In the video by SamFasterFreedom, you’ll hear about their personal experience with self storage investing. They bought an existing facility and embarked on the journey of rehabilitating it. Along the way, they encountered challenges like wind storms and even made a costly mistake of $100K. However, the outcome of their self storage investing venture is revealed in the video, along with free rental training and information about mentorship. You can find SamFasterFreedom on Instagram, TikTok, and even join their Facebook Group called FasterFreedomCommunity. In the video, they also mention trusted resources like the DealMachine App and Batch Leads. If you’re interested in learning about the experience of investing in a self storage facility and want to hear from someone who has been through it, this video is a must-watch.
I. Self Storage Investing: Personal Experience
A. Introduction to self storage investing
Self storage investing is an increasingly popular venture in the real estate market. It involves purchasing existing self storage facilities, rehabilitating them, and potentially adding new buildings for expansion. This type of investment can offer great potential for generating passive income and building equity.
B. Overview of personal experience shared by SamFasterFreedom
In a recent video by SamFasterFreedom, they shared their personal experience of investing in a self storage facility. They began by purchasing an existing facility with 66 units and a few acres of land for future development. Their initial plan was to rehab the existing units, build two additional storage facilities, and offer outdoor boat and RV storage. However, they faced several challenges along the way which affected the outcome of their investment venture.
II. Challenges Faced During the Rehab process
A. Impact of wind storms
During the construction process, SamFasterFreedom faced unexpected wind storms. These high winds caused significant damage to the buildings, resulting in the collapse of the back wall of one of the newly constructed buildings. This setback not only delayed the progress of the project but also added additional costs for repairs and reconstruction.
B. Costly mistake of $100K
Another challenge they encountered was a costly mistake that cost them $100,000. While the details of this mistake weren’t explicitly mentioned, it serves as a reminder that investing in real estate, especially large-scale projects like self storage facilities, can come with risks and potential financial losses if not carefully managed.
C. Insurance coverage setbacks
SamFasterFreedom also faced setbacks with their insurance coverage. The coverage they had in place for the construction of the buildings did not include the third building that was planned for boat and RV storage. This lack of coverage led to additional costs and delays in the project.
III. Outcome of Self Storage Investing Venture
A. Reveal of the final outcome
Despite the challenges faced, SamFasterFreedom shared that the outcome of their self storage investing venture is overall positive. They did not provide specific financial details in the available context, but they mentioned being happy with the results.
B. Success in filling units and generating rental rates
One of the successes mentioned by SamFasterFreedom was their ability to fill the vacant units of the existing facility and generate better rental rates than anticipated. By rehabilitating the units, improving the appearance of the facility, and implementing effective marketing strategies, they were able to achieve a high occupancy rate and generate steady rental income.
IV. Additional Resources and Mentions
A. DealMachine App
In the video, SamFasterFreedom mentioned the DealMachine App as a trusted resource for real estate investors. The app allows users to drive for dollars, find property owners, and connect with them directly. It offers a free trial for users to explore its features and potential benefits for their investing endeavors.
B. Batch Leads
SamFasterFreedom also mentioned Batch Leads as a resource that provides services such as running comps, managing customer relationship management (CRM), accessing home data, and creating lists. Batch Leads offers a free trial for users to experience its functionalities and see how it can assist in finding potential leads in the real estate market.
C. Free rental training and mentorship information
For those looking to delve into real estate investing, SamFasterFreedom offers free rental training and mentorship information. By subscribing to their channel and joining their Facebook Group, FasterFreedomCommunity, aspiring real estate investors can gain valuable insights, tips, and guidance from experienced professionals.
V. Details of the Rehab Process
A. Improving the appearance of the facility
One of the main focuses of the rehab process for SamFasterFreedom was to improve the appearance of the existing facility. They tackled this by removing overgrown weeds, repainting the buildings, and implementing fresh signage that enhanced the overall aesthetics of the property. These improvements were aimed at attracting potential renters and increasing the facility’s appeal.
B. Filling vacant units
Another important aspect of the rehab process was filling the vacant units. SamFasterFreedom succeeded in quickly filling these units by implementing marketing strategies and offering competitive rental rates. Their efforts resulted in a high occupancy rate and increased rental income.
C. Creation of a website
Recognizing the importance of having a strong online presence in the digital age, SamFasterFreedom created a website for their self storage facility. This allowed potential renters to easily access information about the facility, the available units, rental rates, and contact details. The website served as an effective marketing tool that contributed to their overall success in filling units.
VI. Construction of Additional Buildings
A. Smooth progress of building two additional facilities
Despite the challenges faced with wind storms, SamFasterFreedom was able to successfully construct two additional storage facilities. These buildings added 50 units to their self storage facility and contributed to the increase in rental income.
B. Challenges faced in constructing building for boat and RV storage
However, the construction of a larger building for boat and RV storage proved to be more challenging. The high winds caused the collapse of the back wall multiple times, resulting in significant setbacks and additional costs. This unforeseen setback led SamFasterFreedom to reassess their plans for this building.
C. Decision to revert to original plan without building
Due to the challenges and setbacks faced with the construction of the boat and RV storage building, SamFasterFreedom made the decision to revert to their original plan. They chose to focus on rockifying the entire lot without constructing the building. This decision was based on the belief that they would still be able to generate a good rental income by utilizing the existing units and offering outdoor storage.
VII. Current Status and Future Plans
A. Discussion of the unconstructed building
In the video, SamFasterFreedom mentions a building that they planned to have but haven’t constructed yet. They explain that they have paid for the building and materials, but due to the setbacks faced during the construction process, they have not been able to complete it.
B. Explanation to the bank
As the construction of the building remains incomplete, SamFasterFreedom had to communicate the situation to the bank. Providing a clear explanation of the challenges faced and the decisions made was necessary to maintain transparency in their investment venture.
C. Progress of construction
Despite the setbacks, SamFasterFreedom mentioned that the construction is about 90% finished. The upper lot is 100% complete, while the lower lot is undergoing final grading. They are in the process of adding a fence, lighting, and a gate to ensure the security and functionality of the facility.
D. Timeline for completion and occupation
SamFasterFreedom expects to be 100% finished with the construction within two and a half weeks. Once the construction is complete, they anticipate occupying the building in the next three to six months. This timeline allows for the necessary preparations and adjustments to ensure a successful and profitable operation.
E. Expected value of the building
Despite the delays and challenges faced, SamFasterFreedom believes that the building will be worth around $1.8 million once occupied. This valuation represents the potential increase in equity and value that their self storage investment venture can generate.
VIII. Improvements in Market Conditions
A. Increased demand and value
SamFasterFreedom noted that the market conditions and demand for self storage facilities have improved over time. This increase in demand can contribute to the increased value and potential profitability of their investment venture. It is important for real estate investors to constantly evaluate market conditions and adjust their strategies accordingly.
B. Conservative initial numbers
When initially underwriting the self storage investment, SamFasterFreedom took a conservative approach to their financial projections. This cautious approach allowed them to mitigate risks and ensure that their investment would be financially sustainable. It is advisable for real estate investors to err on the side of caution when estimating potential returns and expenses.
C. Two-year project timeline
SamFasterFreedom mentioned that their self storage investment venture was originally planned as a two-year project. This timeline includes the rehab process, construction of additional buildings, and the overall stabilization of the investment. By setting realistic timelines, investors can effectively manage their resources and expectations.
D. Paying off private lenders and potential profit
The completion of the self storage investment venture will allow SamFasterFreedom to pay off private lenders. This step helps consolidate their financial obligations and potentially generates a profit from the equity gained through the rehabilitation and expansion of the facility.
IX. Lessons Learned and Advice on Real Estate Investing
A. Importance of learning from mistakes
SamFasterFreedom emphasized the importance of learning from mistakes in real estate investing. While they faced various challenges and setbacks, they expressed gratitude for the overall outcome. Investors can use these experiences as valuable lessons and apply them to future investment ventures.
B. Utilizing other people’s money
One piece of advice shared by SamFasterFreedom is utilizing other people’s money in real estate investing. This concept involves leveraging partnerships, loans, or investor funds to finance real estate projects. By reducing personal financial risks and leveraging the resources of others, investors can potentially increase their investment capacity and achieve greater returns.
C. Subscribe for more real estate investing information
SamFasterFreedom encouraged viewers to subscribe to their channel and join their Facebook Group, FasterFreedomCommunity, for more information on real estate investing. These platforms provide valuable resources, insights, and a community of like-minded individuals seeking to grow their real estate portfolios.
X. Conclusion
Investing in self storage facilities can be a lucrative venture in the real estate market. While it comes with its own set of challenges, as shared by SamFasterFreedom, the potential for long-term passive income and equity growth makes it an attractive investment option. By learning from mistakes, utilizing available resources, and staying informed, real estate investors can navigate the self storage investment landscape with confidence and achieve their financial goals.