CI 34 – High Occupancy Rates with Military Tenants

Jason Hartman hosts a two-part show where we start with some reflections on the recent “Meet The Masters of Income Property Investing” event at The Hyatt Regency in Irvine, California. Investment Counselors, Ari and Sara join Jason as they discuss the following:

1)   Establish 5 year plan for where you would like to be in 2016

2)   26-27% real unemployment rate

3)   Decline of standard of living for America (ask tenants)

4)   Which entry point are you?

a. Beginning Investor – Optimize rapid growth that can be re-invested for long term compounding
b. Growing Investor – Optimize for stable long term (inflation protected)
c. The short path to retirement – Optimize for low risk and high stability
5) Prime age for spending is 46 years old

6) Gen X is 40 million

7) Gen Y is 80 million people (early 20’s now)

8) New investors should seek returns in the 20-25% range

9) The big problem now is that people are running out of money before they die

10) Social Security will not work (look at Greece). People are living longer too now.

11) Young Investor

a. Huge impact on higher returns early in your investing career (bell curve)
b. New Investors also have the opportunity to cherry pick high return small deals to start their career
12) Investing $1,000 annually (9k) from age 21-30 and letting it compound, or $1,000 per year after 30 years old (35k). Early investor will win.

13) Invest while young and seek safer investments when older.

14) The growing investor

a. Stability matters
b. Inflation creates volatility by disconnecting the nominal (name only) value or real value of assets
c. Income properties are best positioned to create inflation protected, stable growth
15) Investors need to leverage and make debt work for them (redistribute wealth)

CIS 31 – An Action Plan for Mobile Home Wealth

Join Jason Hartman as he interviews Stu Silver, The Mobile Home Man, regarding his mobile home and mobile home park investing strategies.  Learn the do’s and don’ts about investing, how to protect yourself from being taken advantage of, to know when you’re getting a good deal, and even how to inspect your mobile home to make sure you don’t find any unwanted surprises.  Stu says there are over eight million mobile home parks in the United States and you can get a good deal on a mobile home, or even possibly get one for free.  Stu’s first rule of investing is, “Protect yourself at all times!”  For more details, listen at www.commercialinvestingcenter.com.

Stu Silver has been investing in real estate for 30 years and has specialized in mobile homes for the last 18 years.  He is known as The Mobile Home Man or Uncle Zally, and has authored three books (under the penname Zalman Velvel), Mobile Home Wealth, Mobile Home Wealth Part 2, and How to Get a Good Deal on a Mobile Home or Even Get One For Free!. He also features his Mobile Home Wealth Systems on CD’s and does live Mobile Home and Real Estate Training.  Additionally, Stu writes a mobile home blog called “Kangaroo Kronicles.”  He holds the CCIM designation and is a licensed real estate broker, mortgage broker, auctioneer, mobile home dealer, and former real estate appraiser.  He has trained more than 5,000 people in real estate investing in his 3-day bootcamps and live on the internet.

8 Profit Center Add-Ons for Your Self Storage Business

CommercialInvestingCenter.comWhile owning a self storage business can be quite profitable, don’t make the mistake of thinking that monthly rental fees from people with too much junk is the end-all of profit potential. There are dozens of additional ways to generate income that you might not have considered. Here’s a sampling to get your gray matter percolating.

1. Boat and RV storage – recreational equipment like this takes up a lot of space around in a person’s yard, and there might be a market in your area to offer a place to put it. All that’s required is extra space and a relatively low cost pole barn structure with a roof to protect the vehicles from the worst of the elements.

2. Rental truck business – A natural spin-off from your self storage business is to provide rental trucks. People who have need of a storage unit are often in the process of moving in or out of an area. Explore the possibility of a national, widely recognized franchise.

3. Records storage – Adapt one or more of your storage units to hold computer or paper records. It would need to be completely remodeled inside for the new task, but allows for yet another add-on profit center to your existing business.

4. Wine storage – There are more wine connoisseurs out there than you might imagine and not all of them have a place to store their selection. Outfit one unit or more as temperature controlled wine cellars and you have another profit center.

5. Retail sales – Keep a supply of packing supplies, boxes, and other items commonly needed for moving. Americans show an amazing dedication to one-stop shopping. The more needs they can satisfy in and around the vicinity of your self storage business, the better for your pocketbook.

6. Ebay sales – Ebay offers an excellent opportunity for anyone to make extra money, but the truth is that listing items and monitoring auctions can be time consuming. It would an easy matter to provide a service that sells items for people on Ebay in return for a percentage of the sale.

7. Coffeshop – Who doesn’t like to sit down for a nice ‘cuppa joe’ in between inserting stuff into or extracting it from their storage unit? The bottom line is make good coffee and they will come.

8. Cell tower lease – This is about as passive an income stream as you can imagine. Cell phone providers (obviously) need a place to put their towers. It might be worth your while to see if a carrier in your area is in the market for a bit of real estate. You’ll have to sign a long term lease but will earn a nice monthly check in return for doing absolutely nothing.

You’re probably beginning to see a pattern here. The number off profit center add-ons to your existing self storage business is only limited by your imagination. Can anyone out there think of any biggies we missed?

The Commercial Investing Center Team

Commercial Investing Show

 

 

 

 

 

Flickr / [email protected]

CI 25 – Self Storage Investing

Jason talks with Scott Meyers, CSSM©, the nation’s one and only self storage millionaire maker. Scott’s company focuses solely on buying and selling self storage facilities, that’s it. At the present time, he owns and operates several facilities throughout Central Indiana. Listen in at: https://commercialinvestingcenter.com/category/podcast/. As a leading self storage educator, he travels the country revealing why self storage has become the hottest sector in commercial real estate over the past 30 years.  Practically every real estate investor and entrepreneur has uttered the words “I’ve always wondered about self storage, I’ve heard those things were cash cows.”  As a result of his research and 16 years experience, he’ll reveal the top 10 reasons to invest in self storage and how built a $10,700 positive monthly cash flow his first year in one of the best kept secrets in real estate: self storage! You will learn the following:

The endless opportunities available in the over 60,000 facilities nationwide
The two reasons why demand is projected to skyrocket in the next 10 years
Why self storage facilities are “cash cows” and why they have outperformed many other investments

Advertising Your Self Storage Business By Billboard

self storage businessSome self storage business owners find it difficult to resist the allure of a nice, shiny billboard trumpeting their name to the masses. As with any branding scenario, the question to ask is whether you’re going to get a return on your investment. In other words, how much extra business and, more importantly, income will a billboard generate? For those who might be unaware, billboards aren’t cheap. Even in a small town you’re probably not going to get one for less than $300 to $500 a month. If it directly creates an extra couple of thousand dollars a month – that’s a no brainer – go for it.

There are a couple different concepts to keep in mind while dithering over whether or not a billboard will reap dividends for your self storage business. The first is that you need some way to track the response. The easiest is to simply ask every new customer where they heard about your business. If the answer is the billboard, bully for you. Keep track of how much money billboard traffic creates each month. Consider it probably only makes sense to rent a billboard if you can find a location relatively close to your business, within five miles would be nice, two would be better.

The other thing to keep in mind about a billboard’s effectiveness is this – it might seem like you’re getting nothing at all in return for the attempt at billboard branding. Not a single new customer says he saw your message there. The funny little fact about human nature is that the subconscious mind is always at work. Someone who drives past your billboard twice a day going to work and coming home might see the scenery so many times they don’t even realize what they’re looking at any more, but when the time comes to look for a self storage business, for some strange reason, yours is the name that pops to mind. They have no recollection of having been persuaded by the billboard. Sorry, that is sometimes the nature of branding. They could just as easily have come across your name on a business card, writing pen, t-shirt, or in the Yellow Pages.

If the monthly expense of maintaining a billboard doesn’t strain your ad budget or put your business in jeopardy, go for it if you feel the urge. On the other hand, we at MHP Listings suggest you don’t bet everything on the hope a simple billboard is going to keep a steady flow of customers dropping in because you simply don’t know if that will be the case.

The MHP Listings Team

MHPListings.com

Flickr / numberstumper

Self Storage Business Like Any Other – Watch Expenses

self storage businessThat self storage property you invested in is not some kind of dreamy movie sequence where everybody runs through flowers in the field and nothing bad happens. This is the real world and in the real world you should think of it not as a self storage investment, but rather a self storage business. You wouldn’t ignore a retail business and expect the checks to magically fill up your mailbox every 30 days.

A self storage business as a retail business. The key to making money is to control expenses. You should do a line-by-line read through of your expenses regularly to make sure nothing weird is slipping past that could eat into your profits. Here’s an example. One self storage property owner received a property tax bill and realized they were being dinged $5 per month for television service. Obviously, there were no televisions being used there, so what the heck?

Upon calling the television company, the owner received the the following reply, “Oh, we are trying to determine
who uses our service.” Yes, you just read that right. Beyond the completely irresponsible and, we believe, criminal behavior of the television service, the broader point is that the owner would have just given away $60 that year for no good reason. While that’s not a break-the-bank amount of money, the broader point is would you prefer to give away money that is rightfully yours? Our answer would be a resounding, “Heck no!”

And what if you were being charged inaccurately for other services like trash, sewage, or electricity? Unless you keep a tight eye on expenses, you could be in trouble in this economic climate. Our advice is treat your self storage business like it’s a real business, because it is.

The Mobile Home Park Listings Team

MHPListings.com

Flickr / PatCastaldo