1-844-33-STORE

info@storageauthority.com

News Room

September 2018 Newsletter–Grand Opening Soon!



September 2018 Newsletter–Grand Opening Soon!

 

 

Storage Authority® News

Our three newest Storage Authority® Franchise owners are scouting land in northern Philadelphia and southern NJ. Their experience as owners of several food franchises is helping them get off to a fast start.

In Florida construction is moving along well for our First Florida Storage Authority® Franchise slated to open late this year. The second Florida Franchise location is underway with the Land Option to buy completed, and the site design in progress.

We will be flying out next month for the grand opening of our first completed facility in Texas.  If you would like to meet with us in Houston when we are there give us a call.

Thanks for all the great feedback on the recent article ” Why Franchising for Self Storage” by Marc Goodin our President, published in the Mini Messenger Self Storage magazine.  It is too long to reprint the entire article here but here the few paragraphs you will enjoy.

Self Storage Franchising Works!
By Marc Goodin

We know franchising works for many businesses like hotels, restaurants, coffee shops, and others because we spend our money with them on a regular basis. A new franchise opens every 8 minutes of every business day. Franchises generate 2.3 trillion dollars a year in the US. But you may be asking yourself will it work for self-storage?  Well, you’re not alone, many industries throughout time have questioned the concept of Franchising, most notably Hotel and Restaurant owners, who had the same question – will it work for my industry.  But as you drive down any main street, you can see they became believers.

The emergence of Large Self-Storage Corporate Operators, including REITS, present risks to the independent owner as large experience operators are expanding rapidly in every region in the US, taking market share from their less sophisticated independent operators. A Franchise will bring Large operator systems and technologies without taking control from the owner.  Brand identity in all sectors of retail (Hotel, Restaurant, Self Storage Etc.) is becoming the dominant driving force in marketing your product to the public, with the customer demanding consistency, purchasing power, reward systems, reservation systems and more that are all identified with the brand identity that a franchise can provide.

Independent owner/ operators in many cases are not the day to day managers and therefore depend on the store’s manager to market, maintain and expand their business. Unfortunately, owners are discovering that the managers are ill-equipped with little to no operational, marketing, sales or customer service experience. And they also cannot keep up with the ever-changing technology. A Franchise would provide that owner and manager with the systems and technology to not only capture higher market share at premium rates but also be part of a scalable platform to compete and surpass the competition.

Franchising began over 40 years ago with companies like Holliday Inn and McDonald’s. They realized that franchising allowed owners time to build their business much faster because they do not have to reinvent the wheel. Quickly it was clear that by joining a team, the economy of scale, support systems, branding, training, and increased profits (that are impossible to obtain for most individuals) could be obtained by owning a franchise. This was the birth of modern Franchising! There are nearly 1 million franchises in the US. This number grows every year as more individuals seek business ownership offering benefits often not available by starting their own venture.
As part of our Dynamic Ease Self Storage Development Series, we help our franchisees around the development landmines, including finding land, designing, financing and building a premier self-storage facility and to understand the options and prepare accordingly.
_______________________________________________________________
If you want to learn more about Storage Authority Franchise there is a wealth of information on our website www.StorageAuhorityFranchise.com  Don’t forget to check out “Why Storage Authority” and our blog/newsroom. Then the next step is to apply on our website or email or call Garrett Byrd (Garrett@StorageAuthority.com or Direct 941-928-1354)
Vendor Highlight
We just completed Auctions at two of our locations.  Thanks to our very appreciated vendors’ Storage Treasures and Late 2 Lien, we had a bunch of renters get caught up on their rents,  put a few thousands of dollars in the bank and got units back to rent. A three-way win!
With these guys it much simpler and fast to have auctions every month, which is a must if you want to make oversized profits.  Auctions are hard work and the highest risk part of a self-storage business but these guys make it easy step by step.

RIGHT OFF THE BAT YOU: SMILE, HAVE OUR HOURS, ADDRESS & PHONE # AND RENT NOW, CALL TO ACTION!

We are happy to announce  G5 is putting the final touches on our new websites launching next month.  As you may have heard us say business ( Sales and Marketing) is 50% the environment and 50% Sales & Marketing. Together they produce the just right feeling and more rentals at premium prices.   The same goes for websites.  Websites must look and feel great and let the client find the info quickly.  PLUS they need to have the back-end technology to meet the ever-changing Google SEO requirements, ability to rent online directly from your management program, SEO so you end up on front and center on page 1 for potential client searches.  If your website is not getting you, customers, every day as well as online renters you need to call G5’S Christina Powell
541.306.3383

YOUR WEBSITE NEEDS TO SAY EVERYTHING IN PICTURES & WORDS!

Industry News & Tips You Can Use Today

Ten ways you can tell your website is outdated, losing you money and time. And to get a new one designed!

1. You don’t get full website analytics that tells you what your customers are doing on your website so you know what is important to your clients and adjust accordingly.

2.  Your renters cannot pay online.

3. Your prospects can not rent online.

4. Your customers can not sign up for autopay on your website.

5. Your online reservation is just a “contact form” and does not automatically reserve the unit in your management program.

6. It just looks outdated and does not have that modern look with calls to action.

7.  Most people will have an opinion of your facility with a 5-second glance of your website and the rest in 20 seconds even before they start reading.  Does your site have that modern bold design with pictures and background features that give that first class professional look?

8. It is not easy for you to make your own minor changes.  (You will be amazed how much of the content is there for SEO purposes so don’t make too many changes without input from designers).

9. If your website is not getting monthly maintenance, SEO and social reputation updates it is time for a new website.

10. It goes without saying if your site is not 100% responsive to all size screens from a cell phone, Ipad, laptop to a full-size computer screen it is time for a new website.

You always need to be thinking about what is important to your prospects and make it easy for them.  The time for opening your doors and getting to 90% occupancy without over the top sales and marketing are long gone.

Storage Authority experts are ready to 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 give us a call. Team up with the experts to save time and maximize your profits. Call Garrett at 941-928-1345 for more information.

ARE YOU READY?

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

“I’m convinced that about half of what separates the successful entrepreneurs from the non-successful ones is pure perseverance.” — Steve Jobs

Order your Self Storage Books Here!

Recent Storage Authority Blogs You Will Enjoy!

Complete Storage Authority News Room

What Are You Organizing?

Where Else Can You………….No Where

 Storage Authority Video of the Month

Self Storage Developing Series 2 How to Find Land

Share
Tweet
Forward
Please share!      We Love Referrals.

Storage Authority
677 N Washington Blvd.
Sarasota FL 34236

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

August Newsletter 2018 — Now Taking Reservations!

 

 

 StorageAuthority_Horz_logo

August 2018 Newsletter

Storage Authority
Pre Opening News/Tips

As we prepare to open multiple facilities starting next month, finding land, design, and approvals for these franchisees is a thing of the past and now pre-opening operations and pre-opening marketing are the subjects of the day.  This is a BIG Crunch time so being super organized is critical.  Here are 7 tips you need to complete prior to crunch time.

1 Have a checklist for pre-opening operations – 100 + items
2 Have a checklist of for pre-opening marketing – 110+ items
3 Make a list of all the vendors you need to get on board before you open (Bookkeeper, SiteLink for the management program, G5 for the website, Open Tech Alliance for kiosk & gate systems, Attorney for lease and forms, graphic designer, utility companies, insurance agent, etc)
4  Make a list of all social marketing platforms you will use.
5  Make a list of every unit by unit with the number, size, type, and price.
6  Make a list of what makes your facility different than your competition, Your unique selling features.
7 Prepare your help wanted ads and employee manual.

If you are a Storage Authority Franchise Owner many of these items are prepared and reviewed with you long before crunch time so you can get a head start to rent double, even triple or more units in your first 4 months then projected in your Feasibility Study.

WHY CARE?

If you simply double your monthly rentals from 15 units a month to  30 units a month for the first 4 months it is an extra $108,000 income for you in your first year!  Want to see the math email marc@SorageAuthority.com

Last month we told you the  Storage Authority Walters Rd in Houston Texas roofs were on. And last week Ed called excited to tell us he has taken his first reservations – over a month and a half before he opens! Storage Authority Walters Rd Houston TX is slated to open Sept 15, 2018

The #1 Pre Opening Tip
When your first customer walks in they are going to ask the same questions that your next 1000 clients are going to ask.  They will start with what is the price of a unit simply because they do not know what else to ask and often follow up do you have any specials?  If you want to charge premium rates you better have written scripts memorized that provide the answers to these and the 7 other concerns they will ask you or you will lose many rentals.  I can visit 20 facilities and maybe one will have some of the answers to:1  I need to think about it
2 I need to check for with my wife or boss
3 I just need information
4 Price seems high or can you do any better on the price.
5 I don’t need it until next week
6) I don’t need it until I sell my house sells
7) The client who does not provide his concern or objection
________________________________________________________
Check out this recent article at Inside Self Storage: By Marc Goodin

How to Perform a Mini Demand Study on a Potential Self-Storage Site

For a great resource to retrieve initial metrics for your demand study go to  RADIUS here  radius.unionrealtime and get your free credits now.

 

Here is our add that is going to be the September issue of Minico Magazine, next to Marc Goodin’s Article on why Franchising for Self Storage you need to read.

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

Instead of highlighting one Storage Authority Vendor we want to highlight how extremely important it is that your vendors work together and the better they know you, your systems, platforms and each other, the more efficient and profitable you will be since you will have double the time to market your business.  For Storage Authority Franchise owners the savings in time because of this vendor synergy is well over 200 hours in your first 6 months of operations.  And even a second 200 hours because Storage Authority has done the research on the vendors.

For example, Sitelink can set up our franchisees by cloning the Storage Authority forms, fees, various automatic late letters, emails and fees, user settings, tenant insurance, discounts and more saving hours and hours.   Then the next part of the startup puzzle is making sure your other vendors are all tied together day one. Before you open you need to make sure your open Tech gate & kiosk, storsmart insurance, G5 website, Late 2 Lien, SiteLink Merchant, StorageTreasure online Auction and others are all tied together.

One simple example that saves us time and money and even makes us money is the vendors we use for the auction process. Late2Lien accesses our 30 day past due customer direct from SiteLink and adds them to our Late2Lien dashboard, for our managers to approve them for auction and then  late2Lien sends the required lien/auction notice. And then Storage Treasures (who by the way is part of the OpenTech Alliance vast host of products and services we use) host our online auction.  As a team things get done and our managers have the training and backup they need to be successful.

It may sound simple but it is not easy. Owners depend on the store’s manager to market, maintain and expand their business. Unfortunately, owners are discovering that the managers are ill-equipped with little to no operational, marketing, sales or customer service experience. And they also cannot keep up with the ever-changing technology  Most facility managers spend 100% of their time doing the day to day and never get to the sales and marketing that can double your profits.

Industry News & Tips You Can Use Today

5 Pre Opening Tips You Can Use Now!

1. Start your list of emails today for your very own facility newsletter.  It is not hard to get 500 or a 1000 local emails when you do it over several months

2. Open your own Mail chimp newsletter account: Every month during construction send out a newsletter keeping your prospects updated on progress and your grand opening.

3. Ask the city about a temporary CO: Construction always takes longer than planned.  If your office is going to be ready before the total facility is completed ask early about a temporary CO.  Even opening a week or a month early is a big deal.

4. Practice Autopay script –  By having this late fee schedule on your desk and starting the lease presentation with a simple “I just need your debit card and I.D to get started”, you can make an easy extra $30,000 a year profits and more time.

5. Visit every funeral home & real estate office within a 5-mile radius twice before you open 

Storage Authority experts are ready to 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 give us a call. Team up with the experts to save time and maximize your profits.

ARE YOU READY?

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

“The way to get started is to quit talking and start doing.”  –Walt Disney, Co-Founder, Disney

Recent Storage Authority Blogs You Will Enjoy!

Complete Storage Authority News Room

Sample Self Storage Development Budget & Proforma

Self Storage the Art of the Auto-pay

Recent Storage Authority News Letters

July 2018–Roof Tops are on Getting Ready to Rent

June 2018 Newsletter Self Storage Development–Aerial Drone Video

May Newsletter 2018–New Self Storage Construction Photos

Storage Authority Video of the Month

Storage Authority Pre-Opening Preparations

Share
Tweet
Forward
Please share!      We Love Referrals.

Storage Authority
677 N Washington Blvd.
Sarasota FL 34236

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

May Newsletter 2018–New Self Storage Construction Photos

Storage Authority News

It has been a very busy spring construction season with multiple foundations being poured as we speak.  You will want to like our facebook page for many upcoming construction photos and construction tips.  https://www.facebook.com/storageauthority


Here is an early morning foundation pour for Scott’s Storage Authority Mullbury FL facility. if you look closely you will see the spacing across the foundations.  This permits for beams below the foundation floor which were required due to the soil types.

Here you can see 4 pads being under construction.  The project has approx. 70,000 net rentable square feet.  The area to the right is for RV & Boat parking.


I always like to reward myself with a good glass of wine when the first foundation goes in on a new project.  Here I am with my wife GP.

Here is a Storage Authority Houston foundation prep for pouring next week.  You want the office foundation done first and the office building built first. Otherwise, your opening will be delayed a month or even two.  This happens less than half the time because the plumbing (see pipes in the picture) has not been done or because the General Contractor and building manufacture were not told this was a stipulation of the contract.

Foundations Tips You Can Use Today:

  • Always make sure your foundation plans show the saw cuts and that the saw cuts do not run within 1′ of a wall or down the hallway.
  • Make sure the saw cuts are made with 24 hours of pouring the concrete to reduce cracks.
  • Make sure the boards that create the lip at the exterior unit doors are removed the same day and any void created by trapped air is repaired while the concrete is wet.
  • Make sure the concrete is sealed with 24 hours of being poured to reduce cracks.  Sealing also reduces concrete dust in units.
  • Make sure all these items are spelled out in your construction specifications and contracts.
  • I always enjoy a good glass of wine on my first foundation of a new project.  A small reward for hard work!
  • Your coming soon sign should be up once the first piece of steel goes up.
  • If you have not started your marketing once your first foundation goes in you are behind schedule.
As part of our Dynamic Ease Self Storage Development Series, we help our franchisees around the development landmines, including finding land, designing, financing and building a premier self-storage facility and to understand the options and prepare accordingly.
_______________________________________________________________
If you want to learn more about Storage Authority Franchise there is a wealth of information on our website www.StorageAuhorityFranchise.com  Don’t forget to check out “Why Storage Authority” and our blog/newsroom. Then the next step is to apply on our website or email or call Garrett Byrd (Garrett@StorageAuthority.com or Direct 941-928-1354)
                                Vendor Highlight

The new version of Radius is here! Your key to finding better self-storage sites faster with confidence. The industry’s most comprehensive location intelligence platform.Every Region. Every Facility.

Just a short year ago it used to take two days of hard work to do a mini demand study to determine if you should make an offer or do a further review.  Now you can do the same mini demand review in less than an hour with Radius.

In one simple screen for a chosen radius you get:

  • The locations of the existing self-storage and a ton of info on each one.
  • Demographics including population, # households, income & more.
  • The total square footage of the existing self-storage broken down to gross and net square feet and climate control and no climate control.
  • The existing sf of self-storage per person.
  • Self-storage pipeline info
  • Rental rates for existing units
  • And this is just the beginning. Zoning, drive time analysis and much more will cut your decision time drastically.  You need to check out their website: https://www.unionrealtime.com/radius.html 

I highly suggest you take up James de Gorter’s,(Co-founder of Union Real-time) offer to provide you a demo.

Dive Into the New Era of Self-Storage AnalyticsLog onto the new Radius platform with your email address and this temporary password: 15o>Qp?z and get started with the most comprehensive data and analytics platform the industry has ever seen. As always, feel free to reach out! We want to ensure that you get the maximum value out of our new platform.

                                                     read more

Radius tips you can use today:

  • 7-8 sf/per person of self-storage can be a good starting point of self-storage at equilibrium if you do not have local self-storage averages.
  • You can simply move the Radius anywhere on the screen to compare different densities of self-storage in a given radius.  And you can visit areas from low density to high density to get an idea of what density the occupancy falls off.
  • Union real-time Radius allows you review a specific address but since you can move the radius on the screen and at the same time see the sq ft of self-storage per person it is a great tool to help you decide where are the best locations to look for self-storage.
SBA Loans

Finding land and self-storage loans are always one of the first questions our potential franchisees ask us.  Our national land brokers Morrow Hill, understand the land, franchising, self-storage and Storage Authority and work hard in assisting us and our franchisees to find land.

There are several great banks that have experience in SBA and self-storage lending.  But we are excited to take it to the next level where our preferred Storage Authority bankers are not only SBA self-storage lending experts but are also experienced Franchise lenders who understand the value of franchising and the value Storage Authority and are accordingly ready to provide you the service and great terms you deserve.   Next month we will be ready to provide all the details!

Industry News & Tips You Can Use Today

Tips

 1. Finding Land:  One of the biggest mistakes is not knowing or considering the self-storages in the pipeline.  In many cases there are none but other cases, often in cities and areas of very high 3 mile populations they can turn a great site into a pour site.  I just looked at a brand new facility for sale in Ft Lauderdale.  The existing 17 facilities in the 3-mile radius provided  7.4sf of self-storage per person. This was reasonable given many factors but the fact there were 10 new facilities in the pipeline made the asking price multiple millions high.

2.  Asking price: I just got an email from a self-storage in the Boston Area with the heading $5.4 Million price reduction.  When I talk to the brokers many realize many prices for existing facilities are outrages and their answer is “we are just testing the waters.” It is buyer beware world out there.  Paying 4 – 5 cap rates on next years earnings is risky business.

3. Construction Contract:  All the plans and specs will still miss some items so every contract should have an addendum that outlines often overlooked items like the foundation tips noted previously.  My favorite often missed item is the cleaning of the interior of the building.  Sounds funny but it is a $10,000 item. Start your list today.

4. Website: Your website should be done by a self-storage expert otherwise you will lose rentals month after month.  You should expect to pay around $400 a month to keep it an updated top of the line website.  The website is so important we provide the Website for our Franchisees.  Our new website is going into production and we look forward to highlighting it shortly.

5. Marketing: You need to have your marketing plan before you apply for your bank loan.  If you want some ideas on how to be the Ritz vs Motel 6 email garrett@storageauthority for The Storage Authority Ritz marketing highlights.

Storage Authority experts are ready to 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 give us a call. Team up with the experts to save time and maximize your profits.

Can you tell which foundation photo above matched this Storage Authority layout?

ARE YOU READY?

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

“Whether you think you can or whether you think you can’t, you’re right!” 
Henry Ford

Recent Storage Authority Blogs You Will Enjoy!

Complete Storage Authority News Room

More big box retailers closing – Think Self Storage Conversions!

Are you planting enough Acorns for real oversized Self Storage Profits?

Recent Storage Authority News Letters

April 2018 –Advantages of Buying a Self Storage Franchise

March 2018 Self-Storage News & tips you can use.

February 2018 Self Storage State of the Union-Tips you can use Today!

Storage Authority Video of the Month

How to Find Land.
Share
Tweet
Forward
Please share!      We Love Referrals.

Storage Authority
677 N Washington Blvd.
Sarasota FL 34236

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

March 2018 Self-Storage News & tips you can use.

 

March 2018 Newsletter

We would love to grab a coffee with you if you are going to be at the National SSA conference in Orlando next week March 14 & 15. Send me an email to set a time Garrett@StroageAuthority.com

We want to welcome two new franchise owners; Robert from Massachusetts and Don From Texas! Our new master development checklist added to our Development Dynamic Ease Series will make it much easier to keep on track.

And we want to congratulate Scott from Florida and Ed from Texas for breaking ground on their new selfstorage Projects.

This picture may just look like your ordinary bulldozer but for Ed, it is a milestone as it means he found land, designed his project & obtained approved, obtained financing and he is on his way to making his selfstorage dreams come true.  You can read an interview on our blog with Ed about his StorageStorage Authority experience to date here.

Interview with Storage Authority Franchise owner Ed O., March 2018

Tips You Can Use Today:

  1. Even before you look for the land you should have your engineer and architect on board so you can move forward swiftly.
  2. When you find a piece of land you need to be ready to do a concept plan in hours, not days in order have a preliminary concept of how much square feet will fit on the property.
  3. When you make an offer it is critical to have your counter-offer ready. A quick counter offer lets them know you make decisions quickly and will not take forever to get your project approved so can buy the property faster.
  4. Here is Ed’s building 1.  It is important to beef up the office area to give it that first class appearance.  Also even if you do not have unit access along the street frontage it is important to install faux doors.  The best selfstorage signage is a row of selfstorage doors.

 

As part of our Dynamic Ease Self Storage Development Series, we help our franchisees around the development landmines, including finding land, designing, financing and building a premier selfstorage 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

Storage Authority is excited to welcome aboard Union Real Time Radius, Location Intelligence Experts.  Your key to finding better selfstorage sites faster with confidence.

Just a short year ago it used to take two days of hard work to do a mini demand study to determine if you should make an offer or do a further review.  Now you can do the same mini demand review in less than an hour with Radius.

In one simple screen for a chosen radius you get:

  • The locations of the existing selfstorage and a ton of info on each one.
  • Demographics including population, # households, income & more.
  • The total square footage of the existing selfstorage broken down to gross and net square feet and climate control and no climate control.
  • The existing sf of selfstorage per person.
  • Selfstorage pipeline info
  • Rental rates for existing units
  • And this is just the beginning. Zoning, drive time analysis and much more will cut your decision time drastically.  You need to check out their website: https://www.unionrealtime.com/radius.html 
I highly suggest you take up James de Gorter’s,(Co-founder of Union Real-time) offer to provide you a demo.  You will not regret it!

Here is a link to set up an appointment on his calendar and his contact info:
https://calendly.com/radius-team/radiusdemo

Radius tips you can use today:

  • 7-8 sf/per person of selfstorage can be a good starting point of selfstorage at equilibrium if you do not have local selfstorage averages.
  • You can simply move the Radius anywhere on the screen to compare different densities of selfstorage in a given radius.  And you can visit areas from low density to high density to get an idea of what density the occupancy falls off.
  • Union real-time Radius allows you review a specific address but since you can move the radius on the screen and at the same time see the sq ft of selfstorage per person it is a great tool to help you decide where are the best locations to look for selfstorage.

 Industry News & Tips You Can Use Today

Tips
 1. If you are going to be at the National Self Storage Association Orlando Convention March 14 & 15, 2018 be sure to send us an email we would love to meet up with you.  Garrett@StorageAuthority.com

2.  With Open Tech’s newest CIA Access Control systems you and your clients will notice the difference.  Battery backs up access during power outages are no problems.  And customers don’t even half to roll down the window to enter a keypad number as it will be sent directly from their cell phone.  And just as important they have great prices!

3. Make sure when you order your entrance ground sign it is clear if it is one-sided or two-sided.  Sounds simple but haha easy to get wrong.

4. When purchasing your facility blower, disc grinder, and shop vac go with rechargeable battery back up as you can move more efficiently throughout the facility without dragging around extension cords or worrying about your oil to gas mix on your blower.

5. Quill.com is a great place to order your office supplies and if you set up an account most orders ship free and the next day.  One less stop for your manager to keep all needed supplies on hand to keep the office moving efficiently.

Self Storage Articles

Top 5 Reasons to Invest in Self Storage:

1) Asset Class Returns:

According to the National Association of REIT the selfstorage sector produced an average annual return of 17.43% from 1994 – 2017. For comparison here are the returns from some other REIT sectors during that same time:

Office: 13.26%

Retail: 12.75%

Industrial 13.36%

Residential: 13.42%

Apartments: 13.32%

Manufactured Homes: 13.27%

Mortgage: 11.18%

S&P 500: 7.54% (https://dqydj.com/sp-500-return-calculator/ )

Selfstorage rents on the rise across the United States

One of the most consistently reliable commercial real estate investments? Selfstorage units. And a new study showing how much Americans are willing to spend on these units each month shows just how solid this investment type can be.

Interested in selfstorage rents across the country? Check out this interactive map from Life Storage.  A great tool if you are trying to decide between states where to build.

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 lease 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!

” Nothing in the world can take place of persistence. Talent will not; nothing is more common than unsuccessful men with talent. Genius will not; unrewarded genius is almost a proverb. Education will not; the world is full of educated derelicts. Persistence and determination alone are omnipotent. ”
Ray Kroc

Recent Storage Authority Blogs You Will Enjoy!

Complete Storage Authority News Room 
The Storage Authority Marketing & Sales Advantage for Higher Profits!
Chapter 8 – 10 things to consider to find an A+ Site

Recent Storage Authority Newsletters

February 2018 Self Storage State of the Union-Tips you can use Today!
Storage Authority -Jan. 2018 Newsletter- SBA Lending Updates
December 2017 Newsletter. Let the experts help you find Land.Storage Authority & Morrow Hill

Storage Authority Recent Videos

Storage Authority Development Series 

Storage Authority How to Find Land

Storage Authority Outward marketing 

Storage Authority Pre-opening task

 

Share
Tweet
Forward

 

Please share!      We Love Referrals.
Storage Authority

677 N Washington Blvd.

Sarasota FL 34236
www.StorageAuthorityFranchise.com         Garrett@StorageAuthority.com
1-941-928-1354

Self Storage State of the Union-Tips you can use Today!

February 2018 Newsletter

2018 Self Storage State Of The Union

New Construction is the Story of 2017 & 2018!

Self-storage records were broken in 2017 and looks like even more will be broken in 2018.  52 Million square feet of new self-storage may sound like a lot, but unless you are in one of the top 10 metropolitan cities it will have little effect or even a positive effect on your Storage Authority Facility. 40% of these new facilities were built in just 5  cities.  And take one of those cities, Miami for example, they still need new construction to meet the demand. But the immediate concern is when you build 2 – 200,000 sf facilities on the same side of town it is going to increase the rent up time from 24 months to 48 months. The 1000 new facilities equate to a 2-3% increase in the number of facilities but if you look at the average over the last 10 years it is well under 1% growth leaving unmet demand in many locations throughout the US.

In 2017 many operators exceeded their 12 – 14 month projected rent up timetables. And vacancies remain at or near historic lows with increased rental rates.

Taxes:

Whether you like or hate Trump the good news is the new tax codes provides immediate tax savings for savvy self-storage owners. Now if you do component depreciation the previous 5yr – 7 yr and 15 yr component depreciation items can be depreciated in the first year!

Future Development

So what does this all mean?  For the REITs and large developers who want to add 5 or 10 or more facilities to their portfolio, it means it will not be easy or cheap in 2018.  The self-storage facility inventory for sale continues to be very low and continues to be priced high. The large players like to be in metropolitan areas where they can have multiple large facilities and these are the areas where the bulk of new facilities were built in 2016, 2017 and will be built in 2018 and 2019.

For the individual investor and Storage Authority Franchisee all the new construction and associated abundant news is good news in many respects as it is bringing in new technology and new renters using for the next generation self-storage facility.  As long as you are looking to build a single facility outside of the major metropolitan areas, you have the opportunity and luxury to take your time and typically find a location where there are no new facilities in your 3-mile radius.

The new growth has spurred a lot of self-storage technology growth that will make your facility more renter friendly.  This allows you to rent for more and allows you do more with fewer employees.  As the new self-storage quality and security standards are increasing so are the number of people who want to rent at a new generation facility vs an older facility.

Also, the new technology allows us to do a mini demand review in 15 minutes which only a year ago would take two days. Check out https://www.unionrealtime.com/radius.html it will cut your research time by 90%. Let James know Marc from Storage Authority sent you.

Future Profits

Many self-storage will not Cater to the Modern Consumer!
The self-storage world is in the middle of going cloud-based and customer base. In a few short years, we have a two-tier self-storage world. Motel 6 vs the Hampton INN or a $1.99 coffee at Dunkin donuts vs the $4.99 coffee at Star Bucks.  The world needs both but you have to decide which one you want to be a part of and the profits from.  The High Tech – High Touch model may take a little more work but you will make substantially more profits

Timing

For most new developers it will take longer to develop a new self-storage from the ground up if you are not multi-tasking all the time.  The Vendor capacity has not caught up with the new development demand so 60-day building designs are taking 120 days.  Building delivery times for many manufacturers is 6 months.

Even bidding has gone form 30 days to 90 days.  In some cases, the bidders have so much work they are not doing the proper work to keep the bids low but rather making a quick estimate and adding 20 or even 30% to the price.  Or they bid the plans your provide which often means they are bidding 75% of the job leaving 25% as extras.   In the past, they would have contacted you to make the bids complete.

Tips You Can Use Today:

  1. Even with great demographics and self-storage demand, a new large nearby competitor can double you rent up times.
  2. In 2018 it is going to be much easier to find good locations for single story facilities than multi-story facilities without
  3. If you are looking for land the new internet-based tools that provide the existing self storage rates, locations, square footage, climate control sf vs non climate control square feet, populations, mile radius maps and the existing self storage square footage per person on a single page will turn two days or research into 15 minute review so you can quickly look at more sites. See Radius for more details on internet research.

SA DE Ease logo smaller 1

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

Vendor Highlight

Select Merchant Solutions is the approved preferred Credit Card Merchant provider for Storage Authority.  After a lot of research and firsthand experience, the choice was easy for many reasons. First, we have unbelievable pre-negotiated rates for all our franchisees which will save you $$ thousands per year compared to the other options and the rates are guaranteed.

Everyone touts customer service but few ever provide.  The entire team at Select Merchants Solutions is ready to help us 24/7.  And even better than that we have our own customer Storage Authority National agent John Berry that understands the Storage Authority platforms.  I have tried the others and their guaranteed rate disappeared in the first year and our promised agent turned out to be a random person after waiting on the line for several minutes.

It may sound corny but Select Merchant Solutions really is a small group of professionals with the long-term goal to help us succeed. I am sure their service is why they have been voted best of the best year after year. When compared to the international conglomerate’s alternatives, the difference is huge.

Don’t forget to read the Tips you can use today below to learn if your merchant provider is ripping you off.

$$ Saving tips you can use today

 

  • Take a look at your current and last several Merchant bills to see if it has something to the effect “there may be new fees and new rates to better serve you” and if you object your option is to provide the 30-day notice you are leaving them.
  • Simple take you merchant Account bill from a year ago and compare it to last months bill.  Chances are very high for the same amount of money processed the bill is significantly higher now due to new rates & fees. Time to change?
  • Exchange fees are much lower for debit cards.  So it is important to let your managers know this so they can get used renters debit cards when possible.  A change in your rental script may be required.  ” our clients love the convenience and no late fee savings of our Automatic payment plan.  If you have a debit card I can get you started now”

Industry News & Tips You Can Use Today

Tips

  1. Marc Goodin’s Self Storage Development Book has been updated for 2018 with over 200 development tips.  Available on Amazon or email Garrett@StorageAuthority.com before the end of February for you your free copy.
  2. There are incredible new software programs that can provide the 3-mile competition and the existing square footages, rental rates. population, existing square footage of self-storage per person and much more.  Want to know more email Marc@StorageAuthority.com & Check out Radius.
  3. The SBA standard operating procedures have been updated for 2018 which require owners to manage their own facility, which means most owners who use a 3rd party management company will not be able to get a SBA loan.  Storage Authority franchise has been approved by the SBA.
  4. Two pieces of equipment I find most facilities missing that would help them save time and keep the facility cleaner for higher rents are a cordless DeWalt vacuum to clean units and a $200 rubber maid clean cart available on Amazon.
  5. The presentation of auto-pay is everything, how you say it, how you deliver it and the sub-conscious triggers the customer reads all work as a synergy to optimize your auto-pay program.  As you start lease presentation “All I need is your ID and the debit card you would like to keep on file.” As you swipe the debit card remind the customer their card will be debited on whichever date their move-in date is every month and we will send an email confirmation. Because people stay 2 extra months if they are on auto pay an extra 10 auto pays a month is worth $30,000 a year. 
Self Storage News
2018 will be the first time self-storage security becomes cloud-based.  This means several things such as automatic updates and gives us the ability to access our keypads, cameras & our gate systems from off-site to assist our clients after hours and keep an eye on our facilities 24/7.

Self Storage Articles

New self-storage facility in Broward, FL sells for $15.7M

The seller paid $2.9 million for the 3-acre property in 2016. Records show it scored $8.2 million in construction financing from Stonegate Bank in October. The 84,000-square-foot, climate-controlled facility was completed earlier this year and is made up of two buildings – one two-story building and one three-story building.

All in Build price $11.1M at $132.14 dollars per square ft.

Sale price $15.7M at $186.90 dollars per square ft.

Assuming all numbers are factual seller will net $4.6M in 15 months of developing and this is before one unit is rented.  If the developer would have taken the time to lease the facility up he could have doubled his profits!

The death of the shopping mall meets self-storage development

Goodbye Macy’s, hello self-storage.

Long considered anchors of the shopping mall, many department stores are undergoing a long, painful death. That has left mall owners scrambling to find suitable tenants to fill the large empty footprints left behind. Enter self-storage.

Department stores are slowly withering, as the internet and other apparel retailers suck the life out of them.
*Sparefoot Storage Beat


While conversions are a great option it is not easy to find the empty big boxes as they are often offered to a list or preferred developers before they are offered to the public for sale.

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 lease 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!

“You cannot change your destination overnight, but you can change your direction overnight.” ~ Jim Rohn

Recent Storage Authority Blogs You Will Enjoy!

Complete Storage Authority News Room 

Self Storage the Art of the Auto-pay

More big box retailers closing – Think Self Storage Conversions!

Recent Storage Authority News Letters

Storage Authority -Jan. 2018 Newsletter- SBA Lending Updates

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?

 

Share
Tweet
Forward
Please share!      We Love Referrals.

Storage Authority
677 N Washington Blvd.
Sarasota FL 34236

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

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?

 

 

Share
Tweet
Forward
Please share!      We Love Referrals.

Storage Authority
677 N Washington Blvd.
Sarasota FL 34236

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

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

 

 

Share
Tweet
Forward
Please share!      We Love Referrals.

Storage Authority
677 N Washington Blvd.
Sarasota FL 34236

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

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?

 

Share
Tweet
Forward

 

Please share!      We Love Referrals.

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.
…….

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

 

Share
Tweet
Forward

 

Please share!      We Love Referrals.

Storage Authority
677 N Washington Blvd.

Sarasota FL 34236

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

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

 

Share
Tweet
Forward

 

Please share!      We Love Referrals.

Storage Authority
677 N Washington Blvd.

Sarasota FL 34236

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