Monthly Archives: November 2017

Creating Community And Connections With Self-Storage

 Issue 87 – Creating Community

Introduction...Self-storage facility may not be the first place you would expect to create community and connections, but great managers and owners are doing just that.

Community created...I visited one facility that was for sale west of Fort Worth.  It was an older property in need of some repair.  And yet the owner created community and connections which resulted in higher occupancy and rental rates than the Class A property a few hundred yards away.

Many self-storage facilities in hurricane-ravaged areas are extending help to their community.  Expect to hear stories of help and goodwill during the lengthy clean-up and rebuilding process.

Creating community and connections...Here is the short list of ways we can create community and connections with our self-storage staff and managers:

  1. Support and raise funds for local charities
  2. Creating connections with local business partners, chambers of commerce, and service organizations through volunteering
  3. Creating connections through marketing relevant and engaging communications
  4. Creating connections through social media inviting local content
  5. Practicing the Golden Rule as Rotary so eloquently reminds business leaders each week

Conclusion...Any business can be used for good or evil purposes.  It’s up to owners and managers to set the best direction that impacts the local community in the most positive direction.  Yes, even self-storage facilities are “Creating Community And Connections.”

Creating Wealth Through Self-Storage

Issue 86 – Why Use Self-Storage To Create Wealth

Introduction...The self-storage industry has experienced amazing growth.  Currently, 1 in 11 families, up from 1 of 8 families in 1990, use self-storage.  That means the number of families using self-storage has increased by 2,200,000 in a ten-year time frame.

Current owners…Property owners with just one property make up 63% of the total. These mom an pop’s normally rarely if ever raise rents and rarely make capital improvements that would allow further rent increases. This gives subsequent professional owners room for significant value add…or total revenue increase.

Owners with 10 or more facilities make up only 12% of the market. The rest, 25%, own 2 to 9 facilities.

The real estate investment trusts normally do not buy properties that are less than 50,000 square feet.  If we can add some additional space to get the mom and pop’s over 50,000 square feet, we may be able to sell to the REITs who generally buy at the lowest cap rates (highest purchase price.)

Who are the customers?…Generally, 80% of our customers are residential an 20% are commercial.  As a rule, 75% of our renters are within 3 miles radius of the property and another 15% drive from 3 to 5 miles to the property.

Conclusion…Self-storage is a growth industry.  Not only are the number of U.S. households increasing, but the percentage of households using storage is increasing.  And for the local buyers, like us, there is significant opportunity to raise rental income when we purchase properties owned by mom and pop’s

Source:  Review of Creating Wealth Through Self-Storage by Mark Helm.

Investors…Consider The Uncomplicated Self-Storage

 Issue 85 – Uncomplicated Self-Storage

Introduction...The uncomplicated world of self-storage recently became the most desirable way to invest in commercial real estate.

Two examples...

  1. One Fort Worth owner had is property 95% leased when a buyer came along and asked if he’d sell.  The owner estimated his property value to be $4,000,000.  When the offer arrived at $5,500,000 the owner said, “SOLD!”
  2. Another owner had accumulated 20 smaller properties in Texas and New Mexico. He was very happy with the management and the cash flow.  Until a California investor wanted to jump into the market and offered $25,000,000.  Again, this owner “SOLD!”

Why so much interest in self-storage…In the past apartments were considered the most desired way to invest in real estate.  However, there are many good reasons to branch out.

Self-storage has proven to be recession proof.  During boom times we buy more stuff to store.  During contraction when we are downsizing, we tend to store our extra stuff rather than sell it.

In a recent issue of the Self-Storage Insider, we reported…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.

In conclusion…Do you have self-storage in your portfolio?  If not, let us give you more insider information by contacting us at bill@billmoist.net.

How To Communicate More Convincingly – Part 2

Issue 84 – We Talk About Ourselves 60% Of The Time

Introduction…This is Part 2 of the discussion “How To Communicate More Convincingly.”  We start where we last ended.

Communicate...Here are items 6 to 10 that will drastically improve our communications.

6.  Don’t equate our experience with others.  This does not build empathy and takes away their need to be heard.  We don’t know how they feel.  We all react differently to life’s challenges.  it’s more effective to listen and ask questions.

7.   Don’t repeat ourselves.  This is something I do to fill in blank space in the conversation. On average, we talk about ourselves 60% of the time.  (Source unknown)  That doesn’t leave us much time to communicate convincingly.

8.  Stay out of the weeds with too many details.  And avoid industry jargon.  Many may think they know what the jargon means,  but few listeners do.

9.  Listen.  Humans are not good listeners by nature.  How hard is it to get your children to listen?  We speak at 150 words per minute.  But, we think at 450 words per minute.  Listening takes practice.

10.  Be brief.  “A good conversation is like a miniskirt: short enough to retain interest, but long enough to cover the subject.”

Watch the video NOW here.

In conclusion…The secret to communicating more convincingly starts with asking questions and listening to others.  None of the above items comes naturally, but they are worth mastering.  Work on one item at a time until you are ready to proceed to the next.

Source: Celeste Headlee Media

How To Communicate More Convincingly – Part 1

Issue 83 – We Talk About Ourselves 60% Of The Time

When we talk, we are only repeating what we know.  But, if we listen, we may learn something.  Dali Lama

Introduction...On average, we talk about ourselves 60% of the time.  (Source unknown)  That doesn’t leave us much time to communicate convincingly.

Communicate…Here are five items that will drastically improve our communications.

  1. Don’t multitask.  Even if we are on a phone call, the listener can detect our distraction.  Our brains can focus only on one item at a time.  Trying to focus on two items, means we do two things poorly.
  2. Don’t pontificate.  Pontification sets us up as the preacher, talking down to others  Most people don’t want an education in a simple conversation.
  3. Ask open-ended questions.  The classic questions we can ask are;

Who?

What?

Where?

How?

Ask a question the other person or persons know a lot about.  What about your kids or grandkids do you love the most?  What attracted you to your line of work?

4.  Go with the flow of the conversation.  Join in where there is an opening.

5.  If you don’t know, say you will find the answer for them.  Everyone can smell and dislikes a poser.

In conclusion…Just employing one or two of these ideas, will help you communicate convincingly.

Source: Celeste Headlee Media

Click here to watch How To Communicate More Convincingly – Part 1