In reply to MulletTruck:
Oh. I misunderstood you.
Doesn't matter. Not interested in conexes.
In reply to MulletTruck:
Oh. I misunderstood you.
Doesn't matter. Not interested in conexes.
A very successful businessman in my home town has gotten into self storage places. So I would say there is money in it. But, he is going to high cost areas where people are stacked in like sardines and need storage space. Also a lot of his places are multi-story (because high land cost)and climate controlled. I'm pretty sure he was involved with American Storage years ago and has come back into the business. This guy typically gets into things, builds it up, then sells it off. He has an uncanny knack for good timing.
This article May be a bit dated, but I think it has an interesting overview of what to look for before pulling the trigger so that you are more likely to be successful.
This article is written more from an investor's point of view than an owner's, but it does talk about the market for self storage in general
In reply to STM317:
Those are both excellent articles. Thank you!
I wish I had done this earlier in life. Buying in out here with land is 5-7 million for a smaller one. Most if not all storage sites are 4-5 stories tall and mainly are used to passively generate income until you can convert the land to something where you can cash out like apartments or condo's. Basically buy the land cheap, sit on it and pay your bills then pump and dump when the city infills around the land you own.
In reply to wearymicrobe:
A lot of surface parking lots in cities, where they charge for monthly parking, are basically doing the same.
Great if you own the land already and hope to sell someday.
Oh look! Canoe storage!!
benrodgers said:Check out the following point before opening self-storage business:-
- Protect Yourself from scammers
What an excellent idea, thank you!
LOL. Hats off guys, I love the New Spammer user title.
In reply to nderwater :
interesting, guess that updates if you edit a post after making a profile change
The 40 ft container I rent is $450 a month , the containers are spaced about 6 ft apart ,
the nice thing with this one is that they have a 3ft wide roll up door on the side wall in the rear ,
This way you can get to the stuff in the back , always the problem with storage containers ,
This place has about 100 containers , all painted the same color ,
So close to $500,000 a year.......
In reply to californiamilleghia :
Is the lot graded and paved? Gravel? Are the containers raised? I'm curious to estimate what their up-front expenses would be for this business model.
In reply to nderwater :
I rent 2 containers from a guy like that. But mine cost $90 per month.
So, there can be a great deal of variation.
My landlord's site is cleared, graded, and gravel. He pays about $3K per unit to buy, transport, set, and level.
HOWEVER, the city shut him down. He cleared about 2 acres, which put him in violation of EPA regulations regarding drainage and erosion control. He is now being required to install $60,000 worth of detention pond, and relocate the conexes to maintain setbacks for property edges. (No, they DO NOT care that the units are not "buildings". They are treating them exactly the same way as a permanent storage building).
There is no way he can pay for those improvements with the rent he is charging, and no way he will rent them if he increases the rent.
Proceed with caution.
In reply to nderwater :
it is paved , the containers just sit on the paved ground , but that leaves about 6-8 inch lip to keep the water out ,
Yes you need to make sure its graded correctly so water does not flow in with a heavy rain , we do not get that kind of rain very often , No idea how it works with snow.....
It also is next to some railroad tracks so I am sure it was cheap to buy.
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