Self Storage Investing Is NOT Easy!
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The speaker shares their experience of investing in a self-storage facility. They purchased the facility for $360,000 in February 2020, with a plan to spend $500,000 on construction and have a total investment of $900,000. The goal was to rehab the existing units, build two more storage facilities, and offer outdoor boat and RV storage, with a projected value of $1.2 million. However, the rehab process did not go as planned, and the speaker discusses the challenges they faced in the next segment.
The rehab process involved improving the grounds, filling vacant units, and building two small buildings with 50 more units. They also planned to add boat and RV storage, but the building was hit by two windstorms, causing significant damage. The team attempted to rebuild the building twice, but it was blown over again each time. They decided to call their insurance company, but the building was not covered because it was not listed on their insurance policy. The speaker and their team decided to cut their losses and go back to their original plan of rock storage instead of building a new structure.
The speaker also discusses some mistakes they made during the construction process, such as building a retaining wall in the wrong spot. Despite these setbacks, they are almost 90% finished with construction and plan to occupy the facility within the next three to six months. They hope to pull out some money to get out of their private lender debt and believe that the demand for these types of assets has increased, which will help the value of the building. They reevaluated the property and believe that it should be worth about $1.8 million when occupied. The speaker encourages viewers to subscribe to their channel to learn about different types of real estate investing and the lessons they have learned.
The speaker shares their experience of investing in a self-storage facility. They purchased the faci