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Saturday, February 28, 2015

New EDM Producer is 15 Years Old by Marc Charles

Good morning:

I wanted you to check out a friend of ours. He's a 15 year old EDM producer, and his music is getting noticed.

If you asked him he would tell you it's easy to make money with YouTube, Twitter, Instagram and FB.









Marc Charles

Tuesday, February 24, 2015

The Secret of Qualified Prospects by Marc Charles

6:29 AM

Greetings.

I've written about the secret of "qualified prospects" hundreds of times.

But here's a recap for ya....this is powerful, powerful stuff for ANY business.

Marc

The "A" Prospect Advantage

No matter what you’re selling, your job will be a lot easier of you target your marketing efforts to “A” prospects. By that I mean pre-qualified buyers – people who have already
purchased what you’re selling. Ideally, they’ve done it recently (and often).

“B” prospects are people who have shown an interest in what you’re selling – maybe by calling a toll-free number, sending an e-mail, or writing a letter to ask for more information. They’re interested, and they’ve acted on that interest. That’s great.

But they’re not nearly as valuable to you as “A” prospects.

Where do you find these primo prospects?

First, go to your own list of buyers. Always target them when you create a new product similar to one they’ve bought from you before. Then go directly to a company that has successfully sold products like yours. Rent their mailing lists. Their buyers should respond well to your offer.


Friday, February 20, 2015

The New Forclosure Heaven by Marc Charles

Foreclosure Heaven!

How to Make Money Without Succumbing to Hype, Lies and Circus Acts


7:21 AM

Dear Entrepreneur:

The news media is all doom and gloom about the current real estate market and the economy in general.

I’m here to tell you. You can still make money with foreclosed property, especially in today’s economic climate.

But it’s crucial to separate the facts from fiction and ignore the hype. 

I’ll show you my strategy for foreclosed and bank-owned property. I’ve had a great success with this, and I think it’ll work for you too.

With the way things are today it may seem that the best way to make money with foreclosed property is by telling others how to how to buy and sell it.
In fact, one of the top infomercials in 2008 promoted a product about buying and selling foreclosed property.

Let’s be honest……

Most of the so-called “real estate entrepreneurs” we see on TV make the lion’s share of profit by selling real estate “secrets” (information) to others, rather than actually buying or selling properties themselves.

We all know it’s true.

On top of that, most entrepreneurs approach real estate investment with the exact same way. Almost no one approaches real estate from a unique angle.

People convince themselves they’ll make a ton of money quickly, without risking any money whatsoever, by applying the same shallow ideas.

You’ve probably seen some of these investors profiled in the media. They’re the ones who were “caught short” when the real estate bubble burst….losing everything or they’re STILL HOLDING property and are underwater.

What’s more, most of the real estate product “hawkers” these days conveniently ignore the red tape involved, government bureaucracy, title search problems, contingencies, not to mention a lack of legitimate deals. 

The get-rich-quick impresarios almost never reveal the full downside risk. 

The downside risk is the biggest of deals for me. 

For example, one risk to consider right now is buyers are very hard to find. 

What’s more; the days of “fix and flip” are over in the short term (let’s just say next three to five years is a good guess). Buyers are scarce in most parts of the US and Canada.

Despite the downside, the opportunities for making money with foreclosed and bank owned properties can’t be ignored… even for entrepreneurs coming into the market for the first time.

This is especially true if you are acquiring foreclosed or bank owned properties at deep discounts.

Before jumping on the “foreclosed train” …..keep this in mind

Just because a property is foreclosed, or a bank owns it, does NOT mean it’s a good deal. 

As with any business or investment opportunity, due diligence is always the best approach. You can save and make a bundle with just a little diligent research.

What’s more, it’s a good thing to know who is privy to a particular deal. 

In other words, how many lawyers, accountants, real estate agents, appraisers, city council members, bankers, or other real estate entrepreneurs know about your so-called “foreclosure deal?”A multi-millionaire real estate mogul always reminded me this “golden rule”.

You see, when people have advance knowledge of so-called foreclosure “deals” then they can act. 

Most people, and especially street smart real estate investors, speculators and developers know what a good deal looks like. So you won’t be alone.
But the upside advantage is most real estate pros will not have a long term strategy like you and I. 

Most real estate pros are aware of the foreclosures or bank-owned property deals in their area. This is something my real estate mentor taught me. When it comes to real estate investments, like all investments, you’ll always find amateurs and professionals.

The amateurs are new and uninitiated. The professionals are often more seasoned and very knowledgeable of specific facts.

I’m not sure which camp you reside. I just wanted to pass this insight along.
Whatever your experience level, the best foreclosure deals can always be identified by diligent, patient research. 

Most people are in a hurry (or desperate) to make money and so they usually ignore or skip over important details in order to close a deal. 

In addition, a lot can be said about the importance of a strategy. 

Is your strategy based on an actual market demand or your demands? Are you seeing what you want to see, or how things really are?

The current trend in real estate emphasizes rental revenue (versus appreciation). That’s why foreclosed and bank-owned property is worth a look.
If people can’t afford their homes or condos where will they live? The answer is smaller, more modest homes and/or rental property. 

So there are still buyers and renters out there, but they are looking at certain types of property. That’s where the opportunity lies for you.

The Perfect Insiders Strategy

One strategy would be to capitalize on the current market demand and acquire foreclosed homes or bank-owned properties at deep discounts − and rent them out.

When I say purchasing foreclosed property and bank owned property at deep discounts I’m talking about desperate sellers

In other words, I’m referring to a seller that MUST SELL no matter what.
Billionaire real estate developer Sam Zell is known as the “Grave Dancer” because he dances on a property when it’s almost dead and gone… and no one wants it.

You should apply a similar strategy if you want to make money with foreclosed and bank-owned property.

One of the largest banks in the world is Bank of America. They have a new website featuring hundreds of bank-owned properties for sale. You’ll be amazed at some of the deals featured on their site. But don’t go hog wild… be patient and develop a clear strategy for your business.

Another downside to acquiring, fixing, and holding a foreclosed property with the intention of renting it is a lack of renters.

The housing boom in the US (and Canada) is deflating in a big way. Millions of so-called investors were left holding the bag. 

In other words, most people were planning on making big bucks on their “buy, fix, and flip” strategy. But now they’re holding properties that are worth less than what is owed. And most of the homes flippers are trying to unload are too nice (or pricey) to offer as rental properties. Not good.

In larger cities renters have been easy to come by. But what happens if the renter market softens or collapses? What if hundreds of new fixer uppers hit your market at the same time?

Bank on It - Rental Rates Will Go Down in Most Areas

Can you afford a foreclosed or bank-owned property if the rental income goes down? This is a calculation you must make before buying any property.

The key is buying foreclosed or bank-owned properties at DEEP discounts.
Let’s say you purchase a foreclosed property within two-miles of a Super Wal-Mart for $50,000 (that’s my strategy).

Let’s say the mortgage payment is $415 month ($50,000 @ 5.75% for 15 years according to Mortgage-Calc.com).

Your objective would be to recoup the cost of your mortgage payment, simple maintenance, insurance, property management, taxes, and background checks on prospective tenants.

Just for the fun of it let’s say these expenditures add up to $650 month. In this case you’ll need to rent the house for $650 to cover expenses.
In most areas of the United States and Canada this property would be fairly easy to rent. 

If hundreds of rental properties like this hit your market, then renters will have a smorgasbord of options! This would be bad for you. However, most real estate investors and developers are underwater. 

Therefore the chances are good they will not be in this market. Most of their rental properties will be in the mid to upper range (because of the size of their investment).

Sam Zell is confident the trend toward “rental revenue” versus appreciation has already begun. This doesn’t mean a foreclosed or bank owned property will not appreciate. But don’t bank on it. Instead focus on revenue and patiently acquiring deep discounted properties.

In 10 years, when it’s time to get back into “buy, fix and flip” real estate, you can sell all of your rental properties for cash, or just sit on them with mortgages paid in full.

What happens if other landlords sweeten their deals to renters by including heat, electric, and water?

This may happen in apartment buildings, but I don’t see it happening in single family home rental markets. You’ll have to adjust your strategy accordingly if this occurs. But I think you’re safe.

We haven’t seen a renter’s bull market in the U.S. for a long, long time. Part of the reason is the phenomenal housing boom. In the past, people could own a $450,000 home with nothing down, no background checks, and no proof of income… and pay interest only!

Those days are gone for now.

Buying foreclosed property should be done with some forethought. It most cases it will mean diligent, patient research in locating deep discounted foreclosed properties. 

A weak strategy would be one where you acquire foreclosed or bank-owned property (with the intention of renting it) without preparing for the worst possible outcome.  

This would be hundreds of properties hit the market (in better condition than yours) with rental rates plunging!

You have to plan for this possibility. Like any business, you expect the best but prepare for the worst.

It is possible to make a great living and build substantial wealth purchasing foreclosed and bank-owned properties. And there are hundreds of bank-owned property websites popping up every month. 

Why? Banks are NOT in the real estate business; they are in the MONEY business. And so they are eager to get these properties off the books (in some cases faster than others). 

I also wanted to mention something about competent legal counsel. In my experience, most real estate lawyers are incompetent. But street smart, competent real estate attorney will be worth his or her weight in gold.

I’m amazed how many entrepreneurs enter into real estate transactions without competent legal counsel. Ask around and you’ll find one. I’ve had good success with the referrals at LegalZoom.com too.

Okay, how do you get your hands on deep discounted foreclosed and bank owned properties?

There are hundreds of powerful resources on the Internet. Most of the sites list foreclosed homes for sale. 

But of course, real estate agents always try to get in on the action. Real estate agents seldom tell you about the properties that are not listed by their agency. But like attorneys, you can find agents that are unbiased and knowledgeable.

Here are some sites to help you locate deep discounted foreclosed and bank-owned property:

HUD Works


HUD Homes For Sale


Realty TRAC


iForeclosures


Foreclosure.com

Chase Bank Owned Property


Beal Bank


Fannie Mae

Bank of America


Bid Select


ForeclosureNet


USDA


HSBC



Please keep me posted on your progress.

Your Humble Host,

Marc Charles


***** Action Strategy *****
Buying foreclosed property can be a lot of fun and it can be very profitable.
But it’s important to avoid the typical “foreclosed property spin.” 

As the current renter’s bull market develops you’ll want to be sure you’re not left holding the bag. In other words, it’s always best to consider the worst case scenario. 

There’s always the possibility something will go wrong –especially when it comes to real estate!

The upside is foreclosed property can often be purchased for less than the market value. 

You can contact the top 20 mortgage lenders in your state. Ask for the Real Estate Owned (REO) department. They’ll send you a list of the properties that are currently available. 

Banks typically sell foreclosed properties “as is,” which is similar to buying anything “as is”… there are no warranties, guarantees, or conditions.

You can review the property (and its assessed value) once you obtain the tax map location. The next step will be to submit an offer to the bank (with proper due diligence of course).

Banks almost always respond with counter offer which is higher than you expected.
If you feel the property still has tremendous potential you should counter their offer with a new offer. You’ll be amazed how aggressive banks are in the current environment to “unload” properties.

Granted, locating and purchasing a property BEFORE it reverts to the mortgage company is always the best way to go. But this is one way to get started quickly. 

The main objective is to find smaller homes at DEEP discounts and rent them out to qualified tenants. 

If you purchase two deep discounted properties this year and two properties each year thereafter for the next ten years, you’ll have twenty rental properties. The debt service on deep discounted properties should be manageable.

Let’s say you rent each of these homes for $1,250 per month. If the debt service, taxes, insurance, and maintenance on these twenty homes is $12,000 (about $600 per property), you could conceivably net $13,000 per month!

I hate generic illustrations. 

But if you work the numbers you’ll find acquiring deep discounted bank owned real estate with a view toward renting them makes sense.


******* Valuable Resources *******
GovDeals.com (worth repeating)
RealtyTrac (daily foreclosure updates)
Bank of America Bank-Owned Property
Dean Graziosi – Be a Real Estate Millionaire Now (street savvy buyer)
GovernmentAuctions.org
 Realty Times
The Bargain Network
Wachovia Bank Owned Real Estate
Trulia (real estate research tool)
Inman Real Estate News
All Foreclosures.com

Sunday, February 15, 2015

Used Car Dealerships Done Right by Marc Charles

10:06 AM

Greetings:

I'm reposting a question I received recently about my views on used car dealerships.

I thought you would enjoy this....

Feel free to post your comments!

Marc




Question: I'm thinking about starting a used car dealership. I've researched 23 comparable used car dealerships in my state over a three year period. I've also been involved in the industry at several levels - but never as a owner principle. I'm not over extending myself with debt and inventory...in other words I'm starting really small. My question is in this economy, which I think is a depression, am I nuts?
A.V. Scottsdale AR


Answer Marc Charles:

Most of the people and entrepreneurs I meet with rarely do the research and due diligence you've done. I'm serious. Most people are in too much of a hurry to start a business, and most people bite off more then they can chew.

But, as I've mentioned in my newsletters, columns and The Liberty Street Letter, a nieghborhood used car dealership can be a very wise choice, especially in a depression.

New car dealerships are dropping like flies, downsizing, and just trying to survive until the next bull market arrives. The next bull market in new cars may be ten years down the road..or longer.

What's more, most new car dealers are expanding their used car inventory....in a big way, because that's what people want (and can afford).

A small neighborhood used car lot with an Internet division, could do extremely well.

Obviously if you can offer reasonably priced services like financing, repair, sound system installation, interior repair and upgrades (like carpet and seats).....you should do extremely well.

On top of that, you'll be competing with the huge auto mall superstores (with dedicated Internet divisions and wholesale auction access)....but who cares! Most of these guys will be ghost towns if the depression persists...which I think it will.

And by the way, you can run commercials just like they do on YouTube...FREE!

So...no I don't think you're crazy. In fact, please keep me posted. I put you on my list for buying a car!


Marc Charles

Friday, February 13, 2015

Paul’s Secret for Making More Money per Square Foot by Marc Charles



Paul’s Secret for Making More Money per Square Foot than Apartments, Homes, Medical Office Space, Strip Malls and Hotel Rooms

6:22 AM

Dear Entrepreneur:

I just returned from the largest meeting of real estate “junkies” in the world.
I don’t mean “junkies” in a bad sense.

The real estate industry looks on these guys as a bunch of kooks, lowlifes and “hacks”.

The problem is….these guys are making money. It seems everyone else in real estate is bankrupt, underwater, or leveraged to the hilt.

I’ll show you how these guys are making money in a depression.

Six people on the Forbes 400 Richest List have ties to this market, so not everyone is a kook.

On top of that, the market is growing despite the economy.

You Don’t Need to Be Rich to GET RICH in this Market

You don’t have to be a billionaire or even a millionaire to make money in this market.

You can also get involved as a passive investor, and leave the heavy lifting to someone else.

No Special Training – But TONS of Common Sense

You don’t need any special training, a college degree, or a real estate license.
The market is “self-storage” real estate.

I wrote a book about the opportunities – but I’ll give you the essence of it right now.

Here’s the best part of this business…

You can start out small and build this business in a way which suits your lifestyle.
My good friend Paul K. in Henderson NV started a small venture about fifteen years ago and now controls four 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.

Another friend Phil S. from Santa Monica CA developed a unique twist to this market. It’s 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 the 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.

How Self-Storage Became a Hot Rising Trend

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’ and 10’ x 10’.

Customers can rent a self-storage unit 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 2011 was $79 per month, according to Inside Self Storage magazine.

The rent in larger cities can be as high as $300 a month (in Manhattan it’s off the charts).

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…..if you haven’t seen it, I highly recommend you do. Believe me….you’ll like 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, although it’s not as big.

The largest 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 some real estate entrepreneurs to be a true “cash cow” venture.

This simply means operating expenses are relatively low and the owners often realize more revenue per square foot than other real estate investments.
The self-storage market is practically recession proof.

I know everyone says his or her market is “recession proof”!
I get tired of hearing this.

But 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 REITs (in this market) go bankrupt recently?

Most of the self-storage operations in larger cities with first class management (and an eye for direct marketing) are doing fine.

Why does the self-storage market flourish 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 need someplace to store their goods – enter self-storage!
There are other reasons too.

What’s more, self-storage rent is a relatively small monthly charge.
Therefore people typically group self-storage bills together with utility bills, 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.

The Numbers Don’t Lie! Comparing Other Real Estate Ventures with Self Storage

Here’s an example of an entrepreneur in Atlanta.

T.R. 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 simple: 93 units x $100 = $9,300 per month in revenue. T.R’s
 mortgage payment is about $1,100 per month. There are a few additional costs because of his location. These expenses include a security system, drive by security and a full-time, on site manager.

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

Here’s another example:

R.G. is an entrepreneur in North Chicago. She has 75 10’ x 10’ units, for a total of 7,500 square feet. (Actually, there’s a bit more – but we’ll simplify it for this example.)

R.G’s 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, a typical 2,500-square-foot, three-bedroom home in the same area rents for about $1,500 per month. $1,500 divided by 2,500 equals only $0.60 per square foot!

Can you see why self-storage facilities are so attractive?

Take a look at a medical office building...

There’s a new 100,000-square-foot medical building in Las Vegas which offers office space from 1,485 to 7,200 square feet in size.
I’ll use a 2,500-square-foot space (which is the average) for this example.

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 strip mall rentals?

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’ll need to perform some due diligence and homework:

1. Locate and identify every self-storage facility in your area or state.
2. Physically inspect 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 viable 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 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.

In Detroit, 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 like 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…..

(Ed Note:  Marc Charles is referred to as "The King of Business Opportunities" ....and for good reason. He should be known as "The King of Legitimate Business Opportunities"...because he's launched, bought, sold reviewed and advised on hundreds of businesses and money making opportunities. He understands legitimate opportunities. Marc provides crucial updates regarding legitimate business and money making opportunities in this blog)

Action Strategy


Self-Storage Fast Start Tips
1)    One way to get started in self-storage is by developing your own facility from the ground up.
This approach requires capital, location and a myriad of other tasks. But like Paul says, the payoff is substantial.
2)    Acquire an established self-storage business. Operators often sell at a discount because it’s been unsuccessful for them. But with an in-depth understanding of the business and direct marketing you can turn these businesses around.
Three simple questions you can ask self-storage business sellers:
·        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)    You could acquire a self-storage facility in a prime location – one where the traffic (and cash flow) is much stronger. These locations are 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

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 Koloa, Hawaii

                      Koloa Self Storage
Valuable Resources



SelfStorage.com (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. (a leading manufacturer of mobile storage units)