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TRUMP UNIVERSITY WEALTH BUILDING 101

through each existing lease, you won’t know what pitfalls may be lurking
within the fi ne print.
You don’t want to buy a property only to learn that an undesirable tenant
still has eight years to run on his lease at a rent level that is $6 per square foot
below the market price. Or a small retail center with the idea of bringing in a
Dollar General Store only to learn that an existing tenant had negotiated an
exclusive “general merchandise” clause in its lease.
For more information, I recommend Thomas Mitchell’s The Commercial
Lease Guide Book (Macore International, 1992), and Janet Portman’s and Fred
Steingold’s How to Negotiate Leases for Your Small Business (Nolo Press, San
Francisco, 2005)

Self-Storage

The self-storage industry is booming. Americans have become a population
of pack rats. Our need for storage space grows larger every year. Although big
players such as Shurgard attract most of the attention, smaller investors can

also profit in this business. Exhibit 15.3 shows several sample listings from
loopnet.com . You can see that self-storage can yield reasonably good cap rates
(unleveraged income yield), often, you can earn even more if the site will

Exhibit 15.3 Sample Listings for Small Self-Storage Centers

Savannah, Tennessee Status: Active
A-1 Mini Storage consists of 79 units Price: $350,000
with a good unit mix. Situated on three Bldg. Size: 14,340 SF
acres of land with room for expansion. Cap Rate: 9.5%
Primary Type: Self/Mini-Storage Facility
Denison, Texas Status: Active
83 watertight mini-storage units on Price: $335,400
1.7 acres near Lake Texoma. Good Bldg. Size: 9,575 SF
visibility, fenced with electronic gate. Cap Rate: 9.30%
Construction 2003. Primary Type: Self/Mini-Storage Facility
Klamath Falls, Oregon Status: Active
Built to suit mini- and RV-storage Price: $150,000
facility in high-density mobile home Bldg. Size: 5,200 SF
community and residential neighbor- Cap Rate: 8.00%
hood. Cost includes 48 self-storage Primary Type: Self/Mini-Storage Facility
spaces.

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