Monthly Archives: January 2017

Gates & Buffet Have Hope For Trump’s America

Introduction…We’ve been hearing the media and some Democrats tell us why we should oppose President Donald J. Trump after his election. We hear news of protest (civil unrest) as if they are the majority.  In contrast, we saw the middle class non-college graduate come out to support Trump in mass.  They know when the balance their budgets each month that their income is declining.  Nationwide, the median income of U.S. households in 2014 stood at 8% less than 1999.

And on the top end of wealth scale, the world’s two richest people Bill Gates and Warren Buffet,t stated their opinions on this the future of America.  On Friday they expressed optimism that the United States will move ahead as a nation, even as it works through political differences and gets used to the new Trump administration.

Gates and Buffet were speaking to students at Columbia University after  President Donald J. Trump started to unwind the work of his predecessor Barack Obama in a series of executive orders, prompting concern from critics over what the actions mean for Americans and their place in the world.

“I am confident that America will move ahead,” Buffett said.

Gates, meanwhile, said the desire for innovation and support for research are “strong” and “largely bipartisan,” despite differences on how to accomplish and fund both.

“This administration is new enough; we don’t know how its budget priorities are going to come out,” but there is much intensity to ensure that the executive branch and Congress encourage “amazing things,” Gates said.

In conclusion…I see lots of optimism concerning America’s future from entrepreneurs who have money to invest in their own companies and real estate.  I have more money interested in our self-storage projects in the last two weeks, than I’ve seen for the last two years.

Sources: Jonathan Stempet, “Buffett, Gates have hope for America after Trump ascension,” Reuters, 27 Jan 2017; “America’s Shrinking Middle Class,” PewResearchCenter, 11May 2106

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.

Did Art Linkletter, The Radio and TV Host for 45 Years, Build The First Self-Storage Property?

Introduction…Rumor has it that the first U.S. self-storage property was built by Art Linkletter, the author, radio and TV personality of the 1930s to the 1960s.  What we do know for sure is that the second career for Linkletter, who lived until he was 92, was that of a successful builder.
One of his first properties looked liked 100 attached garages which he called self-storage.  In addition he built houses  and office/retail in the Santa Monica, California area.  The above Youtube video features Linkletter Self-Storage in Long Beach, California.
“We (Art Linkletter Enterprise) had a mobile storage company with 750 steel containers stacked five high that we would put on people’s properties for temporary storage,” the elder Linkletter said, “but we sold that company in December.” It was formed in 1985.
In his 50’s, Linkletter traveled 250,000 miles a year, making appearances at ground breakings and openings for clients and speaking  often as part of his crusade against drug abuse, which began in 1969 following his daughter Diane’s drug-related death.
In conclusion… Evidence that Art Linkletter was the first builder of self-storage properties in the U.S.could not be found, but it can be argued that he was one of the pioneers in the industry.

What Baby Boomers Retiring In Droves Means For Investors

Introduction…More and more baby boomers begin the new year with nothing on their schedule but plans to golf, travel, and spend more time with the grandkids.

The number of Americans aged 65 or older without a disability that aren’t in the labor force rose by 800,000 in the fourth quarter of 2016, marking the resumption of a long-standing trend: the exodus of their generation from the work force and into retirement.

Whether a larger share of senior citizens had previously been incented to remain in their jobs by higher wages or by a need to keep working in order to rebuild their nest eggs after the financial crisis is still an open question. But the recent non-farm payroll reports affirm that the secular trend of rising retirements can only be delayed for so long.

“The RV (recreational vehicle) has replaced the rocking chair, and the whole notion of retirement has changed in the last 10 years,” says Ken Budd, executive editor of AARP magazine .

There are two drivers, according to journalist Samantha Dunn, who’s written about RV retirees for the website Next Avenue. First, wireless technology means you can easily stay in touch with friends and family even while living on the road.

Then there’s the financial angle. Today’s retirees have long life expectancies. Living on the road for a year or five can be a way to spend less than hanging on to the big house or moving into a service-heavy retirement community.

“Even if you buy the $100,000 RV rig, it’s cheaper than dealing with an oversized house and taxes and all the things home ownership entails,” Dunn says.

Maybe the rising number of Americans retiring and the increased in RVs and boats has contributed to our newest property acquisition being 95% leased for the last 3 years and the closest competitor to be 100% leased.

We love RV and boat storage for several great reasons:

  1. These renters tend to be long term renters, at least until the sell their RB or boat
  2. These renters pay their rent on time as no one would let a RV or boat be auctioned off to pay a few months storage rental
  3. These renters are easy to manage as they appreciate a secure storage for their prized RV or boat
  4. These affluent renters rarely visit their storage units

Click here to watch the video What Baby Boomers Retiring In Droves Means To Investors.

Conclusion…Providing needed services and products to the Baby Boomers as they age, has always been very profitable for the providers.  We see the next wave in providing storage for their new RVs and boats acquired as they retire.

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.