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



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

November 2017 Newsletter

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

Financing must be considered early on as an integral part of your self-storage planning and must start before you look for land. You need to understand the various options and their terms.
Most people can not close on the land without a mortgage so early on you need to know what the bank requires for a loan commitment and for the closing ( like final approved site plans, reports, complete bids, attorney documentation etc)

What Are the critical factors in a bank loan?

Most people learn many of the banking basic and have a game plan early on but often fail to realize the interest rate is just one of the several factors of a good loan.

An SBA loan may be for you because you only have 15% equity to invest.  Or a conventional loan with 25-35% down may make more sense.  Just like when renting a self-storage the first question is always what are your rates but that is less than half of the decision making process.  Other important factors include:  fixed rate vs variable rate, amortization schedule, loan term 5 yr – 10 yr or 25 years? Can carrying cost and other soft costs be included in the loan, how long to close, closing costs, bank track record to close on time, is an unreasonable debt service coverage ratio required, are there overly restrictive prepayment clauses, how will phase two loan work?  And the list goes on.  Again be an expert and realize the rate is not the first question to ask.

Many borrowers also do not realize how many things have to be done simultaneously to have financing in place in time to close before your option to purchase runs out.

What are the biggest banking mistakes? 

1.) Assuming a handshake is all that is needed.  I have seen too many people believe they have a solid loan in place and just need to gather a few more documents just to be told the deal has changed or worse the bank is no longer going to lend the money leaving you in the learch within days of the option to purchase time running out.  Your loan is never fully approved until you sign on the bottom line but typically the loan starts with the bank reviewing the basics and offering you a written term sheet.  If you agree to the terms they will provide you a written commitment for your signature and request a deposit for various bank ordered reports and or an origination more formal agreement.

Then they will continue to the full underwriting and once all the required information is provided and meets the original assumptions the loan closes.

2) Not having construction bids in time.  Banks often take 60 days or more to have a closing.  The 60 day period starts after they have all the information, including actual construction contracts with pricing broken down in AIA payment form. So this means you need to get your Architect doing the final building, electrical and MEP design during the site plan approval process if you want to close within 60 – 90  days after site plan approval.

3) Not having enough money in the loan due to cost overruns often due to poor plans or bid specifications.

4) Not having carrying cost in the loan or cash on hand for carrying cost so you do not run into financial problems prior to even breaking ground.

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

There is no doubt that bollard covers by Post Guard are a must on every new self-storage facility.  They look better and saves you time & money as you do not have to retouch the paint every year.  www.postguard.com

So why do so many facilities paint the bollards – year after year? It started with poor site plans and construction specifications.  Just make sure they are called for on the site plans and in the construction specifications and you will be home free!  Not only do they have a great product but they also provide Storage Authority Franchisees a group discount to make them even a better deal.


Your site plans should also show bollards details based upon your frost limits but also the location of every bollard on site ) building corners, gooseneck keypads, each side of entrance gate etc) and include.  At $600 a piece or more I know some developers are tempted to skip bollards but in the end, building repairs will cost you much more.
…….

Self Storage Industry News

*A company analysis of data from Yardi Matrix and the US Census Bureau found that about 438 new facilities were delivered during 2015 and 2016 and that 2017 is expected to yield 337 facilities (about 27 million square feet of storage space). The analysis projects between 350 and 362 facilities will be delivered in 2018.  The findings are in contrast to other industry estimates alluded to by Jernigan Capital, which in its report states that “some industry professionals have gone on record predicting as many as 900 deliveries nationwide in 2017 alone.”

“The combination of pent-up demand, continued strong population growth in excess of 1 percent per year and increased mobility of families and millennials can be expected to produce orderly absorption of new supply in general

*Spare Foot

Self Storage Articles

Jernigan Capital CEO: “No oversupply tsunami coming” for self-storage

What You Need to Know About Self-Storage Conversions

Video  Progression of Grocery Store to Self Storage Conversion

ARE YOU READY?

 

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Storage Authority
677 N Washington Blvd.

Sarasota FL 34236

Storage Authority October 2017 Newsletter

October 2017 Newsletter

Why own a “Storage Authority” Franchise?

The answer is simple: We Own Self-Storages, We Manage Self Storages, We design and build Self-Storages, simply stated we understand you! Our founders have over 50 years of combined experience in both the self-storage and franchise industries.

We understand your business and together we can put more profits in your pocket, while you retain control of your business. Our proprietary “Dynamic Ease” System is revolutionizing the industry! With this manager driven system, we can train your employees to become experts in marketing, customer service, and retail sales. We understand how important well-trained employees can increase your bottom line!

We also understand that you developed your self-storage business with your hard earned money and sweat equity. We understand and fully appreciate that you enjoy owning and controlling your facility. We also understand that you may not have the technology, knowledge, sales and the marketing programs needed to bring your business to its full potential.

Owning a Storage Authority franchise will provide you with a unique and proven concept that will empower you with essential resources, that will not only place you on a level playing field with the REITS but will enable you to surpass them as you retain 100% control of your facility. We know that with the right systems, training, support and your hard work, your success is inevitable

Consider this: What if you could realize an increase in profits while still maintaining 100% control of your business? Our proprietary “Dynamic Ease System”, organizational support and brand recognition will not only allow you keep your profits but enable you to quickly grow them.

Owning a “Storage Authority” Franchise will provide you with the critical brand recognition, knowledge and experience, SEO optimization, sales and marketing, reservation systems and much more that will maximize your Occupancies and your Profits for years to come.

Your Goals are Our Goals

1) Make self-storage MUCH much easier for you and reduce your risks.

2) Ultimately our goal is for you to have a lifestyle and growth business we believe is second to none.

3) Help you obtain oversized profits most people would never reach on their own.

Our 3 Tire Platform makes it happen:

1) New Development
2) Operations
3) Sales, Marketing & Customer Service

New Development
1)  Finding land
2)  Planning & Design
3)  Construction

Marc Goodin (President of Storage Authority) is a civil engineer by trade and has been designing and building self-storage facilities the last 25 years, that’s experience you can trust in.   The development phase alone with Storage Authority will help you avoid much of the risk of starting your new facility.
Learn More

Operations
1) A manager driven system made easy for oversized profits that allows you to keep your career if you choose to.
2) Brand support allows you to profit from the experience & knowledge of Storage Authority team.
3)The best of the old, new &future self-storage customer Service – Sales – Marketing
high tech & high Touch Features – to provide rental prospects with the “just feels right” feeling for more rentals.

Sales, Marketing & Customer Service
Good Customer Service is expected. Exceptional, over the top customer -service and Community service makes the difference. Add in unconventional PR and you have a grand slam. It is not gotten from a manual but rather the top down every day.  Customer service is not a destination it’s a journey and we pave the way for you and your manager.

Sales is serving, making a friend, and helping client proceed in the most positive manner possible for their situation while asking for the sale – overcoming concerns – asking for the sale again and renting today. We provide the roadmap the way for your manager’s rental success! Would you rather rent 9 out of 10 inquiries instead of 3 out of 10?  Did you know the average renter checks out several facilities before they rent?

Marketing is keeping eyeballs on your facility so when someone needs self-storage they think of you and walk in your front door, call you or rent online.  We eliminate costly traditional marketing that does not work and replace it with gorilla marketing and unconventional PR so you can “own your 3 miles”.

Together let’s Crush Your Competition with 3 Mile Domination!

If you want to learn more about Storage Authority 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 Highlights

Data and analytics to power better pricing and investment decisions

Storage Authority has partnered with StorTrack who provides cutting-edge technology and data to clients with their premier self-storage market data service. They provide flexible online tools to enable you to monitor market rate conditions, a flexible API for integrating market data with everyday workflow tools and custom reports and research to give you insights into new or current markets.

On-Demand Historical Pricing Reports

StorTrack offers Historical Pricing Reports, on demand, for any market or facility in the U.S. Self-storage investors and owners can now develop models and insights into market trends and patterns, with data not available anywhere else. Faster and accurate decisions with data readily at your fingertips!

*Data and analytics to power better pricing decisions

*Demographic and market valuation analytics for acquisitions and investments

*Looking into new markets for your next Self Storage investment? Get unique market insights with historical pricing before making a decision.

No automatic alt text available.
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Self Storage Industry News

The U.S. has an estimated 2.6 billion square feet of self-storage, according to the Self Storage Association. That’s about 8.1 square feet per person, and that’s growing.

According to market research firm IBISWorld, revenue in the self-storage industry reached $35.8 billion last year — and growth is accelerating. Especially in big cities, where space comes at a premium, the trend isn’t going away.

Self-Storage Industry Growth Remains Above Historical Averages, National Storage CEO Says

Self Storage Articles

Understanding Cap Rates

Introduction to Self Storage

COMING SOON!   STORAGE AUTHORITY    MULBERRY, FLORIDA.

ARE YOU READY?

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

Recent Storage Authority Blogs You Will Enjoy!

Complete Storage Authority News Room 

Who Should Own Self Storage?

How & Why Storage Authority was Started

Chapter 2 Fun Self Storage Facts

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

 

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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 September 2017 Newsletter

September 2017 Newsletter

The Storage Authority proprietary “Dynamic Ease Development Series”Makes the Difference!  

 
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 capital investment.  The problem is they do not know how to started.  It can be 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.  Marc Goodin, our founder, has learned self storage by being in the trenches and ready to personally guide you..  He is a professional engineer who designed his first self storage over 30 years ago and many more since then, including 3 personal self storage he designed, built, owns and manages.

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 system consists of an integrated step by step process where our expertise provides guidance and support throughout the land discovery and development phases.

Here are just some of the areas our Dynamic Ease Development Series make easy:

Table of Contents

Chapter 1      Introduction
A     Building You 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

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
A      Loan Options
B      Loan Considerations
C      Often Over Looked Expenses
D      Chapter 4 Worksheets

  • Loan request summary

Chapter 5   Design & Regulatory Approvals
A      Finding Design Consultants
B      Site Plan Design
C      Regulatory Meetings
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

We look forward to explaining more about how this optional premium development service will help you build your facility for less money and in less time with confidence. The great news is our president, Marc Goodin, has allowed me to waive the $50,000 fee for this premium service for qualified franchises awarded in the next 60 days.

Check out the Vendor Highlights below to read more about the development land mines!

If you want to learn more about Storage Authority 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 Highlights

Inside Self Storage Trade magazine and website provides a wealth of Self Storage information!

 

The first recommendation we give to everyone exploring the self storage business opportunity is to order the ISS trade magazine, www.Insideselfstorage.com
to learn many self storage basics.  At the site, you can also enter any topic in the search bar and you find a host of articles to help you get the answers you need.  If you type in our founders name, Marc Goodin you will find several articles on finding land, design, construction, and marketing you will find very useful.

Here are some highlights of Marc’s article “5 Development Disasters Waiting to Happen” in the September 2017 issue of the ISS magazine:

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 to 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
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:

…….

Self Storage Industry News

*The U.S. self-storage industry generated more than $32.7 billion in revenues last year, almost three times Hollywood’s 2016 box office gross. In many cases, self storage is far more lucrative than conventional real estate investments. For example, the average cost of a U.S. self-storage locker was 97 cents per square foot per month in 2016 — roughly the same as the average one-bedroom apartment in Phoenix. In more expensive cities, self-storage rents are two or three times larger.
* BloomBerg View

Self Storage Articles

Architects thrive on self-storage as development surges

New breed of self-storage buildings filling need across South Florida

The Self Storage growth story is driven by several factors, starting with the relentless accumulation of goods by American consumers. Our industry also thrives on disruption, serving as a temporary resting place for the stuff of the deceased, the recently divorced, the downsizers and the dislocated.

ARE YOU READY?

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

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.

Self Storage Development Disasters Waiting to Happen

How to get started with Storage Authority!

The 3 Big Myths About Rental Rates

 

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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 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