Buy self storage facility or have an app developed?

[mav55339]

I am saving 15k to 20k by the end of this year. I want to use that as a down-payment for a business loan for either a self storage facility or to have a senior developer create an app. I don't have the app idea yet. I would rather pay an experienced developer to do the app than learn to code well enough to do it myself. The latter would take a lot longer.

The self storage facility would need a much bigger loan than the app and it would have higher overhead.

Overall, with a limited amount of money, having an app made sounds like a significantly more feasible idea than being able to buy a storage facility. The scale on an app is just about unlimited also, unlike a storage facility.

What do you guys think? Which is a better fastlane idea?

 

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[Gordon]

I am saving 15k to 20k by the end of this year. I want to use that as a down-payment for a business loan for either a self storage facility or to have a senior developer create an app. I don't have the app idea yet. I would rather pay an experienced developer to do the app than learn to code well enough to do it myself. The latter would take a lot longer.

The self storage facility would need a much bigger loan than the app and it would have higher overhead.

Overall, with a limited amount of money, having an app made sounds like a significantly more feasible idea than being able to buy a storage facility. The scale on an app is just about unlimited also, unlike a storage facility.

What do you guys think? Which is a better fastlane idea?

General thoughts here. As a former live-in manager of storage facility, I advise against this with your small amount, you will take on too much debt. Why an app? Seems hasty without a plan. As for Fastlane, consider the story of the Limo. See, you could invest that money into a business, one which you could do, or even one as an absentee owner, but that small amount won't go very far.

Some of the businesses you can DO, something like an ice cream truck. Delivery. Courier. Your 20k could buy a small used van, and you could start that sort of a business. Or invest in a PRINTER, to make signs. Or set up a route for foods, like a hot dog supplier.

Maybe spend some time working on a plan, what exactly do want from that investment, and I strongly advise against taking on debt. Prove your concepts bootstrapping before you spend your dough.

 

[Subsonic]

I am saving 15k to 20k by the end of this year. I want to use that as a down-payment for a business loan for either a self storage facility or to have a senior developer create an app. I don't have the app idea yet. I would rather pay an experienced developer to do the app than learn to code well enough to do it myself. The latter would take a lot longer.

The self storage facility would need a much bigger loan than the app and it would have higher overhead.

Overall, with a limited amount of money, having an app made sounds like a significantly more feasible idea than being able to buy a storage facility. The scale on an app is just about unlimited also, unlike a storage facility.

What do you guys think? Which is a better fastlane idea?

If you dont know app development and have no good idea then how about you do neither ?

Take the money, move to thailand and live off 500 a month. With 15k saved up you have 2.5 YEARS of time freedom to learn skills and make a good product.
Taking a business loan to start seems like a horrible idea.

 

[mav55339]

General thoughts here. As a former live-in manager of storage facility, I advise against this with your small amount, you will take on too much debt. Why an app? Seems hasty without a plan. As for Fastlane, consider the story of the Limo. See, you could invest that money into a business, one which you could do, or even one as an absentee owner, but that small amount won't go very far.

Some of the businesses you can DO, something like an ice cream truck. Delivery. Courier. Your 20k could buy a small used van, and you could start that sort of a business. Or invest in a PRINTER, to make signs. Or set up a route for foods, like a hot dog supplier.

Maybe spend some time working on a plan, what exactly do want from that investment, and I strongly advise against taking on debt. Prove your concepts bootstrapping before you spend your dough.

Thanks. I thought service type of businesses were not good choices for fastlane?

 

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[mav55339]

If you dont know app development and have no good idea then how about you do neither ?

Take the money, move to thailand and live off 500 a month. With 15k saved up you have 2.5 YEARS of time freedom to learn skills and make a good product.
Taking a business loan to start seems like a horrible idea.

Thanks. I'll pass on that idea. I am just curious about having an app built and wanted to know the best way.

 

[Oso]

Thanks. I'll pass on that idea. I am just curious about having an app built and wanted to know the best way.

The best two ways are 1) knowing how to code, and 2) having ~6 figures in capital to have someone else build/launch it.

 

[Gordon]

Thanks. I thought service type of businesses were not good choices for fastlane?

I can't speak to a specific Fastlane process, just MJ took from ages 26 to 31, so five years. It goes back to your goals, and just because you start a service business...if you have the idea to SELL it, then why not? Didn't MJ sell Limos twice? I will however, drop one name...a service provider who started doing what few would do.

Wayne Huizenga. He did OK.

 

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[Subsonic]

Thanks. I thought service type of businesses were not good choices for fastlane?

@Johnny boy is making big money with a lawcare business, so I'd argue against that.

 

[TheJon]

The best two ways are 1) knowing how to code, and 2) having ~6 figures in capital to have someone else build/launch it.

Hey Oso, related question, have you tried or heard of the no-code app builders, thoughts? I'm mid planning either an app or mobile optimized website (which I imagine is insanely easier)

 

[Oso]

Hey Oso, related question, have you tried or heard of the no-code app builders, thoughts? I'm mid planning either an app or mobile optimized website (which I imagine is insanely easier)

I like a few of them and believe they serve their purpose well. Unfortunately their biggest downfalls tend to be huge downfalls. Security problems, scaling problems, debates on ownership, etc. to name a few.

 

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[TheJon]

I like a few of them and believe they serve their purpose well. Unfortunately their biggest downfalls tend to be huge downfalls. Security problems, scaling problems, debates on ownership, etc. to name a few.

Got it, I have read that. In creation of a mvp I'm not trying to reinvent the world nor spend a ton. Thinking I may have a devoper help me code a mobile site instead

 

[Mikkel]

@mav55339 if you have to ask what type of business you should start up with a large chunk of money, then the best answer is to not do either one. This sounds like a great way to flush 20k down the drain.

Before you sink a bunch of money into a project like this, one of two things should occur:
1. You have a lot of knowledge of the industry, like someone who works in that industry and knows the ins and outs of the business.

or

2. You have created a realatively low cost MVP and was able to market test the product and have confidence the product has a market.

Just dropping 20k with no clue or knowledge just seems like a bad idea to me.

 

[mav55339]

It's great to hear that you're planning to save a significant amount of money and considering investment options for your future. Both a self-storage facility and developing an app can be viable business ideas, but they have different considerations and potential outcomes.

Creating an app can be a more feasible option with your limited funds, as it requires a smaller loan and has lower overhead costs compared to a self-storage facility. Additionally, hiring an experienced developer to build the app can save you time and allow you to focus on other aspects of your business. The scalability of an app is also an advantage, as it can potentially reach a global market and generate recurring revenue.

On the other hand, a self-storage facility may require a larger loan and have higher operational costs. It's essential to consider factors such as location, competition, market demand, and potential returns on investment. Conduct thorough research and analysis to determine the feasibility and profitability of the self-storage industry in your specific area.

Thanks. Do you have experience in apps? What do you think is a good budget range for an app to be built? 50k? 100k? Etc

 

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[Gordon]

It's great to hear that you're planning to save a significant amount of money and considering investment options for your future. Both a self-storage facility and developing an app can be viable business ideas, but they have different considerations and potential outcomes.

Creating an app can be a more feasible option with your limited funds, as it requires a smaller loan and has lower overhead costs compared to a self-storage facility. Additionally, hiring an experienced developer to build the app can save you time and allow you to focus on other aspects of your business. The scalability of an app is also an advantage, as it can potentially reach a global market and generate recurring revenue.

On the other hand, a self-storage facility may require a larger loan and have higher operational costs. It's essential to consider factors such as location, competition, market demand, and potential returns on investment. Conduct thorough research and analysis to determine the feasibility and profitability of the self-storage industry in

Thanks. Do you have experience in apps? What do you think is a good budget range for an app to be built? 50k? 100k? Etc

Before AI answers this question, and wonder which one he'll use...consider the CENTS idea from MJ. NEED, Entry, Control, Scale, and Time. You for some reason have fallen in love with apps...what NEED will your app take care of? Exponential Growth, sure apps could have that...but many have expo money sucks too.

 

[mav55339]

Before AI answers this question, and wonder which one he'll use...consider the CENTS idea from MJ. NEED, Entry, Control, Scale, and Time. You for some reason have fallen in love with apps...what NEED will your app take care of? Exponential Growth, sure apps could have that...but many have expo money sucks too.

I will find a need once I know how much money it will cost to have an app built

 

[Mikkel]

I will find a need once I know how much money it will cost to have an app built

You want to know how much an app costs? I can build you one for $1,000. It will be crap, probably won't work though. Are you trying to build something like Facebook? You're looking at a couple 10s of millions of dollars. Then there are apps everywhere in between. There is no way to estimate costs until you know what you want.

Usually you find a problem, come up with a solution, and then determine logistics, market, and cost.

This sounds like the start of money chasing.

What if the problem in the market you find does not need an app as a solution? Will you ditch the idea because it doesn't fit what you want to do? Will you still try and make an app for the solution when that is not what the market needs? Will you pivot to meet the needs of the market even if an app is not the solution?

Is there a reason why you want to build an app specifically?

 

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[Oso]

Got it, I have read that. In creation of a mvp I'm not trying to reinvent the world nor spend a ton. Thinking I may have a devoper help me code a mobile site instead

I believe that's their best real-world use case at the present time: streamlining MVPs/the creation of MVPs. Why give the market 1-2 things to test when you can batch 100 MVPs together and test them all simultaneously? Assuming you can keep track of the data and you don't overwhelm yourself, it's far more cost/time efficient.

 

[mav55339]

I believe that's their best real-world use case at the present time: streamlining MVPs/the creation of MVPs. Why give the market 1-2 things to test when you can batch 100 MVPs together and test them all simultaneously? Assuming you can keep track of the data and you don't overwhelm yourself, it's far more cost/time efficient.

What if you built an app with Bubble and thousands of people liked it? Can the app handle that or would you hire a developer to "fill in the gaps" to make it run properly?

 

[mav55339]

Thanks guys

 

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[mav55339]

Actually, the more info I get and the more I think about it, owning self storage seems far superior to an app. I do have a question for you guys. Say I wanted to buy a self storage facility for 1 million dollars. I would probably need to come up with a 100k to 200k down payment. If I only had 20k, could I use that 20k as a down payment on a loan for 100k to 200k to then use that loan as the down payment on the storage facility? Kind of like a "double loan".

Also, what do you guys think of just buying land for RV, trailer, boat, equipment, etc storage? This is even cheaper to get into than a self storage facility because all I need is land with road access, a security fence, and maybe have it paved.

 

[TheJon]

When you apply for a loan your entire life gets scrutiny if you're loan ppl are any good. They'd want to know what the 20k loan is for and likely not want to use it as a down-payment. Also you'd need to have a reason to have the 200k loan more then you just want it. Finally the 1mil loan ppl will look at the 20k and 200k and prob not allow you to use as down-payment.

You of course can get 2nd and 15th opinions on the above info.

If I where you id be networking for a JV with someone who also wants to join this business type

 

[ZCP]

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the real question is your 'why'. why do you want to do this?

 

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[mav55339]

When you apply for a loan your entire life gets scrutiny if you're loan ppl are any good. They'd want to know what the 20k loan is for and likely not want to use it as a down-payment. Also you'd need to have a reason to have the 200k loan more then you just want it. Finally the 1mil loan ppl will look at the 20k and 200k and prob not allow you to use as down-payment.

You of course can get 2nd and 15th opinions on the above info.

If I where you id be networking for a JV with someone who also wants to join this business type

Thanks you really put it into perspective. I honestly have no idea how or why they would ever give me a loan that big. How could this work with an investor instead? Do I start one of those Kickstarter things? Do I offer an investor a percentage of the profit?

 

[mav55339]

Could I use a business idea funding platform like gofundme, patreon, or kickstarter for the down payment or full buying amount? Does anybody here have experience with those platforms?