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Saturday, December 20, 2014

SaaS Property Management Software (PMS) for Sale -- Marc Charles Update

10:14 AM


Here's another software company for sale.

I think the price is kind of steep. But I think everything is steep :)

But I like SaaS services, property management and the fact this business is profitable right now.

Check it out:


PS Check out two new ways to make money in 2015

Importing Fortunes

MicroGig Riches

Thursday, December 18, 2014

OBGYN Practice for Sale -- Marc Charles Update

9:22 AM

Hey Gang:

I like the Merger Network. They offer businesses for sale without the hype, deception and games most brokerages play.

I prefer to buy businesses direct from sellers, and advise my consulting clients to do the same thing.

Plus, when you come into a deal you'll have either "strong" or "weak" hands. That means you have the funds, business savvy and ability to close deals in your favor, or you have no funding, no business experience in the given field and therefore usually get taken.

Granted, I think the good deal is profitable for both parties. This is why most of the deals and business sales I've put together do not come undone. I try to make sure everyone is happy.'s a OBGYN practice for sale. This is a high demand market and service.

Post your thoughts.


PS Check out my two new programs for making money in 2015.

Importing Fortunes

MicroGig Riches

Wednesday, December 17, 2014

Is Starting a Business for $1 Actually Possible by Marc Charles

12:22 PM


Is it possible to start a business for $1 in the real world?

My friend and client thinks so.....

Here's his pitch:

Start Your Own Internet Business Today For Just $1!

Marc Charles

Tuesday, December 16, 2014

How to Make $10,000 Selling a Simple Product Online with Google's Help by Marc Charles

How to Make $10,000 Selling a Simple Product Online with Google's Help!

10:13 AM

Dear Entrepreneur:

Bob Maydonik makes $10,000 to $20,000 every month importing a simple product from China and selling it online.

He also secured a unique partnership with Google to design his AdWords campaign for him.

I talked to Bob on Monday about his little venture.

On top of that, Google provided advertising seed money for him to boot!

I’ll show you how Bob does it and how you could do something similar too.

As some of you know, I wrote a comprehensive home study course and e-book called China Wholesale Trader. An updated edition will be available soon from AWAI.

But know this…..

I’m not a rookie when it comes to outsourcing companies in China, and importing products for resale.

What’s more, my good friend and consulting client Phillip Sterling was in the process of launching a venture to export cigarettes to China and sell them under a “Mary Kay Cosmetics” business model, until his untimely death in 2004.

This was before all the “big boys” got ahold of  the strategy.

And so…I have a little insight into exporting products into China as well.

Here’s what Bob Maydonik did ….

Bob designed an oversized yoga mat which measures 6’ x 6’.

He called his company and product Square36.

This simple product makes $10,000-$25,000 per month for Bob Maydonik.

It took Bob about a year and a half to get this thing up and running, and become profitable.  You could do it much faster with the information in today’s issue!

Bob got the idea for an oversized yoga mat while doing the training program  P90X. He told me he was annoyed the size of typical yoga mats.

A New Site Opens the Door for You …..

With the idea in hand Bob he set out to find someone to design and manufacture it.

The he stumbled on is a Monster Resource for entrepreneurs to manufacture and import products from China. is one of the highest traffic business websites on the Internet.

I’m dead serious…..they have more than 6 million registered users and facilitate more than $6 billion dollars in transactions every year.

Bob located a company to manufacture the Square36 and export it to the US super cheap!

The next step was to get a website up and running…. here it is:

A website is the easy part.

Granted, a nice website with dependable ecommerce takes a little effort……generic templates won’t work.

But most entrepreneurs get overwhelmed with all the website stuff.

Focus on users and customers….NOT on your company, product or prices….and you’ll be fine.

Bob simply jotted down some ideas for his website and handed it to a freelance designer. It should only take a couple of days to develop a simple ten page website.

In fact, whenever you work with a webmaster, designer or programmer ALWAYS insist on completion date. If they can’t do it don’t hire them.

If you hire or retain someone with “artist tendencies” you could wait for years to get a website built!

I’m serious….I’m telling you this from experience on hundreds of ventures and websites.

Enough said.

The next thing Bob did was approach Google to buy keyword advertising.

But get this……..

Google built the Square36 AdWords campaign for them!

You heard right.

Most people don’t realize Google offers free consulting and assistance when it comes to setting up an AdWords campaign.

Yes…..Google wants your money…as much as possible.

But Google understands (better than most)  they can’t make big bucks over the long term without helping people make money.

On top of that, Google gave Square36 seed money credit to launch the product and the campaign!

One of the biggest mistakes Bob made (in his words) were the first twenty prototypes of the oversized yoga mat.

They bought a HUGE roll of PVC mat and asked the yoga supply wholesaler to cut them into 6′ x 6′ mats.

But the wholesaler ripped off their idea! This is fairly common but it always hurts.

In addition, the wholesale company grabbed the photo of Bob’s mat and took credit for it.

Bob quickly dealt with the situation by changing the color of our mat to black, increasing the density and thickness, and then embossing their logo on it.

Oh….Bob dumped the US wholesaler and went with a reputable company in China.

Bob mentioned the ripoff wholesaler has done a lousy job marketing their “knock off” product and so it hasn’t affected Square36 sales whatsoever.

Million Dollar Lesson

Bob Maydonik learned a million dollar lesson about doing business in China.

When you do business in China the most important thing is the “connection”.

In other words, if you meet with a Chinese business partner and talk about your family for two hours! In the last ten minutes of a meeting the topic of terms and pricing might surface.

“If you take the factory manager out for beers you’ll get way better pricing & terms”, Bob said.

The business culture in China is built our “connections”, family, friends, and associates,

The biggest thing Bob learned about online marketing (and Google AdWords) is the time of day matters.

In other words, most people aren’t shopping online during their workday. The ads running on weekday nights always perform best.

Bob also said incorporating the cost of shipping into the price is the best way to go. Advertising “FREE SHIPPING” is very effective when it comes to Google AdWords campaigns.

Bob swears by the Alibaba.

He told me entrepreneurs new to this business should find a minimum of three manufacturers who can make what you want.

When you’re getting stuff made in China there’s a good chance the manufacturers will be in the same town (different towns seem to specialize in manufacturing one type of product).

If you can visit manufactuers in person, do it. Bob and his partner visited five factories for the Square36 mat. But only one of the five factories could actually do their project.

Bob registered his Internet domain (URL) with They host the domain at

Bob said the only thing he would you do differently is pick a product that’s easier to ship. A 6′ x 6′ yoga mat weighs about ten pounds. It’s as easy to ship as a pair of shoes or a DVD.

What’s more, you can fit a much smaller product in a Sea-Can, this would mean significant savings.

That’s it!

Bob saw a need, developed an idea, started SUPER small, found an inexpensive way to manufacture the product and import it. Then he got some help from Google to set up a profitable AdWords campaign.

You da man!

Please send me your thoughts, ideas, complaints or feedback. We read every comment, email, post and snail mail letter.


Marc Charles
“The King of Business Opportunities”

PS Check out my NEW Program -- Importing Riches 2015 with step by step instructions for doing this yourself.

 *** Action Strategy ***

Do you have an idea for a product?

Hold on quick draw!

Everyone has an idea for a product. 

You need to make sure there’s an existing market for it. 

Don’t try to invent or build a demand for something….it’ll cost you millions.

Instead, focus on products already selling in the marketplace. 

Three tools I use are Google, eBay and infomercials. Search Google Products and eBay for products selling now. You can use Terapeak to find out what’s selling on eBay too.

Infomercials are a great resource too. 

Do you know how much money it takes to develop, market and sell products through an infomercial? The answer is a boatload. 

So….if you see repeat infomercials you can bet they are probably selling products like crazy.

Then go to and find a company to make it for you, and import it.
Start small, test, and roll it out!

****Valuable Resources****

TradeKey (similar to – excellent resource)
As Seen On TV (hundreds of commercials and infomercials)
Importing Fortunes Program

Saturday, December 13, 2014

New Years Eve Events

9:22 AM


One of my clients set up a great site to promote New Years Even events.

Check it out.......




Friday, December 12, 2014

How to Make Actual Money in the Pet Market by Marc Charles

I received this question from an entrepreneur last week.

Question: I'd like to find a way to make money in the pet supplies market. I'm watching other people do it, and I think I can do it much better. Please send me your thoughts on this market.
L.R. Atlanta GA

Hi L.R.:

Thanks for the question and post.

I like the pet supplies market......a lot.

I've also helped a lot of businesses and entrepreneurs in this market too.

Funny thing though........

One of the most sucessful entrepreneurs in this market started out with one of the most pathetic websites I've ever seen!

So....don't base everything on a "fancy" website. my opinion we're in a Depression....we passed the so-called "recession" several months ago.

But the pet supplies market online is still going strong. People will always take care of their animals and pets.

This goes for pet sitting, pet walking and pet spas (I'm not kidding!).

Here's part of an article I wrote for Early to Rise on the topic:


Dear Entrepreneur:

People are crazy about their pets. I see it in our house every day. We spent more money this year on special pet food, toys, and treats than we spent going to the movies ... but I didn't realize this was a $34 billion market!

There are several ways to profit in this market. One of the best is by selling pet supplies, toys, and/or specialty foods directly to consumers.

You'll make even more money by targeting pet lovers who regularly shell out big bucks for these items without hesitation.

In today's issue, I'll focus on three opportunities that will enable you to take advantage of this incredible "pet lovers' market."

Here's a short list of products and services that are hot sellers (online and off):

* Pet Pages (pet websites and hosting)

* Toys (Forget about squeaking bones, has more than 10,000 different toys to choose from.)

* Pet Insurance (I'm not kidding. Premiums start at $1 a day.)

* Pet Yellow Pages

* Pet Adoption Services

* Pet E-mail Newsletters

* Pet Charities

* Pet Grams (sent via e-mail)

* Pet Gift Cards (huge!)

* Pet Shows (Everybody knows how big dog and cat shows are - but horse and bird shows are even bigger.)

* Pet Vitamins and Supplements

* Organic Pet Food (Our cat won't touch it - but it's a hot rising trend.)

If you want to launch a business and profit from this market in the offline world (via direct mail), here are 3 simple steps to take:

1. Obtain a mailing list of recent repeat buyers who have purchased pet supplies via direct mail that are in the price range of the products you want to sell.

2. Obtain the names of a pet food manufacturer and/or supplier who is willing to process your customers' orders and drop-ship them for you. Here are two such companies: CarefreeVet and Great Eastern Pet Supply.

3. Obtain preprinted catalogs that you can send to qualified prospects. Most pet supply wholesalers, drop-shippers, and affiliates make these available for you to use.

If you don't want to handle telephone orders yourself, you can retain a call center to do it for you. You'll find dozens of call centers that specialize in this type of thing at, or you can do a quick search on Google.

If you prefer to market pet products and services online, I've got great news. It has never been easier to sell these things on the Internet., for example, is a specialty pet products retailer that has been very successful in "niche retail." They are ranked among's Top 500.

The primary mechanism for selling pet products and services online is to attract or drive qualified traffic to your website.

You don't have a website? No problem! There are hundreds of companies online that offer instant e-commerce sites or storefronts.

What's more, sites like eBay, Yahoo! Marketplace, and Marketplace can deliver mind-boggling targeted traffic to your site. Or you can just post an instant mini-store on these traffic monsters.

Pet supplies affiliate programs are another great option.

Affiliate programs offer one of the fastest and easiest ways to profit from the pet products bonanza.

With an affiliate program, all you do is post a unique URL link in search engine keyword advertisements, on targeted high-traffic websites, or in targeted e-mail newsletters. When someone clicks on that link, they're brought to a pet supplies website. If that person makes a purchase on the website, you receive a commission.

The affiliate program pays an 8% commission on sales up to $3,000 per month, and a 14% commission on sales over $15,000 per month. pays 15% on monthly sales over $16,000.

The beauty of an affiliate program with strong companies like Petco and PetsMart is they usually stick by their commission structure. (Unlike many small-time operators that revise the commission structure once you start selling like crazy.)

What's more, companies like Petco carry name brands and offer thousands of products.

Be sure to check out affiliate management companies like Commission Junction and Linkshare too. These guys make it super-easy for entrepreneurs like you and me to make money. Think of them as one-click affiliate superstores.

Two other concepts in the pet market that I like are pet insurance and pet pages (websites for pets). offers pet insurance for $1 a month. You could either start your own company or joint venture with as an affiliate. If you choose to go the joint-venture route, your job would be to drive traffic and qualified prospects to their website via your unique pet insurance URL.

And here's the deal with pet websites ...

You could offer your customers dozens of website templates. You can design these pet pages yourself, obtain copyright-free templates on the Web, or hire a freelance designer to do them for you.

You could give the templates away to pet lovers but charge a small annual hosting fee. Or you could give the hosting away and charge for the templates. It's up to you.

If you give the hosting away, reserve the right to post advertising on the pet websites to get extra income.

And that's just for starters ...

Take a look at They offer free pet websites and memorial pages to an active community of like-minded pet lovers. Plus, they make money on advertising by selling pet products as affiliates and with other value-added services.

As you can see, the profit opportunities in the pet lovers' market are enormous - online and offline - and nearly endless.

***Fast-Start Tip***

Determine which niche of the pet market you want to sell into.

If you want to sell pet food, products, insurance, and/or toys online, you'll need to build a simple (e-commerce friendly) website. Use successful websites as a guide.

If you're not making or developing your own products, you'll need to locate a manufacturer or supplier that will process and drop-ship the orders for you. A quick search on Google will provide hundreds of pet supply drop-shippers.

Your marketing efforts will be concentrated on attracting and driving qualified prospects to your site. And there are many ways to do this. You can advertise your products in pet-related e-mail newsletters and on high-traffic pet-related websites. You can also purchase keywords and phrases in the top search engines (like Google, Yahoo!, Lycos, MSN, AOL, and LookSmart).

Hot Tip: Prepaid keyword advertising is becoming even more popular than pay-per-click (PPC). PPC can be very expensive - especially when you're testing dozens or hundreds of keywords. Prepaid keyword ads enable you to determine the cost of your ads upfront. Two leaders in the prepaid keyword advertising area are ExactSeek and

Another option is to become an affiliate with a company like offers thousands of brands, a streamlined affiliate program, brand recognition, and a good reputation with customers and affiliates.

If you prefer an offline direct-marketing approach, you'll need to get your hands on mailing lists of recent repeat pet-product buyers, a manufacturer or supplier to process your orders and drop-ship your products, and a full-color catalog that you can mail to prospects.

As I said, most pet supply wholesalers, drop-shippers, and affiliates make preprinted catalogs available for you to use. Just make sure the order form in the catalog includes a key code so you are credited for all sales.

You could also partner with veterinarians and provide them with pet products on a wholesale level. You can purchase thousands of top-quality pet products from China for pennies on the dollar.

Check out my Importing Fortunes 2015 while you're at it. This is the best program of its kind on the market - bar none!

If you live near a top pet supplies direct marketer, consider going to work for them on a temporary basis. If you're lucky, that will put you in a position to receive a million-dollar hands-on education. There may also be an opportunity for you to start or develop a new channel for the company, whereby you would receive a percentage of the profits if it's successful.

There you have it!

Now you have everything you need to know in order to profit from the $34 billion+ Pet Lovers' Market!

Additional Resources:

Responsive mailing lists

Pet Products Affiliate Programs

Doctors Smith and Foster






Pet Supply and Food Manufacturers (that offer drop-shipping)

Worldwide Brands


Exotic Nutrition

Purina Mills


Free Hosting - DotEasy

Wednesday, December 10, 2014

REVIEW "Get Paid EVERY Time Netflix Rents a Movie" by Marc Charles

9:22 AM


Reviewing a new promo this morning.......

"Get Paid EVERY Time Netflix Rents a Movie"

I thought the headline was really good. The actual promotion video is pretty good too.
I guess I would give it 5 stars out of 10. I'd like them to shoot for 7-8 stars.

My biggest problem is the length of the video promotion. I know a lot of people LOVE long form sales letters and landing pages.

But what about long form video sales letters? I'm not a big fan.

The one exception would be if you could hold my attention for 23 minutes. The video I reviewed could not...

And of course.....the old can't "fast forward" trick is in play too. I hate the fact I can't fast forward a video to get to the bottom line, close or "pitch".

Of course copywriters will argue there's a reason for "no fast forward" videos. But at least with a landing page or snail mail letter I can skip to the end or read the PS.

Oh well.....I still like the headline and lead.

Marc Charles

Sunday, December 7, 2014

No Online Success -- Just More Failures by Marc Charles

3:22 PM


I've enclosed a thread I found on Warrior Forum the other day.

There are very few sites that compare to Warrior Forum when it comes to Internet Marketing and web based businesses.

If you follow sites that are better -- in terms of traffic, participation, and a great blend of newbies and seasoned professionals.......please send them my way.

Marc Charles


Member Posted:

Its been thousands of dollars I've burned through for
the past 8 years and haven't made a profit. I spend countless money
promoting this or that and get no returns at all. I truly feel helpless now.
I create a squeeze page I buy domain names, I do everything the gurus tell me...
Yet I don't make a single profit.

This month alone I spent $800 on advertising and haven't made
a single profit... I buy traffic from Facebook or another "top teir" traffic source
only to be left on the short end of the stick... again.

There has to be something I'm doing wrong, after 8 years and not turning a single profit
there has to be something I'm doing wrong or am I just having bad luck in life ?

Over the 8 years in IM I probably spent close to $4000 in buying training courses,
ebooks and the next best thing, also jumping into MLM but, failed at everyone. It annoys
me because everyone else on the internet makes it seem so real and easy. Please I seek help, I'm 24 years old and running out of options.

AzoogleAds = $950.00 (They shutdown due to crazy voodoo)
CJ = $300 8 Years Later
Various Affiliate Sites = $200 8 Years Later
Clickbank = $0.00 8 Years Later



Ya, something is wrong if you haven't done well in 8 years.

But, there are so many reasons, your not being very specific. You buy traffic and send it to a squeeze page. What is the conversion on the squeeze page? Do you have a sales funnel in place? How well is that converting?

How big is your list(s)? how often do you mail them? What do you mail them? What is your open rate? What is your CTR?

It can all be tracked and should be tracked, then you can pin point what is not working.

Could be so many thing. You gotta give more info. 


I would recommend that you get yourself a mentor.

I have been struggling for a few years myself without making any money, but after I got myself a mentor I started seeing money coming in.

That is what I would recommend you to do.

#3 (my favorite response)

top Spending Money.

Listen, I began in the business 20 years ago. This was a time when no one really had a clue. You had no moneymaking guides. Blogs didn't exist. And if someone had suggested paying for private access to a forum, people would have pointed and giggled.

Investment is a key ingredient to a successful business. BUT . . . you need to know how to invest first. No offense, but you don't. Stop spending until you do.

Now, instead of writing the typical 20,000 word dissertation you often see in this vicinity, a wordy novel with literally zero worth, I'm going to give you some pointed advice. It won't be perfect because I don't know you well enough, and it won't be all you need, because I don't have the time.

1. In case I haven't made myself clear already: Stop spending money.
2. Learn how to setup a squeeze page and a sales funnel.
3. Learn how to send FREE TRAFFIC from Youtube, FB, G+, and Twitter.
4. Grow your list.

If you don't already have hosting and something like aWeber, and I really hope you do after blowing 8K, you can get them cheap. It costs nothing, if done correctly, getting traffic on those social networks.

You take my advice and in 3 to 6 months, you'll have a real business. Carry on doing what you're doing and you'll just be another guy who blew a ton of cash and failed.

This is your wake-up call, buddy. Time to make some money.


Friday, December 5, 2014

Self Storage Real Estate by Marc Charles


I'm reposting an article I wrote last year on this market.

I also have a book called New Real Estate Riches -- available on Amazon.

I still like this market.

Marc Charles


Self Storage Real Estate Millions

5:44 AM

Dear Entrepreneur:

My friend P.S. launched what would become a multi-billion dollar real estate market in the 1970’s. 

This “hidden” real estate is still making entrepreneurs a lot of money. 

In fact, five people on the Forbes 400 Richest List have ties to this phenomenal market.
And the market keeps growing despite the recession. 

More important, the money making potential of this baby is still under the radar!

One of the reasons the market remains hidden is because it’s not “sexy” and it doesn’t have enough “flash” for financial talk shows.

The best part is you don’t have to be a billionaire or even a millionaire to make money in this market. 

Plus it’s fairly easy to get involved, and especially as a passive investor. 

You don’t need special training, college degrees, or real estate expertise. These things won’t hurt you, but they’re not required.

The market I’m talking about to is “self storage” real estate.

And here’s the kicker…….

You can start out small and build this business in a way which suits your lifestyle.

My good friend P.K. in Henderson NV started a small venture about a ten years ago and now controls three self storage investments. 

If you like the idea of residual income (without the headaches of typical real estate investments) this could be the perfect opportunity for you.

My friend P.S. whom I mentioned, developed a unique twist in this market called a self storage real estate investment trust (REIT).

You’ll like this……

Little-Known “Investment Trust” Angel

A self storage real estate investment trust or REIT is similar to conventional REITs. And it can be an incredible tool for generating substantial wealth, and in many cases it can reduce tax burdens.

If you’re not familiar with this concept, I’ll break it down for you.

A REIT is a tax designation for a corporation investing in real estate. A REIT can reduce or eliminate corporate income taxes. 

On the flip side, REITs are required to distribute 90 percent of the income to shareholders. This income may be taxable in the hands of the investors.

The REIT structure was designed to provide a similar structure for investment in real estate as mutual funds provide for investment in stocks. 

Like other corporations, REITs can be publicly or privately held. 

Public REITs may be listed on public stock exchanges like shares of common stock in other firms.

Self Storage Wildfire

The modern self storage business in the U.S. began in Texas in the late 1960’s. 

But self storage can be traced back to the United Kingdom more than 800 years ago! 

People are still buying “stuff” and running out of room in their houses, apartments and businesses so they need somewhere to put it.

Today, you can find thousands of self storage buildings along major highways throughout the U.S., Canada, South America, the U.K., and Australia. 

However, the neat thing is this business is not limited to prime locations along major highways. 

You can find self storage properties in almost every town, village and rural area around the world.

Here’s the deal……

The average self storage facility consists of about 100 storage units. 

In larger metropolitan areas you can find facilities with 500 units or more. 

I toured a facility in Orlando, Florida recently with more than 2,500 units!

The dimensions of the storage rental units vary. But the most common sizes are 5’ x 10’, 8’ x 10’, 10’ x 10’, and 10’ x 15’. 

Customers can rent a self storage unit to customers for 30 days or as long as 5 years or more.
The average rent for a 10’ x 10’ storage unit in the U.S. in 2010 was $79 per month, according to Inside Self Storage magazine. 

The rent in larger cities can be as high as $300 a month. 

But get this……another surprising source of revenue in this business is late fees.

Late rental fees –typically run $5 to $25 per month.

Another source of revenue is the auctioning off of storage-unit contents when renters don’t pay within the certain period of time.

One of the hottest shows of the year is Storage Wars on A&E. It details the self storage auction business… gotta love it!

Anyway, an auction occurs when the owners have forfeited their stored items by failing to pay their rent. As an owner or manager have to clear out contents anyway to make room for a new tenant and selling the contents and make up for at least some of the money the renters owe.
Portable self storage is taking off too.

The biggest player in the portable self storage business is PODS (Portable On Demand Storage). Home Depot and other large retailers are getting into the game now too.

In the 1970’s and 1980’s, self storage owners were buying low budget properties often hidden from view by other buildings and structures. This is not the best formula according to 35-year self storage veteran Paul King of Las Vegas.

Here’s what Paul told me:

“In my experience the most profitable self-storage operations are those located on the way to a grocery store, Wal-Mart, gas station, or home improvement store. It doesn’t hurt if your self storage facility is located on a major road with super-easy access.”
Current trends back up Paul’s opinion.

Today, mega-franchisees are buying prime frontage as well as retail lots, and paying big bucks for them.

Sovran Self Storage Inc. a New York based company has nearly 25 million square feet of self-storage in 381 facilities.

There are hundreds of companies which serve to the self storage industry, too. 

You’ll find mini-storage consultancies, brokerages, and financing companies that specialize in this market. I’ll cover some income opportunities’ in these markets in future issues.

Self storage development seminars are selling out nationwide.

If you think that’s great, then listen to this…

What’s the Big Deal with Self Storage?

The self storage market is considered by many real estate entrepreneurs to be a true “cash cow” venture. 

This simply means operating expenses are relatively low and owners often realize more revenue per square foot than other real estate investments.

The self storage market is almost recession proof. 

I know everyone says his or her market is “recession proof”.

But just think about it. 

The economy is hurting. 

Real estate foreclosures, bankruptcies, and subprime mortgage meltdowns are at historical highs. 

But have you seen any self storage businesses or REIT in this market go bankrupt recently? 

Most of the self storage operations which are not overleveraged with first class management (with an eye for direct marketing) are doing fine.

Why is the self storage market flourishing when so many others are going under? 

One reason is when families are forced to move out of their homes due to financial difficulties they usually need someplace to store their goods – enter self storage!

There are other reasons too. 

But self storage has a relatively small monthly charge. 

Therefore self storage bills are often grouped together with other utility bills like electricity, phone, Internet, cable, and water. 

The delinquency rate in self storage is typically much lower than home or apartment rentals.
Business owners have found self storage useful in a downturn too. They can rent smaller office space and supplement the lack of space with self storage.

Let’s Do the Math! Comparing Other Real Estate Ventures with Self Storage

Here’s an example of what an entrepreneur in Atlanta did recently: 

He purchased an older, three-story building in a rundown section of Atlanta for $550,000 (owner-financed) and converted it to a mini-warehouse consisting of 110 units. The mini-warehouse is currently 85 percent full. 

The monthly rent for a 10’ x 10’ unit is $100. The math is pretty simple: 93 units x $100 = $9,300 per month in revenue. The mortgage payment is $1,100, and there are a few additional costs because of the location. There expenses include a security system, as well as a full-time manager. 

Still, this is an example of how an older building can be converted to a profitable self storage business.

Here’s another example:

An entrepreneur in north Chicago has 75 10’ x 10’ units, for a total of 7,500 square feet. (Actually, it’s a bit more – but we’ll simplify it for this example.)
Her potential revenue (with 75 units rented at $225 per month) is $16,875 per month. $16,875 divided by 7,500 gives her $2.25 per square foot. 

Meanwhile, the typical 2,500-square-foot, three-bedroom home rents for about $1,500 per month. And $1,500 divided by 2,500 equals only $0.60 per square foot!

Can you see why self storage facilities are so attractive?

Let’s look at a medical office building... 

There’s a new 100,000-square-foot medical building in Las Vegas that offers office space from 1,485 to 7,200 square feet in size. 

I’ll use a 2,500-square-foot space (which is about the average) for this example.

Okay, the rent for this space goes for about $1.50 per square foot, or $3,750 per month.
This particular building is 40 percent occupied. With that occupancy rate, let’s say five 2,500-square-foot office units are each generating $3,750 per month for total monthly revenue of $18,750. 

And $18,750 divided by 100,000 square feet equals almost $0.19 cents per square foot in actual revenue.

If the building was 80 percent occupied and the revenue was $120,000 per month, the actual revenue would still come out to only about $1.20 per square foot.

What about a strip mall?

Let’s take a look at a typical strip mall near a nice area in Austin, Texas. A 4,000-square-foot space was recently available for $4,500 per month.

There are 10 units in this particular mall. Three of them were empty.

Four 4,000-square-foot units were currently occupied at $4,500 per month each.
Three 2,500-square-foot units were currently rented at $2,750 per month each.
Four units x $4,500 = $18,000.
Three units x $2,750 = $8,250.
Total revenue: $26,250

The total retail space in this strip mall is approximately 36,000 square feet. With the parking lot, the actual total is about 50,000 square feet.

Here’s the math: $26,250 divided by 50,000 square feet equals only $0.52 cents per square foot!

Not only is the potential profit per square foot of self storage mind boggling – especially as compared to most residential and commercial properties – but get this: self storage does not have most of the headaches typically associated with real estate – like plumbing, live tenants, and wear and tear. On top of that, the cost of utilities for each unit is a bare minimum. Can you say overhead light?

But before you get into this business you have to do your homework:
1. Locate and identify every self storage facility in your area or state.

2. Physically look at all the locations – and take notes. Walk around the property. Rent a traffic meter and stick it on a tree or utility pole (check local regulations to make sure its okay). Observe the condition of the buildings, fences, and traffic to and from the facility.
3. Talk to the managers of the facilities if you want to, but only as if you are a customer looking to rent a unit.
4. Spend 30 minutes per day educating yourself on the industry. Most people don’t do this, but that’s how you become an expert.
5. Subscribe to the industry’s main trade publications (listed below).
6. Do the math!

Self storage is a great business opportunity! The profit margins can be as high as 70 percent.
And one of the most attractive aspects of this business is that there are no people in the units! If you’ve ever been landlord, you know what I’m talking about.

There are ways to really leverage your profit in this industry, too, including my friend’s concept of self storage real estate investment trusts (REITs).

There are also investment partnerships that acquire only the most profitable facilities. 

Real Estate Collapse Actually Helps this Business Grow

As I said at the beginning of this issue, my friend was instrumental in developing the self storage REIT market. 

He would always tell me, “People will always store stuff. And they often have to store even more of it when times are bad or their real estate investments go south.”
Take this advice to heart. 

People will always store stuff. And when real estate investments go sour, people have a lot more stuff to store.

InDetroit, for example. Real estate sales have been plunging for two years in this city, with no end in sight. There are no buyers. In many ways Detroit is a war zone today.

But the self storage business in Detroit is actually pretty healthy. I was unable to find any self storage businesses for sale there. This tells me Detroit’s self storage entrepreneurs may be doing well.

Determine which approach works best for your situation: starting from scratch, buying an established mom-and-pop or prime location facility, or investing in rehabbing a rundown building.

This market is huge and growing! This opportunity is yours for the taking.

Your humble host…..

Marc Charles

***** Action Strategy *****
Self Storage Fast Start Guide 

1)    One way to get started in self storage is by developing your own facility from scratch. This means you would build your own facility from the ground up. 

This approach has some serious flaws. It requires expertise, capital, location selection, and a myriad of other time-consuming and expensive tasks.

2)    A popular alternative would be to acquire an established self storage business. The best terms can usually be found when mom-and-pop operators want to get out of the business. These operators typically sell because it’s been unsuccessful for them. But with an in-depth understanding of this market you can turn these babies around.

Mom-and-pop self storage businesses are rarely listed with conventional real estate brokers.
Here are three simple questions you can ask to determine if an existing self storage business is worth the asking price and if it has the potential to make money for you:
  • How many units does the business have?
  • What is the current occupancy rate?
  • What is the actual drive by auto traffic number?
If a self storage business has 100 (10’ x10’) units… and the current occupancy is 40 to 50 percent... it could be considered a “prime target” by self storage “insiders.” 

But it must have at least moderate levels of drive-by traffic (2,000-5,000 cars per day).

Self storage owners can’t lie about how many units they have, but they might try to “cook the books” regarding occupancy. But if you do your homework, you’ll know if you can make a particular location profitable. 

3)    Instead of going for a mom-and-pop self storage business, you could acquire a self storage facility in a prime location – one where the traffic (and cash flow) is much stronger. These locations are usually very pricey – in the $1 million to $2 million range.

But when you start digging you’ll see why investors gladly shell out the big bucks for these cash cows!

Here are some self storage businesses that were being offered for sale in prime areas on major highway intersections recently:

Western New York, Texas, and Mississippi (12 self storage centers) – $35 million
Southwest Florida (39,000 sq ft/16 acres) – $1.5 million
Loudon, New Hampshire (27,200 sq ft) – $1.2 million
San Clemente, California (22,760 sq ft) – $3 million
Augusta, Georgia (29,900 sq ft) – $545,000
Bow, New Hampshire (16,900 sq ft) – $550,000
Las Vegas, Nevada (74,800 sq ft) – $3.7 million
Coos Bay, Oregon (13,500 sq ft) $650,000
Lubbock, Texas (54,445 sq ft) – $1.2 million
South Chicago Heights, Illinois (49,600 sq ft) – $1 million
Hickory, North Carolina (21,240 sq ft) – $285,000
Paris, Tennessee (7,800 sq ft) – $229,000
Prescott Valley, Arizona (40,300 sq ft) – $2.1 million
Gainesville, Georgia (14+ acres) – $1 million
Ankeny, Iowa (10 acres) – $850,000
Kissimmee, Florida (35,200 sq ft) – $3 million

4)    If starting from scratch or buying an existing mini-warehouse business doesn’t work for you, there is a fourth option.

In years past, the success of self storage was dependent on prime real-estate exposure.
But today, there are rundown, older buildings in many downtown areas which can be converted to a self storage operation. 

Granted, some of these areas aren’t the best place in the world to do business…..including self storage. 

But hundreds of areas across the U.S. and Canada have seen a resurgence of revitalization. 

The one advantage of centrally located self storage in major metro areas with easy access is people – lots and lots of people!

It’s fairly easy to do. And this redevelopment is often welcomed by local civic leaders because they’ve lost a good chunk of their population as a result of the exodus to the suburbs (and exurbs). 

In some cases, you can acquire old buildings at deep discounts. 

By the way, you don’t have to limit yourself to older buildings right in the center of town. 

There’s another growing trend too. It’s converting empty barns and steel buildings in rural areas and retrofitting them for self storage facilities. 

Check out this self storage facility in Waipahu HI!:

**********Valuable Resources ********** (find self storage businesses)
Extra Space Storage (franchise and REIT)
Public Storage (franchise and Public REIT)
U Store It Trust (franchise and REIT)
Global Portable Buildings, Inc. (leading manufacturer of mobile storage units)