The Mr. Storage brand has produced consistent long term cash flow for over 20 years, while also creating wealth as the asset value appreciates over time. The strategic plan for investors for 2022-2025 (in response to the post covid boom) is to create wealth through the creation of multiple storage assets.
Dave has evaluated dozens of potential deals over the last 2 years. The soft costs, mainly composed of civil engineering fees, legal fees, feasibility reports, analysts, and convention and trade show attendance are paid through Signature Premier Self Storage (the development company). A deal must be placed under contract, receive financial approval from an independent consultant and receive a favorable feasibility study. Next it would need to receive the proper zoning changes from the municipalities planning department. Once all these requirements are satisfied, the deal is moved to its own entity. At this point, investors may be brought in or a Reg D syndication can be offered.
The construction process takes 6-9 months. The facility is built and then begins the lease up period, normally 18-36 months. Once the facility reaches stabilization, there is a large equity payout either from disposition, or more commonly from refinancing the facility. At this point, the investor can cash out of the deal or take equity out while still receiving residual income.