Why I Love Self Storage Investments - You're going to love it too! - JGS REAL ESTATE ...
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Why I Love Self Storage
Investments
You’re going to love it too!
Disclaimer
All of the material contained in this presentation is provided for educational and
informational purposes only. No responsibility can be taken for any results or
outcomes resulting from the use of this material. While every attempt has been made
to provide information that is both accurate and effective, the authors do not assume
any responsibility for the accuracy or use/misuse of this information.
Jason Stofer is a Multifamily & Self Storage Syndicator \ Investor \ Asset Manager \
Multifamily & Self Storage Educator. For the past few years he has invested his time, effort
and money to acquire the knowledge to invest in multifamily and self-storage properties.
This includes highlights such as attending David Lindahl 3-day boot camp and Neal
Bawa’s e-boot camp of which he highly recommends.
Jason attended Golden Gate University, graduating in 2007 with a BS in Computer
Information System and then a Master’s in Business Administration in 2016. He has
working in the Information Technology (IT) field for the past 18+ years with Project
Management, Data Analyst, Lean Six Sigma, Six Sigma, and Continues Improvement
projects.
Jason can leverage this vast IT, project management, Lean Six Sigma, and Continues
Improvement experience in the finding, analysis, and operation of multifamily and self-
storage deals and asset management. Jason believes in leveraging process improvement
to realize greater returns on investments by lowering operating costs of the asset. He
also believes in automation through technology to gain operational efficiencies.
Jason has the reputation of providing exceptional value to his customers and his
community. He focuses his efforts on acquiring multifamily & self-storage, class B & C
properties in the west and south west regions of the US.
1/5/2019
About Me
Stuff Facts!!
We as Americans own a lot of stuff!
o There are 300,000 items in the average American home
o The average size of the American home has nearly
tripled in size over the past 50 years
o 1 out of every 10 Americans rent offsite storage – the
fastest growing segment of the commercial real estate
industry over the past four decades
o The United States has upward of 50,000 storage facilities,
more than five times the number of Starbucks. Currently,
there is 7.3 square feet of self storage space for every
man, woman and child in the nation. Thus, it is physically
possible that every American could stand—all at the
same time—under the total canopy of self storage
roofing
o Americans spend $1.2 trillion annually on nonessential
goods—in other words, items they do not need
1/5/2019
Source: https://www.intellectualtakeout.org/blog/15-stats-show-americans-are-drowning-stuff (2016)
Why I Love Self Storage
#1 No Tenants!
o Fact is they are customers not tenants!
o Tenant rights don’t apply.
o Property rights are much more relaxed in most states.
o You could rent that same unit the very next month.
o All ways check state laws!!!
1/5/2019
Why I Love Self Storage
#2 It’s a Commodity!
o “A commodity is a basic good used in commerce that is
interchangeable with other commodities of the same type.”*
o Read more: Commodity “a mass-produced unspecialized
product”
o Commodity, “corn is corn”…a metal box is a metal box
o There is no differentiator
o The most important thing in self storage is location from the
customer
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*Source: https://www.investopedia.com/terms/c/commodity.asp#ixzz5XnEA71Qg
Why I Love Self Storage
#3 The 4 “D’s”
o Divorce, Death, Downsizing, and Dislocation (job loss)
o Divorce: “Every 13 Seconds, someone, somewhere, files for
divorce.”*
• Where will all that stuff go?
o Death: Not something everyone what's to talk about
o Downsizing: We are seeing this trend in home ownership to
renting
• Extra stuff must go somewhere!
o Dislocation: Loss of a job or a recession
• Like downsizing people don’t want to give up their stuff!
1/5/2019
*Source: https://www.divorcelawyersformen.com/blog/divorce-rate-us-2018/
Why I Love Self Storage
#4 Sticky Customers!
o Once they are in, they tend to stay in!
o Built in rent increases of 5-10% every 7 to 10 months
o Customers aren’t going to move out over a $5 rent bump
o This while keeping the street rate the same
o Think of the gym memberships
o “The majority of self storage customers rent long term, with 52%
of those surveyed reporting that they rented their storage unit
for one year or more.”*
1/5/2019
*Source: https://www.simplyss.com/storage-options/self-storage-statistics/
Shameless
Markets
Plug!! Self Storage Where we invest
o TX: Austin, San Antonio
Our Mission:
Multifamily Acquisition Criteria
o CA: Sacramento, Stockton
Acquisition Criteria o Class: "B" and "C" class assets
JGS Real Estate Investments, LLC is a o Position: Value Add o NV: Reno, Las Vegas
privately held company focuses on o Class: "B" and "C" class assets
the acquisition of income producing, • Room for expansion o UT: Salt Lake City, Provo
o Position: Value Add
value add, class B or C multifamily • Street rate rent increase
and self-storage properties in • Organic rent bumps o WA: Seattle
growing and established markets • Occupancy lease up (50-80%
• Rehab rent bumps physical occupancy) o ID: Boise
across the United States. We target
high yield passive cash flow and long • RUBS • Operational efficiencies (poorly o AR: Tucson
term capital appreciation through managed)
• Operational efficiencies o OK: Oklahoma City
calculated acquisition, conservative o Units: 300 +
underwriting, and a commitment to o Units: 25 - 150 o Traffic: 25,000+ / day or more o Many others on a case by case
operational excellence of the asset
through continual improvement o Year Built: 1970's and later o Demand: 6 Sq. Ft. Per/Person or Less basis
processes. o Median Household Income: $50,000
o Median Household Income:
and above
$50,000 1/5/2019
o Population: 50,000 within 3 miles
o Population: 100,000 and growing o Job Growth: Positive growth
o Job Growth: Positive growth
Why I Love Self Storage
#5 Automation!
o Complete automation of the entire customer experience
o No interaction with the customer
o Complete move in and out online
o AFT increases the stickiness too!
1/5/2019Why I Love Self Storage
#6 Additional Revenue Streams!
o You can require insurance and the insurance company with
profit share
o You can sell moving goods
o You can rent U-hauls
1/5/2019Why I Love Self Storage
#7 Recession Resilient!
o This is why we love both multifamily and self storage
o Why? People will down size or be displaced (the four D’s) during
recessions.
o Where do they move? Apartments!
o Where do they storage their household stuff? Self Storage!
1/5/2019
Source: https://www.insideselfstorage.com/suppliers-vendors/if-slipper-fits-finding-your-perfect-self-storage-loanWhy I Love Self Storage
#8 Expense Ratios
o Your largest line item is most likely payroll/taxes
o Low Utilities sometimes with NO water & sewage
o Higher advertising budgets
o Little to no turn costs!
o Less M & R costs!
o Typical ratios (depending on size) 35 – 40%
1/5/2019MARKET OPPORTUNITY
Self Storage is a $38 billion dollar per year industry!
# Of There are more self-storage facilities in the U.S. than McDonald's and
Starbucks locations combined. (22,026)
Facilities
Mom & Industry ownership is fragmented, with 18% of facilities owned by the six
largest public companies, 8% owned by the next top 100 operators (minus
Pop the REITs), and 74% owned by small operators. (Self-Storage Almanac, 2018)
1/5/2019Risks of Investing in
Real Estate
There’s always RISK!!!!!
Trust but Anyone that is advising you on Water! Water is the biggest risk to a self
investments that say there are low storage building … from above and
verify! or no risks….RUN!!!! below (don’t invest in a flood plan!!)
Illiquidity When investing in any commercial Recession We don’t have a crystal ball, but
investment be prepared to invest for most economists are expecting a
minimum 5 years and don’t expect to downturn soon.
get your main invest back until then.
1/5/2019There’s the easy way to make money
Passive Investing & and then there is the hard way to
make money!!
Active Investing
Active: Employee Passive: Business Owner
5% Wealth 95% Wealth
95% Population 5% Population
Active: Self Employed Passive: Investor
1/5/2019
Robert KiyosakiOUR
TEAM
I don’t do this alone, nor
should you!! I will always Thiscould You2
bring on people with Jason Stofer Beu Maybe
experience!! Real Estate General Partner Experienced Partner Loan Guarantor
investing is a Team Sport! Deal Finder, Deal Resume, Experience, Raise Signs the Loan! Easiest
Negotiator, Sweat Equity, Money, Risk Capital money on the planet!!
Deal Analyst, Raise Money
1/5/2019THANK YOU! Jason Stofer Website: http://www.jgsinvestments.com Phone: 925.378.5413 Email: investmentsjgs@gmail.com Schedule time to talk with Jason Stofer: https://meetings.hubspot.com/investmentsjgs Facebook: 1/5/2019 Jason Stofer RE https://www.facebook.com/jgsinvestments/
ABOUT US
JGS Real Estate Investments
Multifamily and Self Storage Investing
JGS Real Estate Investments, LLC specializes in multifamily and self-storage acquisitions in growing
and established markets across the United States. We target B and C class assets that provide the
opportunity to deliver above-market rates of return to our investors through value add
components and strategic asset disposition.
But we aren’t just about making money.
We believe in being socially responsible and building personal relationships. We believe that
every person deserves a chance in life. We as a company are committed to donating 10% of our
profits towards troubled teens, orphaned teens, or any other teen based non-profit organization
that may need assistance in the communities we invest or live in and we will offer the same
opportunity to our investors , investment partners, and our business partners.
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