00:00:00 The hosts discuss the benefits of investing in self-storage units. Unlike apartments where tenants are often locked into long-term leases, self-storage leases are typically 30 days or less. This flexibility allows self-storage businesses to quickly adjust prices based on market changes and supply levels. Additionally, self-storage requires less on-site management compared to apartments, making it more of a business than real estate. The hosts also mention the convenience of shorter leases for tenants, who may only need storage temporarily. Overall, self-storage offers a unique investment opportunity with more flexibility and business-focused management.

00:05:00 Co-hosts Mike and Nate discuss the importance of marketing and convenience in the self-storage industry. They explain that self-storage is not just about owning a building with garage doors; it's also about providing convenience to customers. The speakers emphasize that today's world values convenience, and self-storage businesses can push prices by offering more convenience, even if it means paying a little more. Location is crucial in the self-storage industry, and the speakers discuss how to assess the competition and population density in a specific area to determine the demand for storage space. They suggest that approximately seven square feet of storage space per person is a good rule of thumb for estimating the storage needs of a town. The speakers also share a personal story about developing a 100,000 square foot storage facility in the town of Cedar Lake and the importance of considering the competition and demand in the area.

00:10:00 Mike Neubauer discusses the process of investing in self-storage facilities, specifically addressing the issue of opposition from community members who believe there are already enough storage facilities in town. One board member shares their personal experience of struggling to find an available storage unit, emphasizing the need for more storage space. The speaker explains that while there may be existing storage facilities, the demand often exceeds the supply, and developers may need to attend public meetings and go through zoning changes to add more storage units. However, buying an existing property with room for expansion can also be a viable option. The speaker shares an example of a 35,000 square feet facility on 10 acres with ample space for additional storage, which requires fixing various issues but offers potential for significant value increase. Ultimately, both developing a new storage facility and buying an existing one have their advantages, and investors should consider factors such as costs, timeline, and control over the project when making their decision.

00:15:00 In this section of "Self-Storage Investing 101", Mike & Nate discuss their experiences with investing in self-storage properties and the importance of understanding zoning ordinances. They explain that storage is typically zoned as industrial or commercial, but this can vary depending on the location. The speakers share their experience of having to obtain a variance to build storage in a business zoning area. They also mention that a lack of experience and difficulty securing financing are significant obstacles for new investors in the self-storage market.

00:20:00 The speaker discusses the challenges new investors face when applying for loans to purchase self-storage facilities and suggests seeking a mentor or coach as a solution. The speaker explains that experienced investors often offer coaching and education, and mentions Storage Rebels as an example. The speaker also emphasizes the importance of investing to build wealth and the need to have either time or money to do so. The Doctors and Dollars podcast is mentioned as a resource for physicians seeking financial education and wealth strategies. The speaker also explains that investors with $200,000 can use that money to purchase a self-storage facility and grow their investment, making it an attractive option for putting money to work.

00:25:00 Mike Neubauer discusses the benefits of investing in self-storage facilities, emphasizing the control investors have over various aspects of their investment, including pricing, timing, and project size. He compares self-storage investing to other real estate investments, such as multifamily housing, and suggests that self-storage is an attractive option for those with less capital but plenty of time and hustle. The speaker also touches upon the idea that bigger projects offer greater returns due to economies of scale, but cautions against jumping into large investments without sufficient knowledge. He concludes by encouraging investors to start as soon as possible, as the best time to invest was yesterday, and emphasizes the importance of staying informed about market trends and economic factors.

00:30:00 Mike discusses the current housing market and the resulting increase in demand for self-storage solutions. With affordability becoming an issue due to high interest rates and rising rents, people are unable to purchase larger homes or build additional structures for storage. This trend is expected to continue, making self-storage a solid investment opportunity. The speaker also mentions the outdated technology in the self-storage industry and the potential for implementing modern conveniences to cater to the changing market's needs. Technologies such as online access, contactless entry, and remote lock control are already being used in self-storage facilities to provide greater ease and convenience for tenants.

00:35:00 Mike & Nate discuss the benefits of technology in self-storage facilities, particularly in managing delinquent payments and ensuring revenue. They explain how technology enables quick access to stored items once payment is made, preventing customer frustration and improving the overall system. The speakers also touch upon the future of self-storage facilities, suggesting that in densely populated areas, vertical structures may become more common due to limited space. They emphasize that the revenue generated from self-storage facilities does not significantly differ between vertical and horizontal structures, but rather depends on market conditions and competition.

00:40:00 The speakers discuss the differences between investing in multifamily properties and self-storage units. They note that while it's challenging to place large amounts of capital in the storage industry due to the smaller scale of most storage investments, it's a more accessible option for individuals with less capital but more time. The speakers suggest that those starting out in self-storage investing can look for properties under $500,000, which is within reach for many investors. In contrast, finding multifamily properties under this price point is more difficult. As their investment firm manages larger sums of money, they focus on larger, Class A self-storage facilities. The speakers encourage listeners to consider self-storage investing as a more accessible entry point into real estate investing.