Self Storage Income

Today’s guests bought six self storage facilities in just four years, all while working full-time jobs, and during a time of rising interest rates. They had zero experience, no self storage background, and have only used their own money. How did they grow so quickly, and what’s the secret to scaling your self storage business? These are the bootstrapped self storage investors to hear from.   In 2020, self storage investments weren’t on Nick and Steven May’s radar. But after hearing an episode of this podcast, they decided it might be their next great opportunity. Luckily, a small vacation market two hours south of them had old, poorly-reviewed facilities around. So they did what everyone with little experience and a desire to invest should do: started calling owners without expectations. One owner was willing to sell, and the ball started rolling.   Fast forward four years from their first purchase, and Nick and Steven have six facilities, all in the same market. They’ve gotten better at negotiating, underwriting self storage, and running their business. How did two guys scale to 150,000+ square feet in self storage space without any prior experience? Today, they’re sharing exactly how they did it.    What you’ll learn in today’s show:   How to build your self storage business even while working full-time, even with no experience  Why waiting out stubborn sellers is worth it (and why you always submit an offer) The basic tweaks you can make to turn an underperforming facility into an over-performing one  Investing in self storage with high interest rates (why it still works in 2025) The secret to scaling your storage portfolio while working a full-time job  Where to find more   📷 Steven’s Instagram: https://www.instagram.com/stevenmay_realestate/   🚣 Lake of the Ozarks Self Storage: https://lakeoftheozarksselfstorage.com/ 🌳 Work with someone experienced in self storage loans at Live Oak Bank! We seriously love them. https://www.liveoakbank.com/business-loans/self-storage/   📑 Our Self-Storage Feasibility Studies will help you speed up the process in understanding markets, potential risks, and analyzing the facility itself.  https://cedar.cc/feasibility-studies/  📚 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  📰 Sign Up for My Newsletter Here:  https://ajosborne.com/newsletter   

How do you know your first or next self storage investment is worth the money?    This is how you do self storage analysis in six steps, even if you’ve never invested in storage before. With the most basic of numbers, you can analyze a self storage facility to see if it’s a worthwhile deal. And you don’t need any experience in commercial real estate or self storage underwriting models to do these calculations—you just need some time.   We’ll take you all the way from defining your “buy box” (know what you want to buy) to estimating expenses and revenue, running the numbers, and the extra “margin” we add in every single self storage deal to ensure it’ll be profitable.   Plus, what a good self storage investment looks like and how to secretly get your competitors’ rent prices so you’ll know just how much your facility can bring in.   Your first or next self storage deal is close—let’s make sure it’s a home run!   What you’ll learn in today’s show: How to analyze a self storage facility from scratch, even if you have no prior experience The secret way to know your competitors’ pricing and how occupied they are  Why you must design your “buy box” before you analyze a single storage deal When to go from quick to full underwriting vs. pass on a so-so deal  The two biggest self storage expenses that you cannot ignore (or you’ll get burned!)    🌳 Live Oak Bank: https://www.liveoak.bank/      📉 TractIQ: https://tractiq.com/     📑 Our Self-Storage Feasibility Studies will help you speed up the process in understanding markets, potential risks, and analyzing the facility itself. https://cedar.cc/feasibility-studies/   📖 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 

This is the biggest thing to happen to the self storage industry in years.    Last week, the Fed made their much-anticipated decision to cut rates. In the weeks leading up to the decision, interest rates fell sharply, reigniting the homebuying process for hundreds of thousands of Americans sitting on the sidelines. Rate cuts and mortgage rate declines will have momentous effects on the self storage market, and, I believe, will usher in a new cycle for self storage investing and wealth creation.   We, up until recently, have been going through a self storage recession. What most self storage investors don’t know is that some 40% of our customers come from moving alone. Raise interest rates, stop home purchases, and you cut off the lifeblood of the storage business. But now, that’s changing—and it’s changing in a major way.   In this episode, I’m going to explain why the Fed made their decision now (and whether they were too late), what lower interest rates mean for the self storage industry as a whole and your facility’s occupancy, and what I’m doing to prepare for this next cycle.   This is going to be HUGE.   What you’ll learn in today’s show: Interest rate update and the Fed’s recent decision to (finally) cut rates  What happens to self storage when rates fall (even by a small margin) How lower interest rates could bring back rent increases for storage facilities  My investing plan if rates continue to trend downward  Why the Fed changed their tone and what their new verbiage means  — Sign Up for the Self Storage Income Newsletter! - https://www.selfstorageincome.com/  📑 Our Self-Storage Feasibility Studies will help you speed up the process in understanding markets, potential risks, and analyzing the facility itself.  https://cedar.cc/feasibility-studies/ 

This one small-town storage facility has made today’s guest over $500,000. And if you’re interested in buying your first storage facility, there’s no better inspiration than this. With one self storage investment, Braedon Haertling has added another 9-5-sized income stream and increased value by close to $1,000,000, all while working a full-time job. He had no experience, but a lot of drive, and didn’t do anything you can’t.   Braedon tried the rental property route, but scaling to 100+ doors didn’t seem like the best bet. Why buy 100 rentals when investing in storage units can get you to 100 doors with just one purchase? Thankfully, Braedon knew of someone who may be too busy to run their storage facility anymore. He gave them a call, scored a $0-down self storage facility, and the rest is history.    Got a 9-5? You can invest in self storage. Got kids and a family to take care of? You can invest in self storage. Think you need to know everything before getting your first facility? You couldn’t be more wrong. Thanks to simply taking action, Braedon now has a six-figure-producing self storage investment, $500,000+ in equity, and is hungry for his next deal!   What you’ll learn in today’s show: How to use the “seller carry” strategy to buy a self storage facility for $0 down Creating massive value ($1,000,000!) with simple improvements to your storage facility  Is your town too small for self storage? How Braedon gets 90%+ occupancy in a 3,200-person town  One big mistake Braedon made, but later turned it into a substantial payday  Why you should NOT quit your job to invest in self storage (unless…) — Grab AJ’s Book, _Growing Wealth in Self-Storage 2.0_: https://www.selfstorageincome.com/book  Braedon’s Instagram: https://www.instagram.com/thestoragemat/ Braedon’s TikTok: https://www.tiktok.com/@thestoragemat 🌳 Work with someone experienced in self storage loans at Live Oak Bank! https://www.liveoakbank.com/business-loans/self-storage/ 📑 Our Self-Storage Feasibility Studies will help you speed up the process in understanding markets, potential risks, and analyzing the facility itself. https://cedar.cc/feasibility-studies/ 

Buying a storage facility? Make sure you spot any of these 12 self storage investing red flags. If you’re able to avoid them successfully, you could be buying a killer next investment, with high occupancy, high rates, and steady cash flow. After investing in dozens of self storage facilities, with millions of rentable square feet, we’ve nailed down the 12 deadly self storage red flags that can prevent a facility from taking off.  There are two types of red flags: the ones you can fix, and the ones you can’t. The fixable ones might mean you have a serious opportunity within your market, and you can flip that red flag to a green one. The unfixable red flags…that’s another story. Don’t worry, we’re going to spell out each so you know which red flags to run from, and which could make you money.  We’re talking about red flags like: declining populations, too much supply, high vacancy, weak local economics, poor visibility (online and on the street!), and more. Do you think you know which you can fix? Think again, we’re giving you the exact list of self storage red flags.  What you’ll learn in today’s show: The 12 self storage investing red flags every investor should be aware of  Is a declining population always a bad thing for storage? How to stop your competitors from building near you and boosting supply The “secret” way to find out how occupied other facilities are in the area  How much should your self storage customers make? We’ll share the perfect income range  Which red flags can be flipped to green flags so you can profit! — Register Now for SSI Live - https://www.selfstorageincome.com/live-event  Get 1-on-1 Coaching from Conner! - https://www.selfstorageincome.com/coaching   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 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 

A new wave of wealth in self storage is on the horizon, offering opportunities for small to large investors alike. The shift from individual operators to consolidated models is reshaping the landscape. Key strategies include adapting to technological advancements and utilizing dynamic pricing for maximum revenue. With many mom-and-pop facilities already taken, timing is essential. Learn how to navigate these changes and seize profitable investments before the market becomes saturated. Don't miss out on this chance to catch the wave!

Exploring the often overlooked world of self-storage investments, this discussion reveals why these facilities can serve as a fantastic first investment. With higher cash flow, lower risks, and less management hassle, self-storage is shown to outperform traditional real estate options. The conversation also touches on how smaller investors can capitalize on unique value-add opportunities being missed by larger institutions. It's all about building wealth with patience and strategic choices in this booming sector!

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