In the DFW area the vacancies have started appearing where 4 months ago everything had a waiting list. At the same time multiple top level facilities are being built and or also opening right now. Our waiting list has been shrinking and we're currently just under market cost and in the process of bringing all of our units up to current prices for our area. Our next location will be much further north where there is not such an oversaturation of storage facilities. It's hard to believe that even for an area like the DFW metroplex candy oversaturated. But I believe and that's playing a role in what's happening right now.
@@haykkarsyan1 Great point, That is a real possibility, Like AJ has talked about look for markets not in densely populated areas (counties with a population of less than 1 million? half a million?) where the larger brokers are not as interested in playing in "for now". (It is not how much Net you make, but how much Net you keep that really matters. Having several small to medium size operations can work. For us it is trying to automate as much as we can while still having someone to "manage or at least oversee all the operations and the income to pay for them and still make the net profit required to live the lifestyle that suits us.
@@Craigs_car_care I’ve actually been contacting existing mom and pops in small rural towns of around 10,000 people. Their rates are very low ($0.50) but they are usually at full capacity. Usually these towns have only 1 or 2 facilities at most. No online presence, no marketing, no automation, no fencing, no surveillance, nothing.
@@haykkarsyan1 Yep a whole lot of opportunity to get in and add some real value to the place, update the rental cost to be able to pay for the cost of the buy in and upgrades and improve the value to the community.
Thanks for the amazing content AJ. We bought our first facility in January that was very poorly managed, and are looking forward to buying more in the coming years. Can you put the link to how you're structuring deals in the notes?
@@brandonchen5436 we’re turning it around slowly but surely. Should be ready to put back on the market early next year and 1031 it into a larger facility
A lender I've spoken to has said the minimum requirements for a loan is 20% down. Would you advise being leveraged like that at this time or should I wait to save an extra 5-10%? All I hear from other SS people is just to get in the game as soon as I can...
I am working for James Reid with StorCo running aquisitions. I Would also love to see notes/link on the way you structure your deals to be protected when things correct.
Very interesting how residential real estate and self storage are so closely linked.
thanks
Interesting
Good to know.
Thanks for tuning in man!
In the DFW area the vacancies have started appearing where 4 months ago everything had a waiting list. At the same time multiple top level facilities are being built and or also opening right now. Our waiting list has been shrinking and we're currently just under market cost and in the process of bringing all of our units up to current prices for our area. Our next location will be much further north where there is not such an oversaturation of storage facilities. It's hard to believe that even for an area like the DFW metroplex candy oversaturated. But I believe and that's playing a role in what's happening right now.
You mean north into Oklahoma?
@@haykkarsyan1 Great point, That is a real possibility, Like AJ has talked about look for markets not in densely populated areas (counties with a population of less than 1 million? half a million?) where the larger brokers are not as interested in playing in "for now". (It is not how much Net you make, but how much Net you keep that really matters. Having several small to medium size operations can work. For us it is trying to automate as much as we can while still having someone to "manage or at least oversee all the operations and the income to pay for them and still make the net profit required to live the lifestyle that suits us.
@@Craigs_car_care I’ve actually been contacting existing mom and pops in small rural towns of around 10,000 people. Their rates are very low ($0.50) but they are usually at full capacity. Usually these towns have only 1 or 2 facilities at most. No online presence, no marketing, no automation, no fencing, no surveillance, nothing.
@@haykkarsyan1 Yep a whole lot of opportunity to get in and add some real value to the place, update the rental cost to be able to pay for the cost of the buy in and upgrades and improve the value to the community.
Ty so much AJ!! Great episode that will probably open the eyes of many along with saving many from going under water
Thanks for the amazing content AJ. We bought our first facility in January that was very poorly managed, and are looking forward to buying more in the coming years. Can you put the link to how you're structuring deals in the notes?
How is your facility doing now? If you don't mind me asking!
@@brandonchen5436 we’re turning it around slowly but surely. Should be ready to put back on the market early next year and 1031 it into a larger facility
@@waynebolen9594 Thank you for the reply! Also you're not planning to keep? When you say back on the market, you're looking to resell?
@@waynebolen9594 Also if you don't mind me asking, what size facility did you start with?
@@brandonchen5436 we bought a 5k sq ft facility. We’re looking to scale up in the near future
Great information
A lender I've spoken to has said the minimum requirements for a loan is 20% down. Would you advise being leveraged like that at this time or should I wait to save an extra 5-10%? All I hear from other SS people is just to get in the game as soon as I can...
We'll put the number what is the name of the video that describes structuring risk thanks in advance appreciate all the content
I am working for James Reid with StorCo running aquisitions. I Would also love to see notes/link on the way you structure your deals to be protected when things correct.