Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Self Storage Business Opportunities
Old 09-10-2005, 11:00 AM   #1
Thinks s/he gets paid by the post
DFW_M5's Avatar
 
Join Date: Sep 2003
Posts: 4,982
Self Storage Business Opportunities

Just beginning to explore the self storage facility business (eg Shurgard) with a few other partners. Do any of you real estate magnates have any experience in this area, ROI/ income potential, and general guidance on start-up? We all have worked for large corporations in the past and do not have any experience in putting together a small business, but nevertheless the desire is there.

Thx,

Doug
__________________

__________________
Doing things today that others won't, to do things tomorrow that others can't. Of course I'm referring to workouts, not robbing banks.
DFW_M5 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: Self Storage Business Opportunities
Old 09-10-2005, 02:26 PM   #2
Full time employment: Posting here.
 
Join Date: Aug 2004
Posts: 909
Send a message via ICQ to Marshac Send a message via AIM to Marshac Send a message via Yahoo to Marshac
Re: Self Storage Business Opportunities

Quote:
Originally Posted by DFW_M5
ROI/ income potential


Cash Cow. That's what I have heard.
__________________

__________________
Marshac is offline   Reply With Quote
Re: Self Storage Business Opportunities
Old 09-11-2005, 06:18 AM   #3
Recycles dryer sheets
 
Join Date: Oct 2003
Posts: 175
Re: Self Storage Business Opportunities

I am a partner is several storage businesses. I don't actively participitate in anything although I did do a competitive market analysis for the area before and some legal work. Excellent ROI. I believe it is built at less than $25/sqft and sqft rent is close to residential rates. After the site is fully built out, it is sold after a few years for a fat gain, resulting in capital gains only. These are big sites with on-site managers who live there. The market is very saturated though so you must know where to build and get the land cheap. I see a lot of small operators opening up a couple of units with a phone number on it - that does not work.

Vicky
__________________
vic is offline   Reply With Quote
Re: Self Storage Business Opportunities
Old 09-11-2005, 07:45 AM   #4
Thinks s/he gets paid by the post
DFW_M5's Avatar
 
Join Date: Sep 2003
Posts: 4,982
Re: Self Storage Business Opportunities

Thanks for the info Vicky, and Marshac, I really like your cash cow. Seems that being first to market in this business is a must. Vicky do you have any suggestions/best practices in terms of doing market assessment (eg any demographic tools available to help, metrics for # units/city population, etc) or setting up a business like this from legal perspective? Also, wondering about financing this type of business; is it typically done in a highly leveraged manner or based on big cash infusion from partners?

Thx,

Doug
__________________
Doing things today that others won't, to do things tomorrow that others can't. Of course I'm referring to workouts, not robbing banks.
DFW_M5 is offline   Reply With Quote
Re: Self Storage Business Opportunities
Old 09-11-2005, 07:58 AM   #5
Moderator Emeritus
Martha's Avatar
 
Join Date: Feb 2004
Location: minnesota
Posts: 13,212
Re: Self Storage Business Opportunities

I would look at using an LCC or an S corporation to own the entity.

I know someone who has built two of these kinds of units in a fairly rural area to get the cabin crowd. He had so many inquiries about storing boats and cars that the second unit is one huge open building to store cars, rvs and boats in the winter. He already owned the land so he didn't have to finance anything except the construction cost of the buildings. That cost was pretty low.

I find the whole ministorage thing interesting. People have so much stuff that they have to rent a place to put more stuff.
__________________
.


No more lawyer stuff, no more political stuff, so no more CYA

Martha is offline   Reply With Quote
Re: Self Storage Business Opportunities
Old 09-11-2005, 09:13 AM   #6
 
Posts: n/a
Re: Self Storage Business Opportunities

Quote:
Originally Posted by vic
I am a partner is several storage businesses. I don't actively participitate in anything although I did do a competitive market analysis for the area before and some legal work. Excellent ROI. I believe it is built at less than $25/sqft and sqft rent is close to residential rates. After the site is fully built out, it is sold after a few years for a fat gain, resulting in capital gains only. These are big sites with on-site managers who live there. The market is very saturated though so you must know where to build and get the land cheap. I see a lot of small operators opening up a couple of units with a phone number on it - that does not work.

Vicky
vic, sounds like u got good experience with this business. would u know how about to go find lead or partnership or shares... that i can tried to venture in. thanks for the info

ericmd
compaccess1@yahoo.com
__________________
  Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
prediction of 2/27/07 newyorklady FIRE and Money 21 03-04-2007 01:45 PM
Selling a business at retirement Empty Pockets FIRE and Money 5 01-07-2007 11:57 AM
Buying a business Cool Dood FIRE and Money 5 09-29-2006 07:50 AM
Ten stupidest mistakes made by the newly self employed cute fuzzy bunny FIRE and Money 6 04-14-2006 10:06 PM
Sell the business or semi-RE? bijoux FIRE and Money 16 09-03-2004 05:36 AM

 

 
All times are GMT -6. The time now is 09:56 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.