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The Complete Guide to Finding, Evaluating, and Purchasing Self Storage Facilities
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How to Make Millions in the Fastest and Easiest Commercial Real Estate Investing Strategy, Without Tenants and Toilets®!
Entrepreneur Magazine ranked Self Storage as the Country’s Fastest Growing Business in America in 2008, giving thousands of people the ability to create their own wealth system right from their living room. The Self Storage business may seem familiar to you, but it’s actually re-inventing itself in so many unbelievably exciting ways, and is widely regarded as the hottest, 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 approximately 63,000 primary facilities with more than 2.2 billion rentable square feet! And of those 63,000 facilities, roughly 24,000 have been added in the past 8 years, proving that this is a product that is in high demand! 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!
"I can’t think of one single long term trend in our country and our economy that doesn’t benefit Self Storage – It’s the perfect storm – a hurricane of Profits."
"This is the sweetest spot in the whole American economy; a receptacle for an enormous cascade of money!"
Ben Stein, noted American economist, and award winning author. Quotes taken from his keynote speech at the SSA fall Conference & Trade Show, 2007.
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 16 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.
Tell me if any of these benefits apply to you:
1. The Ability to 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. You Operate Using 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 upfront 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 course 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 breakeven 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 was because I was in the tenant and toilet business! 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,
but 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?
Well since you're reading this, you probably already know the answer; I found my dream business in Self Storage. After performing a great deal of research on the industry, I decided to sell all my single family homes, apartments, and office buildings, dump all my tenants and toilets, and focus solely on Self Storage for the following “Top 10” reasons:
10. Endless Opportunities – There are approximately 63,000 existing facilities in the U.S. comprising around 23 million Self Storage Rental Units. Compare this with only 11 million single family rental units, and only 16 million rental units. In addition, 88% are owned by Mom and Pop and small-time investors, not the big public companies, creating a tremendous buying opportunity.
9. Skyrocketing Future Demand Projections: 24,000 facilities, or roughly 40% of all facilities in the U.S. have been built in the past 8 years, and 77 Million Baby Boomers are set to retire, move, downsize, buy 2nd homes, and will need storage in the upcoming years.
8. Low Operating Costs: Parcels of land are typically cheap, and development costs are low compared to other asset classes, so property taxes are considerably lower than all other forms of real estate. Utilities are almost non existent, and insurance is minimal due to the nature of construction, and the fact you don’t insure your clients’ contents.
7. Multiple Profit Centers – Merchandise sales of locks, boxes, & moving supplies, cell towers, billboard leases, car washes, business centers, pack and ship services, Insurance sales, plus truck rentals, EBAY©, and much more!
6. Minimal Collection Losses – The ability to lock out non-paying tenants, and then auction their stuff to recapture lost rent. (Can you imagine doing this in the apartment world?)
5. Low Risk – multiple units in one place; No single move-out dramatically affects cash flow. As a result, Self Storage loans have the lowest default rate of any real estate product type in the market, period!
4. High Cash Flow – taxes, insurance, and utilities are lower than any other property class, therefore, they aren’t susceptible to large increases. In addition, the dollar per sqaure foot is the same as other types of real estate, without the additional expenses.
3. No Employees – Manage on your own, or from afar with an automated, ATM style kiosk.
2. No Tenants – Just stuff like patio furniture, boxes, books, and couches, not people and their bad habits and behaviors.
1. No Toilets – Just steel walls doors and roofs, with a gravel or asphalt driveway and a fence. When a tenant moves out, I don’t have to fix anything, nor re-paint, or re-carpet and no toilets!
So How Does Self Storage Stack Up Against Other Forms of Commercial Real Estate Investments Like Apartments, Office Buildings, and Retail?
Development Costs
The development cost of self storage is one-third to one-half that of apartments (multi-family), office buildings, or retail properties.
Operating Costs
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.
Now, I know what you’re thinking...
Misconception # 1 – "Great, but Self Storage is an industry dominated by major corporations". This couldn’t be farther from the truth. In fact, of the roughly 63,000 facilities in this country, approximately 88% are owned by smaller operators, not the "big boys" as many people think. In addition, most of these "mom and pop" operators started with little or no knowledge of the industry, yet they are making more money than they ever thought possible, and in all markets and in both good and bad economies. And guess what, many of these owners developed their facilities specifically with the intention to sell them off to investors like us!
Misconception # 2 – "This all sounds great, but there aren’t any facilities where I live". Ok, let’s review; there are roughly 63,000 facilities with over 23 million rental units in this country! So if you don’t believe me, and you want to know how many there are in your area, simply open up the phone book and look up “Self Storage” in the Yellow Pages, or Google “Self Storage” followed by the name of your city or town, and watch the listings flow in.
Besides, this is an investment that can be managed from afar, so don’t limit yourself to just your hometown. I personally own several properties all around my home state of Indiana. I use a web based property management system and automated ATM-style kiosks, and I visit my facilities every 2 weeks or so. I also have plans to expand into several other states and I have the ability to manage them from anywhere I can get an internet connection and a cell phone signal.
Misconception # 3 – "Self Storage deals must be harder to do than single-family deals". Does buying a triple mocha half calf non fat extra large latte with whip take any longer to buy than a small black coffee? It’s the same process. With Self Storage, I use virtually the same methods I used when buying single family houses. And where they differ, I developed my own checklists and systems that clearly spell out what needs to be done and when.
Well after I got past these industry myths...
The first step I took was to immerse myself in education. As I looked around for ways to educate myself in this industry, to my surprise, I found that there were no courses available to teach me how to do it. So I just bought every book, went to every seminar, and meeting I could find, and eventually joined the Self Storage Association. I bought everything I could get my hands on and learned all the tricks, techniques and strategies that were out there. I learned it all, but it wasn’t easy. I don’t think anybody wanted to share how much money they were actually making in this business. And as I have found, there is a boatload!
The second thing I did was to build on my successes and experience using technology from my apartment, office, and warehouse investing career. I took what I learned through several years of training and thousands and thousands of dollars spent on courses, books, and seminars I had attended over the years began to apply it to my Self Storage Business. I learned how to set up systems that maximized efficiencies in all areas, and allowed the business to thrive without the need for me to be involved in the day to day operations. However, one of the biggest discoveries was that you can now manage your facility from thousands of miles away with an automated kiosk that rents, accepts payments, and even sells locks!
The third thing I did was to put the two together and create an easy to follow, step by step system that allowed me to become a successful investor working fewer hours per week. This is also the same system and business plan that I use to train my staff, my students across the country and many other people who partner with me. It’s all here, I’ve left nothing out!
Oh Yeah, and the Next thing I Did Was Buy a 296 Unit Self Storage Facility With No Money Out of My Own Pocket!
At the end of 12 months, I had purchased 3 more facilities, with a positive cash flow of $10,700 per month, with no tenants, and no toilets! I now own several facilities comprising 1,000’s of units, my monthly cash flow is more than some people make in a year, and I could retire if I want. But as Confucius said: "Choose a job you love, and you will never have to work a day in your life".
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, and Purchasing Self Storage Facilities™"
This Step-By-Step system means you won’t make the same mistakes I did and I 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 and 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
Engaging Brokers
Tapping Self Storage Websites
Mail Campaigns
Cold Calling Campaigns
Canvassing
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
Bookkeeping
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 and Situation
Chapter 15: Asset Protection
Plan Now! Don’t Procrastinate!
Honesty Is the Best Policy
Intentional vs. Unintentional Fraud
Educating Your Employees
Insurance – Your First Line of Defense
Document, Document, Document
Land Trusts
Separate Your Assets
Utilize Great Advisors
Chapter 16: Take Action
Scott’s Five Principles of Success:
1. Overcoming Fear
2. Setting Goals
3. Prioritizing Your Activities
4. Perseverence
5. Developing Your Purpose
Case Study: Brownsburg Crossing Self Storage – A Real Live Example of A Recent Deal
Glossary – Over 600 Commercial Real Estate and Self Storage Terms
Appendix – Hard Copies of all the forms included in The Document Library CD
The Complete Guide to Finding, Evaluating, and Purchasing Self Storage Facilities™ includes:
1. 299 Page Manual to be used in conjunction with the DVD's and Audio CD's 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.
2. 6 Full-Length DVD's 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 that will bring my strategies and experience straight to your living room.
3. 6 Audio CD's From my all day live training event that you can plug into your car or home CD player and get a teaching experience that will cement these concepts and amplify the techniques and coaching only I can provide.
4. 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.
5. The Document Library CD-ROM with 18 various Checklists, agreements, contracts, spreadsheets, mailers, Purchase Contract and accompanying forms for buying and selling self storage facilities.
6. Scott’s Fast Start CD ROM - A step by step 90 day checklist outlining exactly what you need to do to close your first self storage deal!
Bonus #1 - 90 Day One-On-One Mentor Certificate
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. I will be your personal mentor for a full 90 days. Not someone else in my office, or my secretary...
You Get Me — Scott — The Self Storage Guru — Live, In Person!
I'll personally answer your questions, and provide the solution to any challenge you face, for a full 90 days, and you keep all the profits!
Notice: I plan to eliminate this bonus altogether in the near future, as I am far too busy doing deals to offer anymore open-ended hotline assistance with my students (my apologies!)
I STRONGLY suggest you take me up on this 90-Day Unlimited Hotline deal NOW, while it’s still available! Easily over a $2,000.00 value!
Bonus # 2 - My Self Storage Manager’s Toolkit
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 - How You Can Get My Entire System FREE!
Here’s a bold challenge for you. Use my system to do your first deal within 6 Months and send me a copy with your success story and photo...
And I’ll Send You A Check For The Entire Purchase Price Of My System!
That’s right. A 100% rebate if you’ll let me use your story in our advertising and can show me you’ve acquired a self storage facility in your first 90 days.
Along with your system will come the rebate certificate and there are no strings attached. It’s my way of curing your procrastination to get you moving towards success. I’ll do my part, now you do yours.
A $997.00 value!
Plus...
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©
There is absolutely no risk on your part...
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 |
Only $797!
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Testimonials |  |
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.
Bill
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.
Chris C.
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.
Tom D.
After Scott shared his knowledge of real estate with me, I took his lessons and created well in excess of 1 million dollars of net worth. Thanks Scott.
Greg B.
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