Category Archives: News

Self Storage Investing in the News

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Here at Self Storage Investing, we’ve been helping newcomers advance and get their start in the business through our mentoring program. And after years of service, I’m happy to announce that others are taking notice. This past week, our efforts were featured in Extra Space Storage’s blog, as well as IBT PR Center’s website, highlighting the outline of our plan.

In her blog, Holly Robinson of Extra Space Storage, expresses the importance of a program to help buyers obtain finances and show them the ropes of the self storage business. She states how most businesses don’t come with a how-to manual, but that’s exactly what we’re doing: teaching investors what to expect. But we don’t stop there.

During the program, students learn the ins and outs of self storage through several mediums including software, seminars, eBooks, and one-on-one mentoring. Then we help them sign up for specialized loans or meet with private lenders to make their business a reality. In fact, last year alone we were able to help four students obtain storage facilities, across the country, worth a cumulative $6.9 million.

To find out more about our mentoring program, comment or click the academy tab above.

Self Storage Aggregators Explained

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Most of the folks in the self storage industry have seen or heard a number of articles – whether located in blogs, chat rooms, etc. – about the war on the aggregators right now, which is being led by one self storage operator in Texas. During this controversy, I’ve been sitting back in the sidelines, talking with quite a bit of others in the industry and hearing different views on the use of aggregators.

As a self storage owner, I’ve used the aggregators sites for advertising; I teach people multiple ways to generate traffic. So with an unbiased opinion, I’ll explain the controversy from both sides of the issue. Just click on the video below.


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Business Awards Bring Recognition, Free Advertising

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With all of the advertising options that are available today, the costs can add up quickly. There are radio ads to purchase, commercial slots, internet space – the options quickly make a dent in the profits. But, what if there were another way? What if there were a way to get the word out about your services without having to pay for it? While nothing can actually replace conducting your own advertising, there are methods that can help along the process. One such free example is winning an award.

While, of course this path requires for your company to be chosen by others, it also makes it that much more honorable once it’s been earned. Not only will winning an award bring clout to your business, proving to potential customers that you’re the real deal, it will also get your name out into the public. Award winners can also be featured in local publications, reaching an even broader audience.
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Economy 0, Self Storage Business 1

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It’s nothing shocking to hear yet another blog/article/news piece about the failing economy. Every day the media is announcing one more way the US economy is hitting the ground. From banks, to small business, to Fortune 500, it seems that everyone has taken a hard hit from the Great Recession. However, it seems that, with all of this negative financial news does come an up side, there is one industry that is thriving more than ever: the self storage business. (I knew I got into this business for a reason.) And for those still standing on the outside of those storage garage doors, it’s not too late for you either.

How is the Self Storage Business Thriving in This Economy?

If you’re wondering how the self storage market is thriving when financial companies can’t even make it, you’re not alone. People from all across the country are analyzing the self storage business and looking to duplicate its success. Their results? There are several for the current success rate. Here’s the top three contributors I’ve researched:

  1. Banks aren’t approving many loans. Rather than purchasing land, building, and then renting, owners are buying up current properties. Bankrupt furniture businesses, grocery stores that have closed – no matter the building, almost any property can be built with plans for a storage units in mind. (And many for prices much lower than their worth.)
  2. People are downsizing. With the looming thought of an increasing mortgage payment, or just the realization that a home is too large, many are packing up and moving their excess belongings into a self storage unit.
  3. Bang for your buck. Buying a property outright can be expensive. But renting for a few months is much more cost-friendly and allows renters the flexibility to use a unit for as little or as long as they need.

But, as many have found, why the self storage business is thriving isn’t so much as important as the why-haven’t-I-been-doing-this-for-years. Newcomers from all over the employment map are beginning to purchase storage units and renting them out. Former businessmen/women, former salespersons, and even those just looking for some extra side money have bought units and started turning a profit almost immediately. And just because you haven’t gotten in the game yet doesn’t mean it’s too late. To find out more on how to get into the self storage business, contact us or check back here for weekly tips.

Self Storage Business Expansions Prove Market is Stable

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With the current strain that the economy has caused many businesses, it’s not hard to see why many have began to broaden their horizons.  In uncertain times, small business owners are the first to realize just how much a bum economy can affect their profits.  And as property owners, their services may be some of the first to be seen as “trimmed fat.”  However, rather than selling, jacking up their prices, or, just closing up shop, many self storage companies have chosen a different option: branching out.

In the past year we have seen a number of property investment companies not only join up their businesses, but begin to offer more for their current customers. A business that used to offer self storage services is now providing moving truck rentals — an all-in-one deal.  And a company that once focused on storing documents or other climate-controlled items, might now break into the real estate market and start its stint with property rentals.  Other businesses are simply partnering with one another to ensure shared patronage, an example of networking to the extreme.

These company expansions are a show of the self storage market’s willingness to adapt and change in order to continue its success.  It’s also proof that the storage business continues to thrive.  A failing company does not have the ability to expand its empire. The fact that storage company after truck rental business continues to do so shows they have the collateral to support it.  Seeing others expand should be reassuring to any small business owner.  It reassures that the self storage market, despite a down economy, is profitable and stable.

Why is Self Storage so Popular?

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In the past few decades, it’s safe to say that the self storage industry has taken a sharp turn in the upward direction. People are accumulating more and more over the years, and have less space to store them. We’ve also witnessed a steep increase in people moving over the past several years, while the desire to relocate everything you own is not quite as popular. Where there’s a need, there’s room for a popular business, and with the increase of all of the above, self storage companies have been popping up ever since.

Of course there are still many who have a large enough basement to hold all of their belongings, or people who are less sentimental and hold an annual garage sale to rid themselves of any extra items. But that hasn’t slowed the market for self storage investing down in the least. As a self storage facility owner, it is important to know where this business is coming from. And the next time you’re marketing or looking for new customers, keep these demographics in mind.

Top Self Storage Users

1. Military Families

With the constant moving and unpredictability military families (or singles) often face, many choose to keep certain belongings in a self storage unit. While they may be stationed overseas, across country, or even across town, they have the flexibility to move freely while still keeping their things safe. This option is often more fiscally responsible for those who frequently move.

2. College Students

Younger generations may move from home and find they simply don’t have the space they did in their former homes. Perhaps they’re parents have moved, or whatever they need to store needs to be closer than their previous residence. Self storage is also a good option for students or those just starting out on their own as it is much cheaper than purchasing or renting a larger property.

3. Those who have downsized

Many people who have decided to sell their larger homes are left with an overwhelming amount of belongings they no longer have the space to store. Using self storage units are a great option for them to hold onto their keepsakes, while not having to commit to a larger property than they need. And, if these people are still in limbo, it offers them a safe place to keep their things until they can get settled into a new and more permanent home.

4. Just need the extra space

Finally, self storage businesses everywhere are help kept full by those who simply don’t have the room to hold everything. Whether they are storing a family member’s belongings, waiting to sell their goods on eBay, or just have a hard time getting rid of things, these renters have the flexibility to rent space as it is needed. Building a garage or shed is expensive, but renting a storage unit allows someone else to pay all of the property bills. It also provides the option of using as much or as little space as you need. 

Press Release: Self Storage Profits, Inc. Assists First-Time Investor in $1.1 Million Acquisition

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Press Release

Self Storage Profits, Inc. Assists First-Time Investor in $1.1 Million Acquisition

Self Storage Profits, Inc., a self storage education and mentoring firm based in Indianapolis, recently assisted another student in the acquisition of a self storage facility in Danville, Illinois using the SBA 7(a) loan program. The property is an older facility in a secondary market that has recently undergone a significant facelift, modernizing it with above-average technology upgrades including a sales kiosk. The property, previously branded as Always Open Storage, was immediately rebranded as Steady Storage under the new ownership.
“It’s so exciting to see another one of our students, David Manka, become a first time self storage owner” said Scott Meyers, founder of Self Storage Profits, Inc. “The deal had it’s fair share of challenges, but in the end, our staff of mentors and lenders were able to close the deal for David, which provides more proof that the market is nowhere near as bad as people perceive. We are looking forward to closing several more deals like this in our pipeline throughout 2011.”

Self-Storage Reality TV Is Anything But, So Managers Beware

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The good, the bad and the ugly; prepare for a lot of each due to the newfound, newfangled popularity of television reality shows about the self-storage industry. “Storage Wars” and other imitators may be called reality programming, yet they are anything but realistic when it comes to actual industry operations. They attract attention to the industry, but sometimes more attention may not be more lucrative. Self-Storage unit and auction operators beware.

Self-storage professionals are keenly aware of the challenges in presenting a positive image of self-storage lien sales and the self-storage industry. However, good industry practices do not necessarily mean great entertainment, so the reality television shows ham it up creating, in the process, a distorted view of the self-storage industry. This can make for problems and challenges going forward for self-storage facility and auction operators. Misconceptions and crowd-related issues at auctions can get in the way of successful operations. Defaults and scams have increased, records show.

On the other hand, the popularity of shows like “Storage Wars” illustrates a national passion for reality-based television, bringing the industry into households that may not have been familiar with the industry. This can be a good thing. The fact is that television exposure to millions of Americans really increases the potential customer pool. A lot of operations report telephone lines buzzing with newbies. More people have been renting units and attending auctions. However, they have unrealistic expectations for what may be in units.

As interest has boomed in self-storage, criminals have taken note as well, of course. Scams have become much more prevalent, so take note, too. One of the new scams involves rubbish units. Self-storage auction tenants work with unscrupulous operators to inflate the price of a unit. The so-called tenant fills the unit with great looking boxes creating the impression of great value. The boxes are junk and the scammers divide a very nice profit. So, buyers beware.

Speaking of buyers, the popularity of the reality television shows are bringing flocks of unqualified buyers to self-storage auctions. They have unrealistic notions, which in the end may even annoy or inhibit actual customers. Parking and crowd control have become issues at some auctions. Members of the National Self Storage Association and certified self-storage managers must be able to sift through those brought into the field expecting entertainment from serious buyers. Literally hundreds of people are showing up now at auctions, drowning out legitimate, and long-standing customers.

Crime, in general, according to some self-storage and auction managers, has increased at units as criminals become more aware of the great value stored at these outstanding facilities. Break-ins are increasing due to the poor economy as well; all the more reason to be armed with the best advice and knowledge, members of the online self-storage industry say. Common sense and defensive measures are important: do not keep cash around; make sure the manager’s office is secure; and be extra careful installing security measures.

Check out Self-Storage Talk at http://www.selfstoragetalk.com/ for all types of discussion threads of interest in the quest for self-storage excellence.

There is always something new in the world of reality television, but the effects of “Storage Wars” and of other similar shows will continue. So, self-storage industry professionals need to be prepared for resulting legal challenges and lien-sale liability matters. That is the really real world and not the television version.

Much more information and help is available. If you need any additional information related to this topic or any other self-storage topic, you can check out www.selfstorageinvesting.com to learn more.

Economic Issues Bring Homeless to Storage Facilities

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Ideally, everyone would have a place to call home; but unfortunately, this is not always the case. A recent AOL news story discussed a Houston family that was found residing in a storage facility with their six children. Amazingly, the family had equipped the unit with air conditioning, electricity and several other amenities. There was even a working garden established by the family behind the facility.

Attending school was not a problem for the children, who took online courses and received good grades. Child protective services caught wind of their activity and removed the children from their parent’s custody. As sad as their situation is, this is bad for our business as a whole. The recession has caused many previously stable individuals and families to lose their homes, and some of these economic victims attempt to make our self-storage facilities their temporary home.

What do instances such as this mean for the future of our industry? How do we prevent this type of activity from occurring at our storage enterprises? Clearly, as professional business owners we must take action to protect our client’s possessions as well as our reputations.

One of the most effective methods to avoid instances such as this one from happening to you is to be firm in your rental policies. It is standard to require contact information from storage space renters, and occasionally we may turn a blind eye when they cannot provide one. After all, several of these citizens are in the process of moving and may not have information to provide. Use your gut instinct about the potential customer when they come in to rent, and if they do not have the required information, it is your right to refuse to contract with them.

 

Signing Off,

 

Self-Storage Facility Buying and Selling Trends in North-Central Region

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Hi, everyone! Scott here, with some info on the development and recovery of our industry in the nation’s north-central states. Some of the big guns from Chicago, Minneapolis, Kansas, Wisconsin and Michigan are weighing in and the information may be useful to those who are considering buying or selling properties right now. The full article can be found at: http://www.insideselfstorage.com/articles/2011/06/the-state-of-self-storage-real-estate-in-the-north-central-states-recovery-and-development.aspx.

So far, it looks like 2011 is an opportune time for buyers and sellers alike in the self-storage industry. Interest rates are still phenomenally low, which gives motivation for buyers to act now before they rise and also gives sellers a better chance of obtaining a higher price for their properties. With many operators reporting a near 90% occupancy rate, even during the economic downturn affecting almost every other industry, investors are looking favorably on the self-storage sector.

Well-maintained, properly managed and well-located facilities are definitely seeing buying interest in the north-central region. Whether this is the best time to sell, however, still comes down to the individual goals of each operator. If your facility is operating profitably, with a high occupancy rate, this could be the perfect time to sell if you are so inclined. Plenty of investors are looking for ways to secure even a 10% ROI.

As far as building new facilities, this may not be the best time. Banks are still skittish about lending and there was a problem with overbuilding in the past, where supply was ahead of demand. Rather than building new, the trend seems to be in the acquisition or expansion of existing facilities. These are both viable alternatives for those wanting to grow their current base.

Hope this information is useful. Feel free to comment on this or any other topic!