Self Storage Investing for Beginners

www.commercialpropertyadvisors.com/self-storage-investing-for-beginners Discover insiders tips on self storage investing for beginners from the author of Commercial Real Estate Investing for Dummies, Peter Harris.

20 thoughts on “Self Storage Investing for Beginners”

  1. Mr. Harris,Thank you so much for the deeply informative videos and the care and passion you put into teaching beginners. I am a new subscriber and I am hungry for knowledge and am ready to jump into the commercial RE game.Here's a question for you: As a brand new investor, is it better to start out investing in commercial-sized multifamily properties or self-storage? I am interested in investing in both eventually, and know that they both have their own pros and cons. I guess my main concern is that one may require more input or experience than the other and would love your opinion.Thank you.

  2. Hey Peter, Great video I had a question about when you analyzed the deal. What is a bad C.O.C (Cash on Cash) number? What is considered bad C.F (Cash Flow) numbers? Also, would I analyze a multi-units numbers the same way? Thanks so much. I'm really learning a lot.

  3. If I pay cash in full, my COC will be $47000/$485000 = 9.7%. So I will be better off taking 75% loan instead of buying outright.

  4. say someone has $20k to spend cash saved but has no borrowing terrible credit and just wants a small reliable monthly income supplement would building a small self storage be worth it or even feasible? I don't think it is my best friend and I were having a debate haha

  5. It seems like this would be a difficult way to be "self-employed". Not much of a profit margin once you factor in time for management and maintenance.

  6. What I don't understand is all these guys say self storage is a huge money maker! So go buy a little mom and pop place and start it now! But if it's making money they why would they want to sell? I know if my business is making me money why in the he'll would I be like okay here's the keys.

  7. Yeah but if I had $121,000, I wouldn't trade it to make $23,000/year. Thats an awful deal. If I put it in a fund instead that tracks the S&P500, I'll have somewhere around $165k after 5 years. With 5 years of this deal, I'll have probably turned that $121k into $50k.

  8. Peter….question:  I have been a commercial realtor for 16 years and one thing I heard on your video was something I have never heard before about financing.  Generally, SBA 7a and 504 loans are for owner occupier financing, not investor financing.  Unless there is some carve out specifically for 7a and 504 loans vis a vis self-storage, you have to occupy at least 51% of the space your are financing, and of course self-storage is a 0% owner occupy property.  Could you shed some light on that?  Thanks

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