Coming into self storage fresh? We're here to help! There's a lot to learn, but we'll highlight the important parts of the industry, running a facility, and the most common challenges for new owners. AND, we were joined by Lindsey Self Storage's John Lindsey as he shares insights from the industry and his new book, The Sexy Side of Self-Storage: an Insider's Guide to a Necessary Commodity.

Featured Speakers: John C. Lindsey & Adam Armstrong
Moderators: Melissa Huff & Tommy Nguyen

Category: Operations
Focus: Owners & Investors
Aired: July 8, 2021
Duration: 1:13:14

Overview

If you don't have time to watch the whole Session, here are some of our favorite parts:

• At 5:50, John and Adam break down why self storage is different from so many other industries and why it's the most flexible real estate investment
• At 7:40, John shares how the industry has changed in the last 15 years, how it's developed into a Class A Asset
• At 13:45, they share the best ways to learn about the industry and remind us that "you always have to keep your finger on the pulse"
• At 17:10, John tells us how to evaluate a self storage investment and how to align a self storage investment with your goals. Adam tells us why he took the plunge and the boxes an investment has to check for him
• At 20:00, our panelists remind us that "you don't know, what you don't know" and why someone new to the industry should buy an existing facility before they build a new one
• At 27:45, John and Adam break down what all is involved in a successful self storage operation and where the biggest liabilities are
• At 34:50, they share their tips for finding the right technology for your facility (hint: ask operators you respect)
• At 41:15, Adam shares what the first year of running a facility looks like, and John shares what to expect in the long-term
• At 46:05, John discusses the smallest viable facility and his take on oversaturation in major markets
• At 52:00, we discuss John's book, The Sexy Side of Self Storage, what it's about, why he wrote it, and who he wrote it for
• At 1:07:15, our panelists answer the Question of the Week

Question of the Week

We asked our experts: What are the biggest mistakes people new to the industry make?

"Underestimating the financial expentiture of owning and operating a self storage facility. It is more costly than you could ever budget for. I'm not saying it's not financially feasbile, but you'll see these pretty Proforma's done by brokers that only account for the bare bones. There's a lot you have to take into account. The number one piece of advice I'd giving somone looking at buying a new property, especially in this day an age, watch for propery tax increases that will go in when you close your propery. It's different in every state and county. We've seen it go up as much as 4x times the prior value in one day. So please be aware of that. Do your homework. And get ready to spend more than you ever thought, running a site." - John C. Lindsey

"Know thy state lien laws. Please! A lot of people think they can come an interpret laws themselves. You can get into a lot of danger from the way you interpret it. Spend the extra money to consult with a self storage attorney who has experience. Find the self storage guys and gals and get them in your corner. Spend the money. And do it right." - Adam Armstrong

Gabfocus Takeaway

Not only is self storage one of the most flexible, lucrative real estate assets, but also it's an industry full of helpful, good people. It's easy to get started, but takes a lifetime to master. Like all fields, there's an endless amount to learn and experience. Time and time again, our panelists reminded us that taking your time, doing your due diligence, and working with self storage specialists is essential. Self storage isn't a "get-rich-quick" investment, it's a "do-it-the-right-way" business. Those who work hard to build something stable will outlast those who are moving too fast and cutting corners.

What are Gabfocus Sessions?

Gabfocus Sessions are virtual workshops for self storage owners, managers, and operators. Brought to you by the team behind Gabfest: StoragePug and Affordable Storage Guys Management.

Each session features hand-picked industry pros who will dive deep into relevant topics surrounding our industry, share best practices, and explore trends in the market. It's our hope that these sessions help you navigate your self storage business better during these uncertain times.

Want to learn more about self storage? Join us on select Thursdays for Gabfocus.