271. Self Storage Research for Beginners (Do This BEFORE You Buy!)

Self Storage Income

Listen to this episode BEFORE you buy a storage facility! Things have changed dramatically in the self storage industry, and some of the advice from even just a few years ago has become essentially obsolete. If you want to succeed in self-storage investing, you need to know what makes a good/bad investment in 2024. To help with your self storage research and analysis, Jonah Hall, President of Cedar Creek Capital, is on to share his EXPERT tips on analyzing a self storage facility and market.

First, we’re getting into exactly what changed in the industry over the past five years. Since the pandemic, self storage has NOT been the same. Because of that, beginners can get overly optimistic about their first self storage investment, leading them to buy deals that DON’T work out as well as they had hoped. How do you get around this and ensure you only buy facilities that will perform? Jonah shares his advice in this episode.

Plus, we’re touching on current cap rates, how unit size preferences are dramatically changing, and signs that a market is oversaturated with self storage. AJ and Jonah reveal the “indicators” they look at before investing in a market to know whether the area is worth it. New to self storage or ready to buy another facility? Don’t miss this episode!

What you’ll learn in today’s show:

• Self storage research and analysis basics, plus the “indicators” to watch before you buy
• How fluctuating rental rates could impact your investment—and why you can’t afford to get this wrong
• The changing demand for different unit sizes (smaller units are selling out!)
• Forecasting rental demand before you buy/build your next facility (and how we do it)
• Current cap rates we’re seeing in today’s market and why they’re staying so low
• Advice for beginners if you have zero self-storage experience but want to invest

Links:

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

🌳 Work with someone experienced in self storage loans with our sponsors at Live Oak Bank! https://www.liveoakbank.com/business-loans/self-storage/

🎙️ Do you have a great story to share on the SSI or AJ Osborne podcasts? You can now apply here! https://form.asana.com/?k=TGU88eU0bFTFW1iHcckuTA&d=1203571084143207

📖 Get AJ's new book that teaches you everything he knows about self-storage https://a.co/d/aRSKcSq