Complete Guide to Finding, Evaluating, and Purchasing Self Storage Facilities
|How to Make Millions in the Fastest and Easiest Commercial Real Estate Investing Strategy, Without Tenants and Toilets®!|
Self Storage is creating a mini-revolution all across the country and giving thousands of people the ability to create wealth right from their living room or favorite coffee shop. The Self Storage business may seem familiar to you, but it's actually re-inventing itself in so many important and exciting ways. It is also widely regarded as the most profitable and easily managed real estate investment in the country.
The good news is that Self Storage is a $220 billion+ (market cap value) and $22.6 billion (annual revenues) industry in the United States that comprises more than 23 million rental units with more than 2.2 billion rentable square feet!
And of those 23 million, roughly 8 million have been added since the year 2000, making Self Storage The Fastest Growing Real Estate Business in The United States for the past 30 years!
In addition, a recent study by the National Self Storage Association showed that only 1 in 10 US Households are now renting 1 or more Self Storage Units, creating a high growth industry with only 10% penetration!
How many business opportunities have you looked at? Ten? Fifteen? Twenty? How many sites have you visited promising unlimited wealth with no risk or without lifting a finger? Maybe you've looked at franchises that charge astronomical fees and huge back end royalties. I know, I've been there.
Over 18 years ago I started looking for the perfect business…one I could do without sabotaging all my time, my current job, my marriage, or my friendships. What I wanted was a business that I could mold into my lifestyle and personal financial goals. A business that was isolated from good and bad economic cycles, not a fad that would fizzle out, leaving me right back where I started.
The Benefits of Investing in Self Storage
Tell me if any of these benefits apply to you:
1. Set Your Own Hours. Turn small amounts of time into sizeable profits. Start part-time, earn while you learn, and ultimately replace and exceed your regular job's income before you walk away from it. Or, if you like, work part time or make the equivalent of a full-time income from spare-time hours and call yourself retired.
2.Use a Proven System, but with no Franchise Fees or Royalties I lack creativity, and did not want to reinvent the wheel. I wanted a proven step by step system – like a franchise, but without the hefty up front fees and back end royalties.
3. Low to No Overhead – I wanted the ability to run my business from my home, or my favorite coffee shop, and enjoy the tax benefits of operating a home-based business.
4. Flexibility – I wanted the ability to go it alone, or bring on partners as the business grew. In addition, I wanted a business that could be duplicated in any area of the country, so I could make money while vacationing in different cities (and make the trip tax-deductible)
5. Make Instant Profits – The ability to generate cash flow from day one; not in several years after pouring my life savings into it, or borrowing money from my relatives and friends.
Well after talking to and meeting with several older, wiser, (and richer) friends, I found one thing in common: Virtually all of them had made their fortunes in real estate, and the others had a real estate portfolio larger than most so called full time real estate investors.
So I jumped in with both feet by purchasing a Home Study System by one of the top "Guru's"in the country on how to invest in real estate with no money down. And I, unlike so many other people who buy courses and then stick them on the shelf, actually watched those tapes and read the manual. And Guess what....it worked! I bought my first piece of investment real estate, a 3- bedroom 1 bath single family home, for $30,000 with $0 money down!
Then I rehabbed it, rented it, refinanced it, and pulled out enough money to re-invest in 2 more just like it. I repeated this several times over and had made a small fortune in the single family buy it, fix it, rent it, and sell it real estate business. I then took that small fortune and began to invest in several apartment complexes, and office buildings. The cash flow was great, my net worth had skyrocketed, and I was living the dream! (so I thought).
Then came the tragic events of September 11, which as many of you may remember, shook our country to the core. In the recession that followed, our vacancy rate plummeted near our break even point, our insurance rates had soared, and a statewide property tax increase on all our properties a year later delivered the final blow. The promise of a better life and the creation of wealth through residential rental real estate had been jeopardized in just a few short years, and I knew something had to change!
As I pondered my options, I realized that my passion still lied within real estate. The main reason I was in this mess because I was in the business of renting space to PEOPLE. The lost rent from evictions, move-outs in the middle of the night, huge collection expenses, high vacancies in tough economies, plus the cost to repair, re-paint, and re-carpet each of our 400 units when they became vacant was eating away at our monthly cash flow.
Also, being a victim of random increases in property taxes, insurance, and utility costs over the past 5 years brought me to the conclusion that I no longer wanted to be in a position where I was slave to the tax man, the insurance companies, nor the utility monopolies any longer.
"Although I was Making Money with Single-Family Homes and Apartments...I wanted to Make More Money, Faster, without the Hassles of Tenants, Toilets, or Employees!"
So the conclusion was that my dream job was to build a low-risk, high cash flow real estate business without all the hassles of tenants, toilets, or employees! Simple enough, but did such a business really exist? Was it a pipe dream? Or was it the best kept secret in Real Estate Investing?
So How Does Self Storage Stack up against other forms of Commercial Real Estate Investments?
When comparing Self Storage to other real estate investments such as Apartments, Office Buildings, and Retail, how do they compare? Lets explore some of the most important factors.Development Costs
The development cost of self storage is one-third to one-half that of apartments (multi-family), office buildings, or retail properties.
Owning real estate requires regular maintenance of the grounds, appliances, plumbing, electrical fixtures, etc., which usually requires a maintenance staff. As the graph illustrates, self-storage operating costs are less than half that of other real estate properties.
Breakeven Occupancy Rates
When owning investment property, you simply must fill a certain amount of space to keep from losing money. In self storage, this break-even point is considerably lower than other real estate ventures due to its low development costs.
Annual Rent Ranges
This chart illustrates that the annual rent ranges for self storage fall within the range of other real estate. However, considering the lower development and operational costs we discussed above, self storage can yield a better bottom line.
Failure Rate Comparison
Compared to other real estate investments, self storage has the ability to absorb economic fluctuations, maintaining value during both good and bad economic times.
|Source: "The Big Financial Picture" Inside Self Storage Magazine, Nov. 2000, by Mike Parham, National Development Services, Inc|
I found out the hard way, however, that there are a few important differences between buying a single-family house or apartment building, vs. buying a Self Storage Facility. I made a lot of mistakes in the beginning-some very costly. But what counts is that I learned from my mistakes, and I created systems so I wouldn’t ever make those same mistakes again, with step by step instructions on how to find lowly Cinderella facilities and turn them into Belles of the Ball (making a boatload of cash in the process!)
Fortunately for you, I've combined all of my knowledge, and all of my systems into my Home Study System called:
The Complete Guide to Finding, Evaluating, & Purchasing Self Storage Facilities™"
This Step-By-Step system means you won't make the same mistakes I did, and will show you how I went from being a tired, overworked and underpaid landlord, to creating $10,700 in monthly spendable cash in 12 short months, without the hassles of tenants and toilets.
Here's the Complete Table of Contents of the course, Straight from the Manual...
Chapter 1: Industry Overview
- Definition of Self Storage
- The History of Self Storage
- Self Storage Tenants
- The Current State of the Market
Chapter 2: Investment Opportunities In Self Storage
- 20 Reasons for Self Storage Now!
- Debunking the Myths
CHAPTER 3: The Future of Self Storage
- Reasons for Increased Demand
- Advancements in Technology
- More Products & Services
- Focus on Customer Service
- Industry Consolidation
- Increased Competition
- Increased Values
CHAPTER 4: To Buy or to Build
- The Advantages of Buying
- The Advantages of Building
CHAPTER 5: Where to Find the Deals
- The 7 Best Ways to find Self Storage Deals:
- Engaging Brokers
- Tapping Self Storage Websites
- Mail Campaigns
- Cold Calling Campaigns
- Local Newspapers & Publications
- The Living Billboard
CHAPTER 6: Evaluating the Opportunities
- Determining Value
- The Prospecting Fact Sheet: The 27 Questions you must ask every seller Before moving Forward!
- Mapping the Property
- The 5 minute Valuation Calculator
- Definition of and how to Calculate the Capitalization Rate
CHAPTER 7: Mastering Market Analysis
- Location, Location, Location
- Measuring Employment Growth
- Traffic Counts and the Importance of Determining Population Growth
- Calculating Median Income
- Sizing up the Competition
- Analyzing Local Demographics
- Determining Market Demand
- Gathering Market Data
- Utilizing The Various Industry Reports
CHAPTER 8: Making the Offer
- Negotiating With Sellers & Brokers
- Pros & Cons of Using Brokers
- Justifying your Price
- The 8 Motivations of Sellers
- Presenting the Offer
- The Letter of Intent (LOI)
- The Purchase Agreement: 9 Tips You Need To Know Before Signing!
CHAPTER 9: Due Diligence
- The Due Diligence Checklist: A must have list of items needed Before Closing!
- Verifying the Income
- Uncovering Hidden Expenses
- Major vs. Minor Misrepresentations
CHAPTER 10: Valuation
- Appraised Value
- Comparable Sales
- Replacement Cost
- The Income Approach
- Reconciliation of Value
- Intrinsic Value
- The Self Storage Valuator® Software Tool – The fool proof way to determine Cash Flow and Estimate Value!
CHAPTER 11: Financing Your Facility
- Leverage: The Double Edged Sword
- Seller Financing
- Private Lenders
- Mortgage Brokers vs. Mortgage Bankers
- Hard Money Lenders
- Commercial Banks
- Community Banks
- Credit Companies
- Insurance Companies
- Conduit Financing
- Savings & Loans
- Government Loans
- 9 Different Loan Types for Self Storage
- Choosing the Right Lender and Loan
- Building Banking Relationships
- 16 ways to Find Cash for the Down Payment
- Avoiding Over-leverage
CHAPTER 12: Creating Your Business Plan
- Reasons for a Plan
- The 7 Essential Elements of a Business Plan
- The Business Plan Format
- Packaging your Plan
CHAPTER 13: Tax Planning
- Capital Gains
- Ways to treat Rental Income
- Minimizing Capital Gains
- Self Storage Deductions
- Self Storage Depreciation
- 1031 Tax Deferred Exchanges
- Personal Property
CHAPTER 14: Entity Selection
- Sole Proprietorship
- Various Partnerships
- Various Corporations
- Real Estate Investment Trusts (REITs)
- Limited Liability Companies (LLCs)
- Various Trusts
- How to Choose the Entity that Matches Your Facility & Situation
CHAPTER 15: Asset Protection
- Plan Now! Don't Procrastinate!
- Honesty is the Best Policy
- Intentional vs. Unintentional Fraud
- Educating your Employees
- Insurance – Your 1st line of Defense
- Document, Document, Document
- Land Trusts
- Separate your Assets
- Utilize Great Advisors
CHAPTER 16: Take Action Scott's Five Principles of Success
- Overcoming Fear
- Setting Goals
- Prioritizing Your Activities
- Developing your Purpose
What will you get as part of the course?
- 299 Page Manual to be used in conjunction with the DVDs & Audio CDs included that will show you step-by-step, from A to Z, how Self Storage will make you wealthy; the safer, faster way. You'll discover how to find the deals, how to evaluate facilities, keys to successful negotiations, writing offers that get accepted, where to find the money to fund your deals, and how to extract maximum dollars.
- 6 Full length DVDs including 4 Live Case Studies from my all day live training event – that you can pop into your home DVD player and get a "classroom at home" teaching experience from the comfort of your favorite chair.
- 6 Audio CDs From my all day live training event that you can plug into your car or home CD player.
- The Self Storage Valuator Software™ CD and accompanying step-by-step manual – This fool-proof software will save countless hours of critical calculations, with a level of accuracy that eliminates easily overlooked but extremely costly errors. The Self Storage Valuator™ Software tool gives you concise information and the professional format necessary for getting deals approved through lenders, investors, and appraisers alike.
- The Document Library CD with 18 various checklists, agreements, contracts, spreadsheets, mailers, Purchase Contract and accompanying forms for Buying Self Storage Facilities.
- Scott's Fast Start CD – A step by step 90 day checklist outlining exactly what you need to do to close your First Self Storage deal!
Plus These Special Bonuses!
Bonus #1 – 30 Days Free Access to the Millionaire's Club
- Information Packed Newsletter with Money Making Secrets
- VIP Access to Scott's Webinars with Inner Circle Members
- Look over Scott’s shoulder with a window into his deals
- Exclusive Self Storage Listings Found NOWHERE Else!
- HUGE Discounts on Industry Trade Shows & Products
A $29.00 Value!
Bonus #2 – My Self Storage Manager’s Tool Kit
For a limited time, you'll get a CD that includes every possible manual, form, and document you will ever need to operate your self storage facility, over 70 documents in all! You'll get a Customizable Operations manual and all the forms required for the day to day operation of a self storage facility for reference, or to train your employees. It's all there; from auction forms, to truck rental and retail sales forms, leases, and everything in between. You'll also get my completely customizable, fill-in the blank Human Resource policy manual for employees, that I paid several hundred dollars to have developed. There's nothing left for you to create, or pay someone else to; I've already done it for you. Simply Print, and go!
A $277.00 value!
Bonus #3 – First 5 Deals
You want to create wealth with self storage, but need a little guidance so that your deals go smoothly and you don't make bad decisions. One of our team members will review your 5 deals emailed to us.
- The Self Storage Prospecting Fact sheet &
- The Self Storage Valuator Form for each deal!!
Notice: We'll get you answers fast – we have a team of experts ready to help you get your deals done and help you through your first Self Storage Investment.
Easily over a $2,000.00 value!
Scott’s Unconditional, 30-Day Money Back Guarantee!
If you're not completely satisfied with The Complete Guide to Finding, Evaluating, and Purchasing Self Storage Facilities©
home study system for any reason, simply return it in resalable condition and I will immediately refund your invested money in its entirety - no questions asked!
**Please Note That The Original Receipt With Your Name Listed As Purchaser Is Required To Receive Any Refunds and the Course Must Be Returned in Resalable Condition.
"Knowledge is the currency of the new economy, and now you have the power to not only change your life, but the lives of your entire family tree!"
Scott Meyers, CSSM©
Order The Complete Guide to Finding, Evaluating, and Purchasing Self Storage Facilities© today!
Also, please drop me a line when you close your first deal or pass a milestone (like passing your current income). I read and respond personally to every letter I get, because I’m committed to seeing you succeed.
To your QUICK Success,
Click Here to Pay with Two Payments
I heard Scott’s story on a webinar in May 2009 and ordered his home study course to study while recovering from surgery over the summer. After seven years investing in residential real estate, I had sold most of my properties and was eager to invest in anything that didn’t involve tenants, toilets, and termites! While attending a Commercial RE Bootcamp with my son Joe in August, I was surprised to see Scott show up as a speaker on the last day. After hearing him speak, my son instantly decided he would rather invest in self-storage facilities than in multi-unit apartments!! He signed up for the Scott’s self storage training event in Indianapolis at the end of August and joined the affiliate coaching program, so he could hit the ground running as soon as he got out of the Marines in October. We are now partners in self storage investing and have been working directly with Dutch and Brian on Scott’s coaching team for two months.
The weekly coaching calls address not only the specific techniques and strategies we must implement to find our first good self storage deal, but also provide, as a bonus, thoughtful guidance in living a balanced life based on strong relationships in both business and personal arenas. The Stepping Stones report helps each student to manage his/her time productively and make steady progress toward achieving weekly and monthly goals, despite our hectic schedules. The coaches are experienced and eager to help each student succeed. I especially appreciate the 1-on-1 personal phone calls with Dutch and Brian that specifically address my own strengths and weaknesses, and keep me focused on making the best use of my time. Brian has been exceptionally responsive in helping me with issues needing immediate attention over the last few weeks. My son and I are learning new things every week and fully expect to locate our first good deal within the next three months. I’m also encouraged by the weekly phone calls with my accountability buddies (two students in the coaching program), as we support each other and learn together how to overcome obstacles and stay motivated. I’ve been a student in several other RE coaching programs and have found Scott’s program to be the most systematic, effective, and exciting mentoring program I’ve been involved with over the last seven years.
Kay Harris (and son Sergeant Joe Harris)
I retired from American Vanlines several years ago, and after talking to a friend of mine in Tennessee, I decided to visit his the facility he built to see if this was what I wanted to do in retirement. It was a totally enclosed all climate controlled building with about 256 units, but the best part was that he only had 1 employee. So I took his building plans along with my business plan to my local bank and sold them on the deal. They financed $800,000 or 80% of the $1 million it would take to develop it, and I put together a group of investors that collectively invested the other $200,000. They were made up of my dentist, my CPA, my Dad, sister, and a couple of friends. I paid them 15%, and the payments would accrue for 3 years. Well fast forward 2 years later, we stabilized the property, I refinanced it and paid off the investors. Then in 2007, I sold it for $2.6 Million netting a profit of $1.6 million plus almost $600,000 in positive cash flow over the time I owned it for a total return of around $2.2 Million dollars on this 1 deal.
Fort Wayne IN
I recently had the opportunity to participate in a deal for a self storage facility, located in Fort Wayne, Indiana with Scott. He was professional and demonstrated his ability to identify an intelligent acquisition, work through due diligence in a prompt manner and coordinate with his lender throughout the process. The entire process from start to finish was a very pleasurable one. Scott is an individual I would work with in the future.
Jesse D. Luke
Marcus & Millichap National Self Storage Group
After years of spending every weekend and many evenings remodeling single family houses to rent or sell, Scott Meyers convinced me that Self Storage is the way to go. Now that I have sold the single family houses and own Self Storage, I haven’t painted a wall or cleaned someone else’s toilet for months now. Now when a tenant leaves, I grab my broom and in 30 seconds the unit is ready to rent for the next tenant.
My family company has been blessed to participate with Scott in real estate transactions that were very successful. His no-nonsense, analytical and professional approach enabled him to find value, put together a plan to grow that value and then exit with maximum profit. I have complete confidence in his abilities.
Click Here to View More!