Self Storage Income

Today we’re giving a complete financial walkthrough of our newest self storage investment. From purchase price to rental income, return numbers, and how we’re funding it, this is a complete breakdown of a facility that could very well be bringing in $1,000,000/year in the near future. This was not only a deal but a steal, and proves that there are profitable facilities in the market just waiting to be bought up.   But this storage investment is a little special. We’re not just acquiring a facility, upgrading it, and waiting for the rents to roll in. We’re expanding on this self storage investment, adding over 200 units to an already profitable investment. The best part? We’re planning to massively increase not only the cash flow, but the tax benefits by doing so, allowing us to cash-out a substantial tax-free sum in the next few years.   This facility is in what we call a “Goldilocks Zone.” There are hundreds of markets around the country that are stuck in these sweet spots that YOU can be buying in right now. Want to see how we conservatively underwrite self storage deals so they’re primed to overperform? We’re sharing all the numbers (and our methods) in this episode!   What you’ll learn in today’s show:   Our plan to increase this facility’s revenue by hundreds of thousands The “Goldilocks” markets that every self storage investor should be looking into How we underwrite and analyze self storage investments (conservatively) The massive tax incentive for investors to build new units and expand their properties  The solid returns we’ll make WITHOUT factoring in market appreciation Register for the Self Storage Income Live Event: https://www.selfstorageincome.com/live-event Get our FREE self storage starter pack to learn how to analyze, underwrite, and operate your next storage investment: https://www.selfstorageincome.com/youtube Self Storage Demand 101: Know WHAT to Buy (Full Guide): https://youtu.be/5GYZbRXkODk?si=ihzn_Qnn26r_C4yj 🌳 Work with someone experienced in self storage loans at Live Oak Bank! https://www.liveoakbank.com/business-loans/self-storage/ 📖 Get AJ's book that teaches you everything he knows about self-storage https://a.co/d/aRSKcSq 📉 Take advantage of today’s market conditions and invest with us: https://cedar.cc/invest 

Self storage demand—quite frankly, the most important factor when buying a self storage facility. Get it wrong, and you could lose tens or even hundreds of thousands when you sell. Get it right, and you’ve got cash flow, huge value-add potential, and the formula for a winning facility. This is the make-or-break of self storage, and even the newest investors can get rich with strong enough demand, while experienced investors can go broke getting it wrong.   So, you’re about to buy your first or next self storage facility—how do you measure demand before you buy? How do you tell what nearby facilities are charging and how full they are, and whether they’re even your competition? Today, we’re giving you a complete guide to self storage demand.   We’ll teach you how to measure your local demand and even predict future demand so you don’t buy in a declining market. Plus, who is the “ideal customer” for your storage facility? Other units in the area may not serve them, allowing you to fill a gap in the market. This is crucial for self storage investing, and we’ve already made the mistakes, so you don’t have to.    What you’ll learn in today’s show:   How to estimate current demand (and future demand) in your self storage market Why occupancy doesn’t matter and how you can still get high revenue with vacancy  Why square footage per capita measurements are often wrong (and can throw you off track) The customers who need self storage the most and don’t have enough space Pinpointing your “ideal customer” so you can target them better than your competitors  Buying in a declining or small market? Get this right before you buy  — Check out this previous episode: SSI 259. Turning Apartment Storage Lockers into Full-Blown “Micro” Storage Facilities https://www.selfstorageincome.com/podcasts/self-storage-income-2/episodes/2148839451  Get my FREE self storage starter pack to learn how to analyze, underwrite, and operate your next storage investment: https://www.selfstorageincome.com/start-podcast  Work with someone experienced in self storage loans at Live Oak Bank! https://www.liveoakbank.com/business-loans/self-storage/  Take advantage of today’s market conditions and invest with us: https://cedar.cc/invest  Sign Up for My Newsletter Here: https://ajosborne.com/newsletter    

Investing in small self storage facilities is how almost everyone gets started. It’s where we began investing and probably where you did (or will), too. But sometimes small is a little too small. With too few doors, your expenses can quickly outweigh your revenue. Too big and you need to hire a manager. What’s the “sweet spot” in square footage that makes a great beginner self storage investment that’s easy to automate? We’re sharing it today.   Did you know that, even after investing hundreds of millions in self-storage, we still buy small facilities? It’s true. But, because we own so many, we know the pitfalls of running one, and how to automate it so you can work less—without hiring a full-time manager. How much do these facilities usually cost? What’s their profit and expense ratios? And what tech do we use to let customers rent without a single interaction from us?   If you’re about to buy, or currently own, a small self storage facility, this is your guide to running it right. Plus, if you’re a new investor, we have some cash flow tips that could save you when onboarding a new facility and all those expenses hit you at once—while you’re also chasing down rent payments. This could save your sanity next time you buy a small facility!   What you’ll learn in today’s show: The square footage “sweet spot” that is big enough to profit but small enough to automate  Why you should always (ALWAYS) look into a line of credit before closing on a facility  The different types of hidden costs you’ll incur once you buy a self storage facility  How small is too small (it’s NOT worth the investment) The actual expense ratio of a small self storage facility (it’s not what you think)     Get my FREE self storage starter pack to learn how to analyze, underwrite, and operate your next storage investment: https://www.selfstorageincome.com/start-podcast  🌳 Work with someone experienced in self storage loans at Live Oak Bank! https://www.liveoakbank.com/business-loans/self-storage/  🎙️ Do you have a great story to share on the SSI or AJ Osborne podcasts? You can now apply here! https://form.asana.com/?k=TGU88eU0bFTFW1iHcckuTA&d=1203571084143207 📉 Take advantage of today’s market conditions and invest with us: https://cedar.cc/invest   

The self storage industry is changing once again. A new cycle has already emerged, and we’re back to a familiar era of lower occupancy—but with it come better deals to be found. The market is drastically different from when we first started in the 2000s. Still, whether you’re a brand-new self storage investor or a massive private equity firm, the fundamentals remain the same.  AJ and Conner are walking through the evolution of our self storage business. From a couple of partners and a few small facilities to hundreds of employees and huge self storage projects. We scaled from nothing to over $300M in self storage, but the processes we used can be applied and repeated even by the smallest operator!  We’ll reveal the business “ecosystem” that makes up our self storage holdings, how self storage is changing, what’s coming down the pipeline, and answer YOUR questions on the show with topics like how to lease-up fast, uncover competitor occupancy rates, and get financing. For more on finding, buying, and running storage facilities, check out AJ’s new book Growing Wealth in Self-Storage 2.0.  What you’ll learn in today’s show: The new stage of the self storage cycle we’re entering Buying opportunities as many ill-prepared self storage investors leave the market  The “ecosystem” of a successful self storage business (what we’re doing) How to raise occupancy at your self storage facility, even if it’s brand new Why we always “secret shop” at other self storage facilities before we build/buy  🌳 Work with someone experienced in self storage loans at Live Oak Bank! https://www.liveoakbank.com/business-loans/self-storage/  🎙️ Do you have a great story to share on the SSI or AJ Osborne podcasts? You can now apply here! https://form.asana.com/?k=TGU88eU0bFTFW1iHcckuTA&d=1203571084143207 📉 Take advantage of today’s market conditions and invest with us: https://cedar.cc/invest   

What goes into a self storage development deal? You’re about to find out! Today, we’re breaking down the first self storage facility we ever built—everything from the property’s financials and the construction timeline to how we ultimately turned a $4.3-million project into a $13-million self storage business that generates over $350,000 in annual cash flow!   In this episode, AJ and George will show you how to take an initial concept and turn it into a fully stabilized self storage facility, step by step. The truth is that many developers approach self storage from the wrong angle, so we’ll show you what to focus on before getting started—like narrowing down your target customer and building with them in mind to the dangers of cutting corners on quality and focusing more on upfront costs than revenue potential.   But that’s not all. We’ll also share some of the things we wish we knew before building our first facility and the biggest lessons learned that saved us thousands on future projects. Whether you’re curious about the development side of the self storage industry or seriously considering your own development project, you don’t want to miss this one! What you’ll learn in today’s show: The step-by-step process of developing a self storage facility from scratch How we turned a $4.3M facility into a $13M+ business A complete breakdown of the self storage development timeline How to build a self storage facility that attracts premium customers Creating a competitive edge without low rent prices or cheap construction Why investing more money upfront leads to higher rents and less risk   Helpful Articles:  https://www.selfstorageincome.com/blog/10-crucial-tips-when-running-a-self-storage-business  https://www.selfstorageincome.com/blog/the-keys-to-stabilizing-a-self-storage-facility-don-t-miss-these  https://www.selfstorageincome.com/blog/the-self-storage-industry-a-brief-overview  🌳 Work with someone experienced in self storage loans at Live Oak Bank! We seriously love them. https://www.liveoakbank.com/business-loans/self-storage/

Want to increase revenue at your self storage facility? Want tenants who will stay the longest and pay the highest rents? Today’s guest owns over 20 self storage facilities and has managed more than 100. He’s so good at what he does that we’ve even brought him on to help with our bigger facilities. In this episode, he shares his playbook for attracting the best self storage customers—and raising rents on tenants least likely to leave.  Kenny Pratt has over two decades of experience in commercial real estate. He was the Director of Operations at LifeStorage, responsible for maximizing income growth. He knows the secrets of the REITs and proved it by starting from scratch with Crescendo Properties and Crescendo Self Storage Management. Now, he owns 25 self storage facilities and runs all of them successfully, even with REITs nearby. What’s the optimal self storage customer? How do you get tenants to stay for longer? What are the “pain points” you can solve immediately to increase occupancy and revenue? And why should you never let your facility manager be the one making the sales? Kenny shares two decades of self storage secrets to put you on the financial freedom fast track with your portfolio!    What you’ll learn in today’s show:   Secrets that BIG facilities use to know who to raise rates on  The “rate lock” strategy that keeps customers renting for longer  The optimal self storage customer that will pay more and stay for years  A common “pain point” you can solve to get even more rentals at your facility  Creative financing is back! How Kenny is picking up self storage facilities in today’s market  Why you should NOT have your facility manager be in charge of sales  — Crescendo Self Storage Management - https://propertymanagement.storage/  Kenny’s LinkedIn- https://www.linkedin.com/in/kennypratt/  Reset: How to Change What's Not Working - https://www.amazon.com/Reset-How-Change-Whats-Working/dp/1668062097  Want to increase revenue at your self storage facility? - https://www.selfstorageincome.com/blog/how-to-increase-revenue-in-self-storage-investing 

Want to know how to value a self storage facility? Stick around and we’ll show you! In this episode, seasoned appraiser Tim Garey breaks down the entire valuation process—and shows you how to get the right valuation. With more than twenty years of experience, Tim oversees a team of thirty appraisers nationwide at Cushman & Wakefield’s Self Storage Advisory Group. He has appraised all types of properties, from shopping centers and golf courses to industrial buildings and, of course, self storage facilities. In this episode, Tim will share how and why he got into the self storage industry before walking you through the entire appraisal process, step-by-step. Whether you’re a buyer or seller, Tim offers all kinds of helpful tips for working with appraisers—like the types of information you need to provide to ensure that the process goes as smoothly as possible and why it’s in your best interest to build a relationship with your appraiser. But that’s not all. He’ll also share why ordering your own appraisal could hurt your deal, and why self storage has seen a recent influx of private money! What you’ll learn in today’s show: How the self storage appraisal process works (step-by-step!) Why a property’s sale price and market value don’t always align What you must do to get the right valuation for your self storage facility Why more private money is moving into the self storage industry What you need to know before ordering your own appraisal Why it’s always in your best interest to cooperate with appraisers — Cushman & Wakefield Email Tim: tim.garey@cushwake.com Make self storage management easier than EVER with our podcast sponsor Tenant Inc. - https://www.tenantinc.com/  🎙️ Do you have a great story to share on the SSI or AJ Osborne podcasts? You can now apply here! https://form.asana.com/?k=TGU88eU0bFTFW1iHcckuTA&d=1203571084143207  📖 Get AJ's new book that teaches you everything he knows about self-storage https://a.co/d/aRSKcSq  📉 Take advantage of today’s market conditions and invest with us: https://cedar.cc/invest 

Building a storage facility may be easier now than it has been in the past five years. With so much of the competition out of the market, top-tier building companies are completing projects faster. And with higher tariffs on pause, now may be one of the best times to lock in pricing before they rise again. But maybe this is your first storage facility construction project or your first facility in general. What should you know BEFORE you start in 2025?    We brought Forge Building Company, the experts in self storage development, back on the show to give a 2025 update. They’re sharing the biggest opportunities for building in the 2025 market, the pitfalls that only experienced developers know to avoid, how to get your project passed by the city, and what’s happened to material costs since the latest round of tariffs.    Development demand has shrunk by a whopping 20% - 30%, so this could be the perfect time to get into the game before rates drop and demand skyrockets back up. Plus, Hamish Bell and Melissa Anderson from Forge even share the new types of “space” modern self storage facilities are adding to increase revenue AND make the city happy.    What you’ll learn in today’s show: Why the drop-off in self storage development demand could be a good thing for investors  Build now or wait? How to decide when tariffs could boomerang back  Signs that a self storage market is worth building a new facility in  How to get your plans approved by the city and get your inspection passed  Choosing the right unit types for YOUR specific market (do NOT blindly divide your unit mix) —   Attend the Self Storage Income Live Event!  https://www.selfstorageincome.com/live-event    Forging Ahead: Construction Resilience and Opportunity in 2025 - https://forgebuildings.com/forging-ahead-construction-resilience-and-opportunity-in-2025/    Forge Building Company - https://forgebuildings.com/    Interested in Building? Email: Sales@forgebuildings.com    📌 Make self storage management easier than EVER with our podcast sponsor Tenant Inc. - https://www.tenantinc.com/ 🎙️ Do you have a great story to share on the SSI podcast? You can now apply here! https://form.asana.com/?k=TGU88eU0bFTFW1iHcckuTA&d=1203571084143207 📖 Get AJ's book that teaches you everything he knows about self-storage https://a.co/d/aRSKcSq 📉 Learn about our current investment opportunities at Cedar Creek Capital: https://cedar.cc/invest 

Want to invest in self storage but feel like you're on an island? You don’t have to do this alone. Whether you’re buying your first self storage facility or looking to scale your portfolio fast, we have tools, resources, and, most importantly, a community to tap into—stick around and we’ll show you how to find everything you need!  In today’s episode, Conner and George share what Self Storage Income is all about: community, action, and growth. We dive into how the Inner Circle was born and how it has evolved into a one-stop shop for investors looking to fast-track their success. Complete with bookkeeping, virtual assistants (VAs), feasibility studies, coaching, and connections to self storage loans, deals, and brokers, this level of access is the game-changer most investors miss! Huge changes are coming to the self storage industry. Large operators are buying up mom-and-pop facilities, and the window of opportunity is shrinking fast. If you want the secrets to finding, funding, and running a profitable self storage business in 2025, you won’t want to miss this one!   What you’ll learn in today’s show:   Fast-tracking your self storage journey through the power of community Unlocking consistent deal flow through the industry’s “one-stop shop” The easiest way to find brokers and lenders for your next self storage deal Scaling your portfolio fast with access to top industry connections Real self storage success stories from investors just like YOU — Schedule a Call with Our Team - https://www.selfstorageincome.com/learn    Need Money? How to Buy a Self Storage Deal with Partners (ep 293) - https://www.youtube.com/watch?v=YYlCTzQQykg 

Jonah Hall, President and CIO of Cedar Creek Capital, dives into the surprising benefits of lower occupancy rates for self-storage facilities. He discusses how strategic pricing and management can enhance revenue even with fewer tenants. Jonah highlights the importance of understanding economic occupancy and reveals innovative strategies like utilizing lockers as entry points. He also touches on the influence of homeowner associations on storage needs and the financial implications of managing occupancy and tenant relationships effectively to maximize profits.