Category Archives: Real Estate Investing

Why Self-storage is Safer Than Other Real Estate

Issue 80 – What Safety Means To Investors

Introduction… The Commercial Mortgage Backed Securities (CMBS) self-storage loans funded over the past 10 years have the lowest default rate of all property types at less than 1 percent.

This compares favorably to the 4.5 percent average delinquency rate for all commercial real estate and 3.9% delinquency rate for multi-family.

Why…why is self-storage 4.5 times better than other real estate?

This is counter-intuitive.

Click here to find out why…why is self-storage 4.5 times better than other real estate

If this intrigues you, how may I help you?  Bill@billmoist.net

Announcing Increased Cash Flow For Storage Investors

 Issue 67 – Increased Storage Cash Flow

Introduction…This is an exciting time to be a self-storage owner or investor.  We have multiple ways to decreasing operating costs and increasing positive user experience.

Here are current items that improve cash flow for owners or investors:

  • Online payment processing
  • Online unit availability and lease execution
  • Smartphone online leasing
  • Gate access with smartphone
  • Unmanned properties with Advanced Kiosk
  • Enhanced data track-ability and analytics
  • Paperless operations reduce management expenses and provide improved search ability
  • Improved customer experience by providing information access as they want it with websites, software, gate access, payment processing, and facility marketing.

In summary…Much of the above technology improvements to customer experience are so affordable.  The labor saving and speed to lease or collect payments greatly exceeds its cost.  This is an exciting time to be owners and investors in self storage properties.  To request more information, email bill@billmoist.net

Record Breaking Self-Storage Sale…In Menomonee & Waukesha???

Introduction…Unless you are from the upper Midwest you’ve probably never heard of Menomonee (pop. 35,974) or Waukesha (pop. 71,489.)

Click here to watch the video “Record Breaking Sale…”

But, some well-funded self-storage buyer did.  He paid $17,100,000 for The Vault of Menomonee Falls and The Vault of Waukesha.  This is the highest amount ever paid for a self-storage portfolio in the Greater Milwaukee area as announced by Marcus & Millichap.

This sale…This sale works out to be gigantic $16,553 per unit or $164 per square foot for the existing rentable space. The Menomonee property has another 317 units to be completed in mid-2018 which was factored in the purchase price and is yet to be leased.

In contrast, DFW has a population of 7,300,000 and is expected to add another 125,000 people in the next year.

So, DFW’s one year population growth is expected to exceed the total population of Menomonee and Waukesha.

The high price to purchase existing self-storage properties in Menomonee and Waukesha gives contrast to what we’ve been able to secure in the DFW area.  We’re buying 98% leased self-storage in Dallas for $36 per square foot.

Conclusion…Does our property seem like a bargain purchase to you?

 

James Bond’s Lotus Car/Submarine Found In Storage Unit

This may seem strange.  But, James Bond’s Lotus from “The Spy Who Loved Me” was sold in  a self-storage auction because the owner did not pay the storage rent.  This resulted in the owner forfeiting the car that was auctioned.

The new owner later discovered he had bought a multi-million dollar Lotus for a few hundred dollars.

Click here to watch 10 Weirdest Things Ever Found In Storage Lockers/Units.

This just goes to prove the point made in an earlier post here, “The Hotest Way To Invest In a 6,000 Year Old Industry.”

How A Dull & Boring Segment May Be The Best Way To Invest In Real Estate

Introduction…As commercial property go, self-storage has none of the sex appeal of a gleaming office building or a ritzy shopping mall. There are more than 50,000 self-storage facilities in the U.S. — nondescript warehouses filled with cubicles where Americans keep the belongings that don’t fit into their homes.

But even though self-storage is about as unassuming an industry as you can get, it turns out to be a pretty solid investment — often better than other kinds of real estate.

Why is self-storage so popular with investors?

  • Recession-resistant
  • Lowest default rate among commercial real estate
  • Low operating expenses
  • Easy tenant lock-out for non-payment
  • Make ready is a broom
  • Trade area is 3 miles so easy to analyze and monitor
  • My favorite – no toilets

Self-storage properties can be bought in all sizes and prices.

On the low end,  it is a classic mom-and-pop operation, owing to the low level of upkeep and capital spending required.

On the high end, one 724 unit, 70,000 square foot class A self-storage property recently sold for and estimated $18 million.

A local investor could find a smaller property to purchase, invest in a larger private offering, or even a Real Estate Investment Trust (REIT) if one likes public offerings.

Click here to watch “How A Dull & Boring Segment May Be The Best Way to Invest in Real Estate.”

In summary…Very successful investors have watched Forbes 400, B. Wayne Hughes, build his $2.4 billion fortune on self-storage.  Mr. Hughes founded Public Storage in 1972 which is now the largest self-storage REIT with 2,200 locations in U.S. and Europe, totaling 142 million square feet of rentable space.

The Best Passive Residual Income in The Universe!

Ok, maybe not the universe.  Would you believe Texas?

Here’s why!  Being a real estate expert on cash flow analysis and what makes up a dream deal, I have discovered a financial realm where a wonderful group of owners and investors are:

  1. Care free
  2. Stress free
  3. Disconnected from current market conditions concerns
  4. Happy
  5. Joyful
  6. Supportive of one another

It gets better.  My studies reveal a brek-through system that cuts development time by 3/4 and lease up time by 1/2 and can be placed in areas where most developers ‘can’t go.’

Conclusion…This new plan is available.  But, I signed a NDNC to get the plans.  I can do the same for you if interested.

It Only Just Appears Not To Be The Most Exciting

 Introduction…Renting rooms with no lights, toilets, showers, or kitchens appears not to be the most exciting. But, when you look at the dynamics of the Self-Storage industry’s growth today, it may be the most exciting of all the real estate market segments.
I attended a networking group in Colleyville, Texas hosted by a real estate broker. She recommended that if you were planning on selling your house in the near future and needed to put extra stuff in storage, then you better lease the storage unit right away because it might not be available when the you need it.

Here are just a few headlines from today’s Inside Self-Storage news: Metro Storage To Build New Self-Storage Facility in Wood Ridge, NJ

  • Metro Storage To Build New Self-Storage Facility in Wood Ridge, NJ
  • Firehouse Self Storage Development Moves Forward In Longmont, CO
  • Self-Storage Expands in Plano, TX
  • StorageVault Acquires 3 Self-Storage Facilities In Canada for $6.7M
  • Lexington Road Self-Storage Planned for Former Piggly Wiggly Site in Athens, GA
  • UHaul Transforms Abandoned Dairy to Self-Storage in Sioux Falls, SD

Why all the excitement in Self-Storage today?  Most facilities are nearly 100% leased with increasing rental rates and when new properties are opened, lease-up is at all time record speed.

The demand for new Self-Storage is so strong, that it is driving developers to look for existing commercial or industrial buildings to convert.

Click here to watch the above video.

In conclusion…One of my personal reasons why Self-Storage is so exciting is that it may be the easiest of all types of real estate to manage and lease. This is a quality of life choice to participate in Self-Storage ownership today.

As a result, many investors use their Self-directed IRAs and 401Ks retirement money in self-storage properties purchases.

Where Can You Store Your Boat & RV?

RV & Boat Storage…Where?

Introduction…In the United States 11,870,000 recreational boating vessels need storage.  Add to that number 8.900,000 recreation vehicles need storage. That totals 20,770,000 recreational items that need to be stored for the off-season.

RV And Boat Sales Growing Self-Storage Demand…RV The research, conducted by Dr. Richard Curtin, RV industry analyst and director of consumer surveys at the University of Michigan, reveals the number of RV-owning households has grown to a new peak of 8.9 million households, up from 7.9 million in 2005. According to the report, 8.5% of U.S. households now own RVs, up from 8.0% in 2005.  Annual U.S. recreational boat sales have averaged 550,000 per year since 1990.

So, where do the 20,770,000  households store their recreational vehicles and boats?  Most of the larger motorhomes, larger travel trailers, and boats can’t be stored in city residential areas.

The self-storage industry has recognized and met this demand.  Many properties have built larger storage units to accommodate the largest motor-coach.

What’s next..Currently we are negotiating the purchase of a 60,000 square foot boat storage facility.  It seems adding recreational vehicles would be a logical path to take once the sale is complete.

 

Where Would You Place $5,000,000?

where-would-you-place-5000000Where Would You Place $5,000,000?

Bill Moist, MS, CPA

For many years a partner told me his goal was to accumulate $5,000,000 in cash.  When successful he would not have to work anymore.  I would often ask, so where would you invest that cash?  He did not have a good answer until yesterday.

So, I ask you… How much money do you want to accumulate in your lifetime?

First a word about accumulating cash.  It disappears.  I was shocked how fast a seven figure payment to me disappeared.

One investment manager had a client who won the $60,000,000 lottery.  After taxes he had $40,000,000 left.  A lot of money. Right?  Everyone at the firm was surprised how fast the principal disappeared. If cash disappears, what else may we want to seek?

Here are four items that may be of interest to you:

  1. We want our return on our assets to be greater than inflation and taxes even though the ‘average investor’ does not reach this goal over the long-term
  2. We would want to receive substantial cash flow to keep us in the lifestyle we are accustomed to.
  3. We would want our asset base to grow with time
  4. We would not want to have to sell our net worth to get cash flow

Click here to watch Where Woud You Place $5,000,000?

The above goals are not commonly achieved.  For the age group 55-65, for example, the 50th percentile have accumulated less than $150,000.  How long will that?

In conclusion…It appears that we will have to do better than ‘average’ to achieve the above average lifestyle we desire.

Click here to get FREE 9 Little Know Secrets For Steady Real Estate Income.

This is Bill Moist, MS, CPA speaking today Where Would You Place $5,000,000?

Improving Cash Flow With A Better Way To Build

improving-cash-flow

 

What if we could improve cash flow by not building permanent structures?

Listen to this…

There is a way to build a self-storage without building permanent storage buildings that are most commonly used.

This method both increases cash flow and reduces cost.

Now, we can replace pouring concrete slabs and building permanent storage buildings.

This new improved method uses Premium Storage Vaults.

These are individual storage vaults that can be delivered to the renter’s home, filled up, and then picked up to bring back to the storage property.

The renter can use this delivery service or bring their storage to our property.

Our payback on these vaults can be in as little as 20 months and less if the pick-up and delivery service is used.

Click here to watch Improving Cash Flow With A Better Way To Build.

Here is how this system increases your cash flow:

  1. The Premium Storage Vaults are generally less expensive to purchase than site built storage buildings.
  2. The rent for these vaults is generally higher than site built storage buildings due improved security of not having common walls with other renters.
  3. Generally, the vaults are considered equipment by local taxing authorities and not subject to the increased real estate property taxes.
  4. The vaults can generally be deployed faster than site built storage.
  5. The vaults can be more easily phased in as rentals occur.
  6. We can more easily add units when existing units are fully rented.

In conclusion…We can improve cash flow from the hottest real estate sector by avoiding the high cost of construction with I Premium Storage Vaults.

Click here to get “Get 9 Little Known Secrets For Steady Real Estate Income FREE.”