In this podcast episode, Scott Meyers is interviewed by Whitney Sewell from Life Bridge Capital to talk about Scott’s transition from owning multifamily units to being a full-time self-storage investor. As of today, he has over 13,000 self-storage units and is the founder of the country’s leading self-storage education company.
Tune in as Whitney interviews Scott on The Real Estate Syndication Show and gets him to share what has contributed to his development.
Why Did Scott Get into the Self-Storage Business?
To spend time with their children, Scott and his wife quit their corporate jobs and invested in real estate. He was quick to figure out the problems, but the toilet-trash-tenants issues, along with constant repairs and management of the properties, took a toll.
He realized that the alternative was a storage facility. Not many people knew about storage facilities, and the information available was paltry. So, Scott created an education venture to teach people about self-storage investment. He mentored, held seminars and conferences, consulted, and partnered with previous students who bought him new deals.
How to Shift from Multifamily to Self-Storage Investment
Scott invested in commercial multifamily units that he found through his network as joint ventures. As a multifamily investor, you need a property management service to handle the business of your units, and the cash flow could be strapped during hard times. The self-storage market is more stable and solid. Recession and inflation-resistant, the storage industry is a predictable business model.
When businesses and people downsize, they continue to create demand for storage rentals and can pay $50-75 a month when moving in with family or friends. Scott says that if customers fail to pay, he can sell their belongings and recoup back rent. If someone moves out, all he needs to do is use the gas blower for 30 seconds before letting another client move in!
How to Find Your First Self-Storage Deal
Scott suggests that educating yourself and buying small is the key to starting in the self-storage market.
Attend association meetings in your state, read books, try coaching and mentoring, and get familiar with the industry terms and the underwriting. It is important to learn the difference between how to run a self-storage facility and a multifamily business.
Buy a smaller facility to understand the practicality of the business. Scott advises against syndicating for your first buy. People often run their storage facilities as a hobby and do not hire a property management company even when the facility is large or located in another state. Using due diligence and discussing with a consultant before signing the dotted line can be helpful for investors.
How Can You Upgrade Your Self-Storage Business?
The recession has meant that many people are now in the labor pool. Hiring them can bring qualified professionals to your business and help those professionals get back to work. He is also buying existing facilities to diversify his risk and portfolio.
Scott has faith in giving back. He takes his family, friends, students, partners, and staff on mission trips to build houses in Mexico and the Dominican Republic to end generational poverty, one family and one house at a time.
An educator and investor, Scott believes that people can see and appreciate his integrity, which has contributed to his progress. For more information on how you can start investing in real estate to earn passive income, check out Scott’s comprehensive guide!