Category Archives: Self Directed IRA

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.

What Does A Hollywood Music Composer, A Retired BP Executive, And A Self-Directed Retirement Expert Have In Common?

Sunday I drove 250 miles to Yellow Brick Road In Sealy, Texas.

What doest a Hollywood music composer, a retired BP executive, and a self-directed retirment expert have in common?  But, first let’s discuss how the composer got to Sealy, Texas with a population of 6,200.

The Yellow Brick Road Winery (YBR) announced the opening of a piano winery in Sealy, TX.  Partners Gerry Math and Denyce Hobgood  joined together to create a one- of- a- kind wine venue described as an intimate concert hall, a piano bar and wine tasting room- all in one.

Math’s musical accomplishments include composing for 14 motion pictures, 4 of those 12 received Academy Awards (Titanic, Forrest Gump, Legends of the Fall and Last of the Mohicans). Math played Phantom of the Opera on Broadway for four years, toured in Russian with the Bolshoi Theatre, and played at the Royal Albert Hall in London for the Queen’s birthday.

Gerry Math, said: “The inspiration for creating the Yellow Brick Winery was partly due to my desire to share the beauty of music and how music is created for Hollywood movies.  I hope it will be a place people will leave inspired to pursue creativity in life as well as establish Sealy, TX as a destination for performing arts.”

Yellow Brick Road Winery is located at 3587 Ward Bend Road Sealy, TX 77474

So, now you now how Math, the composer, and Hobgood, the retired BP exeutive got togehter to start a winery.  But, that still does not answer our first question.

Before we can answer that question, a self-directed RA or 401K with check-writing privileges was the subject of our meeting. Many firms offer self-directed retirement (that means you make the investment decisions based on your experience, rather than a limited menu offered by many brokerage firms.)

I have been speaking at civic groups, chambers, and 68 Rotary Clubs concerning the power of self-directed IRAs and 401Ks.

However, our speaker Sunday, Rick Pendykoski, has added a new dimension to this retirement strategy. Pendykoski sets up these plans so that the owner has check writing privileges. Especially those owners who are writing many checks benefit greatly. It’s not just the cost of $25 to $50 per check written by the administrator, but sometimes it can take 10 days or more to get the check sent.

This is a detailed subject that requires future discussion.

You may have guessed by now that Hollywood music composer, a retired BP executive, and a self-directed retirement expert all have self-directed IRA or 401Ks with check-writing privileges.

But, you probably did not guess that all three are investors with their retirement money in self-storage properties.

Small world. We are onto a new wave of investing for the individual investor/owner.

 

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.

 

Rooftop Farm On Top Self-Storage Facility

rooftop-farm-on-self-storage

Wave Self-Storage

You got to love the entrepreneurial spirit.  Wave Self-Storage facility in downtown St. Lewis  found a new way to generate extra revenue.

The facility recently signed a new tenant, Urban Harvest, that transformed the rooftop of the two-story building into an urban farm.

Urban Harvest installed a green roof system on the entire roof of the self-storage facility. They are using part of the roof for rooftop soil farming. They also are using raised beds for a community garden, hydroponic towers, container gardening and a greenhouse.

In conclusion...Wave Self Storage is cashing in on a number of benefits from its new tenant. Urban Harvest pays rent for its rooftop space at Wave Self Storage—close to $10,000 per year.

What to do nextClick here to Get 9 Little Known Secrets For Steady Real Estate Income  FREE

3 Things To Know About Self-Storage Ownership

3-thiings-to-know-about-self-storage-ownership

 Introduction…There are many factors to consider when purchasing commercial real estate.  We like self-storage because there are fewer items of concern.  Experts are saying that it will be at least the year 2020 or 2022 before the current self-storage demand is met. With an underserved market, is it no wonder that new properties in Texas go to 95% to 97% occupancy in a short period of time. Today, let’s look at the “3 Things To Know.”

  1. Buy…Are we in a mature market where most of the available building sites are taken and the city is not allowing new self-storage building permits.  This market may well be an area to purchase an existing property.  Market analysis is relatively easy here and we can take historical operating data and project future operating results.  Then we calculate the current and future value of the purchase.
  2. Build…Great building sites are often located in fast growing areas on the edge of well-developed metro areas.  These areas have rising household incomes with new housing construction underway. One area we are searching has a 50% projected population growth in the next five years and 5,200 residential lots coming on line.  If we are in the path of growth, we can often capture market share.
  3. Current supply…Is our market currently undersupplied, over supplied, or at equilibrium?  Equilibrium is described in three ways.  First, do we have 7.8 to 7.8 square feet of storage per person.  I prefer a second calculation that is easier to determine.  Do we have one storage unit per 10% of the households in our trade area.  The third measure is do all the storage properties in our area have 90% or greater occupancy.

Click here to watch 3 Things To Know About Self-Storage Ownership

In conclusion…There has never been a better time to buy or build self-storage.  As in all commercial real estate, current market analysis is critical and understanding the trend of that market is as important.

Bill Moist, MS, CPA is Founder and President of Professional Equities, Inc.  PEI is a commercial real estate firm currently focused on buying and building self-storage.  Bill has over 70 successful commerical real estate projects.  He is available to speak at civic and real estate clubs on self-storage investing.  One of the frequently requested topics is “8 Ways To Supercharge Your IRA or 401K.”

What to do nextClick here to Get 9 Little Known Secrets For Steady Real Estate Income  FREE