G-Z06

After brainstorming with a few friends last night. We have come to the conclusion that Storage units can make a good amount of money. And it seems that a good amount of people have gotten a lot of success out of running these type businesses.

Here is the idea I need advice on:

We purchased 12 acres of land and built our shop on it.

We have 5 acres across the building to do something with.


This is the 5 acres I want to do the storage units on.

(look pass the pond) As you can see its already cleared.



- Right now we are leasing it to our neighbors who raise bulls for bull riding.


So the location is 1/2 a mile from a main busy road (249). And the Property is off of a pretty busy 2 lane road.

There is one other storage unit from what I found this morning that is on 249 about 3 miles away.

The property is in between two booming cities. (Magnolia and Tomball)

Overhead cost?

- We know how to build metal buildings, I don't think that will be an issue. and we can save some money there.
- We have a gravel guy who is a friend of the family's who will give us a hell of a price. (the guy who graveled our business property now)
- Management time? Not sure how much time its going to take to accept payment, maintain the buildings, surveillance?

I would be working walking distance from this area and I am here pretty much 7 days a week anyway. So that shouldn't be a problem.


This is what I have found so far as far as pricing research.

5 X 10 $ 55.00
10 X 10 $ 85.00
10 X 15 $ 105.00
10 X 20 $ 125.00
10 X 25 $ 145.00
10 X 30 $ 175.00
12 X 30 $ 200.00

We have 230000sqft of room to build.

Figure 1500 10x10 units would easily fit in 5 acres. (150000sqft)

Say I filled up 100 of those @ 85.00 - $8500.00 a month

200 - $17000.00 a month
500 - $42500.00 a month
1000 - $85000.00 a month

All 1500 - $127500.00 a month (far fetched but you get the point)


Does anyone have advice or any experience with this?

- The good the Bad the Ugly?

- What I should look out for?

- Liability?


Thanks in advance!
G

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interesting. good luck

G-Z06

Thanks broseph

BigBronco

iTrader: (2)

My post from HPD...

In the area, boats and RV's will be around. Plan for that space wise. Make sure turning and maneuverability is there as well. (Large family trucks and SUV's as well as MOVING trucks.)

Climate control and a VERY nice security system watching everyone to make people feel safe.

Lighting on the area as well.. but then again, power poles and light poles is no problem right?

Good luck!

Randy_S

iTrader: (1)

I wouldn't build all of the units initially to see how fast they start to fill up. Maybe start with 60 to 70% of your desires. More people are going to go for the 70 to 100 dollar a month buildings from what I have seen and even used. Just pour all of the slab and build enough fence for all of it.

I would stay away from gravel driveways. The nicer you make it appear, the more draw you will get. If it is only gravel, then people will see it as just shed type buildings and not want to put anything nice in there. Supply lots of dumpsters and even a spot for large disposal as a luxury. Many people when leaving will just leave their crap if you don't give them a place to dump it. You can bump up the price by 5 bucks or so to accomodate your prices on trash.

Surveilence is a must. Ask Tony about cameras on storage units. A fence with a pin code would help also so that you know who has come and gone while you are away. I would also put restrictions on the times that they buildings are accessible. Offer the unit holders insurance for their belongings as an added security. Now, they would have to provide you with all of the information of the items including a visual inspection/pictures but that would almost be money in your pocket if you secured the place well enough yourself. Go to the other lot and see what they offer and then one up them and make yours more desirable.

Shoot the thieves if you get any!

Pavlock Performance

iTrader: (39)

Hey G, Build a business park! Plus if we dont build our own building soon I would rent from you for ease of more headaches

Plus there are tons popping up all over the place around here, even one being built over here on 2978 and 2920.

Ben R

You can make a killing by having room and accessability for people with RV's, Boat's, Motorhomes, and trailers. All you need is a slab of concrete and some cover. The spots are pricey to rent from those places ($150-$200 a month) and there is almost no overhead there.

Deerhunter-Z28

So you are planning on putting the building on a concrete slab correct?

Randy_S

iTrader: (1)

That is a really good idea right there! Charge by the sq ft that the thing uses.

Bad Habit Bird

iTrader: (12)

If you are in an area that doesn't have many storage units in it already then you have a good shot at it being a success. They can bring in a lot of money but you need to have them filled. Advertising while building them and right after they are finished, but once they are filled and people know they are there you will be sending people away because the waiting list is too long.

My grandparents manage warehouses for two different companies in Willis and each of them have 300 or so units. Here are a few things off the top of my head.

-Have someone to check on all of them at least once a day
-Have someone who can fix the garage doors and gates because the WILL break.
-Cement > gravel (people will pay more for having cement to drive on)
-Electricity bills can be pretty high
-Having security cameras attracts customers
-Expect calls at any time of day or night from people wanting a space
-Expect to deal with bitchy people who are on the waiting list

If you have any specific questions let me know and I will give my grandparents a call and see what they have to say.

Randy_S

iTrader: (1)

G, if you decide that you are really interested in pursuing this but it is to much for you to take on yourself. Give me a shout as I am the lead estimator/designer for a commercial construction company. This is what we do including all of the dirt/concrete work.

K.T.

iTrader: (1)

I'm in the market for a storage spot right now G, get to buildin!!!

G-Z06

Ben I have thought about doing this to build revenue for the units!

Thanks everyone for the input.

Bryan - that is something to think about as well.

Gilbert@Ace Racing

I think it's a good idea. My Business Partner and I have looked into Storage Facilities in the past ourselves. There is a wealth of information out there. For that matter, there are Storage Industry Websites, Associations and Organizations that you could learn alot from.

The $$$ is in long term leases to Recreational Vehicles owners of all types. They are very low maintenance renters.

I don't remember the websites, but I do know I joined discussion forums and spent a significant amount of time exploring a very similar venture. We built a Business Plan and got so far as striking Contracts, but in the end we decided to Invest elsewhere. We decided it would simply be too time consuming for us... (like the shop isn't ). I suppose the difference there for me is, this is a Labor of Love for me and my heart wouldn't be in a storage facility.

We tabled it and will revisit the idea it in a few years... We never say never!

Good Luck with it!

g

G-Z06

I need to get a quote on some small buildings to see if the startup cost is worth the risk.

I am trying to play devils advocate and come up with a reason that it might not work.

- Maybe worse case I build 5 units. If they sell out take the money to build 5 more... then 10 more.. etc.

Start slow and move forward. If I cant sell 5 units no way I would be able to sell 100.


Thanks again for all the advice guys. Thank you also for those who sent pms with great information!

Pavlock Performance

iTrader: (39)

I think you will be okay! Especially with grand parkway coming though. Not sure where you are but maybe you will get lucky and more people will be going that way!

96-speed

iTrader: (19)

Could be a success or could flop. Depends on a lot of things. Sounds like you could save some money doing many things yourself, but you have to consider all possibilities and not just what looks great on paper. Storage units seem to be very successful that are planted around growing cookie cutter neighborhoods.

FWIW, I lease a storage unit with 24 hour access off of 290/Beltway and I pay ~$55 for a 10x10. Hope this helps.

Ryan

LS_Juan

iTrader: (1)

Not sure, but I think in Texas you are required to hire two old people to rent out the spaces. They have to live there on site, be extremely grouchy (rude would be a plus) and they also have to smoke a lot. JK, good luck. I wish I were less of a pansy and ventured out to do something on my own.....

Camaroholic

iTrader: (1)

I rented a storage unit here, and while I was doing it, I saw their financials on the whiteboard in the office. I seem to recall that their total net revenue was in the $240k/yr range. They probably had a couple hundred units, a lot of 10x20's (that's what I rented). Their surface area was probably about 2 acres.

And as a former renter of these things, PLEASE take the largest UHaul trucks in to account when laying out your property. Also please take in to account that people may want to put cars in them. I've been in some that had nasty concrete work with a 3"-4" lip on the concrete between the alley and the garage. And the units were so close together that you could barely straighten a car out and clear the door when pulling in. And some where the UHaul truck could not get around certain corners.

ls1 joe

iTrader: (37)

We pay a storage unit $320 per month for a 50ft long by 10ft wide. We store our enclosed trailer there any they have 20 units. They are ALL full. Would be a good idea but I would do a few like this if you spare the space. We looked around everywhere and an enclosed unit like this was non existance.

That would make some cash$$$$.

Amber