Tag Archives: #CareFreeInvestors

Closely-Guarded Secrets To Becoming Carefree Investor

Issue 89 – Why Those Who Discovered The Secret Are So Happy

Introduction...The meeting was held at ElFenix in Dallas, Texas on March 15, 2016. This was spring break week and attendance was unusually low.  However, the meeting was quite lively and those in attendance were very engaged and excited to be there.  The meeting had a warmth and supportive atmosphere not common to many business luncheons.  Many of those in attendance were owners & investors of this asset class.

I have never been around a group of owners & investors who were so:

  1. Carefree
  2. Stress free
  3. Disconnected from current market conditions concerns
  4. Happy
  5. Joyful
  6. Supportive of one another

Why have you not heard of this before?  Several reasons:

  • Generally, this is not an asset class promoted by Wall Street
  • Insurance salesman do not sell this product
  • This is not a product promoted by most brokers – in fact, very few understand this class
  • Few people even notice this product type when they drive by it or ask if they should have this their portfolio

Here is a true story.  I contacted a broker with a major brokerage firm that I’ve done business with previously.  He said, “Bill, we just don’t sell that product here.”  Later, I discovered that his company had a national group active in this area and one of the top Texas brokers was in his office right under his nose.

So, it is apparent that this is a closely-guarded secret.  In fact, in the state of Texas, there are only a handful of brokers who sell it.

One of these brokers told me, “Bill, I discovered this asset class 17 years ago.  Once I understood it, this is all I wanted to sell.”  I heard those words by several people, “once I discovered this asset class this is all I want to invest in or purchase.”

There are many reasons these owners & investors mentioned above are so carefree.  One reason is that it does well in both good times and bad economic times.  Also, the loan default rate is low single digits.

Click Here to watch the above video The Closely-Guarded Secret To Becoming A Care Free Investor.

Conclusion…You owe to yourself to find out what these happy, carefree owners & investors have discovered.  To discover what they know and “Get Little Known Secrets For Steady Income” FREE go to billmoist.com

How Big Can Self-Storage Get?

 Issue 88 – Largest Public Storage Debut

Introduction...The largest Public Storage property makes its debut in Jersey City, N.J.  The facility is located in the Powerhouse Arts District’s renovated 100-year old, block-long building.

The debut... Public Storage hosted its grand opening this last spring and now offers a total of 3,978 units.

Conclusion….With enough population density, there doesn’t seem to be a limit on how big storage properties can get.

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.

Why Self-Storage Investors Are The Happiest

 Highlights From Annual TSSA Conference

Introduction…The 2017 Annual Texas Self-Storage Conference was an amazing event.  The content shared was first class and meeting the participants was a real joy.

Click here to watch the rest of the story.

 

Why We Love Self-Storage More Then McDonald’s

 Issue 79 – Storage is better than Big-Macs

Introduction…Turns out the only thing Americans may love more than Big Macs is hoarding.

There are more self-storage facilities in America than there are McDonald’s restaurants, according to a recent report from the commercial real estate publication REJournals. The U.S. has more than 4 times the number of self-storage facilities than McDonald’s. There are 58,000 self-storage facilities in America compared to only 14,146 McDonald’s restaurants at the end of 2016.

Finding a place for extra scrapbooks, holiday decorations, office records, boats and RVs isn’t exactly cheap either. The average American household is using about 18 square feet of storage at an average rental rate of $1.42 per square foot per month.

The industry makes more than $24 billion in revenue annually. Plus, state and property taxes get to scoop up about $3.25 billion.

Here are 4 reasons Why We Love Self-Storage More Than McDonald’s:

  1. We are a hyper-consumer nation consuming more than $14 billion in goods and services, much of which ends up in storage

  2. The psychology of self-storage is we have month to month leases with no end date so the renter thinks he will move out next month that never comes

  3. We are a nation on the move with 12% of the population moving each year

  4. When the economy is improving, we buy more stuff – when the economy is downsizing we store more stuff

Conclusion: So why are we building more storage facilities?  The population and the economy are growing.  But, more importantly, the trade area for storage is only 3-mile circle.  Take 18 square foot per household in an area and you can see the demand is great and growing.  And we have more room to grow as only 10% of the American households have discovered the joy of self-storage.

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How To Make Money Off Our Junk

 Issue 74 – Safestore UK

Introduction…Investors in London’s premium real estate know their tenants are among the world’s wealthiest and most stable.  Schroder Plc has $3 billion worth of property with these most stable tenants.

But, in the era of Brexit, the market can change.  That’s one reason Schroder is the largest self-storage company in UK with 109 stores in 45 cities.

Demographic logic…What storage lacks in cachet, it makes up in demographic logic. Downsizing retirees and growing ranks of home renters in London are creating what Schroders and other real estate investors see as a Brexit-proof and recession-proof opportunity.

In the U.S., growth has been pretty amazing.  Today there are 54,000 self-storage facilities in the United States, which is 90% of the global storage industry.  Those sites hold 2.63 billion square feet.

Storage beats Hollywood…All that space is sold in small increments generating $32.7 billion in revenues.  Last year that was three times Hollywood’s box office gross.  In most cases, self-storage is far more profitable than other conventional real estate. As an example, in 2016 self-storage rented for 97 cents per square foot in Phoenix which was similar to the average one-bedroom apartment.  In larger cities, storage can rent for two to three times higher rates.

Growth factors…Americans are relentlesss at accumulating consumer goods.  From 1967 to 2017, expenditures for durable goods – like furniture, bikes, electronics, clothes, books – increased almost 20 times.  As a result, Americans have run out of room for their stuff.

The industry also thrives on disruption to our lives.  It serves as a temporary resting place for stuff of the dead, divorced, downsizes, and dislocated.

In conclusion..These trends are driving investments in a sector that most real-estate investors barely notice.  And in uncertain times, self-storage looks like a place to stash money.

The near term opportunities in self-storage are exciting.  Be sure to stay tuned.  If you are not a subscriber to this newsletter, do so in the upper right of this page or go to self-storageinsider.com for your FREE subscription.

How To Use Target Marketing

 Issue 72 – Let’s Find Our Target Market

Introduction…I’ve heard business owners say, “everyone will want my new product or service.”  Everyone is not a target market.  Everyone is like carpet bombing.  If you have the budget of Coca Cola, it might work. Otherwise we can be much more effective with a target.

Who is your target market?  Here are several questions to ask yourself:

  • Who is financially able to purchase my product or service
  • Who has a burning desire to purchase my product or service
  • Who can I attract affordably
  • Who do I want to do business with (not all customers are good fits)
  • What are the other interests of my target
  • Where can I find my target
  • How can I find my target within my budget
  • When is the best time to reach my target

What’s your target market area?

  1. Local
  2. Regional
  3. Statewide
  4. Nation
  5. International

We all have a tendency to want to cover a larger area, thinking that we now have more prospects.  Maybe.  But, if we can’t reach them it’s not very useful.  One company I worked with got stars in their eyes and went international way before they coud support it.  That decision hurt the company.

One of the most successful roofing companies in the Dallas area focuses on just two cities.  There are 34 cities in the DFW area.  But in the first 7 months of 2017, this roofing company did over 650 roofs by targeting  two cities.  They earned an estimated $5 million gross profit.  But, they dominated those cities and were everywhere.  This company became the company to call.

Next week…We will discuss this topic “How To Use Targeting Marketing” in our next newsletter.  We will discuss two examples of finding our target market and what comes next.

In Conclusion...Target marketing is much more effective and affordable than carpet bombing marketing.  Unless you have the budge of Coca Cola, we do much better knowing who are target is and how to attract them to business.

Announcing Increased Cash Flow For Storage Investors

 Issue 67 – Increased Storage Cash Flow

Introduction…This is an exciting time to be a self-storage owner or investor.  We have multiple ways to decreasing operating costs and increasing positive user experience.

Here are current items that improve cash flow for owners or investors:

  • Online payment processing
  • Online unit availability and lease execution
  • Smartphone online leasing
  • Gate access with smartphone
  • Unmanned properties with Advanced Kiosk
  • Enhanced data track-ability and analytics
  • Paperless operations reduce management expenses and provide improved search ability
  • Improved customer experience by providing information access as they want it with websites, software, gate access, payment processing, and facility marketing.

In summary…Much of the above technology improvements to customer experience are so affordable.  The labor saving and speed to lease or collect payments greatly exceeds its cost.  This is an exciting time to be owners and investors in self storage properties.  To request more information, email bill@billmoist.net

What you didn’t know about the 4th of July

Issue 66th- Special July 4th Addition
Delivery day changed to Monday for the 4th
THE BIRTH OF AMERICAN INDEPENDENCE
When the initial battles in the Revolutionary War broke out in April 1775, few colonists desired complete independence from Great Britain, and those who did were considered radical. By the middle of the following year, however, many more colonists had come to favor independence, thanks to growing hostility against Britain and the spread of revolutionary sentiments such as those expressed in Thomas Paine’s bestselling pamphlet “Common Sense,” published in early 1776.

On June 7, when the Continental Congress met at the Pennsylvania State House (later Independence Hall) in Philadelphia, the Virginia delegate Richard Henry Lee introduced a motion calling for the colonies’ independence. Amid heated debate, Congress postponed the vote on Lee’s resolution, but appointed a five-man committee–including Thomas Jefferson of Virginia, John Adams of Massachusetts, Roger Sherman of Connecticut, Benjamin Franklin of Pennsylvania and Robert R. Livingston of New York–to draft a formal statement justifying the break with Great Britain.

Did You Know?
John Adams believed that July 2nd was the correct date on which to celebrate the birth of American independence, and would reportedly turn down invitations to appear at July 4th events in protest. Adams and Thomas Jefferson both died on July 4, 1826–the 50th anniversary of the adoption of the Declaration of Independence.

On July 2nd, the Continental Congress voted in favor of Lee’s resolution for independence in a near-unanimous vote (the New York delegation abstained, but later voted affirmatively). On that day, John Adams wrote to his wife Abigail that July 2 “will be celebrated, by succeeding Generations, as the great anniversary Festival” and that the celebration should include “Pomp and Parade…Games, Sports, Guns, Bells, Bonfires and Illuminations from one End of this Continent to the other.”

Conclusion…On July 4th, the Congress formally adopted the Declaration of Independence, which had been written largely by Jefferson. Though the vote for actual independence took place on July 2nd, from then on the 4th became the day that was celebrated as the birth of American independence.

Happy 4th of July!  Enjoy this time with your family.

Bill Moist
Source:  History Channel

7 Top Benefits Of Storage Property Investing

Storage Investing Issue No. 61

Introduction…  Let’s first look at the benefits for customers using our storage properties before we discuss the benefits of investing.  Without a strong and growing customer base, it would not make sense to get involved as investors.

7 Customer Benefits of Using Storage Units

  1. Self-storage units are safe as well as a cost-effective solution to having extra stuff
  2. Self-storage units are a cheaper solution than building onto the garage
  3. Self-storage units are great for those who don’t have a permanent address like full-time RVers or full-time cruise ship travelers
  4. Self-storage units are a great place to store items that the kids at college no longer need, but might later when they start a household
  5. Self-storage units are beneficial to those who started working from home and need extra space
  6. Self-storage units are used by those who have inherited personal property and need time and a place to sort through the items
  7. Self-storage units provide a place for small businesses to store extra inventory, equipment, or files

The last item I know from personal experience.  When I first started working for a downtown Fort Worth Certified Public Accounting firm, somehow I got the job of periodically going the the storage unit to purge old files.  So, storing old but not yet past the statute of limitations are prime candidates for self-storage.

Conclusion… We will discuss “7 Top Benefits of Storage Property Investing” next issue now that we have detailed the customers 7 Top Benefits of Using Storage Units