Self storage for low $ down

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Self Storage Investing presentation given by Scott Meyers at the Inside Self Storage World Expo in Las Vegas 2010

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Self storage for low $ down

  1. 1. Inside Self Storage World Expo <ul><li>“ How to Structure and and Fund your Deals in today’s Economy!” </li></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved. Where to Find the $ - Presented by: Scott Meyers
  2. 2. About The Presenter <ul><li>Principal of Alcatraz Storage ®, Storage Now, and Several other Partnerships </li></ul><ul><li>10 Facilities and Growing* </li></ul><ul><li>Certified Self Storage Manager (CSSM©) </li></ul><ul><li>80 Single Family, 400 Multi Family, 120 offices Warehousing, Parking lots – Almost Bankrupt! </li></ul><ul><li>Real Estate Instructor - Univ. of Indianapolis </li></ul><ul><li>Former Executive Director of Indiana’s Largest Small Business Incubator </li></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  3. 3. Background Continued <ul><li>President – SelfStorageInvesting.com </li></ul><ul><li>Author: “The Complete Guide to Finding, Evaluating, and Purchasing Self Storage Facilities © ” Home Study System </li></ul><ul><li>Instructor - Self Storage Academy ® Live 3 Day Event held 6 times per year </li></ul><ul><li>Principal – SSIG Investment Fund </li></ul><ul><li>Nation’s Leading Authority on Buying Class C Facilities </li></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  4. 4. Financing Your Facility <ul><li>Funding Sources for the 1 st Mortgage: </li></ul><ul><li>Seller Financing </li></ul><ul><ul><li>May finance 100% </li></ul></ul><ul><ul><li>No fees, survey, appraisal, environmental, etc. </li></ul></ul><ul><ul><li>Ability to structure a loan that works for both parties </li></ul></ul><ul><ul><li>Still Perform Full Due Diligence! </li></ul></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  5. 5. #2 Mortgage Brokers <ul><ul><li>Invaluable Resource </li></ul></ul><ul><ul><li>Access to many sources </li></ul></ul><ul><ul><li>Shop for best rate & terms </li></ul></ul><ul><ul><li>Worth their 1-2% Fees </li></ul></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  6. 6. #3 Credit Lines <ul><li>Secured or Unsecured for $25,000 - $100,000 </li></ul><ul><li>Low interest rates and payments </li></ul><ul><li>The deal must be able to cover both payments </li></ul><ul><li>Establish BEFORE you need them </li></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  7. 7. # 4 Home equity Loan <ul><li>Low interest rates </li></ul><ul><li>Low payments </li></ul><ul><li>Easy to obtain in a short amount of time </li></ul><ul><li>The deal must support both payments </li></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  8. 8. #5 Equity in other properties <ul><li>Open a line based on equity in other properties </li></ul><ul><li>Akin to a home equity line of credit </li></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  9. 9. #6 Refinance Existing Properties <ul><li>Shift down payment in others to new projects </li></ul><ul><li>Utilize value created to buy more </li></ul><ul><li>Avoid Overleveraging your portfolio past 80% </li></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  10. 10. #7 Self-Directed IRA <ul><li>Shift traditional IRA to Self-Directed IRA </li></ul><ul><ul><li>Equity Trust Company </li></ul></ul><ul><ul><li>Entrust </li></ul></ul><ul><li>Interest, payments, and gains accrue tax Deferred </li></ul><ul><li>Returns are typically higher than stocks </li></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  11. 11. #8 Other People’s IRA’s <ul><li>Many unhappy with stock market returns </li></ul><ul><li>Show how to make self-directed IRA loans </li></ul><ul><li>Safer – see it and touch it </li></ul><ul><li>Pre-Negotiated returns </li></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  12. 12. #9 Friends and Family <ul><li>Straight loans or self-directed IRA’s </li></ul><ul><li>Deferred interest and payments </li></ul><ul><li>Avoid using on “risky” deals </li></ul><ul><li>Only use if the deal supports both payments </li></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  13. 13. #10 Private Lenders <ul><li>Wealthy individuals that lend to investors </li></ul><ul><li>Rates: Competitive to High </li></ul><ul><ul><li>From $0 fees and 7% interest to 5% upfront and 20% interest! </li></ul></ul><ul><li>Typically 6-12 month payback </li></ul><ul><li>They take a 2 nd mortgage as Collateral </li></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  14. 14. Find your own Private Lenders <ul><li>Create A Seminar to Find more Lenders </li></ul><ul><li>Target a Seminar Date </li></ul><ul><li>Pick a location – CC, Hotel, Church </li></ul><ul><li>Target a Lender Group – People who have invested in Bank CD’s </li></ul><ul><li>Buy a list from a list Broker (Infousa.com) of people locally who have money in CD’s </li></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  15. 15. Country Club Money <ul><li>Create a Lender packet </li></ul><ul><ul><li>Introductory letter </li></ul></ul><ul><ul><li>Page showing collateralization </li></ul></ul><ul><ul><li>Blank Promissory note </li></ul></ul><ul><ul><li>Sample sheet showing ROI </li></ul></ul><ul><ul><li>Package in a Binder with Business Card </li></ul></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  16. 16. Country Club Money <ul><li>Create a Credibility book and Website </li></ul><ul><li>Create a PowerPoint ® Presentation </li></ul><ul><ul><li>Define “Private Lender Program” </li></ul></ul><ul><ul><li>Share info about the Industry </li></ul></ul><ul><ul><li>Run Videos of your properties prior to presentation </li></ul></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  17. 17. Country Club Money <ul><li>Design a postcard to mail to the list of people with CD’s for the seminar </li></ul><ul><li>Place an ad in the local newspaper to attract people to the seminar </li></ul><ul><li>Design a form to turn in before leaving to gauge interest </li></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  18. 18. Country Club Money <ul><li>Presentation </li></ul><ul><li>Define Private Mortgage Lending </li></ul><ul><li>Program overview </li></ul><ul><li>How your program works </li></ul><ul><li>ROI and payments </li></ul><ul><li>Loan Sample </li></ul><ul><li>How you will use the $ </li></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  19. 19. Country Club Money <ul><li>Presentation </li></ul><ul><li>Collateral & Security </li></ul><ul><li>Show how to use their IRA </li></ul><ul><li>Company Story – your integrity </li></ul><ul><li>How to Find you – Website, properties, etc. </li></ul><ul><li>Success factors – what sets you apart </li></ul><ul><li>The Next Step? </li></ul><ul><li>Give them the Interest form </li></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  20. 20. #11 Seller Carryback <ul><li>Hold back 20% and make payments example: </li></ul><ul><li>Sales Price $1,000,000 </li></ul><ul><li>1 st mortgage $ 700,000 </li></ul><ul><li>Cash $ 100,000 </li></ul><ul><li>Seller Carryback $ 200,000 </li></ul><ul><li>Seller and buyer execute a note and 2 nd mortgage with buyer making monthly payments to seller for usually 3-5 years. </li></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  21. 21. Seller Carryback <ul><li>* MUST BE A GREAT DEAL WITH THE ABILITY TO CREATE ENOUGH VALUE TO EITHER SELL OR REFINANCE THE PROPERTY FOR ENOUGH TO COVER THE AMOUNT OF THE LOAN BY THE NEGOTIATED EXPIRATION DATE! </li></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  22. 22. #12 Sell Existing Properties <ul><li>Trade-in/trade-up to other value add facilities </li></ul><ul><li>Quickest way to wealth </li></ul><ul><li>Time is our friend and our enemy </li></ul><ul><li>Review your portfolio at least once/year </li></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  23. 23. #13 Sell Personal Property <ul><li>Got a Boat, Motorcycle, RV or a 3 rd car? </li></ul><ul><li>Jewelry, Collections, Other Valuables……….. </li></ul><ul><li>Do they make you money? </li></ul><ul><li>Begin thinking more like an investor, not the average consumer </li></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  24. 24. #14 Borrow Against Insurance <ul><li>Can borrow up to a certain % of your policy </li></ul><ul><li>Low Rates, and Flexible, Tax incentives </li></ul><ul><li>Talk to your tax and financial Advisors </li></ul><ul><li>Only use if the deal supports both payments </li></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  25. 25. #15 Mezzanine Lenders <ul><li>“ Bridge the gap” </li></ul><ul><li>Loan 5-10% on top of your 80% 1 st mortgage </li></ul><ul><li>Rates are 2-4% higher than 1 st mortgage </li></ul><ul><li>High Fees and Closing Costs </li></ul><ul><li>Only use if the deal supports both payments </li></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  26. 26. #16 Bring in a Partner <ul><li>Caution when looking to friends & Family </li></ul><ul><li>Multiple ways to structure </li></ul><ul><li>Thorough Operations Document Approved by each partners’ attorney </li></ul><ul><li>Recommendation: Elephant & Mouse </li></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  27. 27. #17 Master Lease Option <ul><ul><li>The master lease is a triple-net lease in which the lessee completely leases the replacement property under an annual lease payment plan. The lessee takes on the responsibility to sublet the property. In addition to rent, taxes, insurance and maintenance, the lessee also pays the debt-carrying expenses. </li></ul></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  28. 28. #17 Master Lease Option <ul><li>If you lease it for the NOI, and get the owner to pay some expenses, you get paid to lower expenses, raise rents, and fill vacancies. </li></ul><ul><li>Refinance at higher value and take him/her out, with little to $0 Money Down </li></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  29. 29. #17 Master Lease Option <ul><li>THE OPTION </li></ul><ul><li>The Goal is to negotiate the Option: </li></ul><ul><li>For as long as possible </li></ul><ul><li>For the lowest price possible </li></ul><ul><li>For as little Option Consideration as Possible </li></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  30. 30. Case Study - Crawfordsville <ul><li>SelfStorages.com </li></ul><ul><li>Mostly Owners </li></ul><ul><li>$ cost/unit </li></ul><ul><li>202 units </li></ul><ul><li>4 acres </li></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  31. 31. Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  32. 32. Crawfordsville <ul><li>9 Pole Barn Buildings </li></ul><ul><li>31,800 Sq Ft on 4 Acres - Expansion </li></ul><ul><li>Units – 1 st Building Built in 1994 </li></ul><ul><li>NOT on a busy Road </li></ul><ul><li>No Fence </li></ul><ul><li>Gravel Lot </li></ul><ul><li>Shingled Roofs </li></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  33. 33. Crawfordsville <ul><li>4 Security Cameras </li></ul><ul><li>Home Grown PM Software </li></ul><ul><li>UHaul Truck Rental </li></ul><ul><li>No Website – Good Yellow Page Ad </li></ul><ul><li>95% occupied </li></ul><ul><li>Some Boat & RV </li></ul><ul><li>Most Competitors are full </li></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  34. 34. Crawfordsville <ul><li>Some Retail, not much </li></ul><ul><li>Mom Runs office M,W,F, 10-5 $8/hr. </li></ul><ul><li>Owner spending another 15 hrs/week </li></ul><ul><li>Office on-site with room to sub lease </li></ul><ul><li>Selling because he wants to slow down and has depreciated the property </li></ul><ul><li>Needed some roof work on 1 building </li></ul><ul><li>Needed some gravel – Deferred Mtc. </li></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  35. 35. Crawfordsville <ul><li>Site tour and collected Financials </li></ul><ul><li>Went through all records – 2 weeks </li></ul><ul><li>Took Pictures and drove all directions </li></ul><ul><li>Visited Competition – Same style of facility and roughly same occupancy </li></ul><ul><li>$865,000 Asking Price </li></ul><ul><li>$750,000 Purchase Price for 11% Cap </li></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  36. 36. Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  37. 37. Crawfordsville <ul><li>80% LTV Loan ($600,000) from my Local Bank at 6.5% </li></ul><ul><li>10% of the Down ($75,000) From Equity in another Property </li></ul><ul><li>Remaining 10% ($75,000) Seller Carry back for 24 months at 7% interest only </li></ul><ul><li>Established a separate LLC to take Title </li></ul><ul><li>Filled out Personal Property Addendum </li></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  38. 38. Crawfordsville <ul><li>Appraisal </li></ul><ul><li>Cost Approach $800,000 </li></ul><ul><li>Direct Comparison Approach $780,000 </li></ul><ul><li>Income Approach $826,000 </li></ul><ul><li>Value Given to Bank $780,000 </li></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  39. 39. Crawfordsville <ul><li>$32,652 Back At Closing </li></ul><ul><li>Hired Seller’s Mom at $8/Hour </li></ul><ul><li>Added New Bldg and New Sign </li></ul><ul><li>Centralized Management </li></ul><ul><li>Installing Kiosk?, Call Center </li></ul><ul><li>Fencing, Gravel, DVR, emoves © </li></ul><ul><li>Rent increase </li></ul><ul><li>Cash Seller out in 24 months </li></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  40. 40. Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  41. 41. Copyright 2009 by Self Storage Profits, INC. All Rights Reserved.
  42. 42. My First Faciltiy <ul><li>Mail Campaign </li></ul><ul><li>Bad Partnership </li></ul><ul><li>$1,000,000 </li></ul><ul><li>78% Occupancy </li></ul><ul><li>1 New Building </li></ul><ul><li>40 Units Per Year </li></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  43. 43. My First Faciltiy <ul><li>Well Built </li></ul><ul><li>Great Location </li></ul><ul><li>Busy Road </li></ul><ul><li>New Rooftops </li></ul><ul><li>Billboard </li></ul><ul><li>Low Expenses! </li></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  44. 44. Trailing 12 Months P & L <ul><li>Worth $1.4 Million </li></ul><ul><li>At 10% Cap Rate </li></ul><ul><li>Or </li></ul><ul><li>Capitalization Rate… </li></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  45. 45. Capitalization Rate <ul><li>Capitalization rate = Net Operating income </li></ul><ul><li> Sales Price </li></ul><ul><li>Capitalization rate = $100,000 </li></ul><ul><li>$1,000,000 </li></ul><ul><li>Capitalization rate = .10 or 10% Return </li></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  46. 46. 15% Cap Rate! <ul><li>Worth $1.4 Million </li></ul><ul><li>Offered $900,000 </li></ul><ul><li>Accepted $925,000 </li></ul><ul><li>Woo Hoo! UH-OH! </li></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  47. 47. My First Deal <ul><li>Private Lender </li></ul><ul><li>“ Cash Cows”! </li></ul><ul><li>No Payments for 3 Years! </li></ul><ul><li>Refi & pay him off </li></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  48. 48. Fortville <ul><li>My Local Banker </li></ul><ul><li>Sure! Those things are Cash Cows! </li></ul><ul><li>Business Plan </li></ul><ul><li>Loan Approved </li></ul><ul><li>Easy Closing </li></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  49. 49. My First Facility - Fortville <ul><li>Hired a Part Time Manager </li></ul><ul><li>Installed Kiosk </li></ul><ul><li>Improved Curb Appeal </li></ul><ul><li>New Brand </li></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  50. 50. Fortville – 18% Cap Rate <ul><li>Web Based Sitelink </li></ul><ul><li>Added Retail & Business Center </li></ul><ul><li>Rent Increases </li></ul><ul><li>Lease up from 78% to 98% </li></ul><ul><li>$9,000 Net Positive Cash Flow/Month </li></ul><ul><li>Purchased adjacent 3.6 acres of land and 8,000 sf building for Expansion </li></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  51. 51. $60,000 POSITIVE CASH FLOW! <ul><li>“ Dear Scott, </li></ul><ul><li>  I write this letter with a great deal of pleasure. In September, I invested in your home study program and studied it and took action. We Bought a 373 unit facility here in San Antonio at an 11% cap rate with tremendous upside from poor management. We closed on the facility for $1,275,000.00 and we were able to borrow over $900,000.00 even in these hard credit times! We raised the rest through private investors for a $0 money down purchase. The facility provides about $60,000 in positive cash flow and we anticipate over $100,000.00 in cash flow within the next 18 months as we improve the property. We will continue to work on others since this will provide future security for our families </li></ul><ul><li>P.S. we are already looking for other properties and anticipate purchasing at least 4 in the next year. Got any good deals?? </li></ul><ul><li>Thanks for putting this course together. It has changed our lives. </li></ul><ul><li>Mark Torok </li></ul><ul><li>p.p.s – “Mark purchased 2 more for $0 Money Down” </li></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  52. 52. Student Deal Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  53. 53. Muncie – Air Park <ul><li>Mailer Generated </li></ul><ul><li>Owner/Operator </li></ul><ul><li>Back to School </li></ul><ul><li>227 Units/Spaces </li></ul><ul><li>4 Buildings + Room </li></ul><ul><li>Boat/RV </li></ul><ul><li>No Temp, No Retail </li></ul><ul><li>Ball State - Airport </li></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  54. 54. Muncie Air-Park <ul><li>All Paved </li></ul><ul><li>Gravel RV Lot </li></ul><ul><li>91% Occupied </li></ul><ul><li>Busy Road </li></ul><ul><li>Split Block </li></ul><ul><li>Built in 1994 </li></ul><ul><li>Fenced/Gated </li></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  55. 55. Muncie Air-Park <ul><li>Old Security System </li></ul><ul><li>No Mgmt. Software </li></ul><ul><li>$1.4M at 10% Cap </li></ul><ul><li>80% Community Bank </li></ul><ul><li>20% Down from sale of Apartment Complex </li></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  56. 56. My 2 nd Deal - Muncie <ul><li>Hired Assistant </li></ul><ul><li>Installed the Kiosk </li></ul><ul><li>And the Call Center </li></ul><ul><li>Business Center </li></ul><ul><li>Raised Rents </li></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  57. 57. My 2 nd Deal – Muncie – Air-Park <ul><li>Added Website </li></ul><ul><li>Increased Marketing </li></ul><ul><li>98% Occupancy </li></ul><ul><li>Awesome Manager! </li></ul><ul><li>Nicest in Town </li></ul><ul><li>Added 55 units </li></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  58. 58. Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  59. 59. Copyright 2009 by Self Storage Profits, INC. All Rights Reserved.
  60. 60. Student Deal! <ul><li>“ Dear Scott, </li></ul><ul><li>I just closed on my first 2 mini warehouse deals by trading 4 rental houses and assuming their mortgages with only $2,000 down. They also came with the only 2 Uhaul franchises in town!  One facility has 1 acre which is already fenced, zoned which will double it's size!  My residential real estate was in the red for almost a year and the stress was unbearable...to the point I actually had to be on medication.  Then I found You and Your system which gave me the confidence to embark on this new journey.  Thank you! Thank you! Thank you! </li></ul><ul><li>Jeff Quinlan, Louisville KY </li></ul>Copyright 2009 by Self Storage Profits, INC. All Rights Reserved.
  61. 61. Muncie – AAA Storage <ul><li>Sign in Vacant Lot </li></ul><ul><li>Retiring Owner </li></ul><ul><li>Moving to Florida </li></ul><ul><li>Partnership </li></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  62. 62. Muncie – AAA Storage <ul><li>216 Units </li></ul><ul><li>All Paved </li></ul><ul><li>Temp Control </li></ul><ul><li>Office Building </li></ul><ul><li>4 More Acres </li></ul><ul><li>67% Occupied </li></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  63. 63. Muncie AAA <ul><li>Worth $800,000 </li></ul><ul><li>Only Pay Current Value </li></ul><ul><li>Pro Forma = Pretend </li></ul><ul><li>Bought for $600,000 </li></ul><ul><li>Credit Line = 20% </li></ul><ul><li>Current Lender = 80% </li></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  64. 64. Muncie - AAA <ul><li>Combined Mgmt </li></ul><ul><li>Kiosk & Call Center </li></ul><ul><li>Leased out office Building </li></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  65. 65. AAA Storage – Muncie IN <ul><li>Leased from 67% to 91% </li></ul><ul><li>$1,600/Month Cash Flow </li></ul><ul><li>Increased Value by $80K </li></ul><ul><li>Looking to Fence & Gravel the 4 acres for more Boat & RV </li></ul><ul><li>Plan to sell off in 2-3 years </li></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  66. 66. Copyright 2009 by Self Storage Profits, INC. All Rights Reserved.
  67. 67. Brownsburg <ul><li>Loopnet.com </li></ul><ul><li>Office Building </li></ul><ul><li>Temp Control </li></ul><ul><li>2 Acres to Expand </li></ul><ul><li>Great Cash Flow! </li></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  68. 68. Brownsburg <ul><li>Seller Carry back </li></ul><ul><li>Current Bank </li></ul><ul><li>Bought $0 Down </li></ul><ul><li>$16,835 at Closing! </li></ul><ul><li>Beat my Competition </li></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  69. 69. Brownsburg <ul><li>Installed Kiosk </li></ul><ul><li>Increased Marketing </li></ul><ul><li>Added Call Center </li></ul><ul><li>Increased Rent </li></ul><ul><li>$3,100/mo Cash Flow </li></ul><ul><li>50 More Units </li></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  70. 70. Case Study - Ft. Wayne <ul><li>Broker Called Me </li></ul><ul><li>Big Company Lost </li></ul><ul><li>1031 Exchange </li></ul><ul><li>$2.6M – 9.2% Cap </li></ul><ul><li>Used Local Bank </li></ul><ul><li>Closed in 45 Days! </li></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  71. 71. Case Study – Ft. Wayne <ul><li>1 Steel Building </li></ul><ul><li>All Temp Control </li></ul><ul><li>252 units – 38,000 sf </li></ul><ul><li>Built in 1999 </li></ul><ul><li>Dock Doors </li></ul><ul><li>Industrial Park – I-69 </li></ul><ul><li>DVR System </li></ul><ul><li>Added Retail </li></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  72. 72. Case Study – Ft. Wayne <ul><li>85% Occupied </li></ul><ul><li>Raise Rents </li></ul><ul><li>Increase Marketing </li></ul><ul><li>Raise Occupancy </li></ul><ul><li>Reduce Expenses </li></ul><ul><li>Changed Signage </li></ul><ul><li>Sitelink Web Based </li></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  73. 73. Case Study – Ft. Wayne <ul><li>Pharmaceutical </li></ul><ul><li>Shipping & Receiving </li></ul><ul><li>Hours – 7:30-6:00 </li></ul><ul><li>Closed Sun </li></ul><ul><li>No Kiosk </li></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  74. 74. Copyright 2009 by Self Storage Profits, INC. All Rights Reserved.
  75. 75. Case Study – IEC <ul><li>Conversions </li></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  76. 76. Case Study – IEC Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  77. 77. Case Study – IEC Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  78. 78. IEC – 14% Cap Rate! <ul><li>Found on Loopnet </li></ul><ul><li>14% Cap Rate </li></ul><ul><li>Bought for $1.5M </li></ul><ul><li>Seller Carry Back </li></ul><ul><li>$0 Money Down </li></ul><ul><li>188,000 SF </li></ul><ul><li>Mixed Use </li></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  79. 79. Case Study – IEC <ul><li>Incubator Space </li></ul><ul><li>Conference Center </li></ul><ul><li>Small Bus Library </li></ul><ul><li>Break Room with Pinball & Vending </li></ul><ul><li>Assisted with Bus plans & Financing </li></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  80. 80. Case Study – IEC <ul><li>Partitioned warehouses </li></ul><ul><li>Storage on 2 nd Floor </li></ul><ul><li>Mini warehouses on 1 st </li></ul><ul><li>$400,000 Conversion </li></ul><ul><li>100% LTV from Bank </li></ul><ul><li>Sold for $3,900,000 </li></ul><ul><li>NET = $1,850,000 </li></ul><ul><li>$240,000/year Cash Flow </li></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  81. 81. 2010 Focus – Short Sales <ul><li>6 More Plus 8 More in Pipeline </li></ul><ul><li>Raise another 20 Million in SSIG Fund </li></ul><ul><li>1 Million Square Feet by 12/31/10 </li></ul><ul><li>3 Developments </li></ul><ul><li>1 Conversion </li></ul><ul><li>Balanced Life – 3 Vacations This Year </li></ul><ul><li>1969 Corvette </li></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.
  82. 82. Q & A <ul><li>? </li></ul><ul><li>Bonus Session: </li></ul><ul><li>“ How To Buy Class C Facilities” </li></ul><ul><li>Wednesday March 3rd 3-5 PM </li></ul><ul><li>Scott Meyers, CSSM© </li></ul><ul><li>www.SelfStorageInvesting.com </li></ul>Copyright 2010 by Self Storage Profits, INC. All Rights Reserved.

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