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Self Storage Secrets! Dave Lindahl Teaches Investing in Self Storage

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I've got three objectives, and the first objective is to introduce you to profitable self-storage investing. It's a niche market. It's one of the commercial disciplines of real estate investing, and this is kind of the sleeper of all the disciplines, in the sense that it's the less management attentive. It's the easiest to run. And you're going to hear me say "set it and forget it" a lot tonight, because that's basically what you do with storage. You set it – you get it set up, and you can pretty much forget it with the right management in place. So I'm going to introduce you to all those different concepts and what makes a good self-storage investment good. Number two, I want to show you how you can increase your income and decrease your workload. A lot of us are out there buying multi-family properties. A lot of us are buying single-family properties. A lot of us are buying other commercial type of properties. And I'm actually going to show you how you can keep doing what you're doing, what your major discipline is, and increase your income by buying storage, and by doing that, you're actually going to decrease your workload at the same time. And number three, I'm going to show you how you can start creating an autopilot self-storage business.

Self Storage Secrets! Dave Lindahl Teaches Investing in Self Storage

  1. 1. Creating Wealth Through CashCreating Wealth Through Cash You’re About To Discover… with Jeffrey A. Lindahl “How Investing In Self Storage Will Pay YOU $10,500 Per Month” Self Storage SECRETS Self Storage SECRETS
  2. 2. Creating Wealth Through CashCreating Wealth Through Cash Congratulations for Taking Action Today I commend you for taking time out of you busy schedule to be here. I’ll make this worth your while
  3. 3. Creating Wealth Through CashCreating Wealth Through Cash Let’s Get Started
  4. 4. Creating Wealth Through CashCreating Wealth Through Cash 4 Steel, Concrete,& Cash Flow
  5. 5. Creating Wealth Through CashCreating Wealth Through Cash 5
  6. 6. Creating Wealth Through CashCreating Wealth Through Cash
  7. 7. Creating Wealth Through CashCreating Wealth Through Cash 7
  8. 8. Creating Wealth Through CashCreating Wealth Through Cash Doing It In Today’s Market!!!  7,322 Units!!7,322 Units!! Still Works The SameStill Works The Same SystemSystem  The Attitude….The Attitude…. Best Selling AuthorBest Selling Author
  9. 9. Creating Wealth Through CashCreating Wealth Through Cash My First Storage Units
  10. 10. Creating Wealth Through CashCreating Wealth Through Cash How I stumble upon the Hidden Cash Flow 3 Family Apt Rental plus the 3 Garage Bays rental Sold this property after a 2 year appreciation run Did a 1031 exchange Into a 205 unit complex in an Emerging market During site visit discovered the Secret 60 Self Storage units were also on the site
  11. 11. Creating Wealth Through CashCreating Wealth Through Cash The Secret is Revealed
  12. 12. Creating Wealth Through CashCreating Wealth Through Cash Self Storage Investing 60 Self Storage units added on an used irregular shaped- Produced HUGE Cash Flow Very little involvement of the Property Manager-Hardly any additional maintenance involved & Next to none utility costs I needed to add Self Storage Investing to my business model and YOU should too !
  13. 13. Creating Wealth Through CashCreating Wealth Through Cash More Secrets/ Reasons For Self Storage Investing You can buy self storage facilities in your local market and in emerging markets The Low Operating Costs Insurance Property Taxes Utilities Manage from home or via an internet line 88% of the owners are “Mom and Pop”
  14. 14. Creating Wealth Through CashCreating Wealth Through Cash Reasons For Self Storage Investing • It’s Very Profitable Niche Market • The Sleeper of Commercial RE Disciplines • Less Management Intensive
  15. 15. Creating Wealth Through CashCreating Wealth Through Cash Reasons For Self Storage Investing • Increase Your Income and Delegate the Work Load • New Investors Get Started in RE Investing • Seasoned Investors add Self Storage to Your Current Portfolio
  16. 16. Creating Wealth Through CashCreating Wealth Through Cash Reasons For Self Storage Investing • NOW IS THE TIME to Create a Self Storage Autopilot Business
  17. 17. Creating Wealth Through CashCreating Wealth Through Cash 17
  18. 18. Creating Wealth Through CashCreating Wealth Through Cash Self Storage For Sale. Clean 58 Unit Mini Storage Facility. Extra Land for Expansion & Development. Modern Buildings. Fenced & Gated... $249,000 6,900 SF Bldg 9.40% Cap Rate Self-Storage Facility
  19. 19. Creating Wealth Through CashCreating Wealth Through Cash Any Value Plays ? Future Expansion Bill Boards, Cell Tower, RV and Boat Storage 58 units x $65 x 12 months = $45 K, 28 % Expenses & $1455 per month Passive Monthly Income
  20. 20. Creating Wealth Through CashCreating Wealth Through Cash 30 drive-up self-storage units; 1500 sq ft garage, rented to automotive detailing business; 1100 sq ft house,... •$199,999 30 units •7,040 SF Bldg •10.95% Cap Rate •Self/Mini-Storage Facility
  21. 21. Creating Wealth Through CashCreating Wealth Through Cash Owner will Carry-back with 10% down at 7.0% thru 2016, amortized 30yrs. Only $29,000 down gets you this Solid 9.0% CAP property. Experienced manager... •$290,000 66 units •16,512 SF Bldg •9.00% Cap Rate •Self Storage Facility
  22. 22. Creating Wealth Through CashCreating Wealth Through Cash HIGH SEAS MINI STORAGE 8180 HWY 14, Lyle, WA 98635 FOR SALE BY OWNER 35 UNIT SELF STORAGE WITH ROOM TO GROW AND BUILD HOME VIEW OF WATER AND MOUNTIANS. LOTS OF UPGRADES NEW ROLL UP DOORS,FENCE AND GATE, SECURITY CAMERAS, AND LIGHTS. GREAT CONDISHION. LOTS OF BUILDING NEAR BY HOMES AND A GOLF COURES. MANAGER IN PLACE. IT RUNS IT'S SELF, GOOD INCOME. • PROPERTY IS IN MURDOCK BETWEEN LYLE,WA AND THE DALLES,OR ON HWY 14
  23. 23. Creating Wealth Through CashCreating Wealth Through Cash • Price $229,000 Gross Income $18,689 • Expenses $4,680
  24. 24. Creating Wealth Through CashCreating Wealth Through Cash A&B Self Storage4428 WILLIAMS VALLEY ROAD, Clayton, WA 99110 Stable facility with a long history of high occupancy levels • Property offers U-Haul along with Car-Port Buildings dealership with provides for market exposure and added income • Marketing Population (3-5 miles) has steadily increased over the previous years due to the Northwest' s movement to the rural areas • VERY MOTIVATED!!! • .
  25. 25. Creating Wealth Through CashCreating Wealth Through Cash
  26. 26. Creating Wealth Through CashCreating Wealth Through Cash 26 “Self-storage companies seem to be the ‘Cinderella segment’ of commercial real estate in a faltering economy.” -Warren Buffett
  27. 27. Creating Wealth Through CashCreating Wealth Through Cash 27 Self Storage is The Fastest Growing Sector in Real Estate! It’s an Inflation and Recession Proof Business Boston Group. Why Self Storage?
  28. 28. Creating Wealth Through CashCreating Wealth Through Cash 28 One Objective… Hassle Free CASH FLOW $10,500
  29. 29. Creating Wealth Through CashCreating Wealth Through Cash 6 Steps To Systematic Hassle-FREE Investing Find The Deals Run The Numbers Make Offers Find The Money Ride The Cash Flow Retirement Strategy
  30. 30. Creating Wealth Through CashCreating Wealth Through Cash 30 Student Partnership Deal - 872 Units in Pasadena, TX - Purchased for $8.0 Million -No Money Out Pocket - 25% Partnership Interest
  31. 31. Creating Wealth Through CashCreating Wealth Through Cash 31 “ I can’t think of one single long term trend in our country and our economy that doesn’t benefit Self Storage. It’s the perfect storm--a hurricane of Profits. This is the sweetest spot in the whole American economy, a receptacle for an enormous cascade of money”Ben Stein Leading Economist
  32. 32. Creating Wealth Through CashCreating Wealth Through Cash Times of Transition – Perfect Storm Economy Baby Boomers Echo Boomers Diversified Portfolio
  33. 33. Creating Wealth Through CashCreating Wealth Through Cash Economy • There are a lot of people getting foreclosed on. Now, that's a time of transition. What's happening to their goods as they're being foreclosed? They need a place to store 'em. So we're seeing storage facilities filling up very quickly, especially in the high foreclosure areas.
  34. 34. Creating Wealth Through CashCreating Wealth Through Cash Baby Boomers • The Baby Boomers are getting older. • downsizing on their houses, • collected a lot of things over the years, things that they don't want to part with (heirlooms) • So where are they putting these things? • They were the consumer age, and they consumed and consumed and bought
  35. 35. Creating Wealth Through CashCreating Wealth Through Cash
  36. 36. Creating Wealth Through CashCreating Wealth Through Cash Echo Boomers • The babies of the Baby Boomers, now College age • Their putting their extra stuff immediately into storage, because that's what they were trained to do. • Over the next eight to ten years, there are 72 million Echo Boomers coming into the marketplace. So it just means that storage is going to continue to rise.
  37. 37. Creating Wealth Through CashCreating Wealth Through Cash Diversified Portfolio • You really want to be a transaction engineer. • You want to be able to do any deal that crosses your desk. • And with adding storage to your portfolio, you've added a very powerful cash flow engine to what you have right now. • Or if you don't have anything right now, it's a great place to start
  38. 38. Creating Wealth Through CashCreating Wealth Through Cash Why Self Storage Makes Cents • The NEED FOR COMMERCIAL USE IS GROWING. at-home entrepreneurs and seek alternative storage other than their home or garage. • 1 in 10 Households Need or Use Self Storage • Hospitals, record filing 70 % • Allows you to Start where Your Comfortable • Huge & Growing Demand, driven by life events: downsizing homes, job transfers, divorce. • Huntsville
  39. 39. Creating Wealth Through CashCreating Wealth Through Cash • IT’S EASILY MANAGED As a low cost investment, self storage can easily be managed by individuals with little or no experience • The initial investment is much smaller and operating expenses are much lower than other types of real estate investments. • The management task, unlike many other businesses, is not labor intensive.
  40. 40. Creating Wealth Through CashCreating Wealth Through Cash Make Ready Procedure
  41. 41. Creating Wealth Through CashCreating Wealth Through Cash SELF STORAGE IS A MONEYMAKER WITHOUT THE HEADACHES • Over 40% of commercial customers rent more than two years. • The average customer visits his unit once a month. • Real estate properties must continually maintain grounds, appliances, plumbing, electrical fixtures, etc., which usually require a maintenance staff. • Self-storage operating costs are a fraction of other real estate properties.
  42. 42. Creating Wealth Through CashCreating Wealth Through Cash BEST OF ALL • No Jerry Springer Tenants • No Toilets • No Trash • NO PAIN !!
  43. 43. Creating Wealth Through CashCreating Wealth Through Cash Failure Rate Comparison Compared to other real estate investments, self storage has the ability to absorb economic fluctuations, maintaining value during both good and bad economic times. Failure Rate : Office/Retail 60% Self Storage 8%
  44. 44. Creating Wealth Through CashCreating Wealth Through Cash Operating Cost Comparison Self Storage $2.75-3.25 All Other R/E $3.50-5.00 Reasons for most businesses going broke is the overhead
  45. 45. Creating Wealth Through CashCreating Wealth Through Cash Break Even Occupancy Comparison Self Storage 60%-72% All other Real Estate 80%-90%
  46. 46. Creating Wealth Through CashCreating Wealth Through Cash Create as Much Passive Income as You Need • We're going to get paid three different ways. 1. We're going to get paid through cash flow. The cash flow is the money that we get from our property on a regular basis.
  47. 47. Creating Wealth Through CashCreating Wealth Through Cash 2. We're going to Get Paid through Appreciation • Always be raising the rents by $10 or $20. • It's called a nuisance increase. • not high enough that they're going to go move their stuff into another facility. • $10 x 350 units = $3500/month
  48. 48. Creating Wealth Through CashCreating Wealth Through Cash 3. My Favorite Way, is Acquisition Fees • How to pool people's money together. • You've taken the time to discover and educate yourself on how to get these storage deals • And how to get the private money for these storage deals • it's customary in our business, that you get an acquisition fee.
  49. 49. Creating Wealth Through CashCreating Wealth Through Cash Who’s Renting Now!! Foreclosed Home Owners Apartment Owners College Students Divorce Landscapers - Contractors Home Sellers Boomers Downsizing Home Buyers……..
  50. 50. Creating Wealth Through CashCreating Wealth Through Cash #1 - Find The Deals Sources Brokers Direct Mail Internet Research “Motivated & Flexible Sellers” “Must Sell” “Seller Finance”
  51. 51. Creating Wealth Through CashCreating Wealth Through Cash Different Ways that you Can Get the Deal • You can get deals from direct mail, sending out letters and post cards to owners of storage facilities. • You can get deals from Real Estate brokers.
  52. 52. Creating Wealth Through CashCreating Wealth Through Cash Follow Direct Marketing Rules Envelopes-No windows, multi-colored It has to look like friendly mail (invitation) so that they will open it Blue Ink- Return address- Do not use a PO Box on a business company. You can put your name on a PO Box. Stamps-Use all sorts of funky stamps. Do not use metered mail. Letters w/ headlines - the biggest benefit for doing business with us. PS-the 2nd biggest benefit for doing business with us Delegate-the stuffing process to someone else, such as an ad on Craig’s list will get you a big response. Use proven letters Fax back forms.. 1 % Responce Rate
  53. 53. Creating Wealth Through CashCreating Wealth Through Cash 1% Response Rate • Out of 1,000 letters, we will be getting 10 responses. • Out of these 10 responses we will get 2- 3 serious sellers, and from these we will get 1 good deal to choose on. • If you get those letters out each month you should be getting a deal a month.
  54. 54. Creating Wealth Through CashCreating Wealth Through Cash Ready to Use Proven Letters to Owners I’m Interested in Buying Your Property! Read On… Dear Property Owner: I’m interested in purchasing your self storage facility. Are you interested in selling? I currently a member of a group of investors who hold a portfolio of properties similar to yours and are looking to add more. I realize that there are a number of reasons why someone may be interested in selling. Everyone has his or her own reason and my question to you is, are you now ready to sell? If so, I am ready to buy. I can close quickly or delay the closing as long as you like. Please contact me at your earliest convenience so that we can discuss the sale of your building. Call me now at 1-800-999-5555. I look forward to hearing from you. Jeff LindahlP.S. To Get The Best Price For Your Property, Call Me Now At 1--800-999-5555.
  55. 55. Creating Wealth Through CashCreating Wealth Through Cash How to Work Effectively with RE Brokers • Fear –Just call Them-Just use the Script • Build the Relationship • Where are they – Loopnet.com Follow up, Follow up, Follow up, The average deal is made after the fourth follow up, the average investor only follow ups two times
  56. 56. Creating Wealth Through CashCreating Wealth Through Cash 56 Steve Hall 167 Unit Facility Little Rock, AR $265,000 Price $600,000 Value (Based on Income) Two minute conversation with the Broker (based on our script)
  57. 57. Creating Wealth Through CashCreating Wealth Through Cash
  58. 58. Creating Wealth Through CashCreating Wealth Through Cash Steve Hall
  59. 59. Creating Wealth Through CashCreating Wealth Through Cash “What Others Say...” “I’m Busy” “I Don’t Have The Money” “It Doesn’t Work In My City” “I’m Afraid” “I Don’t Know What To Do” “I Can’t Find A Deal”
  60. 60. Creating Wealth Through CashCreating Wealth Through Cash 3 Reasons to be in Real Estate 1.Money Today 2.Money Monthly 3.Money Later If anyone tells you different They don’t Understand Real Estate
  61. 61. Creating Wealth Through CashCreating Wealth Through Cash #2 - Run The Numbers 1- Replacement Cost 2- Sales Comparison Approach 3- Income Approach 85% Occupancy = a stabilized property.
  62. 62. Creating Wealth Through CashCreating Wealth Through Cash 62 Cap Rates NOI / Sales Price  Cap Rates: A’s 7 – 8 B’s 8 – 10 C’s 9 – 12
  63. 63. Creating Wealth Through CashCreating Wealth Through Cash 63 Cap Rate Example The purchase price is $1,000,000 Total Annual Income = $180,645 Total Annual Expenses = $68,445 Net Operating Income = $112,000 The Cap Rate = 112K/1MM= .112 = 11.2% Cap Rate Acquisition Fee Income!Acquisition Fee Income!
  64. 64. Creating Wealth Through CashCreating Wealth Through Cash #3 - Ride The Cash Flow Gross Rent Income Late Charges Admin Fees Bounced Check Fees “The Store Within Your Facility” Ancillary Services Make You $10,000+ Ancillary Services Make You $10,000+
  65. 65. Creating Wealth Through CashCreating Wealth Through Cash 65 Box Business/Supplies
  66. 66. Creating Wealth Through CashCreating Wealth Through Cash 66 Expenses made Simple 28% of Income…  Taxes –  Insurance –  R and M –  Gen Admin –  Management –  Marketing –  Utilities –  Contracted Services –  Payroll –
  67. 67. Creating Wealth Through CashCreating Wealth Through Cash
  68. 68. Creating Wealth Through CashCreating Wealth Through Cash #4 - Make Offers  Letter of Intent…  Template for you to use… (page 110)  Repair allowance to student at closing using this LOI was $200,000 !!!
  69. 69. Creating Wealth Through CashCreating Wealth Through Cash #5 – Find The Money Hard Money Owner Financing Self Directed IRA Private Money Partnerships There is $$$$$ in this Room
  70. 70. Creating Wealth Through CashCreating Wealth Through Cash 70 Conventional Local Banks National Lenders Loan Assumption Mortgage Lenders Stabilized Deals…
  71. 71. Creating Wealth Through CashCreating Wealth Through Cash The More Deals that You Get Into with The Least Amount of Money Down… The Wealthier you will Become! Formula for Repeatable Success
  72. 72. Creating Wealth Through CashCreating Wealth Through Cash 72 We Typically Give a 8% Return for Private Money You Also Want to Look For Angel Investors 75% of All Private Money Comes From People You Already Know 75% of All Private Money Comes From People You Already Know
  73. 73. Creating Wealth Through CashCreating Wealth Through Cash Graciella
  74. 74. Creating Wealth Through CashCreating Wealth Through Cash #6 - Exit Plan Sell Outright Long Term Cash Flow Real Estate investment Trust Use 1031 And Buy Another One
  75. 75. Creating Wealth Through CashCreating Wealth Through Cash Advantages of Self- Storage Investing Cash Flow = Freedom! Cash Flow = Power & Power = Freedom
  76. 76. Creating Wealth Through CashCreating Wealth Through Cash What is Financial Freedom To You?
  77. 77. Creating Wealth Through CashCreating Wealth Through Cash Cash Coming In Month after Month after Month…
  78. 78. Creating Wealth Through CashCreating Wealth Through Cash
  79. 79. Creating Wealth Through CashCreating Wealth Through Cash Sunny Days
  80. 80. Creating Wealth Through CashCreating Wealth Through Cash Steve Martel
  81. 81. Creating Wealth Through CashCreating Wealth Through Cash Will You Be the Next Success Story?
  82. 82. Creating Wealth Through CashCreating Wealth Through Cash Self Storage Investing Riches
  83. 83. Creating Wealth Through CashCreating Wealth Through Cash Benefits Of Self Storage Investing Riches More Time More Money Cashflow Easy To Use Asset Appreciation Recession Proof Financial Freedom
  84. 84. Creating Wealth Through CashCreating Wealth Through Cash Table of Contents • Chapter 1: How Investing in Self Storage Will Make You Wealthy pg1 • Chapter 2: Self Storage Property Types pg16 • Chapter 3: How to Find Good Deals Using Direct Mail pg 23 • Chapter 4: Secrets to Finding Good Deals pg36
  85. 85. Creating Wealth Through CashCreating Wealth Through Cash • Chapter 5: How to Work Effectively With Real Estate Brokers pg 40 • Chapter 6: How to Determine the Value pg 48 • Chapter 7: Deal Analysis Income Component pg53 • Chapter 8: Deal Analysis Expense Component pg 59 • Chapter 9: Deal Analysis Underwriting pg 65
  86. 86. Creating Wealth Through CashCreating Wealth Through Cash Chapter 10: How To Determine Where And When To Buy pg 90 • Chapter 11: Team Building pg 99 • Chapter 12: Creating and Presenting Offers pg 106 • Chapter 13: Due Diligences pg160 • Chapter 14: Planning the Site Visit pg 174 • Chapter 15: Financing pg 189
  87. 87. Creating Wealth Through CashCreating Wealth Through Cash Chapter 16: Creating a Loan Package and Business Plan pg 205 • Chapter 17: Entity Selection & Structuring pg 219 • Chapter18: Property Managers pg 232 • Chapter 19: Setting Your Business Office pg 239 • Chapter 20: Marketing for Tenants pg 261 • Chapter 21: Powerful Tax Strategies for Real Estate Investors pg 265 • Chapter 22: Exit Strategies, Goals & Time Management 284
  88. 88. Creating Wealth Through CashCreating Wealth Through Cash Self Storage Investing Training Manual You’ll discover…  Storage property Types  Finding Great Deals  Working with Brokers  How to Determine the Value  Deal Analysis Income & Expense  Determining Where & When To Buy  Creating and presenting offers... Real World Value $1495Real World Value $1495
  89. 89. Creating Wealth Through CashCreating Wealth Through Cash Self Storage Investing Audios You’ll uncover…  The Current & Future Demand For Self Storage  Secrets To Finding Properties thru Classified Ads  “Cruising For BIG Profits”  And much, much more… Real World Value $499Real World Value $499
  90. 90. Creating Wealth Through CashCreating Wealth Through Cash Self Storage Investing DVDs Real World Value $899Real World Value $899 This Video Training will reveal…  How To Find Deals And What To Look For  How To Find Great Deals Using Proven Marketing  Financing Secrets To Get Any Deal Done  And more…
  91. 91. Creating Wealth Through CashCreating Wealth Through Cash Lindahl’s “Deal Or No Deal” Calculator Fast & Easy “Deal Screener” Saves You Time Know “Deal Or No Deal” In Minutes Real World Value $247Real World Value $247
  92. 92. Creating Wealth Through CashCreating Wealth Through Cash Quick Start Training CD Fast Track Your Way To Success Positions You To Get Your First Deal Done…QUICK Where To Focus First And More… Real World Value $349Real World Value $349
  93. 93. Creating Wealth Through CashCreating Wealth Through Cash Self Storage Profit Analyzer Know If You Have A Deal How To Make A Good Deal Better Creates Reports For Lenders & Private Investors Real World Value $1195Real World Value $1195
  94. 94. Creating Wealth Through CashCreating Wealth Through Cash Marketing & Legal Library Including… Jeff’s Proven “Fax Back Form” Campaign Forms, Contracts & All The Paperwork Confidence Scripts Done For You Marketing Letters Real World Value $999Real World Value $999
  95. 95. Creating Wealth Through CashCreating Wealth Through Cash Self Storage Investing Riches System Self Storage Investing Training Manual Self Storage Investing Audios Self Storage Investing DVDs Lindahl’s “Deal Or No Deal” Calculator Quick Start Training CD Self Storage Profit Analyzer Marketing & Legal Library $1495 $499 $899 $247 $349 $1195 $999 Total Value $5,683 Total Value $5,683
  96. 96. Creating Wealth Through CashCreating Wealth Through Cash Real World Value $8,486 Your Risk FREE Investment Today $995$995
  97. 97. Creating Wealth Through CashCreating Wealth Through Cash Self Storage Boot Camp Seattle Bonus (Only Today!) 3 Days of Intensive Training Facility Classification and How to make it Easy Our Millionaire Marketing Plans Case Studies with Real Life Applications High Tech Property Management Systems Lien and Auction Process
  98. 98. Creating Wealth Through CashCreating Wealth Through Cash Do a Deal in 90 Days Get It FREE !!!

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