the required capital for an SBA loan and a traditional loan can be huge.  For new self-storage construction a SBA loan typically requires 10 – 15% down and a traditional bank typically requires 30-40% down,  So for a phase one $3,500,000 loan, it means an equity requirement of $400,000 for a SBA loan vs $1,200,000+_ for a traditional loan.

A message from our President

I could list all our vast accomplishments in 2017 and outline our many goals for 2018.  It would be impressive but it is not what is going to motivate you to take a leap of faith and start your own business.  Instead, I am going to get right to the point, you can make it happen in 2018 but you have to be ready for the journey.  As I learned a long time ago:  If it is to be it is up to me  (and a bunch of smarter people on my team.)

While you are compiling the facts I encourage you to always be learning from the insights and encouragement of others.  One of the daily blogs I read is by Seth Godin.  Below is a portion of two recent blogs by Seth that may encourage you to make your dreams come true in 2018.

Enjoy the Passage of Time!
Marc

How much is ‘smarter’ worth?

No new costs, no new machines, no new resources.
Just smarter.
Smarter about the process, about the effects, about planning. Smarter about leadership, about management, about measurement.
How much is smarter worth?
In my experience, smarter is almost always a bargain, something you can buy for a lot less than it’s worth.

The power of the possible

Next year is almost here.

And doing what you did this year probably isn’t going to be sufficient.

That’s because you have more to contribute than you did this year. You have important work worth sharing.

To reach your goals, you’ll probably need more effective and powerful ways to tell your story, get clients, gain market share and serve your audience.

As part of our Dynamic Ease Self Storage Development Series, we help our franchisees around the 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

INSOMNIAC Self Service Kiosks are Storage Authority’s approved kiosks.

To be competitive you need to rent and take payments night and day and having a kiosk is not a choice.
There are several Insomniac models to choose from to meet your needs and price point. Storage Authority’s National rep, Sheri, is always available to make sure Storage Authority Franchisees get the best pricing and the right model.

Shari Klein
Business Development Manager
OpenTech Alliance, Inc. | 2501 W. Dunlap Ave., Suite 255 | Phoenix, AZ 85021
Main: 602.749.9370 | Direct: 602.324.8678 | Mobile: 561.777.5099
Email: sklein@opentechalliance.com

If you are not planning on a kiosk you simply do not understand the value and the math.  Literally, it will pay for itself in the first year. And then renting just 1- 2 units a year, will pay for the kiosk maintenance and program and the rest is pure profit for you!.  No more worries when you have one manager and two clients in the office because the kiosks can take payments and rent!



The INSOMNIAC 900 Kiosk is my favorite.  Marc 

Self Storage Industry News

Our Co-Founder Marc Goodin’s best-selling book Your Self Storage Planning, Design, Build has been updated for 2018. It shares what it takes to get started including updated development cost, example proforma, how to find land, how to do a mini demand study and more.  For your free copy email Marc. Marc@StorageAuthority.com

Self Storage Articles

Two Nashville self-storage facilities fetch $38 million

One of the facilities, at 7102 Bakers Bridge Ave. in Brentwood, TN, sold for $21,485,000, or $301 per square foot, according to Ashley Compton of Nashville, national director of the self-storage group at Colliers International. The other facility, at 6346 Nolensville Road in Nolensville, TN, sold for $16,485,000, or $216 per square foot. Compton brokered the two-facility deal.
*Spare foot

2018 Debt Forecast: The Lending Climate Remains Clear for Self-Storage Borrowers

After many years of historically low and stable interest rates, borrowers should realistically expect that rates will begin to tick up as the economy continues to improve. Nonetheless, self-storage borrowers have an abundance of options. Barring unforeseen events that would dramatically alter the financing landscape, the window of opportunity should remain open to lock in on low rates with aggressive lenders looking to put money to work.
*Inside Self Storage

With Storage Authority on your team, we will help you every single step of the way, from finding land to operations, to driving your revenue year on year.  If you have a question we have the answer, we will help get you developed and leased up faster than if you were to go it alone. Team up with the experts to maximize your profits.

ARE YOU READY?

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

Our goals can only be reached through a vehicle of a plan, in which we must fervently believe, and upon which we must vigorously act. There is no other route to success.” —Pablo Picasso

Recent Storage Authority Blogs You Will Enjoy!

Complete Storage Authority News Room 

Sample Self Storage Development Budget & Proforma

Chapter 6 The Five Most FAQ’s

Recent Storage Authority News Letters

December 2017 Newsletter. Let the experts help you find Land. Storage Authority & Morrow Hill

November 2017 Newsletter: When should you start your self-storage construction financing plan?

 October 2017Why own a “Storage Authority” Franchise?

 

 

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Storage Authority
677 N Washington Blvd.
Sarasota FL 34236

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

More big box retailers closing – Think Self Storage Conversions!

Yesterday Kmart/Sears/Macy’s announced another round of store closings.

http://abc13.com/shopping/sears-store-in-houston-to-close/2863066/
If you type in kmart & sears closings into google search you will see round after round of store closings. Maybe there is one near you. In the past 5 years Sears has gone from over 2000 stores down to 12oo stores.

Here is a map of the latest round closings. The article above will give the Towns.

Screen Shot 2018-01-05 at 8.46.34 AM

While this is a sign that Amazon is killing the big box stores it is also a sign it time to consider conversions for self storage. I recent talked to one self storage developer and he only does conversions. He has done 4 and has each is doing very well. The big boxes are typically in areas of suitable, even high populations so it is a matter of confirming the available demand taking into consideration of the existing self storage.

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Conversions typically save you time because they are much easier to get approvals and takes less time to build. Grocery stores are a great conversion as well and they don’t have to be oversized. Often a 30,000 square foot self storage will have a large parking lot you can convert into another 30,000 sf of self storage.

Here is a quick web demand study on one site I randomly choose.  This is a great program everyone looking for self storage because what used to take a couple of days is provided in seconds.  send me an email at Marc@storageauthority.com to learn more about conversions or this web demand study

Kmart FL

If you look to the left you can see the existing self storage demand information. What is real interesting and what makes this site worth checking out is almost all the existing self storage is non climate control!

To More Success in 2018!

You can do it!

Marc

860-830-6764

Marc@storageauthority.com

December 2017 Newsletter. Let the experts help you find Land. Storage Authority & Morrow Hill

 

 

December 2017 Newsletter

Franchisee Updates:

 

Welcome & Congratulations to our newest Franchisees. Keith & Lisa and George and Andrea.

They are already off to a fast start.  Before the ink was dry on the franchise agreement our national land brokers Morrow Hill were already looking for land for their first self-storage! When we met with Keith & company, Keith had done extensive research on Self Storage, Storage Authority and even myself (Marc Goodin).  When we were done with our meeting I asked if they needed anything else to make a decision and Keith surprised me with:   “I just need to do more research to see if I could find any reason not to get on board”.

 

I think research is important, but you could look forever for a reason not to do something and never find it. In the end, starting a new self-storage business or any business is partially a leap of faith.  But if you believe in yourself, and have done your research on self-storage and Storage Authority it is an easy choice in the end.

 

Scott House our co-Founder has received his site plan approvals and just finished up Architectural and construction is slated to Start Jan 2018 on his Mulberry Florida Storage Authority Facility. He has decided to build 70,000 sf in phase 1.   Scott Found his land this summer so he has been going at a sizzling pace.

 

Ed & Jenny site plans have been approved and are slated to start construction this January on their Houston facility.  They are building in 2 phases with phase 1 being 30,000 sf.


As part of our Dynamic Ease Self Storage Development Series, we help our franchise 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.comor Direct 941-928-1354)

Vendor Highlights

Let the experts help you find Land.  Storage Authority & Morrow HillOur goal is to have you looking at land choices within 30 days of becoming a Franchisee. It takes most people longer than 30 days to find a broker and another 30 days for us to educate them on self-storage land requirements.  And then they are often just passing along LoopNet sites.

To make sure this is not your plan we are excited to introduce our national land brokers Morrow Hill.

Screen Shot 2017-11-12 at 12.44.03 PM

We start by understanding you, your goals and your finances.  Unfortunately, most people and brokers start by looking on Loopnet.  Big mistake, as LoopNet is where we find about 10% of our self-storage sites. If that’s your plan or your brokers plan it could take you several months if not longer to find the right parcel of land for you.

Next, we provided 30 minute driving maps from your home or from the center of where you want your facility.  This map will also show the existing self-storage facilities and the area road network. An areal view will also help you understand the population density.   From this, you can start to understand the existing self-storage density along with changes to the population density.

srq fl

We then typically choose the center of the area you want to find land in and draw a 1 & 3-mile radius.  This, in turn, allows you to understand the general size of the competition impact area.

As a side note, many people look at the above map of Sarasota FL Area or their hometown and think all the good places are gone.  I have to laugh because many great successful self-storage will be built this Sarasota FL area in the next couple of years.  Until you compare the population density to the existing square footage of self-storage you can not generalize.  Here is the same 30 minute driving time map for Houston TX.  See a much higher density of self-storage?   And we have a new Storage Authority Franchisee just about to start construction in Houston Jan 2018.  And Expect we will have many new facilities in Houston in the next five years

houston

The next step is choosing a broker and educating them on self-storage. This can take time. The Storage Authority Dynamic Ease Development Series has multiple sections to help you and your brokers find land.  And of course, we are there every step of the way as well.   I hate to say it but many of our franchisees have told us they often do not even get callbacks from agents for days.

To reduce the time to find land we have added Morrow Hill as our preferred national brokers.  They understand Franchisees, Storage Authority and know how to find land.

99-ESYu-Morrow Hill-Blue

If you have a great commercial land broker that’s great just make sure they have the Storage Authority land requirements and worksheets from our Dynamic Ease Development Series and have the expertise to use all the tools required to find land fast.  One of the many questions I would ask is, excluding LoopNet how would you help us land?

The second pitfall in finding land is understanding if you need 5 acres of land, that any 5-acre parcel may not meet your needs for so many reasons and takes substantial investigation.  This is because there are so many things that can reduce the usable area including wetlands, flood planes, easements, deed restrictions, utilities, zoning, stormwater detention, endangered species, topography, and even neighbors.  And of course, the 3-mile population density and amount of existing self-storage in 3 miles, traffic counts, visibility, access, pricing are critical to the decision making process.  As a civil engineer and site plan designer for 30 years, I learned site development in the trenches and I am ready to share them with you and your team.  Of course in many respects, I am a part of the Morrow Hill team because we are always sharing our ideas on land and we will continue to learn together.

If you have questions about Storage Authority Franchising or finding land for your next self-storage project give us a call.

Marc Goodin  860-830-6764

…….

Self Storage Industry News

So why develop a self-storage facility with Storage Authority to add to your portfolio?

For one, it’s recession-proof. This was proven by Forbes 400-member B. Wayne Hughes when he built a $2.4 billion fortune on self-storage. He was clearly doing something right. You can’t argue with that.

In a bad economy, people start trading in luxury goods for, well, fewer luxury goods. Apparently, storage units, are – ding ding! – not luxury! Which turns out to be their appeal.

In fact, during the 2008 economic downturn, self-storage was the only REIT sector that posted a positive return of five percent including dividends. We think that’s kind of big deal.

Storage facilities need little capital outlay or upkeep, their property taxes are modest, and net acquisitions in that sector have surged. *Forbes  (I may have to differ with Forbes a bit as self storage does seem to pay a hefty tax. Marc Goodin)Even in the cities with the newest construction, developers can still find opportunities to build new projects. “Self-storage is a three-mile business,” Most Customers are not likely to use a self-storage facility more than three miles from their home. That means that developers don’t need to worry as much about competing properties that are four or five miles away.

“Self-storage properties compete in such micro markets that it all depends,” says Ryan Burke, an analyst with Green Street Advisors, a real estate research, and analysis firm.

Self Storage Articles

Not Sexy, But Investors Should Consider The Simplicity Of Self-Storage

Developers can still find opportunities to build new projects.

Q&A Spotlight: Self-Storage Construction Loan Team  by Live Oak Bank

ARE YOU READY?

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

It’s only a dream until you write it down then it becomes a goal.  Write down you will have a goal to begin construction of your self-storage facility in 2018.  Put it on the mirror where you can see your goal and visualize it daily.  Start today, take the leap of faith and never look back!

Recent Storage Authority Blogs You Will Enjoy!

Complete Storage Authority News Room 

Storage Authority proprietary “Dynamic Ease Development Series” Finding Land Through Pre-Opening Tasks.

Why not you? Why not now?

Recent Storage Authority News Letters

November 2017
When should you start your self-storage construction financing plan?

 October 2017

September 2017

 

 

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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

Why not you? Why not now?

This is a great question?  If self storage is so good why isn’t everyone developing self storage?  If being rich (vs poor) is a good idea why isn’t every one rich?  For starters not everyone is prepared to do the work or take the risks either one would take.  And for many they simple have other goals.

why no

Here is a slide show from a recent presentation we did for a large franchise consulting group.  It is clear most individuals will not build self storage on their own for one or two reasons.  One they do not have the money required. (often $400K) or they do not know how to get past the Road Blocks and Minefields.  But now for the first time the is a path to get past the Road Blocks and Minefields.

 

Screen Shot 2017-11-07 at 2.08.53 PM

Where Else can you get help on all 4 main items it takes to get develop and operate you self storage Business?

 

Screen Shot 2017-11-07 at 2.09.47 PM

Why not you? Why not now?

Screen Shot 2017-11-10 at 1.59.14 PM

Ready to start your own Self Storage give us a call or get pre qualified by applying on line.

Marc Goodin   860-830-6764

 

 

Who Should Own Self Storage?

Who Should Own a Storage Authority Franchise?

Entrepreneurs

who want a solid real estate investment for both income & retirement.

Business Owners & Professionals

who want to build a second reliable six figure Income.

Families

who want a retirement they can count on and a generational business.

Couples

who want to have a business where they can work together.

Self Storage Owners

ready to take their business to the next profit level and crush the competition.

 

Why doesn’t everyone take advantage of the Storage Authority opportunity?

Because 99 percent are waiting for the “right time” to start a business.  They are waiting for the perfect business.  Don’t believe me?  Just tell your neighbor you are going to build a self storage and they will tell you how lucky you are and  “I was going to do that but………………..”

So that leaves us with the 1 percent who Declare “now is the time.”  They took the time to research self storage and understand self storage is  a solid business that can provide both a great income and a great retirement income.  And they are ready to work to make it happen for them.

Self Storage development is just hard enough to keep it very profitable.  Typically it takes $400,ooo liquid cash equity to get started.  And takes time and work to get it built and profitable.  Storage Authority Makes Self Storage Easy.

If you are a 1 percenter we would love to talk with you.

To Success!

Marc Goodin

Founder & CEO Storage Authority

860-830-6764 direct

 

How & Why Storage Authority was Started

Now is one of the best times ever to join the self-storage industry. I hope you have a minute to read a little about my self storage story and Storage Authority. I became a self storage expert by learning in the trenches. As a professional engineer I designed my first self storage over 30 years ago and many more since then, including 3 personal self storages I designed, built, own and manage.Screen Shot 2016-01-02 at 9.01.40 PM

GP & I relaxing on the concrete slab of one of our self storage buildings.

I have helped many people get started in Self Storage. Quickly I learned everyone was asking the same questions over and over so I wrote a couple of self storage books, to help with some of the common questions and sold thousands. But only 1 in over a thousand readers ever got started. For most there were too many unknowns.

 

Planning-SiteSelection-Design-Build

My book covers many of the basics but there is nothing compared to having Storage Authority on your Team.

One day a hotel franchise expert, Scott House, gave me a call. He had searched everywhere to find someone to help his hotel and apartment clients get started in self storage, where they would make much better returns. He could not find anyone until he read my books and decided to call me. I agreed to help. After about 2 months he was amazed at how complex it was to get started and how each project is both similar and unique and suggested we develop a self storage franchise. And Storage Authority Franchising was created, the only self storage franchise in the US. Scott got so excited about self storage and Storage Authority that he is presently building his first personal self storage in FL

Screen Shot 2017-09-14 at 2.15.39 PM

This is the first draft elevation of Scotts office.   The place is going to be beautiful.

Getting started with Storage Authority is easy and the best way to ensure your success in the self-storage industry. You will benefit from our many years’ of experience as we advise and assist you in all phases of self storage ownership, from land acquisition, design, construction, marketing, operations, sales and on-going support. We not only eliminate the need for a costly learning curve but provide your business with the latest technology, operating systems, marketing strategies and ongoing training that will not only allow you to compete in your market but dominate!

Many franchisees want to take advantage of additional profits by building their own self storage vs. buying an existing self storage. This route also allows many new franchisees to get started with $400K liquid cash equity, less than half the typical cash capital investment.

It is a complex maze between finding the right parcel of land, banking, design, obtaining regulatory approvals, construction, and pre-opening marketing and preparations with minefields, delays and cost overruns at every turn. Storage Authority is the Solution. We have learned self storage in the trenches and are ready to help you jump over the minefields.

SA-Sept.-Article-2 Sept

You don’t want to be feeling like this guy!  And that is why we have your covered!

We have created the Storage Authority proprietary “Dynamic Ease Development Series” Finding Land Through Pre-Opening Tasks. This step by step process along with our one on one expert guidance helps our franchisees throughout the land discovery and development phases, get started faster, go around the minefields, save money and be ready to open with a modern, premium facility with clients at the door waiting to move in day one.

We look forward to explaining more about how this optional premium development service will help you build your state of the art facility for less money and in less time, with confidence. The great news is we are waiving the $50,000 fee for this premium service for franchises awarded in the next 2 months.

I would love to sit down over a cup of coffee and tell you the rest of the story.  Send me an email and I would be delighted to meet you in Sarasota FL

To Your Success!

Marc Goodin

Ps Don’t forget to sign up for our free news letter on our website. Every month you get the latest Self Storage news and tips you can use. www.storageauthorityfranchise.com

Storage Authority proprietary “Dynamic Ease Development Series” Finding Land Through Pre-Opening Tasks.

Many franchisees want to take advantage of additional profits by building their own self storage vs. buying an existing self storage. This route also allows new franchisees to get started with less than half the cash capitol investment.  The problem is they do not know how to started.

Screen Shot 2017-05-26 at 12.14.58 PM

It can be a complex maze between finding the right parcel of land, banking, site plan design building design, obtaining multiple regulatory approvals, construction and pre opening marketing and preparations, with minefields, delays and cost overruns at every turn.  Marc Goodin, our founder, has learned self storage by being in the trenches and is ready to help you jump over the minefields.  He is a professional engineer who designed his first self storage over 30 years ago and many more since then, including 3 personal self storages he designed, built, owns and manages.

Screen Shot 2017-08-27 at 9.51.07 AM

We have created the Storage Authority proprietary “Dynamic Ease Development Series” Finding Land Through Pre-Opening Tasks. This system along with our one on one guidance helps our franchisees get started faster, go around the minefields, save money and be ready to open with a modern premium facility, ready to rent up.  Our Strategic Development Systems consists of an integrated step by step process where our expertise provides guidance and support throughout the land discovery and development phases.

Here is a partial list of items covered in our dynamic Ease Development Series.

Chapter 1      Introduction

 A     Building Your High Performance Team

B     First 30 Days

C     Development flow charts

D      Chapter 1 Worksheets

  • Storage Authority Competition Review.
  • Storage Authority Developer Secret Shop Review.
  • Storage Authority Partial Designer and Vendor List

IMG_1913 Think Retail $17.95 on sale for just $12.99 and sell more locks than your competition sells at $9.99.

 Chapter 2     Land

 A      The Basics of a Good Location

B      Typical Basic Land Requirements

C      Hiring a Quality Broker to Assist You with Finding Land

D     Additional Ways to Find Land

E     Initial Land Review Prior to An Offer or Feasibility Study

F       Making the Offer & Due Diligence

G      Feasibility Study

 H      Chapter 2 Worksheets

  • Example letter for contacting a land owner.
  • Questions for first meeting with town planner & staff.
  • Individual land parcel info worksheet.
  • Site drive by worksheet.
  • Initial zoning review worksheet.
  • Land offer worksheet.

 Chapter 3   Purchasing an Existing Self-Storage Facility

A      Seven Primary Steps of a Real Estate Transaction.

B      Investigating an Existing Facility

 Chapter 4   Banking/Lending

Screen Shot 2017-08-27 at 3.42.11 PM

 A         Loan Options

B         Loan Considerations

C         Often Over Looked Expenses

D       Chapter 4 Worksheets

  • Loan request sample

Chapter 5   Design & Regulatory Approvals

 A      Finding Design Consultants

B      Site Plan Design

C      Regulatory Meetings

Screen Shot 2017-08-27 at 3.36.27 PM

D     Building Design

E    Security Design

F   Video Surveillance Design

G      Chapter 5 Worksheets

  • Additional Site Plan Design Items to Consider.
  • Additional Building Design Items to Consider.
  • Site Details
  • Owner to do during the Design process.

Chapter 6   Bidding and Construction

 A      Finding a Contractor

B      Construction Specifications & Bidding

C      Construction Review

Chapter 7   Pre-Opening Preparations

A      120 Prior to Opening

B      30 Days Prior to Opening

C      Pre Opening Marketing

D      Chapter 7 Worksheets:

  • First product order
  • Managers book table of contents
  • Business cards & marketing cards
  • Screen Shot 2017-08-27 at 3.34.23 PM

You may even have experience in some or many or these items but you will be surprised how many items are just different in the self storage world and because of that our assistance will make a huge difference.  For example you may have a good relationship with your bank and getting a bank loan may not be a huge concern but there are a couple of standard bank loan clauses such as requiring a Debt Coverage Service Ratio ( DCSR) of 1.3 in the loan.  This could be risky as self storage start empty and may not meet this prevision in the beginning.  But even a good loan request presentation will make you look very professional and experienced in self storage and this along with the Storage Authority Franchise program you may get you a better loan.

Our well timed reminders and explanations will often save you money and give you the proper time for coordination which means fewer delays.  You may have many of them on your check list like, wetlands delineations, maximum impervious surface zoning check, sight line check, soil borings, existing water service pressure test for sprinklers, site sign design, photos & reports for regulatory meetings etc. etc, etc, it easy to forget one or two or several get the wrong results or over pay if a clear explanation is not provided.  Just for your engineers we provide over several dozen items for them that are often overlooked and typically multiple dozens more as we review their plans.  And of course the better your plans are the more accurate your constructions bids will be with fewer problems and cost overruns.

IMG_3175

One major area we provide detailed guidance on is your site layout.  Often this saves multiple weeks in the process and gets you a better layout and even more square footage.

The best way to learn more about our proprietary “Dynamic Ease Development Series” Finding Land Through Pre-Opening Tasks and our various systems and platforms is to complete our online application to become prequalified for a franchise as soon as possible and start discussions with your franchise director. We look forward to explaining more about how this optional  development service will help you build your premium facility for less money and in less time with confidence.

We are ready and excited to help you succeed!

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And while your questions may intialy be about development soon your questions will be open and sales, marketing and operation.  The good news is we are ready to help you Crush Your Competition! 

You Can Do it!

 

Self Storage Development Disasters Waiting to Happen

 

StorageAuthority_Horz_logo

 

Storage Authority President Marc Goodin Shares Self Storage Development Disasters Waiting to Happen

 

By Garrett Byrd

 

There are many things that often go wrong during the development and construction of a self-storage facility. Franchising helps to avoid the pitfalls trusting in the expertise and guidance of the franchisor.  Marc Goodin (President of Storage Authority) is a civil engineer at trade and has been designing and building self storage facilities the last 25 years, that’s experience you can trust in.   Storage Authority helps and assists the franchisee examine some of the key difficulties that often go unpredicted by owners and developers, that often create significant cost overruns, lengthy delays and even project shut downs that could have been avoided with the proper research, planning, and design. The most overlooked disasters occur because of poor or incomplete investigations or lack of understanding of the following categories:

 

 1 Initial investigations

2 Environmental issue

3 Permits/approvals

4 State Department of Transportation (DOT)

5 Site Plan & Architectural Design

6 Budgets

7 Construction

Keep an eye out for Marc’s latest article in the September 2017 issue of Inside Self Storage; he is giving tips to developers on avoiding development disasters.  With Storage Authority franchising you get the guidance and expertise first hand.

If you haven’t already, here is a link to subscribe to Inside Self Storage.

SUBSCRIPTION INFORMATION:

SA-Sept.-Article-2 Sept

 

Storage Authority Franchising is about owning your own hometown self storage business. And having the professional systems and knowledge to assist and guide you. We like to say You are in business for yourself but not by yourself.  If you are thinking about self storage you owe it to yourself to contact Garrett Byrd at 941-928-1354 or Garrett@StorageAuthority.com to learn more about the Storage Authority Franchise opportunity.

www.StorageAuthorityFranchise.com

Storage Authority August Newsletter 2017

August 2017 Newsletter

 

Seven Basic Steps To Find Land for Your Self Storage Project.

1.) Look for the right size parcel of land.

Land size depends on the size facility you are going to build, the quality of the land, (shape, slope, easements, wetlands etc.) zoning, and if you are going to build a single story or multi story facility.  Typically, we recommend a new developer build 50,000 sf plus or minus since it is an efficient size for profits vs investment and has a much higher real sale value than small facilities.

Single Story – 50,000 square foot facility: look for 4 – 6 acres
Multi Story – 50,000 plus square feet facility: look for 1.5 to 2.5 acres.

2.) Look for land in the right location.

Many renters choose a facility because they have driven by it many times.  Self storage needs to be on a main street with easy access, high visibility and good traffic.  Start by thinking “would someone build a grocery store or retail plaza to find the best location.  In a rural/country area the traffic maybe between 10,000 – 20,000 vehicles a day.  In the metropolitan/city area the traffic maybe between 20,000 to 30,000 vehicles a day or even more.  We typically want to see the traffic on the property access road and do not consider traffic from a non access highway.

3.) Look for land based upon the cash equity you have available to invest in your self storage business.

Self Storage is very loan friendly due to the high profits and the lowest failure rate for real estate investments.  Banks typically require owners to provide total project cost equity of 15% for an SBA loan to 30% for a standard bank loan. A multi story building can require double or even more than double the owner cash equity requirements because multi story facilities cost more to build and can not be built in phases.

If your cash equity to invest in self storage is $400K to $1M we would recommend you build a single-story facility where you would need the 4-6 acres noted above.  If you have under $400K you may want to consider finding a partner or private investor.  Storage Authority does have a match program where we match Storage Authority Franchisees with other franchisees with at least $250,000.

4.) Look for land in the right zone.

Typically, self storage is not permitted in residential zones and is permitted in one or more Business zones, Commercial zones or Industrial Zones.  Typically zoning regulations will have a list of uses that include self storage and note specifically what zones self storage is permitted in.  If there are any question you should call the Town Planning or Building department and they can assist you.

We do not recommend a zone change for your first project as zone changes typically require additional time, money and add additional risks as well.

5.) Land features to be aware of.

Wetland areas and the wetland setbacks should not be considered part of the required 4- 6 acres.  To reduce your approval risks, time and cost we recommend you project be built outside of the wetlands and the wetland setbacks. Wetlands are not always detectable by the novice developer and as part of your due diligences determined in the field by an qualified expert.

100-year Flood plane area should not be considered part of the required 4- 6 acres.  To reduce your approval risks, time and cost we recommend your project be built outside of the 100-year flood plane.

Easements should not be considered part of the required 4 – 6 acres.


6.) Hire a Quality Broker to Assist You in Finding Land

There are several steps to hiring a professional that will help you get the best results. First, research brokers who work in your area and have experience in land transactions.

Determine which brokers:

  • Are active in the area?
  • Specialize in land acquisitions?
  • Have a good web presents?
  • Have access to demographics and local traffic counts.
  • Have access to major commercial listings sites such as Loop Net.

Next, choose two or three brokers to interview. Often brokers are skeptical of individuals looking land for self-storage because they have wasted time with tire kickers so let them know you are Partners with Storage Authority and provide them a copy of the Typical Land Requirements.

Any good broker will want to compete for your business.

Interview the brokers during the evaluation process. Listen, but also have some prepared questions. This is your chance to get into the nitty-gritty before you make a decision. Remember, people are generally on their best behavior during this phase, so if they don’t take the time with you on the front end, it’s doubtful they will once you’re signed up as their client.

7.) Other ways to find land and your check list.

There are several other ways to find Land.   At Storage Authority, we have found that around 50% of the land for new facilities is found “off line” and have devoted a significant section to our proprietary Dynamic Ease Development Series “Finding Land Through Pre-Opening Tasks”.  Your first step to finding land off line is to let everyone know you are looking for 4-6 acres for self storage.

You should develop a check list of the basics so record your findings.  As you get more experienced your check list will expand.

You found a possible parcel of land, now what?

The next step is to do a mini demand study and a development layout sketch before you spend time and money on consultants.  On the Storage Authority blog/news room you will find blogs on how to do this and the other steps of a self storage business.  Most or our Storage Authority Franchisees come on board with us before they find land so we can help them find land, so they get the most value and end up with a much better facility.  If you want to learn more about Storage Authority there is a wealth of information on our web site 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 Highlights

Storage Authority is excited to announce its latest Vendor Partnership with SelfStorageAuction.com

 

Storage Authority Auctions just got easier,  SelfStorageAuction.com is ready to revolutionize the storage industry by providing the most reliable, safe, manageable and efficient platform for online self-storage auctions.

 

One of the unique business features of Self Storage is having the ability to over lock non paying renters units, which provides owners collateral that helps insure renters pay their rent on time. And when they don’t pay it is a simple and quick process to “evict them”.  We even get to use the auction funds to pay for past due rents.

SelfStorageAuction.com provides Storage Authority Franchisees the best online self storage auction platform, along with the tools, and assistance to make the job easy.

 

Self Storage Industry News

Revenue in the U.S. self-storage industry

According to IBISworld, annual self-storage revenue was estimated to be about $32.7 billion in 2016. That figure is expected to grow at an annual rate of 3.5 percent over the next five years.

This boring sector crushed equities over two decades

4 Reasons self-storage is still a good investment

 

 

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Storage Authority
677 N Washington Blvd.

Sarasota FL 34236

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

 

 

Storage Authority Franchisee Partnership Program

Storage Authority Franchisee Partnership Program

 

It is hard to come up with the $400K – $500 minimum cash equity required to get bank financing. Or maybe even if you have it you are not ready to spend your last dollar of savings. I know this because I was short on equity for my first self storage and took on a 50 – 50 partner. It was the best decision I ever made. This self storage made millions in profits and is still making me good money every month and I now own 2 more facilities. Not to mention the growing nest egg when we decide to sell it. It took me a couple of years of asking around to find a partner. To make it easier for you Storage Authority decided to help potential partners find each other via the Self Storage Partner Registry.

Storage Authority is excited to announce its first of a kind self storage developer match program.  Everyday we hear from potential developers who are ready to move forward with their Storage Authority self storage but do not have the cash equity to get a loan.  Screen Shot 2017-06-28 at 2.52.40 PM The Storage Authority Match program will put two individuals together to create a joint venture team who will have the typical cash equity required to qualify for a self storage loan and move forward with their joint venture Storage Authority facility.   The program has just launched for the state of Texas and will launch for the rest of the US later this summer.  Typically, it is for individuals who want to be 50 – 50 partners.

To qualify for the program, you must have a minimum of $200K cash equity you are ready to invest in a Storage Authority self storage and:

  • Complete your review of the Storage Authority Platforms & Systems with your Franchise Director.
  • Complete a one page Match Program questionnaire that provides your geographical limitations and other basic information a potential partner would need.
  • We then facilitate introductions and we are available to help you navigate a winning partnership and of course the development and operation of your premier Storage Authority self storage.

If you are an investor we also have multiple investment opportunities as well from investing in individual self storages or Storage Authority, LLC.

Screen Shot 2017-06-28 at 2.52.13 PM

Parties Interested  in the Storage Authority joint venture program or investing in Storage Authority, LLC can call or email Marc at 860-830-6764 marc@storageauthority.com   for more details.