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Storage Authority August Newsletter 2017



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 July 2017 Newsletter

July 2017 Newsletter

Storage Authority Franchise Partnership Program

It is often 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.
Partnership to success
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.   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:

  1. Apply and be approved for a Storage Authority Franchise. Apply on line at www.StorageAuthorityFranchise.com
  2. Complete your review of the Storage Authority Platforms & Systems with your Franchise Director.
  3. Complete a one page Match Program questionnaire that provides your geographical limitations and other basic information a potential partner would need.
  4. 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.

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

Inside Self Storage Article on Franchisee Partnership Program

Vendor Highlights 

Dream of owning a Storage Authority Franchise? Don’t let financing stand in your way!

Can Retirement Funds Be Used to Develop a Storage Authority Franchise?
By Marc Goodin

Absolutely!  Should they be used for a self storage development?  While I would not tell anyone how to invest their retirement funds for me the answer was easy. Absolutely!  Why not?

Screen Shot 2017-05-16 at 1.09.30 PM

Using retirement funds such as 401K, IRA, pensions, 403b, 457, or annuities, you can buy a business, pay for any business expense, and to pay yourself a salary without incurring personal taxes or penalties for doing so. You can use retirement funds for the equity required by the bank and take a loan for the balance.

You can pay yourself a salary as soon in the process as you wish, even before you reach profitability. Since this funding option is not a loan, these funds are actually used to buy stock in your business, and therefore are not a personal distribution or a withdrawal.

Screen Shot 2017-05-16 at 1.09.15 PM

The first decision is self self storage for you.  Self storage is an active business that will requires time and experience in addition to money. Where as, retirement funds are often invested in vehicles such as stocks and bonds that do not take time.   Of course the goal is much larger rewards due to your personal efforts.  I may be biased but the best way to get the experience you need for both development, operations, sales and marketing is with a Storage Authority Franchise

The major reason for a retirement funds is so you have funds for retirement.  If you could turn $600,000 in your retirement account into several million for retirement would it be worth it? Just like any retirement investment you need professional help insure it meets your investment goals and you understand the risks.

There are required procedures, rules and laws you have to follow and you will need an expert to help you with the process.  To learn more about how to use your retirement funds for a Storage Authority Franchise I recommend you contact:

Diane Rosenkrantz photo 2014Diane Rosenkrantz, Senior Consultant

Tenet Financial Group 

413-754-3298  

Diane@TenetFinancialGroup.com

817-887-1720 Fax

www.Tenetfinancialgroup.com    

Self Storage Industry News

Straight from the Bloomberg press, the article about self storage states
there are more than 50,000 storage facilities in the U.S, mom-and-pop operators control about 80 percent of them. While the publicly-traded landlords seek to maximize shareholder value, smaller landlords are less likely to worry about market dilution.

Bloomberg Article

The video is a bit more specific – $600,000 NOI – self storage rents for the same price per sf as apartments but expenses and headaches are much less.

Bloomberg Video

 

 

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Storage Authority
677 N Washington Blvd.
Sarasota FL 34236

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

June 2017 Newsletter

 June 2017 Newsletter

 

 

 

Kamal & Pragati S. Site Plan Approved

Kamal & Pragati are excited the Planning and Zoning Board approved their site plans on May 24, 2017. The central New Jersey project consist or 5 single story buildings and 1 two story building for a total of 71,000 square feet. As typical in many towns a couple of more routine approvals have to be provided to the board before the final sign off signatures are provided.  The project will be built in phases with the first phase being is 30,000 square feet. The project is presently being bid as the final approvals are obtained.

Early on in the due diligence period the wetlands were delineated and wetlands were more significant than presented in the offering. We were able to determine the project was still feasible  with a reduction in the usable land from 6 acres to 5 acres. Once a new purchase price was negotiated due to the wetlands the project was back on track.

For many the Storage Authority assistance, guidance, systems, experience makes the difference.  Learn more at www.StorageAuthorityFranchise.com

 

 

Storage Authority News

Storage Authority is Excited to Announce 3 New Franchise Locations.

Welcome To Our Newest Franchises John G.

John came on board last week and is excited to get started.  He is looking for land to build a new facility in central PA.

New Company Facility
Storage Authority Co founder Scott House has just started the design for the third Storage Authority company store.  It will be located in Lakeland FL on an 8 acre parcel.  Construction for the 75,000 square foot Self & RV facility is slated to start construction late fall.

Existing Franchisee Edward O.

Ed’s offer for 4 acres in Houston was just excepted.  Houston is unique in the sense there are not the typical zoning regulations like most cities.   The 60,000 square foot facility is under design.  The facility will be constructed in two phases and phase 1 construction is slated for late fall.  Often you can purchase part of a parcel for sale reducing your land cost.  That is exactly what Ed did. With our help he was able to negotiate a 4 acre parcel purchase agreement leaving the 2.8 acre balance with the owner.

Vendor News

Storage Authority prides it self on staying on the cutting edge of technology in our industry.  We are proud to be partnering with Spider Door self storage app.  Storage Authority’s platforms and systems are based on high touch and high technology, partnering with Spider Door gives our customers one of the most convenient experiences as possible.

Here are some of Spider Door Technologies Features:

The convenience of a kiosk in your pocket

  1. Move in (24hrs a Day)
  2. Schedule move out
  3. Make Payment
  4. Open Gate from App
  5. Report issue to manager

 

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Storage Authority
677 N Washington Blvd.
Sarasota FL 34236

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

May 2017 News Letter Self Storage is Booming!

May 2017 News Letter.   Self Storage is Booming!
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May 2017 Newsletter

News From the Las Vegas Self Storage Expo

We had a great time at the show!   Co Founder Marc Goodin’s presentation on how you can do an initial layout to save time and money was well received by everyone.  The layout is one of the most important aspects to determine the feasibility of the site and of course to make the facility user friendly for the renters and manager.

The vendor convention hall was sold out!  One thing we noticed is the technology and software continues to grow.  In general this is good but I do see too many facilities trying to replace the high touch aspect of our business with more and more software “check lists” and other software options because managers are not trained well as sales and marketing experts.

Garrett & Marc enjoyed meeting old friends and making new friends at our Expo booth.  It was great to hear about everyone’s self storage plans.

Once again we heard knowing how to get started and having the confidence to get started continues to be the reason holding most newcomers form getting started. For many the Storage Authority assistance, guidance, systems, experience makes the difference.  Learn more at www.StorageAuthorityFranchise.com

Storage Authority News

Storage Authority has two new locations in the due diligence period.  One is in Florida and one in Texas.  Often Storage Authority will do a preliminary demand study and a concept plan  prior to a franchisees offer to confirm some of the basics.

Once the offer is accepted we recommend you immediately get the wetlands delineated on the site as they are often one unknown that can affect your development.  As you can see on this parcel, wetlands along the rear property line eliminated an acre of usable land.  Typically we are looking for 5 usable acres so we can develop 50,000 sf or more of self storage.

As you can see on the bottom of this sketch RV and boat storage takes up considerable area and is often used for your “extra land”

Vendor News

These guys have a lot going on, including a new logo and new products. In addition to their great self storage security options they now also provide video camera systems via a great partner.

My favorite continues to be their Gate App:

 EasyCode by PTI Security Systems.

EasyCode App will give your renters a simple touch interface to open gates and doors at your storage facility. Plus, they can view their access history, get notified of alarms and access activity, and more!

 

 

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Storage Authority
677 N Washington Blvd.
Sarasota FL 34236

www.StorageAuthorityFranchise.com         Info@StorageAuthority.com
1-844-337-8673