Monthly Archives: January 2018

Desire Investment Alternative…Consider Self-Storage

 Issue 94 – Investment Alternative

Introduction…”The bottom line is that if we go into a bad housing market, people have to put their stuff somewhere,” says Mednick, who is also president of the Orange County Real Estate Forum investors club. “When the economy is good and people buy too much stuff they have to put it in storage. You’re winning as the market goes down, and winning as the market goes up.”

A “safe” investment… For those investors looking for an alternative to being a landlord, self-storage is considered a relatively safe real estate alternative.

Self-storage is monthly rentals of interior spaces made up of concrete floors with steel or concrete walls.  That’s it.  Once a renter moves out, the manager can just blow out space and rent again.  Our make ready is a leaf blower.

If the renter fails to pay rent, then the property can be sold at auction to recoup all or part of the lost rental income including late fees.  In fact, this last Texas legislative session codified online auction as an allowable sale method.

The secret…It is a contrarian approach to the commercial real estate, but generally, our leases are month to month.   If we had a term lease, like most commercial real estate, then at the end of the term renters would be planning to move out.  With the month to month leases, there is no rush to move out.  They can always move out next.  And maybe five or ten years later, they will still be moving out next month.

In summary…Self-storage is a simple, but elegant alternative to other more complicated residential or commercial real estate.  To learn more and “Get 9 Little Know Secrets For Steady Real Estate income FREE” subscribe above right.

Source:  Joel Cone, “Self-Storage Is An Investment Alternative,” U.S. News Money, 11 Jan 2018

New Concept: Self-Storage Mobility Center

 Issue 93 – Future of Mobility?

Introduction…U-Haul International is building in Tallahassee, FL its first “mobility center.”  This will be a U-Haul facility that is unprecedented. Unlike anything, it has ever developed.

So, what is it?  The mobility center will include:

  • Self-storage space
  • Truck-sharing and rental services
  • Car-sharing and rental services
  • Charging stations for electric vehicles
  • A research and innovation incubator
  • Bicycle sales and repair services
  • Stations for alternative fuels
  • A “smart mobility center”
  •  It will be an “innovative mix of transportation and business services

Where’s the profit?  Looks like to this author that the services that will be profitable are the same services U-Haul provides now.  Self-storage and truck rentals.

In summary…The self-storage industry is growing in two opposite directions.  First, this amalgamation of services as U-Hual is developing.  The second is a total unmanned kiosk run storage facility discussed in a previous issue here.   Which will be successful will depend largely on the market location.

After an extensive commercial real estate career, I settled on self-storage investing for two reasons. It’s the best passive – residual income in the market today.

Where Can You Store Your Boat & RV?

Issue 92 – 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… We have purchased a 64,000 square foot boat storage facility.  You can find it at www.wylieboatrvstorage.com.  We will have three units available at the end of January after we auction the abandoned property in those units.  Other than that, we are 100% leased,  This experience has been better than expected, so we are looking for another similar facility.

Drop me a note if you want to get on our potential future owner’s list.  bill@billmoist.net