Creating Wealth Through Self Storage

If you took a loan or purchased your self-storage facility around 2018 and it is time to refinance, you better understand where you will stand with a bank.

I suggest doing this before calling a lender.

Let me share the exercise I go through to develop my strategy BEFORE reaching out to lenders.

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Creating Wealth Through Self Storage

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In the self-storage world, there is a lot of momentum towards fully automated facilities, no matter the project size.

I am not here to say that is the wrong direction.

I even am involved in one myself as a partner.

But today, let me talk about a reason to consider the more traditional approach to self-storage management using trained managers.

AND ITS NOT FOR THE REASONS YOU MAY THINK.

**Online Courses at The Quickstart Academy**

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**5 KPIs we measure**

**My blog**

Creating Wealth Through Self Storage

**Facebook**

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**The Storage World Analyzer**

**The QuickStart Academy Store**

It seems like once a year or so, I get on a soap box and rail about sq. ft. per capita as the main measurement for self-storage supply demand calculations.

This may be my last, because now is the time to rid ourselves of this benchmark as the main measurement because it more often than not, gives false data that has us owners make bad decisions.

Let me share my experience over the last year or so with you.

**Online Courses at The Quickstart Academy**

**Listen on Apple Podcasts**

**5 KPIs we measure**

**My blog**

Creating Wealth Through Self Storage

**Facebook**

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**The Storage World Analyzer**

**The QuickStart Academy Store**

I was thinking the other day, asking myself the question, “If I could only do one more type of self-storage deal, what would it be?”

The answer was right there…instantly.

It was….

**Online Courses at The Quickstart Academy**

**Listen on Apple Podcasts**

**5 KPIs we measure**

**My blog**

Creating Wealth Through Self Storage

**Facebook**

**Twitter**

**The Storage World Analyzer**

**The QuickStart Academy Store**

Perhaps one of the best advantages of self-storage is the very few ongoing capital expenditures that are required.

It is one of the main reasons I was initially attracted to this asset class.

However, how does one plan for the capital expenses a project will have, and how much are they?

Let’s discuss how I do it.

Our goal is to never use operating cash flow to pay a capital expense.

**Online Courses at The Quickstart Academy**

**Listen on Apple Podcasts**

**5 KPIs we measure**

**My blog**

Creating Wealth Through Self Storage

**Facebook**

**Twitter**

**The Storage World Analyzer**

**The QuickStart Academy Store**

As many of you know, I helped start a small construction company in order to Resolve a problem I was having, construction cost being extremely high today.

So far, we have been able to bring in projects 15% to 27% less than previous bids we received.

We are also working for other small owners and developers as a third-party owner’s representative and/or general contractor helping them bring their self-storage projects in utilizing the same process.

We are often asked how our prices can be lower than others today.

Let me share with you what I think is the real secret.

**Online Courses at The Quickstart Academy**

**Listen on Apple Podcasts**

**5 KPIs we measure**

**My blog**

Creating Wealth Through Self Storage

**Facebook**

**Twitter**

**The Storage World Analyzer**

**The QuickStart Academy Store**

I have said recently that it really takes something to buy self-storage or create a storage opportunity today.

Usually it takes a lot of work.

Yet, today, even with all of this being true for me, I am optimistic about the upcoming year.

Why?

Let me tell you why.

**Online Courses at The Quickstart Academy**

**Listen on Apple Podcasts**

**5 KPIs we measure**

**My blog**

Creating Wealth Through Self Storage

**Facebook**

**Twitter**

**The Storage World Analyzer**

**The QuickStart Academy Store**

Often, we deal directly with a seller when buying self-storage.

Or often, with listed property, we see a shiny OM (offering memorandum) and everything looks great. Then we see the other due diligence documents, and the facility can lose some of its luster.

I have often stated that I could look at a random daily “Management Report” and get a lot of information I need to generate an offer or start negotiating.

Let’s look at one together

**Online Courses at The Quickstart Academy**

**Listen on Apple Podcasts**

**5 KPIs we measure**

**My blog**

Creating Wealth Through Self Storage

**Facebook**

**Twitter**

**The Storage World Analyzer**

**The QuickStart Academy Store**

The cost of capital is high today to do a Self-Storage or Boat & RV development today.

Let’s look at a creative way to reduce this cost of capital and perhaps solve another problem for us smaller developers if we are using other people’s money and/or syndicating a deal today.

Let me know your thoughts and other methods you may have used.

**Online Courses at The Quickstart Academy**

**Listen on Apple Podcasts**

**5 KPIs we measure**

**My blog**

Creating Wealth Through Self Storage

**Facebook**

**Twitter**

**The Storage World Analyzer**

**The QuickStart Academy Store**

So, is the decade-long self-storage party over?

Is self-storage still a good place for small investors to go in search of their dreams and goals?

I’ll share what I think after contemplating the data from the big players after Q1-2024.

**Online Courses at The Quickstart Academy**

**Listen on Apple Podcasts**

**5 KPIs we measure**

**My blog**

Creating Wealth Through Self Storage

**Facebook**

**Twitter**

**The Storage World Analyzer**

**The QuickStart Academy Store**