The Self Storage University Podcast

Although urban storage owners are broadcasting positive spins on their current occupancy, there are some very bad trends ahead for this segment of the storage industry. In this Self-Storage University podcast we’re going to identify some of the pending issues for owners in dense urban centers and contrast that with what’s trending in suburban and exurban markets.

Self-storage investing typically requires getting a loan on the property, with the buyer paying the required down-payment and the bank extending credit on the rest. But is it possible to get pre-approved for this type of loan? That the topic of this Self-Storage University podcase, where we’ll go over this concept and its ramifications.

You can’t always get a storage deal for the price you want to pay. So when should you agree to the higher price and when should you withdraw? And how can you make sense of paying that extra price? That’s the topic of this Self-Storage University podcast. We’re going to talk about the science of stretching as much as any personal trainer – and it won’t cost you a cent.

There’s no shortage of articles and reports out there on the self-storage industry, but don’t let people give you guidance who are trying to sell you properties or have a vested interest in advancing false narratives. In this Self-Storage University podcast we’re going to discuss some of the “facts’ floating around the industry which are clearly wrong and designed to ensnare you into bad deals.

You can’t be a self-storage facility owner unless you buy one. And you can’t buy one without putting one under contract to purchase. So what’s holding you back? In this Self-Storage University podcast we’re going to discuss the common blockades to you taking this step, and how to overcome this anxiety and have greater confidence in the process and your actions.

Just like a chair cushion, most people are not attracted to “hard” options – but how does that work with self-storage investing? In this Self-Storage University podcast we’re going to discuss when the seller wants “hard” money to go under contract, as well as “hard” money lenders. While there may be some deals that necessitate dealing with “hard” options, you need to understand what the risks are so you can make the right decision.

There's an old saying that nice people finish last. And sadly, it's true. This is Frank Rolfe , the Self Storage University Podcast. We're going to talk about how nice people do tend to not get what they want out of self storage investing or management, and then how you can learn to be a little tougher for the sake of your investment.Let's start off with the definition of nice. Nice is defined by Webster's as pleasant, agreeable and satisfactory. It means basically, you try and please others. The problem is when you're buying, or operating a self storage facility, pleasing others isn't always your best option. Now, when pleasing others means your customers, sure, then you want to be nice. But when we're buying that storage facility, and when we're being a tough, hardened operator, trying to extract as much money as we can out of it, being all kinds of pleasant, and agreeable is typically not the best modus operandi.So why can't you be nice? Well, let's break it down into pieces. Let's start with buying a self storage facility. We are all in competition with each other. There is a defined number of storage properties in America, roughly around 40,000 of them. So what you have is you have people who are all vying with each other to buy those storage properties at the lowest price they humanly can. So we are locked in mortal combat, both with other storage buyers, as well as the sellers of those facilities. Now, if you just turn the other cheek, if every intersection, you allow the other person to turn, first, what will happen is you'll be beaten out on every deal you ever look at. So the whole concept here is that I am more concerned about what other people think than I am my own opinions and future, then sadly you're in the wrong position.Time and time again, you'll call the broker, call the seller, they'll say, "Well, I have someone else looking at it too." And you'll say, "Oh, well, gosh, well, I guess let them go first. And if that doesn't work, then come back to me." You know, sellers can hear in your voice whether or not you have that fiery passion that typically leads to a deal closing. And if you don't have that, if they don't hear that kind of enthusiasm, then they'll go with the other person. And when you're trying to be nice, you don't have that. You're trying to be agreeable and you don't really show that that fiery passion. So it's just never really been a good thing.Now, that's not entirely true. When you're bonding with a mom and pop seller, or bonding with a broker, then sometimes it's advantageous for you. Because when you when you are nice person, they like nice people. But as far as getting your foot in the door, then nice people do typically finish last, sadly. And then you have the fact that you are also competing for the best price you can get on the facility. If you try be too nice with the seller, if your whole attitude is you're more concerned about the seller than yourself, then you'll lock yourself into contracts time and time again, which are too high or could have been lower. The seller, as much as he may like you, he also wants to get the best price that he can. So you've got to make sure that you strike a tough deal, as tough as you can humanly strike, to make sure that you pay as little for the facility as you can.Then comes the issue of operating it. Most Self Storage properties have a manager. And studies have shown that when it comes to an owner and a manager, typically being the nice person isn't the most successful. There was something on PBS years ago where they took two basketball coaches, and they took 10 college basketball players, and they had each coach take a different demeanor. One was the nice coach, the happy coach, and the other was the tough and the mean coach. So what would happen is the guy would try and shoot the free throws and they had each player try and do 10 free throws. So there was basically 100 potential points. 10 people, 10 free throws. So the nice coach, when they would throw the free throw and miss he'd say, "Well, that was a good try. Here try it again. Oh, don't worry about that one here. Try again." The tough coach would say, "You're never going to make it into the NBA if you can't do better than that. Oh my gosh, you're not paying attention at all. What are you doing? Where's your posture?"Well, guess who won? The nice coach or what people would say the tough, the mean coach? Well, the mean coach clobbered the nice coach almost by a two to one margin. That's because the players under the mean coach but they were more focused. They had more of an adrenaline rush. They really, really, really wanted to make the basket. But with a nice coach, they just didn't much care. They were already thinking about, you know what they were going to do next. Because they knew that no matter what they did nice coach wouldn't yell at them, everything would be fine. That's how it is with your property too. So if you're a boss, if you supervise your manager with t

Oil and vinegar. Fire and water. There are many things that just don’t go together well. And one of those is financing and time. In this Self-Storage University podcast we’re going to review how hard it is to get financing for you facility to match the time given, and how to best plan for the eternal conflict between getting a loan and meeting your time deadlines.

A “paper trail” is not a paperboy’s route, but an essential part of running your storage facility. So how do you properly “paper” your property? That’s the topic of this Self-Storage University podcast. If you want to minimize potential litigation and its sources, then having a system to document all issues is essential.

Every smug “expert” tells you the science behind investing, and makes out like they have all the answers. However, the truth is that nobody knows what’s better for you … than you. Since we are all the masters of our own destiny, isn’t it time you trust in your own decision-making over all others? That’s the topic of this Self-Storage University podcast in which we discuss why you are the best authority on your future and some tools to help build your confidence in making those tough decisions.

The U.S. is always changing and growing, and smart investors try to stay current on the macro trends. In this Self-Storage University podcast, we take a look at current stats on economic vitality state-by-state, and try to draw conclusions from this data. As we will discuss, there has never been more volatility as “hot” markets cool and cool markets ignite. The key to making money is to invest in areas with strong futures, and understanding how America can have an impact on those decisions.

“Sticky” is a slang term that relates to customer retention. The “sticky” customer will renew their rental agreement endlessly, while the customer that is not “sticky” will just throw their stuff in their pick-up truck and take off at any moment. So how “sticky” are your customers in reality and how bold can you be in your rent increases accordingly? That’s the subject of this Self-Storage University podcast.

B. Wayne Hughes is the “father” of the self-storage industry, having grown Public Storage from scratch into the world’s largest self-storage REIT with over 2,500 locations in the U.S. and overseas. He doesn’t typically say a lot, but there are quotes out there that might give a glimpse of his vision on storage and on life in general. In this Self-Storage University podcast we’re going to review the legend and quotes of B. Wayne Hughes and see what there is to learn from his story.

American interest rates are in a state of flux, and this can present a challenge to conservative investors that like to avoid risk. In this Self-Storage University podcast we’re going to examine how to protect yourself from interest rates woes and simple steps to mitigate risk. With inflation rising and interest rates at near all-time lows, this is a recipe for disaster unless you manage this properly.

The self-storage industry is highly consolidated by large REITs such as Public Storage. As a result, these titans like to buy “research reports” to help explain the current industry statistics for investors (which, not remarkably, typically just happen to support their business strategy). But for smaller investors, these reports may be lacking some of the information that reflects your business model as opposed to a REIT. In this Self-Storage University podcast we’re going to discuss this issue and how to protect against getting the false impression on some key items.

For a while, self-storage cap rates had been in the same ballpark as other sectors – most notably apartments – but now they are going up while housing sector cap rates are staying low. Why is this occurring and what can you do to protect yourself? That’s the subject of this Self-Storage University podcast. As you’ll see, there are legitimate reasons for this cap rate disparity, and important steps you can do to mitigate this risk going forward.

Every self-storage facility needs a manager. But you need one that actually makes your property perform as planned – not hold you back from success. In this Self-Storage University podcast we’re tackling the subject of what makes a manager go bad and how you can best manage this risk. While all self-storage facility managers are not perfect, some are really bad and can cost you big money. This podcast helps to reduce those losses.

There are two realities in life: death and taxes. And property tax is a part of every self-storage facility budget. But how do you know how much to estimate? And what do you do when the tax assessor thinks the value is more than you do? We’re going to cover these and related topics on this episode of the Self-Storage University podcast. You can’t escape paying taxes, but you can ensure that you plan and pay the correct amount.

The number one topic in the news is the return of inflation. It’s at the highest pace in nearly two decades, and that’s got serious ramifications in a number of areas. So how will the return of inflation impact self-storage investing? That’s the topic of this Self-Storage University podcast, and we’re going to explore all the pros and cons. It’s a very important issue and worthy of a lengthy discussion.

Many investors “partner” to buy properties. But how do you divide up the profits in these cases? In this Self-Storage University podcast we’re going to review the common thoughts on structuring profit splits as well as forging successful, long-term partnership arrangements. As we’ll discuss, there’s much more to partnership considerations than just dividing up the money like a pirate ship. And a strong partnership – one in which all parties feel they are being treated fairly – can be an essential tool to buying storage properties.

One way to borrow money is to simply step into the shoes of the prior owner. In this Self-Storage University podcast we’re going to review the ins and outs of doing debt assumption on a property. In many cases, debt assumption may be your best option, yet many buyers do not even realize that the potential is there.

It’s hard to operate a storage facility without someone being in charge. Sometimes it’s the owner, but more often it’s an employee. And with hiring people comes many important responsibilities. In this Self-Storage University podcast we’re going to review the basics of hiring and firing facility managers. It’s a complicated and litigious world out there and you have to make sure you have a plan before you put out the “help wanted” signs.

One of the best sources for finding storage properties to buy are brokers. So how can you work with them to get access to their best listings? In this Self-Storage University podcast we’re going to review the methods utilized to forge successful relationships with industry brokers and to find good deals to make offers on.

Buying a self-storage facility is a very important decision. Due diligence is an essential part of the effort to make sure it’s a success. But some buyers try to delegate this work to others. In this Self-Storage University podcast we’re going to review what you can – and can’t – delegate regarding diligence and the reasons for that limitation.

Some self-storage deals sell quickly, and others fester for years. What can be done to craft great acquisitions out of these older offerings that have gathered dust? That’s the focus of this Self-Storage University podcast in which we discuss what makes deals sit without movement, and what the potential options are to forge a successful purchase. As you’ll see, sometimes there are real winners hiding under all that dust.

Many people see their banker as a roadblock and a pain. But I see bankers as role models for smart storage investing. So why would all smart self-storage investors be better off thinking like a banker? That’s the focus of this Self-Storage University podcast. We’re going to review what makes a banker happy and why that’s an important path to follow. We’ll also discuss some sample case studies of deals that a banker would and would not approve of and how their opinion would have been of benefit.

Being creative sometimes allows you to build successful deals from seemingly hopeless beginnings. In self-storage investing it’s the ability to think outside the box that makes some deals possible. In this episode of the Self Storage University podcast we’re going to review some strategies that allow you to take deals that are never going to work and put them back on a solid footing using just one ingredient: creativity.

One of the unique benefits of self-storage investing is the superior collections method: the ability to auction off the contents of unpaid units. Shows such as Storage Wars are based on this concept, and an entire industry has sprung forth from the auction of unpaid units. However, there are some new options out there to potentially replace old-fashioned on-site auctions, and the #1 variant are on-line auctions. But is this the right choice for you? In this Self-Storage University podcast we’re going to review this concept in-depth and its discuss the advantages vs. disadvantages.

The best way to find a winning self-storage facility to buy is by looking at a large volume of deals. But how do you accomplish that? In this episode of the Self-Storage University podcast we’re going to go through the action steps necessary to build a strong deal funnel. With volume the key to success, this podcast is devoted to helping you build champion-level numbers of potential properties to buy.

Buying a self-storage property can be a stressful undertaking – particularly when it comes to the final moment when you have to pull the trigger and close on it or throw it back. But we have developed a good way to get over this fear using a simple system we call Best/Worst/Real. In this episode we reveal this system and why it is so effective in giving you peace of mind that you’ve made the right decision.

Clint Eastwood’s “Dirty Harry” character once said the classic line “a man has to know his limitations” – and that’s equally true for self-storage facility buyers. There are simply some things you can’t fix regardless of your talent and effort. And it’s very important that you separate these “can’t fix” items from those you “can fix” in order to embrace opportunity and stay clear of certain failure. Essentially, you have to choose your battles wisely, and in this podcast we’re going to help guide you in that decision.

There is a force in deal making that is more powerful than money. And that force is “bonding”. In this Self-Storage University podcast we’re going to explore bonding from its origins to how to create it and how to harness it to make amazing self-storage deals possible. If you want to put together storage deals at low prices and with seller financing, then you should be extremely interested in this topic. In fact, bonding with the seller – more than any other activity – has been the catalyst to some of the best storage deals of all time.

The purchase contract is the document that spells out the deal you’ve cut with the storage facility owner. But there’s certain things it should always contain – and others it should never contain. In this Self-Storage University podcast we’re going to review what these items are and what potential benefits – or pitfalls – they bring to the table when trying to properly structure your deal.

I have a collection of books on self-storage from a number of authors – and they’re all worthless. In this episode of the Self-Storage University podcast we’re going to review why most of these written works are not worth the paper they’re printed on and some of the facts that they’re missing. There has to be more than untruthful, content-lacking upsells into coaching for a book to be of value, yet that’s what most storage guides represent and in this podcast we’re going to discuss why.

Many people think that there is only one type of storage vacancy: an empty unit. But why is that unit empty? In this episode of the Self-Storage University podcast, we’re going to analyze the different types of storage vacancy and what they really mean, as well as how to fix them. In today’s competitive environment, it’s essential that you understand the components of vacancy and how to use them as a tool to better position your property for success.

We live in an extremely litigious world, and self-storage owners are no different. All it takes today is the slightest mistake and you can immediately receive a lawsuit in the mail or person. So how can you protect yourself and your storage facility from these type of attacks? In this Self-Storage University podcast, we’re going to review some tips on how to mitigate your liability risk and run a tighter ship that is better positioned to meet the ever-increasing issues of a very litigious society.

Every self-storage facility you put under contract does not end in a successful purchase. Many times the deal will die quickly with cursory inspection, and others make it all the way to the finish line before they get cancelled. In this Self-Storage University podcast we’re going to discuss hidden deal killers, visible deal killers and suspenseful killers that sometimes pop up right at the end. It’s important that you understand these issues and embrace their meaning as opposed to buying a deal that will not work.

There are two types of self-storage investors: 1) those that got into the industry early and rest on those laurels and 2) those that are making it happen in 2020. However, the storage industry loves to only embrace the narratives of the first group, and rarely talks about those entering the industry today and the issues that are important to them. And to succeed today you pretty much have to shun the first group and rely more on those who are real-time buying and operating under the new realities the industry faces. In this episode we’re going to talk about why there are two entirely different views of the industry, why one is more important than the other, and a call to action on the megatrends and issues of those who are trying to make money investing in storage facilities today.

There’s no better form of financing for a self-storage facility than “seller carry” – the concept of the seller creating their own mortgage to finance the purchase. But how do you get it? And what should you watch out for? In this Self-Storage University podcase we’re going to review these questions, as well as a wealth of practical information on creative financing to buy storage properties. If you are looking at buying a self-storage facility, then this podcast should be of interest to you.

We all learn useful lessons in life from a number of teachers. And over the past 40 years – as long as I’ve been in business – I’ve been obtaining real estate loans. While the procedure has remained pretty much the same for all that time, there have been four fundamental concepts that seem to be shared by all bankers – and with good reason. All four of these will have a huge impact on your success in buying self-storage facilities.

Many of today’s self-storage investors think that any product they put out there will be winner. They think that no matter how they treat the customer, they’ll come back or keep paying. But this is bad thinking and is already proven to be wrong in many markets with declining occupancy and rents. So what do customers really want? In this episode of the Self-Storage University podcast we’re going to discuss what storage users demand for their money, and how they are the ultimate boss at the end of the day – the difference between success and failure.

Even though we’re in a new age, there are still some basic theories about investing that hold true for self-storage today as well as they did decades ago. But what are these old-fashioned words of wisdom? In this episode of the Self-Storage University podcast we’re going to look at some of the best classic thoughts and sayings and see how they are as relevant today if you want to be a smart storage investor.

There’s no great success in simply buying a self-storage facility. Any idiot that can write the check for the down payment can accomplish that. Instead, the real trick to buying a storage property is to make money with it. But that can be more allusive than many people think, particularly those that want to follow the same old, tired paths or to think like the herd. In this episode of the Self-Storage University podcast we make the case for focusing on profitability and not convention, and to having the strength to think independently of the herd of idiots out there.

Financing is the lever that allows you to greatly multiply your financial returns. So what are the options in obtaining debt for a self-storage facility? In this episode we’re going to discuss the basic types of financing available today for storage properties as well as the positives and negatives for each variety as well as how to negotiate a better deal with your lender.

Like any form of real estate, self-storage has its own unique boundaries on performance. So what are those? And where did those calculations come from? In this episode we’re going to review the basic metrics for storage investing and define those basic terms. If you want to know what your return on investment can be from buying a storage facility, then here it is.

Millions of Americans have storage units. But most of them never think about this type of real estate as investments. Nevertheless, there is a very successful niche in investing in the American desire for materialism and storing their possessions. In this episode we’re going to review the key factors that make self-storage investing an attractive sector for your investment dollars.