Stop wasting time chasing deals – own your self-storage instantly! This episode is your golden ticket to the booming self-storage market. Today, host Stacy Rossetti unlocks the secrets of her proven turnkey process, showing you as she navigates into the Atlanta Storage Facility. Stacy’s liquidation removes the barriers to finding quality deals in self-storage. Focus on maximizing the return on your investment. Tune in today because this is the opportunity you wouldn’t want to miss out on!
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Skip The Bidding Wars: Own Self-Storage Instantly With This Liquidation Method
I figured I’d go over another one of my deals. We’re going to try to sell this deal. I’m looking for offers on it. I figured I would do a test run on one of my properties. I talked to a realtor. I was like, “I’m trying to debate if I want to sell this property myself or if I want to list it with a realtor.” This property that we want to try to sell, this is our second property that we bought. It’s a small property. It’s a good property for us to learn on but we’re ready to sell it and move on to a bigger property.
That’s what I wanted to show. If you guys are here and you want to learn how to get started and sell storage investing, this is what I do every Wednesday. I hop on Zoom and I’ll go over some random topic about self-storage investing. It’s a good way to get some different ideas on how to get your foot in the door. Now, if you own a storage facility, let me know. If you’re here and you’re trying to decide whether or not this is something that you want to get into. You’re in the right place because that’s what I do, it’s teach people how to get started in self-storage investing.
Real fast, I wanted to pull up my website and share that with you. It’s StacyRossetti.com. This is where you probably came to register for the webinar. I wanted to point out a couple of things. My book, Find Them, Fund Them, Run Them is coming out soon. If you’re a book person and you want to read, then make sure you put your name on the web form and you’ll get notified when the book is available. I’m excited about that.
Another thing is, we have the course available. I always talk about how you can get started in self-storage investing. I teach here every week for free. You can come anytime you want and read. If you want everything in one place and want to be able to go through a course step by step. That is what this is. This is the super simple self-storage online course. This is available if you’re interested in purchasing it. It’s right on the website.
The price is typically $1,997 but after the end of this session, if you fill out the feedback form, there’s like a feedback form that comes in your email. If you give me some feedback on how this session goes, whether it’s good or bad. It doesn’t matter to me. I’ll take any criticism just so I can learn. I’ve got a lot of people tell me. There’s stuff that I do wrong as well. It’s good. I’m like, “I could try that.”
If you fill the feedback form out, then you will get emailed a coupon for $1,000 off. You could buy the course and you could go through it. On top of that, I also offered the Deal Analyzer. I’m going to tell you that as well, so you can get an idea. You can learn how to run numbers, run commercial deal analysis. You can buy that there. Also, we have what’s coming up on May 18th and 19th is a two-day virtual boot camp.
That is like funding. It’s all things like how do I fund my storage facilities? Everybody always thinks you could go to a bank and get a loan. The truth is banks are being super conservative now. The best time to learn how to fund property or fund real estate is now because the banks are conservative and they’re being crazy with their numbers. It’s hard to get a loan from a bank now. That means that you have to think outside the box. That’s what this funding is.
We’re going to talk a little bit about traditional financing, which is going to the bank. Most of the time it’s going to be about creative deal structures and raising money because that’s what I do. I have sixteen facilities in only one of them is being financed and the rest are from raising money and creating those structures. That’s what I’m going to teach in the two-day bootcamp.
If this is something where it’s like, “I want to get into self-storage investing and I have maybe a little bit of money saved up but not a lot of money saved up. I know I’m going to need more money in order to get into this niche. How can I find the money to purchase a facility or maybe purchase two or three facilities?” That is what this bootcamp is about. It’s on Zoom. You stay at home just like me, sit in your chair all day, sit on the couch and take notes. This is the bootcamp. You can register for that.
On top of that, we have the doors to StorageNerds. The StorageNerds coaching program are closed. I only open those doors a couple of times a year or twice a year. Whenever I feel like I can take on a few more students. That’s where you want one-on-one coaching. You could come in, but you can get on the waitlist then when the doors open, you can get notified. That’s the coaching where I’m holding your hand and guiding you through how to do this. There’s Masterminds and boot camps.
Finally, we have the acquisitions. This is where you do not have time to look for property and you want leads sent to you. This is what turned to the acquisitions. I have ten virtual assistants that do nothing but call owners. For one of the largest acquisitions, the storage acquisitions companies in the country, and we call owners and we make offers. We hand those properties over to the students.
If you want something like that, that’s what term key acquisitions is. I only open those doors a couple of times a year, but you can get on the waitlist as well. That’s what I want to tell you. If you come to this website, pretty much anything that you need in the storage industry will be there. Finally, my show is there. If you’re driving around and you need something, my show is everywhere. You can come to the website, Audible, or iTunes or whatever it is. That’s where it’s at.
That’s enough about me. Now what we’re going to do is I was going to talk about the Newnan deal. If you buy the course, the first twelve facilities that I bought are case studies. I go through in-depth how I bought each one of those facilities. Those first twelve facilities that I bought, I was 100% financed. I didn’t put a dime on my own money into purchasing any of them. I talk about how I did that and running the numbers and deal analysis is what I did.
That’s in the course, but I want to give you an overview of what I did for this Newnan one. We want to sell this facility. If you don’t know where Newnan is at, it’s in Atlanta. Also, the good thing about this is I’m going to show you internally how turnkey acquisitions works and how our process works so that you can get an idea of how you can set your systems up and be a little bit more organized and automated in trying to do these things.
Finding Good Deals
The hardest part about investing in self-storage is finding good deals. What that means is that you have to ultimately put in a lot of offers. If you have to put in a lot of offers, that means that you need to be either talking to a lot of owners or you need to be on like Crexi or Loopnet or wherever you’re at looking for deals. It takes us internally for turnkey acquisitions.
The hardest part about investing in self-storage is finding good deals. Share on XIt takes around 250 calls to find one owner that’s interested in an offer. Two hundred fifty phone calls to owners in order to find one that wants an offer. The one that will give us the information. A lot of people say, “Give me an offer.” It’s like, “Give us this information,” and they ghost you. That’s normal. Out of 250 tries, one of them will take the time to give you all the information you need in order to make an offer. That’s what I’m talking about.
It takes us from 250 phone calls down to one offer. It takes us 50 offers to get one facility under contract. If you can imagine, that’s a lot of phone calls to get one deal under contract because it’s a lot of phone calls and it’s a lot of like deal analysis, trying to put offers in and writing numbers. It’s super-duper time consuming. This is not easy. You can’t just go on to Crexi, look for a deal, and put an offer in and you get it.
It doesn’t work like that, especially because there’s so much competition out there. It’s a little bit more difficult to find deals because financing is hard to come by. If you are the type of person, if you’re thinking, “I want to buy a storage facility and the only way that I’m ever going to buy a storage facility is by going to bank getting a loan.” Your buy box has become big. What I teach is you want your buy box to be as big as possible.
You need to be open to any type of deal in any place because there’s so much competition. Share on XI see this a lot in all my students. They come in and they say, “I want to buy a storage facility that’s right next to me like an hour away or 30 minutes away or 2 hours away.” What happens is that buy box is now strong. On top of that, the only way I can ever buy a storage facility is if I go to a bank and get a loan. If you have something within two hours and you can only get a loan on it. Your buy box has gotten small.
In this industry, you want your buy box to be as big as possible because that will give you the more opportunities and the more chances of being able to find something that you can buy. What that means is that you need to be open to any type of deal in any place because there’s so much competition. There’s not a lot of storage facilities out there. I’ll tell you a couple of things. I’m talking to a realtor.
I’m on Crexi and it’s for sale. Your results are 996. There’s a thousand storage facilities for sale. If you want to say like, “I’m going to buy some $2 million or less, or that’s the min.” Let’s do max. There’s 703 storage facilities that are less than $2 million listed on Crexi. There is 500, less than a million and there’s 300 across the entire country. It’s like the whole country. There’s only a thousand storage facilities that are less than $2 million.
How many people here can afford a $2 million facility? About what can you afford based on like what you’re thinking in your mind? That’s different than what you can afford. I keep an eye on how many storage facilities are for sale on different prices so that I know how the market is. There’s more storage facilities for sale now than there was like a year ago.
There’s not a lot of storage facilities. There’s only 50,000 or maybe 60,000 storage facilities in the country. There’s 1,000 people that have said, “Yes, I want to sell my storage facility now.” That’s 1,000 people. Out of that, 300 of them are over $2 million. That’s probably like bigger players. Mom and pops have maybe 1,000 people. Maybe 500 to 700 mom and pops that are willing to sell.
It’s not a lot of options out there. You want to have your buy box big and you want to be able to have different ways to finance your deals. That’s like the two most important things in self-storage investing or everything that you can think of if you want to buy something. The way that it works for me, my first ten facilities that I bought were all small facilities. They were all in Georgia. We started getting into Florida and they’re less than a million dollars.
We had enough facilities for just me, my husband and maybe 2 or 3 people to manage because they were only like maybe less than 150 doors. Our first ten were less than 150 doors. What I would do is I would just go around and ask people for money and say like, “I want to go buy this facility. It’s $300,000 or $500,000 or $600,000. Would you be interested in lending this money to me?” They say, “Sure, we can lend it to you.”
That’s how I bought all my storage facilities in the beginning. This is one of them. The one that I’m going to tell you , Newnan in is one of those facilities. When I got started in self-storage investing, this is back in like 2017 or 2018 when I was buying my first facility. I bought this one I think in probably like either 2017 or 2018, I can’t remember. We’ve had this one for quite a long time. It was back when nobody was interested in self-storage.
Self-storage was not the topic. I don’t know if you guys have been in the game for a long time. I’ve been in since like 2010. In 2016, 2017, and 2018 is when multifamily started to get big. Everybody started to like want to invest in multifamily. I looked multifamily but it wasn’t my thing. We didn’t do that. We ended up getting into the storage world.
Back in the day when I bought these facilities, I did not pay a lot of money because nobody wanted to buy storage. There was no competition. I would go driving for storage. I would go and talk to owners and that would be like, “I’ll pay a couple of hundred grand for this thing if you’re interested.” They’d be like, “Sure.” That was it.
I’m telling you, the first ten facilities that I bought were literally on handshakes. I got them for like $0.30 cents on the dollar. Maybe $0.25 cents on the dollar like every single one of my facilities. I’m telling you that is not the case anymore. In a downturn, prices do come down. That’s when you’re going to see facility prices come down. I have a student that if she would have sold her property a few years ago, she would have gotten $7 million. Now they’re offering her $5 million for the same property.
You either have to sell them at a cheaper price if you want to sell them now or you have to hold on to them until money is easier. Most people cannot buy property unless they only go to a bank and that’s it. Most people Cannot comprehend how to buy something if it’s not from a bank unless you learn how to do that.
I’m going to like a fund conference and that’s all I’m doing for the next three days. It’s learning how to syndicate, raise money, and put funds together. I syndicated six facilities and I’m planning to put a couple of funds together. That comes with the territory, especially in commercial real estate because the truth is that commercial real estate is expensive. You can only leverage yourself on maybe 1 or 2 facilities through a bank.
Become A Fundraiser
If you’re listening to me right now and you’re the type of person that wants to own more than one facility. Your job as an investor is to become a fundraiser. That’s what your job is. Luckily, I got taught that quite early in my investing career. Within the second year that I was investing in real estate, I became a fundraiser. That’s how I’ve been able to buy sixteen facilities and not put any of my own money into any of them.
That’s why I’m telling you folk as well, too. Over the course of the next couple of weeks, I’m pushing money. The funding bootcamp that’s coming up and I want as many people that want to learn how to do this and come to that bootcamp. I want to raise an awareness in anybody that listens to me. If you are listening to me, then you should be thinking about, “Why am I here? What is the purpose of me listening to her?”
The purpose is, if you want to get into this industry, you have to learn how to raise money. You have to learn how to do creative deal structures. Otherwise, it’s not going to work. It’s not. You’re going to be that one person that owns one facility and that’s it. You cannot make enough money to live off of one facility unless it’s over maybe $3 million. If it’s a big facility, maybe.
I have a student that just closed on a $2.5 million facility. He did a student showcase for us in our Mastermind. That’s how I have it in my mind but he closed on a property. It was $2.5 million. The property was making $17,000 a month. You’re like, “$17,000 a month? I could live off that.” His mortgage is $7,000. He has a management company managing it, which is almost the equivalent of him managing it.
He has a management company that’s $5,000 and his expenses are also $5,000. He is like breaking even. In fact, in the very first year, he’ll have to come out of pocket. In the second year, most likely he’ll have to come out of pocket as well, too. He’ll start making money in year 3, 4, and 5. He’ll be able to double the value. He’ll make like $3 million on this property by year five.
Most people cannot fathom how can you do this like, “Can I live off of a storage facility?” He is not even able to live off of a $2.5 million facility. Not until he’s 3 or 4 or maybe 5 years into owning the facility will he be able to make enough money that he can pocket it and live off of that. That’s how it is in the storage world. Even bigger facilities take a long time. People ask that question to me quite often that’s why I’m bringing it up. It’s like, “How many facilities does it take for me to live off of a facility?”
He has a $2.5 million facility and he’s coming out of pocket. That’s the way it is in the storage world. Any thoughts on that? while I’m here, I want to go into my Newnan in facility. I want to give you guys an idea. This is a small facility and a lot of people think, “I need to buy a small facility to get started.” These small facilities are great facilities to learn how to get your foot into the door. That’s what I did.
The Game Plan
I want as many people to get into this industry as possible, but you have to have the game plan. The game plan is like, “What can I afford now? What can I do to get my foot in?” Those that buy a storage facility, even if it’s a small one and they don’t make a lot of money off of it. Those are the ones that are eventually going to buy 2 or 3 or 5 or 6 or 10 more facilities. If you sit there, I see a lot of people looking at facilities and only looking for that diamond in the rough.
Where’s that one facility now that I can make a lot of money, cashflow it, double, triple, and five times the value? Those properties are just few and far between just because it’s hard to get bank financing for or the interest rates are so high. Also, there’s a lot of competition out there. There is a lot of competition. This facility that I’m telling you, is a very good facility where you can get your foot into the door.
You can learn how to do this and you can create some momentum. You can create this energy inside your life where you’re able to create another one and do another one again. That’s the whole purpose. Ronald asks, “Is there a minimum size you can recommend?” The minimum size that I recommend is what can you afford to get your foot into the door? It doesn’t matter if it’s a little teeny tiny facility or if it’s a $3 million facility. What can you afford?
That’s one thing like the student Rick. Rick is going to be on next episode. I asked him to come and tell his story of this facility that he bought. It’s going to inspire you the way that he’s thinking. Everybody has their own parameters. Everybody has their own amount of money that they can afford and thought process and mindset. There’s no rule on what you should buy and what you should not buy.
If there’s anybody that’s telling you a rule, then it’s only their biased opinion. That’s it. Ronald, how much can you afford? What can you pay for now? What are your goals? What do you want to do? That’s what it is. If you can’t afford a lot, then buy something that you can afford. That’s my personal opinion. That’s what I teach. Let me get into my process.
There’s no rule on what you should buy and what you should not buy. If anybody is telling you a rule, it’s only their biased opinion. Share on XCharlie says, “I have $50,000 cash. Can you do anything? If so, can I start to doing?” You can do $50,000. $50,000 to somebody that like has $10 million is not a lot of money. The $50,000 to somebody that doesn’t have any money like has a couple of hundred thousand dollars, is a lot of money. If you learn how to do creative deal structuring, $50,000 can buy you a lot if you can get somebody to sell or finance a deal.
For instance, I have a student that is trying to buy a facility for $1.8 million in Tennessee. He is getting it seller financed with $50,000 down. In his mind, he would have never thought that he could buy a $1.8 million facility. He found an opportunity to buy a $50,000 facility down. That’s not the case with everybody. It doesn’t happen all the time, but every once in a while, it does. What I try to tell my students is like, “Think outside the box. If you go to a bank and get a loan, they can buy you nothing.” They can buy you a couple of hundred maybe and that’s it.
There’s nothing wrong with buying that. You can learn how to leverage your money or bring partners in. I have a student that bought a $3 million facility and they only had $150,000. They needed $750,000 for a down payment. How do you do that? You have to learn how to raise money. The amount of money that you have is only as small as what you can think. That’s why you got to educate yourself on having a bigger buy box and being good at creative deal structure. That’s what I wanted to tell you. I’m going to get into that.
Everything You Need To Know Whether A Property Is Good To Buy
This is how we do it internally. We have our Miss Alliance, Newnan facility. Newnan, Georgia is a suburb of Atlanta. It’s a very good location. It’s one of the fastest growing counties in the state of Georgia. The way that we set our folders up is we utilize Regrid. If you don’t know Regrid, it’s a free site where you can look up parcel data. They also try to upsell you a lot, but you could put your address in and they’ll give you parcel data of each property.
We use this site to learn about the property. I’ll tell you in just a minute. We have photos of the property. We have the bird’s eye view and the Google Maps view of where the property is located. We’ve got financials and the executive summary. I’ll tell you what that is. The demographics of the property. What is the household income and how much is the population, the competitors and the 3, 5, and 10-mile radius demographics.
This is everything that you need to know about whether or not your property is a good property to buy. Outside of the Deal Analysis, which I don’t have in. The Deal Analysis plus these things. You’re more than welcome to take a screenshot. Once you start looking for facilities, like what we do is every facility, we set up a drive folder. We make sure that all this information for each one of these folders is in here.
That way, we can keep our little more organized and systematized. We create what’s called an executive summary. The executive summary looks like this. You can see the picture of the facility then the address. You can see the unit mix of the facility is 5×10, 10×10 and 10×20. This is what we have at this place then we also have parking 10×25, 10×35 and 10×45. These are the unit sizes that we have. Here’s some pictures of the facility. Here’s the Google Maps. This is in Atlanta. This is where Miss Lillian Self-storage is, the suburb of Atlanta. It’s located in Georgia.
This is the property itself. There’s parking and then two buildings. This is a satellite view. Here’s the property over here. You can see the parking and the building. It’s on a very busy state road. The demographics there’s about 43,000 people in Newnan. In a three-mile radius, there’s 15,000. In a five-mile radius, there’s 43,000 and in a ten-mile radius, there’s 100,000. Again, it’s like a very good suburb of Atlanta. This is the Regrid information.
This is the information that you will get off of Regrid for free. I like Regrid because it shows you the boundaries of the yard and how big the yard is, can you expand or not. All the tax information, owner information, parcel, and acres. It’s 2.29 acres. That’s how big it is. We also have all the competitors. You can see, this one is 4.2 miles away. It’s an indoor storage facility. It’s U-Haul. A Newnan self-storage is 2.7, so this is a good competitor of ours.
You want to know who your competitors are because you have to do competitor analysis. You’ve got to look at it and see what they’re charging. Grayson is 4.7 miles away, and Secure Care is 4.2 miles away. StorMark is 4.8 miles away. The closest storage facility is three miles away. There’s not a lot of storage next to us. The rest are like five miles away. That’s why we always stay full. I’m going to go back to the folder, this information, Regrid, photos, Google Maps, the demographics, the competitors, and the population.
All this information outside of the financials is what we put onto the executive summary. The executive summary is a summary of the properties. You could open this up and take a look at it. We put this together for every single one of our properties that we buy. It helps me to be able to have everything that I need in one spot. I don’t have to sit there and open every single one of these folders because it’s annoying.
We always label everything so I know where to find it. This is our system. Now, what I wanted to tell you is this is what it looks like inside of StorEDGE for us. This is StorEDGE. StorEDGE is the software that we use to manage our facilities. That way, you folks can have an idea what StorEDGE looks like, too. You can see here, this is the dashboard. We’ve got eleven leads already for the month. We’ve got 45 tenants. We’re 84% occupied and we’ve got 19%. There’s eleven units that are delinquent. It’s how it is.
You can see here that we’ve got 58 units available and ten vacant units. There’s total of 68. Plus, one owner’s unit is complimentary. There’s 69 units total is what this is. You can also see what’s good about is that you can have the information of how long everybody stays. You could see that on the delinquency, you’ve got 11 to 30 days, 8 of them.
There’s eight people that haven’t quite paid yet. The way that it works for us is it goes by state law. On the 6th, it’s considered late. You get a fee. On the 15th, you get an overlock fee. I can’t remember what it is. By the 23rd is when you start the auction process. You can see here that we’re in 11 to 30 days for eight people. There’s always going to be people that just push it all the way to the very end, then they pay at the very end. That’s how it is in this world.
We have two days that are two people that are late. We’ll look at those here in a minute. We’ve got 30 to 60 days, one. These two people may be somebody that we did a payment plan for. I don’t know because I don’t manage anything. I just teach. We go to past due on the left. You could see one of them is 229 days late and the other one is 138 days late. This is from the past year. I’m guessing that they’re in the auction process now. They had payment plans set up and they never followed through is what it was.
For everybody, we’re calling to make sure they’re sixteen days late. We call them and say, “You’re late.” They get text messages and emails. Let’s go back to the dashboard, so I could show you. This right here is where you can see how long people can stay. This is called your customer lifetime value. You can see that we have twelve people that have been there for two years plus and one to two years, eleven people.
A lot of people are staying for a long time, even though they call in and say they only need their unit for a month. They end up staying for years. Six to 12 months are nine people. Five people for 3 to 6 months, and 1 to 3 months is 8 months. These are people that are coming in, moving in, they’re new ones. This is what we call our customer lifetime value.
This is how we figure out how much money we can spend on marketing in order to get new people in the door. It’s a very important area. Here is the occupancy. You can see 58 occupied and 10 vacant. Let me show you what this facility looks like as well, too. Here’s the map. You can see in the two buildings, 1 and 2. We have a couple of 10x10s. These are the ones that we’re calling and trying to get them to pay. The green is the ones that are available. Those are 10×10 units, then there’s some 5×10 units that are available.
The red is the 5x10s that are late. These are the parking spots. These are all full. We have no availability of boat or RV parking. These are typically boat. Over here, this is where we do all the RV parking. This is what it looks like. Basically, we bought this facility and stabilized the property. This is an income-producing, where what you’re going to be doing when you buy this property is you’re going to be managing.
There’s no cutbacks. There’s nothing that needs to be fixed. There’s no unrentable units. There’s no doors broken. There’s no latches. If it was unrentable, it would have a gray look to it. This is an income-producing property where you buy it and you’re going to be making money off of it. I pulled this up right over here in StorEDEGE. You could see the report. I pulled it up. I pulled up the management summary.
Keep An Eye On Your Numbers
We look at this like almost every week. Not every facility every week. We’re always trying to keep an eye on how our numbers look on every single property. This is why we like the management summary. I pulled this up through the end of last quarter. We can get an idea on a quarterly basis, like how are we doing? What are we doing? The total revenue for the previous month was $6,400 and our year to date was $16,000. In the past year, we made $55,342. That’s 80% occupied, negative rental of minus one and year to date minus two.
We’re always having people move in and move out. That’s how it works. We’ve had 37 move-ins this year. Think about that and it’s only April. We’ve had sixteen. In the storage world, people are coming and going. You have to always consider like, if I’m going to do sixteen move-ins a month or 37 for the year, how much time is that going to take me? How am I going to manage this thing? Am I going to have somebody answering the phones? Am I going to be the one? Sixteen move-ins doesn’t mean 16 calls.
It takes a lot of calls to get sixteen move-ins. You have to also think about how much time and effort it’s going to take to be able to manage this. Are you going to answer all the calls yourself or are you going to have a call center and they’re going to answer the phones to handle this for you? We talked about auctions. Your auctions also take quite a lot of work as well. Who’s going to manage that? Are you going to do that? Are you to get a third party company to do it or this thing?
You could see the revenue for the month to date and the year to date so you could see rent, fees, insurance, and miscellaneous. We have like, for us, internally because we have a lot of facilities and tenants. We have one person and that does nothing but collections. Her job is collections. As soon as somebody is considered late and we split those up into two different periods.
It’s like less than 30 days then more than 30 days. To get our fees and stuff, we do well because I told the person. I was like, “You have to pay for your job. Make some money for us.” Our fees are good because we have somebody that is their job. They get people to pay. We’ll negotiate fees and stuff. What we’ll do also is we’ll barter reviews for fees. We will take your fees off if you give us a five-star review.
Once you give us a five-star review, send it to us then call us back. We’ll remove those fees and all you have to do is you have to pay what you owe us for the monthly rates or whatever. We do that quite often as well, too. We have a ridiculous amount of reviews on all of our storage facilities as well. That’s a little tip for that. The reason I brought that is because I was talking to the realtor. He was like, “You guys make a lot of money on fees.” I was like, “That’s how we work.”
Here’s the income as of now. Here’s our credits. It cost us $450 for reviews. How much does a review work to you? That’s the question. How much would you give up for a review? I’ll give up all my fees for review. Discount is another part. Discounts and credits are probably the same thing, waived fees then write offs. This is probably all the same thing. That’s us trying to negotiate them getting the tenants to pay. Receipts are here then here’s the occupancy.
We’re 80% full. We’ll always be like 80% to 85% full. That’s a good number to be at. It’s hard to be 90% full now. A year ago, everybody was 90% full and now it’s down a little bit. It’s how the market goes. We typically run our numbers at 90% full. Sometimes you have an up period and a down period. Vacancy is 17% then complimentary, that’s our one unit. We’re at 7,900 square feet total, including the parking.
The vacant is 1,750, which is 9,800 square feet. This is the potential. If we were 100% full on our storage units, plus the vacancy. This is what we should be making for just the rentals. Not including the fee. Economic occupancy is $4,770 plus $1,000. $5,984 is what we’re supposed to be making. That’s not including the fees, then 80% and 17% potential.
Rent now is $4,612. Another thing I want to talk about too is this number here is based off of the rate that you put into storEDGE. The way it works with pricing is you can have up to like six different prices. We have a lot of different prices. We have our standard rate, a managed rate, a website rate, a spare foot rate and a promo rate. We get all kinds of different rates.
What it’s doing is it’s what your managed rate is then that’s the number that it comes up with. All the different rates and prices that we have, we’ll have promos in some places, high numbers in one place and a different place, we’ll have another. That’s why the number is a little bit high. We’re 80% full and we’re making $4,600 a month.
Dynamic Pricing
Also, on top of that, what we do is we do what’s called dynamic pricing. Dynamic pricing means that at 80% full, our price for the 10×10 is this and at 90% full, our price is this, and at 98% full. That price for that very last unit is super-duper high. We don’t have any one particular price for any unit at all. We don’t say like, “All of our 10x10s are $80,” and that’s just what it is. It’s all based off of like either what type of price we have, type of rate we have or it’s based off of what our occupancy is.
That’s why when you think of storage and running deal analysis, you do not want to have one price for each unit in mind. You want to be able to say, “If I’m at 80%, I’ll make this much and if I’m at 90%, I’m this much and 95% on this much based off of each unit size and each rate that I have, depending on what I’m offering.” It’s a little bit complicated, but StorEDGE manages that for us.
StorEDGE is one of the only software that allows you to have a whole bunch of different rates and also allows you to do dynamic pricing at the same time. What that is the total what I explained to you. I’ve done that over and over. I explained it many times but that is called revenue management. We go over that in our management boot camp and the coaching program but that’s basically what it is. It’s how to do revenue management with inside.
If you are looking at your facility or if you wanted to buy this facility from us. You would want to look at what the opportunity of the facility is and having one price and looking at it. It cuts you short a little bit and it gives you like your bottom line. The truth is, you could make way more money than that if you understood revenue management.
Finally, we have rental activity. We’ve had three move-ins and ten year-to-date. We’ve had four move- outs and twelve year-to-date. We’re like negative one and negative two and that fluctuates. Sometimes, you see every month. We have six reservations like people trying to move in. It’s hard to tell. There’s no real balance on anything because every month is different. What I can say is the market is getting way better.
It was hard to get rentals. People were dropping their prices and trying to figure out what that baseline was going to be. We figured out our prices and now people are starting to move in. You have to figure out what the price people are willing to spend at the time of the market. A few years ago, people wanted to spend a lot of money and now they don’t want to spend that much money. The truth is, over time, if you own this property for 5 years or 10 years, the market looks like this. You have to have that line. It’s a game.
Management Summary
Finally, this is the management summary. This summary is also inside the Google Drive folder. I have financials. Inside the financials, we have occupancy, which is like what size and what’s occupied and not occupied. It’s occupancy report. This is one of the reports. It’s like an important report you should be looking at.
The management summary report as of December 31st then also as of March 31st. Finally, the annual revenue as of April 5th, I pulled it. You could see how much up through now because we are making more money now. Management summary then you go to the 17th. You generate your report. As of now, we have $4,884. The previous month, we have $4,884. The previous month it was $6,400 but this is as of the 17th. We still have to get everybody to pay.
We have $21,000 a year. That’s how you look at it. We’re 84% occupied now. We’re even more occupied than we were on the 31st. The 31st, we were at 80 units, and now we’re at 84%. They were plus three as of now. We had 42 move-ins, and 5 move-ins so far. When you start looking at these numbers on a regular basis. Every month, we look at all of our numbers for all of our facilities. You will start to see.
You know now that the market’s going up because there’s more movements coming up. You play with the prices. It’s fun. I like it. This is the Newnan self-storage. This is the one that we want to sell. If you’re interested, you’re more than welcome to message me. I can give you access to this folder so that you can make an offer for us. I’m going to start pitching it out here in the next week or two, but I figured I would let everybody if you’re interested.
We are open to getting offers on this deal and this facility. Other than that, that’s it. Somebody’s asking about analyzing the deal. I’m not going to give you our deal analyzer. You need to have your own deal analysis. You need to be able to run your own business deal analysis. On our deal analyzer, you can see that we have the annual income that’s $36,874, 55 units, 5,200 square feet, and 30% vacancy. This number is wrong. I have this old deal. I haven’t updated it.
When you run your deal analysis, you’ll need to be able to have all this information plus what your opportunity is going to be plus your competitive analysis. This is your competitive analysis. This is all of the facilities and what they’re charging. Plus the unit mix. We only have the three-unit sizes, if you remember then we have our three parking. We’re running our numbers off of unit mix and parking.
We’re putting the info into the sheet what our expenses are going to be then this expenses and things like this are in there. That is how you run deal analysis. I’m not going to get too much into it. You’re more than welcome to buy this deal analyzer, then you could take the information. Anything in yellow is what you want to put in from the documents that you get from me or from anybody else. You can use this for any deal.
Basically, you’re putting your inputting your inputs. You’re looking at your opportunity and you’re expenses. You’re looking at your unit mix and inputting all your unit mix. You’re inputting your competition then you get to look at your valuations. You get to see what the potential is on a property like this then you make an offer. Remember, I told you that your financing inputs are one of the most important parts of deal analysis.
Your financing inputs are one of the most important parts of deal analysis. Share on XWhen you run your bill analysis, you want to make a cash offer. We make three owner financing offers, and we make a bank financing offer. There’s three different offers and that’s what our deal analyzer does at least. You can do whatever offers you want but this is what we do. Every single one of our deals, this is what we come up with. When you run your financing inputs, you can see here on your owner financing offers. You’re looking at your down payment, interest rate, loan, length of the loan, amortization, how long you’re going to have it, what’s your interest rates, then you can figure out what your purchase price is.
That’s how you’re running deal analysis. You have to have your inputs, unit mix, competition, and financing inputs in. From there, you can look at your cashflow and your valuations. That’s how you run deal analysis. If you wanted to make an offer on this property or be in the folder, email me. It’s at Questions@stacyrossetti.com and we’ll share the folder with you.
Dane is asking, “How do you obtain the three five mile radius?” There’s population websites out there. I can’t remember what we use but there’s population websites where you can get population within areas. They should be out there, just search population website. “Where can I learn about credit deal structuring terms for the storage units?” Essentially in the course, I go over this and here, I’m going over this and the coaching program.
I would say, most of the time, I’ll be probably one of the bigger ones that teaches the destruction for storage. I would go back, read to the episode. Honestly, if you buy the deal analyzer, it comes with a course. It talks about how to run all the numbers for that. That’s going to be the easiest way to say buy the deal analyzer and go through the course. I appreciate it. I’ll see you guys in the next episode. Take care.
