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Property Spotlight: Investing in Self-Storage, Storage Units, Or Storage Space
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Is this storage unit big enough?
Thinking about investing in storage units?…I mean storage space….what I meant to say was self-storage?
Greetings from the metropolis of Cedar Crest, NM!
Actually….from Corley’s Automotive…where my car is in the shop…again.
Anyway…
This is the second post in a series that will highlight the different types of properties available to investors. The posts are an overview of general information. As with all investments, you should properly research the opportunities to determine whether they fit your portfolio.
What are storage spaces?
Storage spaces are properties that lease units designed to store personal property but are not designated as living spaces. 
Storage spaces may offer a variety of unit sizes, with some large enough to hold automobiles. Many storage spaces offer an on-site manager that processes paperwork during office hours and lives on-site to provide security. Many managers receive their living arrangements in addition to a nominal salary in exchange for their services.
What Do I Need to Know About Investing In Storage Space Properties?
Storage spaces can be a very efficient way to build your wealth, but you need to do your research to find the right opportunity for you.
1. One of the easiest ways to invest in a storage space is to invest in a Self Storage Real Estate Investment Trust “REIT”. According to investorwords.com, a REIT is a corporation or trust that uses pooled capital of many investors to purchase and manage income properties. REITs require no minimum investment, and pay yields in the form of dividends, which are not based on share performance. Investing in a REIT will yield regular income without the hassle of active management.
2. A significant number of storage space tenants are clients. This means that you secure long-term, low-risk tenants. The bottom line is that you receive steady income with low risk.
3. Economic data has shown that this sector has not been hit as hard as others by the recession.
4. Barriers to entry are significantly lower because construction costs are less than that of other types of property.
5. Maintenance costs are low. Storage spaces are generally constructed from steel or other high-grade industrial materials that are designed to last longer than standard residential materials.
6. Eviction costs generally do not exist. Most states require that unit contents be auctioned.
7. Taxes and insurance costs are typically lower than other types of properties.
What Are the Cons To Owning Storage Space Properties?
Storage space properties can be quick income generators; there are drawbacks to owning this type of property. The market you want to invest in may be too well penetrated. This means the supply of storage spaces may outweigh the demand. Additionally, your region may not have the demographics to support the need for storage spaces. Do many of the residences in your market offer full basements that could feasibly store large amounts of personal property? Is your area full of late teens that may not have acquired enough property to fill an apartment, let alone a storage space?
In Conclusion
Storage space properties are a common addition to many investment portfolios. If you are considering investing in a storage space property, take the time to tour other properties in the market and look at each building’s performance. And, as always, if you have questions, contact the experts at The Real Wealth Company.
Until next time…..rob
Commercial Real Estate: Starting Out – Updates, Fixes And Upgrades with Minimal Capital
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Maybe we should hang some balloons out front?
Greetings from the metropolis of Cedar Crest, NM
I love living amongst the pine trees. Pine trees give off the most amazing aroma…especially after a rain. Something I try to not take for granted.
Anyway….
There are several things our property management company, Jaxon Texas Property Management, focuses on. But the one thing we take pride in is that our assets looks great on the outside and inside. One particular asset we have is a mobile home park in Texas. If you know anything about mobile home parks (the politically correct way to label it is Manufactured Housing 
Community) the one thing you probably know is most of them look like dumps. I must say, Jaxon Texas has done an amazing job keeping the park looking great and appealing to the eye. Obviously, keeping the park looking good is what attracts and keeps tenants. So…it is important how a property looks. Whether it is a “C” property or an “A” property, “good looks” are key to being successful in commercial real estate investing. So…here we go
Whether you just purchased your first investment property or you acquired your 100th, updating is a great way to attract better long-term tenants, retain existing tenants and increase the value of the property. But, in these times, many people are focusing on updates that do not require substantial capital or investment. This article will highlight a few easy and inexpensive fixes that can net high returns.
Fixing The Inside
There are a few easy fixes and upgrades to any property that can allow you to increase your rents, which increases your income.
1. Paint—A new coat of paint goes a long way. If your property is smaller, this is even something you can do yourself. Pick warm earth tone neutral colors. If you have a multifamily unit, tenants can easily imagine their residential belongings in fresh taupe or white rooms. If you have an office building, warm neutrals bring an inviting but professional feeling to the space. To save money, you don’t have to hire an expensive contractor. Shop around. You may be able to find college students on summer break who work quickly and inexpensively.
2. Fixtures—Simple and classic goes a long way. Every space has lights. Most home improvement stores offer modern light fixtures for $10-$30 that can really change the way a space looks. Cabinets, doorknobs and other pulls can also easily be updated for a small investment.
3. New flooring—If you have a multifamily property, ripping out old carpet can be time consuming. However, there is substantial value to offering hardwood floors to renters. For office spaces, hire a professional carpet cleaning service. Keep 
carpet cleaning contractors on retainer to revisit the space every six months and you may even get a discount.
Fixing The Outside
Many tenants make an initial decision from the street. If your property is overgrown or the landscaping is not up to par, it can steer tenants away. From a tenant’s perspective, if you don’t keep your landscaping up to snuff, why would you take care of anything else in a timely fashion?
1. Plant a few perennials—These are low maintenance plants that add a welcoming feeling to your property.
2. Mulch—This will keep weeds at bay and keep your property looking fresh. Mulch can also help mitigate erosion and foundation damage to your property.
3. Clean the Gutters—It sounds simple, but is well worth it.
4. Fix and paint the pave parking lot/trash can bay/dumpster area—People always take out the trash and park their cars. If these historically dirty areas look good, it makes everything look good.
5. Trim surrounding trees and plant new trees—This will help keep your property looking good and prevent future damage from acts of nature.
Cleaning up the inside and the outside will make your property increase in value and allow you to attract the right kind of tenants. And, you can make these fixes without spending all the income you receive from your renters!
Until next time…..rob
So You Want To Be An Investor…What Now?
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Take action huh?
Greeting from the metropolis of Cedar Crest, NM.
Now that basketball camp is over for my boys, swim team for my oldest rolls right in. My son Colt has his first swim meet tomorrow in the big town of Albuquerque. This should be interesting since I have never been to a swim competition before.
Anyway…..
Today’s topic is taking the first step in real estate investing. When I first made the decision back in early 2000, it was due to a real estate investment book I bought at the local book store. When I first read it….it clicked right away. I knew real estate investing was where I wanted to be. I read the book again and again…then went out on my own and quickly figured out…I needed to know more. That was when I signed up for the bootcamp….yeah…it cost 5K or 7K….which, at the time, was a lot! But it was the most important thing I did. Little did I know how my life would change. The decision to invest in real estate lead to Grassland Investments, Jaxon Texas Property management, Tumbleweed Row….etc…etc. From that one decision, I became friends with Emily Cressey, Peter Conti, Diane Kennedy….and the list goes on and on. So…If real estate is in your future or you are already deep into real estate investing but want to make the leap to commercial real esate investing….here are a few thoughts…….
Taking the next step….or jumping off a cliff?
If you have already figured out that you are ready to invest, you have taken the first step toward building your wealth. Your next best step toward smart investing is to do your research. Along with your research, you should find a mentor or seasoned investor that you can align yourself with. Mentors are invaluable assets when you are starting your investment career because they can steer you away from riskier decisions with low payouts and help you navigate the investment process. If you’re reading this, you’ve already found a great group of experts at TheRealWealthBlog.com who can mentor you as you begin your career.
Should I take a Course?
There have been several posts on whether real estate investment courses are worth the money. Real estate investment courses can provide participants with a wealth of knowledge and new tips and tricks for their portfolios. They also can be hundreds or thousands of dollars that would have been better spent on the riskiest of investment. Aligning yourself with a mentor and asking his or her opinion on the course is a great way to evaluate the merits of spending the money.
Should I Look For Properties?
Instead of diving straight into what looks like a great deal, it is better to spend the time arming yourself with the knowledge of what a great deal looks like. A beginner’s assessment of a great deal is going to be very different than an expert’s assessment. And, your first deal will be an emotional accomplishment as well. Having a mentor or relying on the advice of experts, like TheRealWealthBlog.com, can help you determine whether your first deal is the right one.
What Else Should I Do?
1) Educate yourself about your market
2) Find out who the “movers and shakers” are
3) Identify key commercial real estate brokers
4) Find people who are doing what you want to be doing (find those who are successful in commercial real estate investing)
5) Get familiar with comparable properties in your market. Examine how they have performed and determine what amount of work goes into managing them so you are prepared when the right opportunity presents itself.
6) Take action in the right direction…now is not the time to get A.D.D.
And, if you have questions, contact the experts at TheRealWealthBlog.com!