Self Storage Income

Listen to this episode BEFORE you buy a storage facility! Things have changed dramatically in the self storage industry, and some of the advice from even just a few years ago has become essentially obsolete. If you want to succeed in self-storage investing, you need to know what makes a good/bad investment in 2024. To help with your self storage research and analysis, Jonah Hall, President of Cedar Creek Capital, is on to share his EXPERT tips on analyzing a self storage facility and market. 

First, we’re getting into exactly what changed in the industry over the past five years. Since the pandemic, self storage has NOT been the same. Because of that, beginners can get overly optimistic about their first self storage investment, leading them to buy deals that DON’T work out as well as they had hoped. How do you get around this and ensure you only buy facilities that will perform? Jonah shares his advice in this episode.

Plus, we’re touching on current cap rates, how unit size preferences are dramatically changing, and signs that a market is oversaturated with self storage. AJ and Jonah reveal the “indicators” they look at before investing in a market to know whether the area is worth it. New to self storage or ready to buy another facility? Don’t miss this episode! 

What you’ll learn in today’s show:

Links:

📌 Make self storage management easier than EVER with our podcast sponsor Tenant Inc. - https://www.tenantinc.com/

🌳 Work with someone experienced in self storage loans with our sponsors at Live Oak Bank! https://www.liveoakbank.com/business-loans/self-storage/

🎙️ Do you have a great story to share on the SSI or AJ Osborne podcasts? You can now apply here! https://form.asana.com/?k=TGU88eU0bFTFW1iHcckuTA&d=1203571084143207

📖 Get AJ's new book that teaches you everything he knows about self-storage https://a.co/d/aRSKcSq

Why are multifamily investors selling off their assets to move into self storage? From the inside, it’s easy to see: self storage management lets you build wealth way faster. What do we mean? In this episode, we’re putting multifamily and self storage side-by-side, discussing the good and the bad about managing each asset and why self storage may be your best bet to raise property values and boost your income quickly. If you own residential real estate, this episode might just convince you to switch sides. 

So why are multifamily and self storage so different? They’re both commercial real estate, rely on debt, and have sizable demand. What most investors don’t realize is just how different the management styles are. In self-storage, you can raise rates quickly, thrive even with high turnover, and make operational changes that can skyrocket property values. This is much different than multifamily.

However, even though self storage is an investment property powerhouse, there are still some serious downsides you need to be prepared for if you switch from residential to storage. To help you mitigate them, we’re sharing how to automate your facility (even if it’s REALLY small) and what we do on day one of owning a new self storage facility to boost its value immediately. 

What you’ll learn in today’s show:

Links:
📌 Make self storage management easier than EVER with our podcast sponsor Tenant Inc. - https://www.tenantinc.com/

🧐 Want to know if you've found a good deal? Have a feasibility study done by OUR TEAM: https://cedar.cc/feasibility-studies/

📖 Get AJ's new book that teaches you everything he knows about self-storage https://a.co/d/aRSKcSq 

If you’re trying to buy your first self storage deal, odds are, you don’t have the entire purchase price sitting in cash in your bank account. So, today, we’re teaching you exactly how to raise capital for real estate, using other people’s money to buy your first or next self storage facility and get the best returns for your investors. If you want to scale in self storage, this is how you do it, and there are many (MANY) takeaways from this episode that you can’t miss.

Most people don’t know this, but I NEVER used to raise money for my self storage deals. We were self-funded for most of our existence, and for the longest time, I never wanted the weight of handling other people’s money on my shoulders. That was until people we knew wanted to get in the self storage game WITHOUT running the facilities themselves. They trusted me, saw my track record, and asked to get in. I accepted, knowing that it was wrong NOT to help others build wealth with an asset that gave me so much.  

So, whether you’re someone with multiple facilities who thinks now is the time to raise capital or a brand new beginner with no money (but a lot of energy!) to invest, we’re teaching you exactly how we raise capital, the common pitfalls beginners must avoid, how to form partnership structures, and why I never EVER “ask” for money when doing my self storage deals. 

What you’ll learn in today’s show:

📌 Make self storage management easier than EVER with our podcast sponsor Tenant Inc. - https://www.tenantinc.com/

🌳 Work with someone experienced in self storage loans at Live Oak Bank! https://www.liveoakbank.com/business-loans/self-storage/

🎙️ Do you have a great story to share on the SSI or AJ Osborne podcasts? You can now apply here! https://form.asana.com/?k=TGU88eU0bFTFW1iHcckuTA&d=1203571084143207

📖 Get AJ's new book that teaches you everything he knows about self-storage https://a.co/d/aRSKcSq

📉 Take advantage of today’s market conditions and invest with us: https://cedar.cc/invest 

Get my FREE self storage starter pack to learn how to analyze, underwrite, and operate your next storage investment: https://www.selfstorageincome.com/start-podcast 

The self storage industry is seeing a BIG shift that could lead to a “transfer of wealth” for many self storage owners, operators, and buyers. For the past two years, we’ve dealt with stubborn sellers, banks on tight lending budgets, high interest rates, and lower occupancy rates, but something is starting to change. If you want to get into self storage investing, this is GOOD news for you.

Today, AJ and Conner discuss the shift they’re seeing in real-time in the self storage industry. They talk about how reasonable sellers are returning to the market, the “signal” the Fed is giving for the future of self storage and real estate, why it’s okay to feel like you’re failing in today’s market, and whether or not you should wait for the presidential election results to make a move on your next investment.

But that’s not all! AJ shares some of the secrets he learned from the last market crash, including how to “make” self storage deals instead of waiting for them to come to you! Plus, the reason he paid $1,000,000 extra for a property that, on paper, looked like a total dud! 

What you’ll learn in today’s show:

Join Our Self Storage Income Community - https://tinyurl.com/ssicommunity

or

Join AJ’s Inner Circle - https://www.selfstorageincome.com/inner-circle 

📌 Make self storage management easier than EVER with our podcast sponsor Tenant Inc. - https://www.tenantinc.com/

🌳 Work with someone experienced in self storage loans at Live Oak Bank! https://www.liveoakbank.com/business-loans/self-storage/

🎙️ Do you have a great story to share on the SSI or AJ Osborne podcasts? You can now apply here! https://form.asana.com/?k=TGU88eU0bFTFW1iHcckuTA&d=1203571084143207

📖 Get AJ's updated book that teaches you everything he knows about self-storage https://a.co/d/aRSKcSq 

You DON’T need to be doing million-dollar deals to build wealth with self storage. Take it from Justin James, who, at only twenty-six years old, has two self storage facilities, both of which cost him as much as many people’s houses. He’s had his ups and downs, like the recent fire that burned one of his buildings, but he’s STILL bullish on self storage, especially the smaller facilities that pack much better potential.

We brought Justin on to talk about how someone with zero experience can get started and the best properties for someone just getting into the self storage game. He shares how he found the properties, finances them, manages them, and dealt with what nobody wants to deal with—an early morning call from the fire department.

But Justin isn’t the only one who sees huge potential in small self storage properties. AJ is a BIG fan of this investing strategy and shares why these overlooked facilities might be the key to the best returns in the industry. If you don’t have a ton of experience or money to start investing, worry not. Justin is a prime example of how anyone (yes, even you!) can get started today. 

What you’ll learn in today’s show:

—

Justin’s Instagram - https://www.instagram.com/justinjameslive/

📌 Make self storage management easier than EVER with our podcast sponsor Tenant Inc. - https://www.tenantinc.com/

🌳 Work with someone experienced in self storage loans at Live Oak Bank! https://www.liveoakbank.com/business-loans/self-storage/

🎙️ Do you have a great story to share on the SSI or AJ Osborne podcasts? You can now apply here! https://form.asana.com/?k=TGU88eU0bFTFW1iHcckuTA&d=1203571084143207

📖 Get AJ's new book that teaches you everything he knows about self-storage https://a.co/d/aRSKcSq

Today’s guest bought four self storage facilities in two years after disaster struck his family. Imagine you just lost everything. Your house is gone, your job is over, and you’re in a new city. You’re trying to rebuild your life but starting back from zero. Most people would settle into defeat, asking, “What’s the point?” as they struggle to cope with what just happened to them. Charles Lindner isn’t like most people.

After a fire took away his house, memories, possessions, and sense of security, Charles searched for something he could feel passionate about. Rental properties seemed enticing, but during the lockdowns, with rents rarely being paid, he knew single-family homes weren’t for him. After his soon-to-be business partner commented on how much self storage facilities seemed to be making, he did some digging, found this podcast (seriously!), and now has four facilities in just two years.

Okay, but how does someone with zero experience build a self storage empire in the time it takes most beginners to get their first deal? Today, Charles shares his secret to finding the best value-add facilities, how he gets 0% interest seller financing deals, and the one thing you MUST do if you want to get a facility under contract. 

What you’ll learn in today’s show:

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Follow Charles on Instagram - https://www.instagram.com/deallock71/

📌 Make self storage management easier than EVER with our podcast sponsor Tenant Inc. - https://www.tenantinc.com/

🌳 Work with someone experienced in self storage loans at Live Oak Bank! https://www.liveoakbank.com/business-loans/self-storage/

🎙️ Do you have a great story to share on the SSI or AJ Osborne podcasts? You can now apply here! https://form.asana.com/?k=TGU88eU0bFTFW1iHcckuTA&d=1203571084143207

📖 Get AJ's new book that teaches you everything he knows about self-storage https://a.co/d/aRSKcSq

Real estate syndications have fallen off a cliff. Those currently stuck with underperforming properties are scrambling to find ways to pay the bills and stop banks from foreclosing on them. All those inexperienced investors who wanted to become real estate syndicators? Those dreams are drying up. Mauricio Rauld, real estate syndication attorney, has seen transactions collapse as interest rates rose and cap rates expanded. But, because of it, we could be coming into a huge opportunity to raise capital—you just need to know the RIGHT way to do it.

In this episode, we’re talking about what happened to real estate syndications, why syndication transactions have cratered, and some good news for investors waiting for sellers to return to reality. Syndicators are getting desperate. They’re sending out capital calls to keep their deals afloat and are facing refinances with massive repercussions. How do you avoid getting into this spot yourself?

If you’re raising capital for real estate, you MUST listen to this episode. Mauricio is sharing some key “do’s and don’ts” that could stop you from breaking SEC compliance and ending up in hot water. Plus, if you DO want to invest in syndications, we’re sharing tips to help you invest in the right one instead of the one with the "highest return." 

What you’ll learn in today’s show:

Work with Mauricio - https://www.premierlawgroup.net/

Grab Mauricio’s Book on Legal Strategies - https://legalstrategiesforeveryone.com/

Hear AJ and Mauricio on Drunk Real Estate - https://www.drunkrealestateshow.com/

New to self storage investing? Then, at all costs, avoid these seven crucial beginner mistakes. When you’re buying a storage facility, a lot can go right…but a lot can go wrong, too; if you haven’t been in this game for a while, it’s easy to trip up and buy a facility that ends up costing you. So, how do you avoid all the beginner pitfalls that we’ve seen wipe out storage operators before they get their footing? Stick around because we share two decades of mistakes with you, so you DON’T make them.

We’re getting into WHY beginners never buy their first storage facility, the “good” problems you should hunt for when looking for deals, and the WRONG metrics that will throw you off course. We’ll also describe, in detail, how to analyze a market for demand so you don’t buy in an area that DOESN’T need more self storage. Plus, how getting unit sizes right can help you beat the competition and fill up your facility fast.

We’re also highlighting due diligence errors and how to fact-check what the seller reports so you don’t buy a facility different from the one you thought you were getting. And stick around for the end—we’re taking your questions from past episodes and answering them on today’s show! 

What you’ll learn in today’s show:

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Growing Wealth in Self-Storage 2.0 - https://www.amazon.com/Growing-Wealth-Self-Storage-2-0-Post-Pandemic/dp/1735258865/ref=pd_lpo_sccl_1/130-4697294-4842904?pd_rd_w=Avd61&content-id=amzn1.sym.4c8c52db-06f8-4e42-8e56-912796f2ea6c&pf_rd_p=4c8c52db-06f8-4e42-8e56-912796f2ea6c&pf_rd_r=BSC3EPJZ1BW18SHS5Q43&pd_rd_wg=iwGnD&pd_rd_r=a8a3d912-35b9-4cb4-9824-72248ca17bb7&pd_rd_i=1735258865&psc=1

Ten years ago, barely anyone in Brazil used self storage, or even knew what it was, for that matter. But one man, Henry Madden, saw what no one else could: a country sentimental about physical items, with a population living in small apartments and needing more space. The problem? How can there be demand for self storage when nobody in Brazil even knew they needed it?

Fast forward to today, Henry owns the most popular, highest-demand self storage facilities in Brazil. He can’t build units fast enough and is raking in high rents even with Brazil’s significantly lower building cost. So, how did a foreigner successfully create a new industry, learn the laws and regulations, and succeed even during lockdowns?

Want to build wealth in self storage? Like Henry, you need to think outside the box (or more like BUILD the box). He shares exactly how he started his business, built his massively successful first self storage facility, and the lessons YOU can learn from his experience to invest in a market nobody else believes in. 

What you’ll learn in today’s show:

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Moby Self Storage https://mobystorage.net.br/

How do you get the best self storage deals? You’ll need self storage underwriting! Underwriting (AKA analysis) allows you to tell whether or not a facility is worth the price, how much you should offer, and whether it’s even worth buying in the first place. Plus, it’s not just about analyzing on-market deals. You can use our self storage underwriting model to find the “money on the table” off-market deals that most investors will miss.

Today, we’re teaching you the first steps of how to value a self storage facility. Regardless of how a seller prices their facility, you MUST perform this analysis to ensure you get a good deal. AJ and Conner discuss the intrinsic vs. extrinsic value of self storage investments and how to control one of these factors so you ALWAYS buy deals with significant upside. We’ll touch on underwriting expenses, revenue, occupancy, and more, plus the one huge opportunity that most investors are missing out on today.

Ready to buy your first self storage facility or expand to the next one? This is where to start! 

What you’ll learn in today’s show:

—

Make self storage management easier than EVER with our podcast sponsor Tenant Inc. - https://www.tenantinc.com/

Podcast Survey https://form.asana.com/?k=da0pR8v74pC8OEgx9dgKRQ&d=1203571084143207

Growing Wealth in Self-Storage 2.0 https://a.co/d/aRSKcSq

SSI Live Event https://www.selfstorageincome.com/ssi-live-2024