Top 3 Questions asked by New self storage investors.

By Marc Goodin, CEO of Storage Authority, the only self storage franchise in the US.

Top Three Questions:

1 How much cash do I need to invest in self storage to make a good six figure income? (ie, what is the minimum cash needed)

Short answer: For a severaaal millionn dollar project you need $1,500,000 with an 15% down SBA loan. If you build multi story or go with a traditional loan with 30% down you may need double this amount. If you have high land costs you may need to invest more.

Of course you can start small, even with $250,000 but the profits will be significanlty less.

My question to you is how many pairs of shoes are you willing to wear out in the next year. GP's winter boots - kinda shinny if you ask me.

2 How much money will I make?

Short answer: A good 6 figure income. Profits depends on many items but the one thing that has the biggest impact on profits is being full with premium rental rates. If you are in the hospitality business with a superior Operations system and a superior Sales & Marketing system you can charge 30% more than they guy down the road.

3 Is it better to buy a facility or build a facility?

Short answer: It is a case by case decision.

If you have several million, not looking to spend the time to build and your main investment goal is to keep your money safe and a 6% starting return on your money is acceptable, It may be best to buy.

If you have under $1,00,000 cash you may also want to consider buying a small facility you can improve.

If you have $1,500,000 and want double-digit returns that grow and a large nest egg when you retire, you should consider finding land and building a new self storage.

Long Answers. I would love to hear about your goals and give you the long answers for your situation. Send me an email Marc@StorageAuthority.com and we can set up a time to talk live.