Monthly Archives: September 2016

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.”

 

RV Owners’ Storage Shortage Crisis

rv storage

The pressure is on owners  to find place to store recreational vehicles (RVs).  Very few American  neighborhoods will alow RVs to park near the owners’ home.

Over 2,000 RV owners have been notified by Flying Bull RV storage that they must vacate the property by January 31, 2017.  The rush to find available storage space in the Irvine is on.

The city, which owns the land, is ending a month-to-month lease with Flying Bull to make room for the completion of the Great Park, a large residential and commercial development, said city spokesman, Craig Reem.

The closure is expected to worsen the current shortage of RV storage in Orange County.

“This is going to be a crisis for RV owners,” said Ted Deits, owner of the Eucalyptus at Beaumont RV Storage Condominiums in neighboring Riverside County.

Deits said because of the severe shortage of RV storage space in the region, the closure of Flying Bull will likely trigger a spike in storage costs.

Finding space for the more than 2,000 RVs that are leaving Flying Bull is like trying to relocate a small city, Deits said. With land costs in Orange County rising, it’s unlikely that anyone will open new facilities to accommodate the evicted tenants. As suburban land is developed, fewer suitable locations for RV storage are available.

Our takeaway…There are two insights we can learn from this notice to vacate the RV storage:

  1. RV and boat storage may be a cash flow use of certain tracts of land, but our month-to-months allows us to trade the land if another use is a higher and more valuable
  2. RV and boat storage is in high demand in many parts of the country

Summary...In some parts of the U.S. demand high and the supply is short is for RV and boat storage.  A tremendous opportunity exists for us to create significant cash flow for this type of storage and possibly sell the land at a later date when the demand for a higher more valuable use exits.  This could be a the best of both worlds for storage owners and partners.

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

Announcing Better Marketing Tools That Makes Self-Storage Easy To Manage

Stress Free Zone

Introduction…Last week I was reviewing the possible purchase of a self-storage property just west of I-35 south of Dallas.  I was quickly able to see that the revenue reported was correct because the owner was using the number 1 marketing/management self-storage software tool. The rents were properly reported because it tied back to the occupancy report.

This means the rent collected was reflected as paid for each individual unit.  It made it very easy for the owner to verify that all the rents were properly deposited in the company bank account. The report showed how much was collected in check, credit card and cash.

This is a great example of what we can do today with the best marketing/management tools.  Here are a few of the benefits to owners or investors:

  • Internet Listing Services to connect with more potential renters
  • Call centers to answer prospects calls and make it easier to rent from you
  • Online rentals to make it easier for potential renters to rent and give you money
  • Online account management to make it easier for tenants to give you money
  • Online credit card, ACH, and Bank Draft processing to make it easier for tenants to give you money
  • Tenant Insurance to make it easier for tenants to insure their storage and give you more money
  • Revenue analytics to make it easy to manage and market the property increasing revenue to you

It seems to me that every business should make it as easy as possible for customers to give you money.  Oh yes, we do have the property office managed live for those who want to see and talk in person.

In conclusion…Relatively inexpensive marketing/management tools have now made self-storage ownership as close to passive income as available in real estate today.  Join me in this great venture to passive income.

Previously Unthinkable Is Now Fully Possible

Previously Unthinkagle Is Now Fully Possible

Negative interest rates are spreading like a virus.  Central banks in the Eurozone, Switzerland, Sweden, and Japan all have below-zero interest rates.  “NIRP,” as economists call a negative interest rate policy is a desperate move-but the only move those banks think they have available.

Negative interest rates are now fully possible in the United States.  But, first let’s discuss what NIRP means.

Negative interest rates are an attempt by the central banks to push commercial banks to lend more money to business and consumers rather than maintain large balances at the central bank that costs them interest.  Said differently, these banks must now pay the central bank to keep their surplus cash accounts.

This does not guarantee that the banks will lend more money freely.  If the underlying economy is not growing significantly, the banks are more likely to pass this cost onto its customers by charging them to “store” their money.

Bank depositors may decide to hoard their money instead of being charge to keep it at the bank.  Japan’s negative interest rates are driving up sales of safes.  So, it appears the hoarding has begun.

Negative interest rates have not appeared to stimulate economic growth in Europe.  In short, future downward interest rates by the European Central Bank will seriously impair European baking industry, increasing instability in European markets. Negative interest rate policy will most likely hurt European economic growth, not help it.

So why in the world would the Federal Reserve go down the same path as Europe?  Is it even possible? Many observers are saying yes it is possible and likely in the next U.S. recession.

The Fed’s Jackson Hole retreat explored such a possibility.  The lead presenter, Marvin Goodfriend of Carnegie Mellon University, is a strong proponent of NIPR.  His paper “makes the case for unencumbering interest rate policy so that negative interest rates can be made freely available and fully effective as a realistic policy in future crisis.”  In other words, Mr. Goodfriend thinks the banks should charge you to store your money.

The Fed Chair, Janet Yellen’s, own Jackson Hole speech had a footnote describing a monetary policy rule that would have sent rates down to negative 9% in late 2008.  Clearly, NIPR is on her mind.

In summary…Previously Unthinkable Is Now Fully Possible…The evidence appears the U.S. Federal Reserve will in fact consider using negative interest rates in the next recession.  However, that won’t help economic growth if there is no demand for additional borrowing.

This author suggests that negative oppressive regulatory policies and high taxes have a much greater impact on economic growth than negative interest rates ever will.  A few industries that are currently being gutted by U.S. regulatory practices include medical, pharmaceutical, real estate, manufacturing, insurance, and construction.  These industries have had major revenue declines and/or massive cost increases leading to significant layoffs of workers.

What to do to project yourself?…Consider higher interest alternatives to commercial banks which my start charging you to keep your money.  More on this in later additions of this newsletter.

References: John Mauldin, The Fed may be preparing for the unthinkable-negative interest rates in America, Yahoo! Finance, September 3, 2016; Charles Kane, Here’s Why Negative Interest Rates Are More Dangerous Than You Think, Fortune, March 14, 2016