I recently found a very interesting Storage Container Rental Business for sale. The property consists of 240 units on 4 acres, of shipping containers totaling 34,000 sf. The deal is on the edge of a small community of 20,000 people, is mismanaged by an old man, has a CAP rate of 11%, and expandable to 50,000 sf.
In short, it looks like a great deal. I know nothing about the storage business. Has anyone here had experience with this kind of business (container rentals)? Is there an expert consultant some one can recommend?
[QUOTE=Unregistered;882149]I recently found a very interesting Storage Container Rental Business for sale. The property consists of 240 units on 4 acres, of shipping containers totaling 34,000 sf. The deal is on the edge of a small community of 20,000 people, is mismanaged by an old man, has a CAP rate of 11%, and expandable to 50,000 sf.
In short, it looks like a great deal. I know nothing about the storage business. Has anyone here had experience with this kind of business (container rentals)? Is there an expert consultant some one can recommend?
Thanks
Erich[/QUOTE]
Just registered for the user group so I can get emails to the above post. Thanks for your help in advance!
I know the storage business well and have researched storage containers extensively. You would expect to be given a much higher cap rate because the life of those containers is not nearly as long as regular storage buildings. The good news is that you will NOT have to pay property tax which is a huge bargain. Just like any business look at the income/expenses and see what your cash flow will be. However I will say the exit strategy is tough as many investors would not buy these types of properties. Email me at Casey@CaseyCavell.com and we can talk more in length.