Creating Wealth Through Self Storage

There is a lot of grinding of teeth and wringing of hands around rising interest rates and buying self storage today.

I don’t want to minimize the impact higher interest rates can have on projects and underwriting them.

I will make what may seem like a counter-intuitive statement about debt during times like these. Let me share my relationship with debt now.

Our November 11th and 12th Bootcamp: https://creatingwealththroughselfstorage.lpages.co/2022-q4-live-virtual-bootcamp/

-My Training and Coaching at https://TheQuickStartAcademy.com/

I get asked many different self storage questions, but this one seems to come up a lot.

I received one asking how much money it takes to get into self storage and cover the first few years.

Hard to say because every deal is different.

However, here are three examples in today’s market that I and people I know are analyzing.

-My Training and Coaching at https://TheQuickStartAcademy.com/

Let me introduce Terry Morrison.

Terry was in a Self Storage Bootcamp I did in Q1 2021. Guess how many projects he is in now?

Focus on what he says is the reason he has been able to be successful. He gives three reasons for the things he does.

I think you will enjoy meeting him.

-My Training and Coaching at https://TheQuickStartAcademy.com/

Let me introduce you to Chris. Here is an interview I did with him (keep in mind, I am not a good interviewer).

Chris is a student who did, in his first year or so in the self storage business, 13 deals and has three more under contract.

In an era of low CAP rates and now rising interest rates, I find this amazing.

See what you can learn from him.

-My Training and Coaching at https://TheQuickStartAcademy.com/

Let me tell you about Fred’s (not his real name) story and about how he got into self storage.

Over the next few episodes, I will interview some previous students and/or tell the story of a few students I have worked with, so some of you may see yourself in them.

Fred was a salesperson earning a very good income, in the $300,000 to $500,000 range per year. He had a wife and a small family. Soon after I started working with him, they had their first child.

Although Fred never attended the QuickStart Bootcamp I do, we were doing one on one work through my coaching program.

Let me share with you his journey into the self storage business.

-My Training and Coaching at https://TheQuickStartAcademy.com/

I actually get asked this question a lot today about self storage. “Is it still a good investment for small investors?”

Or a question like, “Didn’t I miss when I should have gotten in 20 years ago?”

Well… let’s look!

-My Training and Coaching at https://TheQuickStartAcademy.com/

Yes, self storage has performed well during past recessionary times.

Let’s go over some stats you can use with partners, lenders, and investors.

But… all this data is interesting but mostly irrelevant when it comes to deciding on a self storage project.

Let’s discuss that as well and focus on what is relevant.

-My Training and Coaching at https://TheQuickStartAcademy.com/

I was asked to write an article on self storage as an investment vehicle to fund one’s retirement.

I almost turned down the assignment because I have such a strong opinion about the retirement advisories and wealth advisors’ industry.

I need to say I am not an investment advisor. I don’t want to be one.

Everything I say is my opinion, and my opinion only.

But let’s look at self storage as a possible retirement vehicle and compare it to other examples.

This is not to advise you, but to get you thinking and to hopefully have you take charge of your finances.

-My Training and Coaching at https://TheQuickStartAcademy.com/

For most of our facilities, in 2020 & 2021, what do you think was the number one source of new leases?

If you guessed the internet, you are close.

But as a portfolio, what is the number one source of our new lease?

Let me share with you in a quick episode what it was.

-My Training and Coaching at https://TheQuickStartAcademy.com/

“Referrals” as a source of new self storage leases average between 10% on the low end to 40% on the high end per quarter between 2016 and 2021.

We do our best to track everything, including where our new leases come from, and referrals have always been a very high source of new leases for us.

I think you may be interested to know where the referrals come from.

You may be very surprised.

-My Training and Coaching at https://TheQuickStartAcademy.com/