Self Storage got it's beginning in the late 1960's and early 1970's in the South.During the early stages there was only non-climate units that had no insulation and built with cinder blocks for the walls and screw down metal roof. They were musty and hot, yet there was a demand for it. The Houston Texas Area was booming, apartments were going up right and left with small closets and no storage . Many business were moving there because of this boom which is still happening 45 plus years later.
In the beginning many renters were commercial types. To this day 20-30% of the customers are commercial type.There was no contract, no Self Storage Organization, No Chapter 59 lien laws to protect the facility owners. If you wanted to know anything about Self Storage no one would talk to you. It was a Big Secret that has continue up until about 10 years ago with the Information Age starting. Even to this day many things about Self Storage are still like some Big Secret.
I learned the business the hard way. All my kids grew up so I sold my house, told my wife we were going to be Self Storage Managers! She said "Are you crazy?" Then she said "What is Self Storage?" I told her the only way to find information about Self Storage was to go to work in the business. We worked for three of the Big Boys Private Mini, Storage Trust and Public Storage. I picked all three organizations brains while I was with them.
I have been in the Self Storage Industry as a Manager, Consultant,Owner, Contractor, Developer, and Investing. The Industry has grow from Mom and Pop to Multi-Billion Dollar Industry. It went from only non-climate units to Climate controlled wine storage now. The Industry in well respected by Banks, Finance Companies and Wall Street. It is the least risk of all Real Estate Investments. The Industry is now a First Class Retail Business.
Investment can be as easy as buying stocks in a R.I.E.T. like Public Storage, or U-Haul. If you are wanting to own your own place you can buy one, or build one. "Owner Beware" do your home work if you are going to build or buy. This is not a field of dreams build it they will come business. Anyone wanting to open or buy a Self storage needs to do a Feasibility Study. It is well worth the bucks to make sure it is going to work. Or would you like to bet a $1,000,000 to see. That is what you could spend on a basic 35,000 sq.ft. facility and loose it. Want to know more? www.camelotpm.com Just give me a call Daniel Stratton.
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