Should I Buy A Storage Facility in 2024?

 

In the world of real estate, making smart choices is super important. Andreas Makris, a pro in the field, joined the Bledsoe Self Storage group as a broker after gaining experience in the industry. He started his journey by owning a moving and storage company in 2010. But it took him six years to find the perfect spot for a bigger self-storage place near his original one.

Andreas talked about the differences between investing in self-storage and multifamily homes. With multifamily properties, you often get calls from tenants for urgent issues like heating and plumbing problems. Plus, when tenants move out, it costs a lot to get the place ready for new ones. Self-storage, on the other hand, is simpler. People rent units, and there are fewer headaches.

In 2024, Andreas plans to focus only on self-storage brokerage. Right now, he owns just one facility, but he hopes to buy more in the future. When he looks at today's market, he sees that buyers and sellers don't agree on prices. This is because the rates for property income have gone up and down a lot in recent years. Also, getting loans has become harder, and you need to have more money saved up.

Andreas thinks that in the second or third quarter of 2023, interest rates will go below 7%. This could make more people want to buy property again, even if they couldn't before when rates were higher. He likes to work in areas where his network of investors wants to put their money, like parts of North Carolina, coastal places, and cities where retirees move.

Before working with buyers, Andreas checks if they have enough money to do the deal. He wants to see proof of funds and letters saying they can get a loan. He helps both new and experienced buyers, but most of the deals he does are with people who own five or more storage facilities. Technology is becoming super important in this business. People want to rent and pay online, and big companies are using tech to stay ahead.

Andreas mentioned that some big real estate companies lower their prices online to get people to rent from them. Then, after a few months, they raise the prices. It works for them now, but if they do it too much, the government might step in to stop them from charging too much. Staying updated about prices and what the competition is doing is crucial.

Andreas Makris has a ton of experience in self-storage real estate. He's looking forward to more opportunities in 2023 and beyond, and he believes in the potential of the self-storage market. As long as the right deals are done in today's lending environment, there's a bright future ahead. Andreas Makris is a real estate pro who's got a lot to teach us about the self-storage industry. His journey from starting a moving and storage company to becoming a successful broker is pretty inspiring. So, if you're thinking about getting into real estate, his story is worth keeping in mind!