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Froggystyle
07-19-2007, 03:32 PM
I saw a really cool idea this last weekend at the Men's Luxury Toy Expo. Someone is buying land and building high end storage units in great neighborhoods. They have interior walls and hookups, RV dumps, club houses, concierge services and great access. The security is top notch, and you buy your "storage condo" pretty inexpensively. The ones I saw were around 20x84' long and about $200K. A 20x32" was about $89K.
Seems to me, it might be a great way to invest in real-estate, have a storage unit for toys and such and have it in a place that if you were a baller you wouldn't need the detailer, mechanic or whatnot to come to your house to work on stuff. Plenty of room for busses, RV's etc...
I have looked into buildings to store equipment and such in, and $89K seems pretty cheap for the building, even if you owned the land already.
Am I all wet on this one, or does this seem pretty cool to some of you?

RiverDave
07-19-2007, 03:37 PM
They did those boat condo's north of Havasu a few years back that are basically the same principal.. They even had a shower for people etc.. there.
I'm not sure how that ever panned out? I know Fast Timmy bought one, and a few others looked pretty hard at them. Maybe they can shed some light on them?
Honestly though, other then the cheap price (which in reality wouldn't be that cheap everywhere else) for owning a structure, I can't imagine them being some skyrocket investment. Then again I know shit about investments so it's just an opinion..
RD

Magic34
07-19-2007, 03:39 PM
I saw a really cool idea this last weekend at the Men's Luxury Toy Expo. Someone is buying land and building high end storage units in great neighborhoods. They have interior walls and hookups, RV dumps, club houses, concierge services and great access. The security is top notch, and you buy your "storage condo" pretty inexpensively. The ones I saw were around 20x84' long and about $200K. A 20x32" was about $89K.
Seems to me, it might be a great way to invest in real-estate, have a storage unit for toys and such and have it in a place that if you were a baller you wouldn't need the detailer, mechanic or whatnot to come to your house to work on stuff. Plenty of room for busses, RV's etc...
I have looked into buildings to store equipment and such in, and $89K seems pretty cheap for the building, even if you owned the land already.
Am I all wet on this one, or does this seem pretty cool to some of you?
I looked at bulding one on the east side of town here, but most of the people running out this way to the lakes are cheap. That's why I live here. :D
I think it is a good idea, especially in your area.
I am looking at buying a smae thing out here at Falcon Field if they will allow boats in the hangers. You can buy a hanger with the same concept and it is only 1 mile from my house.
You and that damn avatar!

Froggystyle
07-19-2007, 03:49 PM
You and that damn avatar!
Often times, police question him, just because he is interesting... :D

Outnumbered
07-19-2007, 04:27 PM
I considered it but the price seems way too high. I just rented a 12x45 RV garage here in town for $250 per month. There is also a cooled RV warehouse in town that you can get a 12x35 for $250. If you buy a $90k condo you are looking at over $500 per month depending on how you finance it.

2Driver
07-20-2007, 08:24 AM
Personally, I have a hard time putting money out for something that does not come back or at least 90% of it. I suspect if the resale was decent, which I doubt or if I lived in a small community where I had no choice for boat storage, it might work.
Could be a nasty commitment if you ever change your storage needs or move...kind of like the expensive timeshare from hell only worse. I can always rent you one of my acres if you need a AZ compound:D

Froggystyle
07-20-2007, 08:43 AM
Personally, I have a hard time putting money out for something that does not come back or at least 90% of it. I suspect if the resale was decent, which I doubt or if I lived in a small community where I had no choice for boat storage, it might work.
Could be a nasty commitment if you ever change your storage needs or move...kind of like the expensive timeshare from hell only worse. I can always rent you one of my acres if you need a AZ compound:D
I see it differently I guess... Much like renting, spending $250/month on a normal storage seems like a hemhorage of cash. You can improve these, build yourself a little "base camp" for taking off for the river/lake for your friends, and put a lot of stuff in it. A lot of the storages I have seen are not particularly well suited to pulling in and out of with a motorhome as your tow vehicle, and they considered it on these ones. Also plugging in and hooking up etc... The RV drain on site is pretty cool too.
The way they are building them, they are putting them up in high density areas that just don't have room for or HOA's won't accept toy parking. Even more importantly, who wants an RV taking up all of your side yard?
I am fortunate to have 14,000 square feet in El Cajon to park my stuff, and a deal with my landlord that I can park the boaterhome. Most aren't. But even in my pseudo-baller status, I need parking for a 31' LOA boat, a 34' LOA motorhome, a Rhino, motorcycle, and whatever hot rod I get next. I would LOVE to park the motorhome inside for a change, and have a nice clean boat to pull out every time we go.
I have no dog in this fight. Something I saw at the show, and after doing the economics, I think you could break even or make money, have a limited exposure investment in real estate, not lose money every month in storage, and in the meantime have a blinged out base camp for all of your friends to meet up to head to the lake.
They sold out the first development in Mesa very quickly, and now they are looking at Surprise and Scottsdale. Lots of wealthy people live in condos in Scottsdale. No room for toys.
I may have sold two boats this weekend after I brought them over there to solve storage problems. Likely sold two storage condos too...
Froggy <-------- Thinking about it...

socalmoney
07-20-2007, 08:55 AM
I think you would be better off buying some commercial space that had room for your toys and renting out the front or what ever is left. More money up front but way better investment. If you work it right, cash flow even. You store your toys for free, or get paid to do it.

Froggystyle
07-20-2007, 09:14 AM
I think you would be better off buying some commercial space that had room for your toys and renting out the front or what ever is left. More money up front but way better investment. If you work it right, cash flow even. You store your toys for free, or get paid to do it.
Sure, but myself, and many other folks in SoCal are already pretty well tapped out financially with the home prices, and more importantly, most are not equipped to manage a small commercial space and deal with the huge potential negative cash flow. Right now, my wife is managing 11 buildings, four of which are negative by greater than $200K per month right now because of poor occupancy. Not for lack of trying either. ANYTHING regarding residential real estate has rolled up and left... often times with huge debt loads accrued and losing lawsuits ahead of them. There is a lot of commercial space available, but most is at $.75 or greater per foot, plus utilities.
Take your average toy owner. They aren't going to buy commercial space to sublease to keep toys for free.
I was thinking about car clubs. How cool would it be to be able to buy one for your chapter of the Ferrari club and put three or four in the space with your stuff. $200/month each. Instant cash flow.
Same goes for any toy that you don't have room for, or space is preventing you from buying.

socalmoney
07-20-2007, 09:39 AM
Sure, but myself, and many other folks in SoCal are already pretty well tapped out financially with the home prices, and more importantly, most are not equipped to manage a small commercial space and deal with the huge potential negative cash flow. Right now, my wife is managing 11 buildings, four of which are negative by greater than $200K per month right now because of poor occupancy. Not for lack of trying either. ANYTHING regarding residential real estate has rolled up and left... often times with huge debt loads accrued and losing lawsuits ahead of them. There is a lot of commercial space available, but most is at $.75 or greater per foot, plus utilities.
I should have prefaced this by saying "rent a while and when the market hits bottom in a few years........" I think buying anything right now is not a good idea. Those units could come down quite a bit in the near future.

Outnumbered
07-20-2007, 11:04 AM
I don't see how these could appreciate. I just ran some numbers. Not including taxes, if you finance $89k on your HELOC at 8% for 20 years you will be paying around $750 per month. $200k on the same terms will run you close to $1,700 per month. I don't see the draw.

Froggystyle
07-20-2007, 11:27 AM
I don't see how these could appreciate. I just ran some numbers. Not including taxes, if you finance $89k on your HELOC at 8% for 20 years you will be paying around $750 per month. $200k on the same terms will run you close to $1,700 per month. I don't see the draw.
They have in-house financing on the ones I am looking at, and the rates are pretty significantly below that.
For that kind of space, almost 1700 square feet with finished interiors and electrical, I can easily imagine paying $1/ft to rent it, plus utilities. You would likely not have air conditioning for that. Figure $2K/month to rent the spot.
I can't see it not appreciate. The one constant for families and toys is expansion.

Tom Brown
07-20-2007, 11:36 AM
One of the problems with owning a condo is that you don't own the structure, typically just the inside walls, but you are responsible for the structure. By responsible, I'm talking about financially liable for repairs and maintenance while having no ownership or say in how it is maintained.
A few years down the road when the building starts sinking because the foundation is crap... not that a condo would ever be built sub-standard :D ... guess who pays? Guess how much say you have in the matter? Guess who pays for the new roof, etc., etc.? The condo association... that means you.
Not only that, they are obligated to fix every deficiency they are aware of. If they didn't, they would be negligent. Nothing is ever let slide because of finances. They fix it and bill you. No problem. :)

Outnumbered
07-20-2007, 11:42 AM
They have in-house financing on the ones I am looking at, and the rates are pretty significantly below that.
For that kind of space, almost 1700 square feet with finished interiors and electrical, I can easily imagine paying $1/ft to rent it, plus utilities. You would likely not have air conditioning for that. Figure $2K/month to rent the spot.
I can't see it not appreciate. The one constant for families and toys is expansion.
Below 8% for 20 years???

Outnumbered
07-20-2007, 01:45 PM
They have in-house financing on the ones I am looking at, and the rates are pretty significantly below that.
For that kind of space, almost 1700 square feet with finished interiors and electrical, I can easily imagine paying $1/ft to rent it, plus utilities. You would likely not have air conditioning for that. Figure $2K/month to rent the spot.
I can't see it not appreciate. The one constant for families and toys is expansion.
I see your point and it does sound like a sweet set-up but I think it is a bad investment.
The problem is that all the wanna-be ballers are bailing out because their HELOC's have been maxed out. They drove up prices on all the baller-type toys and now they don't have any $$ left. The real ballers (read: consistent big money makers) are doing quite well now but there are not enough of them around to support a market for these things. Real ballers will have room at their pad for their toys. IMHO, the market on high-end toys of all types will have to correct over the next 24 months to compensate for lost demand.
I think the timing is bad for high-end anything right now. I think you would do much better spending $200k on a house (or two) out of state and renting it out until the market pops again.

lalhc
07-20-2007, 01:54 PM
The newest line of storage condos here in Havasu w/security cameras everywhere, showers, and rv hook-ups were originally priced out around $20K for 40' deep units. Two and a half-years ago the same one's were around $50-$60K. I don't know what they're going for right now, but the ROI would be quite difficult to swallow if the price was $89K. I rent one of these condos in Havasu for $185.

Outnumbered
07-20-2007, 02:26 PM
The newest line of storage condos here in Havasu w/security cameras everywhere, showers, and rv hook-ups were originally priced out around $20K for 40' deep units. Two and a half-years ago the same one's were around $50-$60K. I don't know what they're going for right now, but the ROI would be quite difficult to swallow if the price was $89K. I rent one of these condos in Havasu for $185.
Agreed. The $20k range seems reasonable and that is where they will go back to if they start to build a shit load of these things.

YeLLowBoaT
07-20-2007, 02:35 PM
I don't really see the draw... maybe if the price was cut in half you might get some biters.
You also said you could improve them, that right there is a whole ball of wax that you most likly don't want to get into...
Also since your selling them zoning could be a big PITA... hacing showers and stuff there also makes it a head ache form a building point of view.

superdave013
07-20-2007, 03:38 PM
I have a growing customer base of people that would be all over this. I know more then one that rent industrial units for their cars. Heck, I have one older couple that bought a 7K square foot building just for their hot rods.
So yeah, they are out there for sure.

UltraLucky
07-20-2007, 04:09 PM
Have you looked into those office/hanger condos @ Gillespe field. I am curious what those are going for. I currently rent a 1700 sq' hanger at a local airport with a couple of friends for less than $800. If you could combine usable office space with that @ an area with good ingress and egress for rvs
and boats then that might be more favorable

Froggystyle
07-20-2007, 04:14 PM
Have you looked into those office/hanger condos @ Gillespe field. I am curious what those are going for. I currently rent a 1700 sq' hanger at a local airport with a couple of friends for less than $800. If you could combine usable office space with that @ an area with good ingress and egress for rvs
and boats then that might be more favorable
They mandate storage of a plane at all times, and the Aerostar and Giles are both up in Nor Cal.
I am looking at the investment, not the storage. I am lucky enough to have a lot of storage at my disposal. Most people, not so much.
I still think it is a great plan. Everyone I have told about it that is in a storage deficit is jazzed about the idea.
I found the guys addy... www.garagetown.com

Tom Brown
07-20-2007, 04:28 PM
I still think it is a great plan.
At the end of the day, if it proves to be popular, it will be a great plan. All that matters is demand.
The opinions of people like me who have a distaste for condo associations (or any committee that has some influence on my life), is not relevant. From what I can tell, most people like these type of arrangements so I recommend you disregard my opinion on this entirely.
Up here, there are tons of people paying $400/month to a condo association because they don't like to shovel snow. We can't build condo housing fast enough. I pay $180 per *winter* to have my driveway cleared and I don't even have to call the guy, he just comes over. I guess people like the feeling of not having to worry about it.
If you decide to go with it, I wish you the best of luck.