Monthly Archives: October 2016

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

 

The 6 Secrets To Getting People To Say Yes

the-secrets-to-getting-people-to-say-yes “Influence” by Robert Cialdini, A Short Review Bill Moist, MS, CPA

  1. Reciprocity Give them something first, i.e. giving a free taste of candy when going into a candy store and customers were 42% more likely to buy because they felt obligated to give back to someone who had given to them.
  2. Liking Find a commonalty with those we are negotiating with. We get a better deal and more grace here.   We do more business with people we like.
  3. Authority  We say yes to people who have more authority who can give us evidence that they are competent, credential, and experience in a particular area.
  4. Social Proof If we find a lot of our peers are doing something or this is the largest selling item we are more likely to buy. A restaurant owner can increase the likelihood of buying a certain item by adding – this is one of our most popular items.  It increases sales by 13 to 20%.  Why not say most popular options.
  5. Scarcity We want items that are more rare. Grocery store can increase sales by saying “only x number of items available per family.”
  6. Commitment and consistency. We want to be consistent with what we already said or have done publicly. Ask people to take a small step in our direction.  Then they are more likely to follow through.  In health care no shows are a big problem.  Instead of giving patient a card with date and time, give them a blank card and have them write it in.  No shows drop 18% because they’ve made an active public commitment to that time and date.

It has been a pleasure to share The 6 Secrets To Getting People To Say Yes.  A link to this book, Influence,  is provided later.  This is Bill Moist, MS, CPA

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?