Self Storage Income AJ Osborne

Self storage rates see a severe year-over-year decline as owners brace for even more supply to come on the market during dwindling demand. What’s happening, and which markets are the most in danger? In this episode, we took some of the latest self storage industry stats on rates, demand, supply, and new construction to answer the question: Why are self storage rates falling, and when will they come back up? We even have data on the hardest-hit metro areas that YOU should watch out for.

We could be returning to “normal” as the booming demand from a few busy years starts to dry up. Markets that saw massive population growth are beginning to settle down, but all those shiny new self storage facilities are still around. If you’re a self storage operator in a market experiencing dying demand, what can YOU do to ensure you beat the competition? We’re sharing our secrets on how we make MORE money EVEN while dropping rates in today’s episode. 

Got some unusual unit sizes at your facility? Changing your layout (if possible) could result in a considerable difference in occupancy. We’ll talk about a recent development deal we did that could have gone south very quickly if we hadn’t changed to THIS type of unit size layout. So don’t sit around waiting for customers to fill up your facility; do what WE’RE doing NOW before it’s too late!

What you’ll learn in today’s show:


Latest storage industry stats and why street rates fell so much over the past year
The self storage markets that are faring the worst and seeing the biggest price drops
How high inventory can kill a self storage market and areas to steer clear of 
Why unit size demand changes over time and how to adjust with consumer preferences
How to make more money even with lower demand and falling street rates 
Why casual self storage operators might not make it in 2024, but the real “business” owners will

Get my new book that teaches you everything I know about self-storage- https://a.co/d/aRSKcSq 

Make self storage management easier than EVER with our podcast sponsor Tenant Inc. - https://www.tenantinc.com/

📌 Ready to buy storage? Have your deals personally evaluated by AJ and our team! https://www.selfstorageincome.com/feasibility

📉 Take advantage of today’s market conditions and invest with us- https://cedar.cc/invest 

Get my new book that teaches you everything I know about self-storage and a special offer for podcast listeners: https://www.selfstorageincome.com/giveaway-m2

In the past 4-5 years, so many new investors have come into the storage industry (which I love). However, the issue is that all of these new investors came into the industry when self-storage was at its absolute peak.

It means that for the past few years you could basically just buy a facility and it would increase in value simply because there was so much demand for self-storage.

Back in 2020, I called it the self-storage bubble, and now the bubble has popped.

In this episode, I talk about my BRAND NEW book that just released (June 2024). This book is the 2.0 version of my first book and took me over 2 years to write. It literally contains everything I could fit into those 450 pages about the storage industry.

If you want a sneak peek of my book - this episode is for you.

Lastly, I just want to give a special thank you for all of my podcast listeners throughout the years. It’s because of you that my first book hit the Amazon Best Seller and inspired me to write the second book. Now the 2.0 version hit Amazon Best Seller again in less than a week.

So seriously, thank you. Thank you for being a listener throughout the years and for helping turn Self Storage Income into what it is today.

Buy my NEW book! https://a.co/d/aRSKcSq 

Make self storage management easier than EVER with our podcast sponsor Tenant Inc. - https://www.tenantinc.com/

📌 Ready to buy storage? Have your deals personally evaluated by AJ and our team! https://www.selfstorageincome.com/feasibility

📉 Take advantage of today’s market conditions and invest with us: https://cedar.cc/invest 

In this episode of the Self Storage Income Podcast, we delve into the crucial aspects of raising capital and working with partners and investors.

Join us as we explore proven strategies for securing funding, building strong investor relationships, and leveraging partnerships to grow your self-storage business. We emphasize the importance of recognizing that you can't do it alone – working with others not only broadens your resources but also creates opportunities for people to invest alongside you.

This episode offers valuable insights and practical advice to help you navigate the complexities of capital raising and partnership building, whether you've never invested or have dozens of times. Tune in to learn how to maximize your capital, foster collaborative success, and take your self-storage investments to the next level.

Make self storage management easier than EVER with our podcast sponsor Tenant Inc. - https://www.tenantinc.com/

📌 Ready to buy storage? Have your deals personally evaluated by AJ and our team! https://www.selfstorageincome.com/feasibility

📉 Take advantage of today’s market conditions and invest with us: https://cedar.cc/invest

 

Self storage investing vs. multifamily investing: Which wins in 2024? With the popularity of rental property investing rising over the past few years, competition has remained hot for beginner investments like duplexes, small multifamily properties, and house hacks. But if you’re looking to grow your money the most, is self storage a better pick? Would you rather deal with a few tenants and toilets or hundreds of customers simultaneously?

We’re breaking down each of these investments piece by piece, from the prices to buy each investment property to raising the property value, cash flow, evictions, auctions, competition, appreciation, and more. Both self storage and multifamily real estate have huge benefits for those willing to put in the work, but is the stress of a midnight toilet call from your tenant worth the benefits that residential real estate provides? 

Plus, if you think you don’t have the money to buy a commercial real estate investment, think again. We’ll share examples in this episode of how you can buy a self storage facility for less than a duplex in your area. Don’t believe us? Stick around, and we’ll show you precisely what we mean!

What you’ll learn in today’s show:


Residential real estate vs. self storage investing and which is a better buy in 2024
Property price differences and how it may be even cheaper to buy a self storage facility in your area
More units = more problems? Why it’s easier to have a hundred customers than ten tenants 
Evicting tenants and the considerable benefit self storage has that multifamily can’t beat 
Forced appreciation and how to use self storage to boost your wealth
Multifamily vs self storage competition and which is easier to buy in today’s market 

The self storage industry is changing. From the Great Recession through 2021, those who bought self storage facilities saw massive rent growth, impressive appreciation, and, at times, a seemingly endless supply of renters. As the American population began to move after the lockdowns, self storage only became more attractive, and facilities were filling up left and right with occupancy rates and rents exploding. But now, things have changed.

Over the past two years, self storage operators have been hit hard. Rent drops, vacancy, and increased competition took away the “passive” income part of self storage investing. Thankfully, those who treated their facilities like businesses survived, while the casual investors either bit the dust or sold to stop the bleeding. Time-tested investors Andrew Freeman and Jon Marshalla from KO Storage were able to roll with the punches and survive a tough self storage market.

Today, we’re talking to Andrew and Jon about how they built their portfolio from zero facilities to over two hundred, plus the markets they’re targeting as the “mom-and-pop” investors slowly sell and large operators “consolidate” what’s left of the smaller facilities. Andrew and Jon even share what they’re seeing in 2024 and how they’re pivoting to control the controllable and not only survive but thrive as the storage industry continues to change.

What you’ll learn in today’s show:


Why Andrew and Jon ditched multifamily real estate to build a massive self storage portfolio
The “lost year” in the self storage industry and why so many operators got hit hard in 2022
One CRUCIAL part of your investing strategy that cannot be overlooked
The “acquisition runway” causing mom-and-pop ownership to dwindle 
Why small markets, not big markets, might be even safer to invest in 
Andrew and Jon’s 2024 plan to buy even more as deals become challenging to find 

Previous Episodes with Andrew & Jon

Episode 105 with Jon and Andrew

Episode 142 with Jon and Andrew

Where to find more about our guests! 

Andrew LinkedIn

Jon LinkedIn

Enjoy this podcast? Leave us a great review wherever you listen! 

Ready to buy storage? Have your deals personally evaluated by AJ and our team! 

https://www.selfstorageincome.com/feasibility 

Take advantage of today’s market conditions and invest with us: 

https://cedar.cc/invest 

Make self storage management easier than EVER with our podcast sponsor Tenant Inc. - https://www.tenantinc.com/ 

Today’s guest built a twenty-five facility self storage business in just two years! Even more impressive? He didn’t come from a real estate background, yet he was able to build a serious storage portfolio across multiple states, all by “taking the punches” as they came. If you want to quit your job and start investing full-time, this is an episode you CANNOT miss. You’ll hear how Faraz Hemani left his high-paying Google job to invest in small-market, mom-and-pop self storage facilities. 

The question is, did it pay off?

After making some good income at his tech sales job, Faraz needed somewhere to park his money. Like most people, he thought rental properties were a great option, but as the market began to climb, Faraz realized that he had no control over whether his portfolio’s price went up or down. He sold off his rental properties and found an asset he could control—self storage.

Now, two years later, Faraz has a self storage portfolio of over twenty-five facilities across the southern United States. How did he scale up so quickly? Which markets is he targeting? And how does a complete novice get that many facilities so quickly? If you want to learn how, stick around for this episode as Faraz shares his buy box, favorite markets, and which facilities small investors should target.

What you’ll learn in today’s show:


How to quit your job and build a self storage business (and whether it’s worth it)
Why self storage beats rental properties IF you can master THESE skills
Faraz’s exact buy box and the “mom-and-pop” facilities new investors should look for
Why Faraz DOESN’T buy in the big cities but sees huge success in smaller towns 
Syndicating, raising private capital, and when it’s time to take on investor money
The truth about entrepreneurship and why 99% of people CAN’T handle it 

Faraz’s LinkedIn

Pebble Ridge Capital Group

 Make self storage management easier than EVER with our podcast sponsor Tenant Inc. - https://www.tenantinc.com/

Check out Storelocal! Our national self storage brand. 

https://www.storelocal.com/

Ready to buy storage? Have your deals personally evaluated by AJ and our team! 

https://www.selfstorageincome.com/feasibility 

Take advantage of today’s market conditions and invest with us: 

https://cedar.cc/invest