I have always been a big fan of Yogi Berra and his famous quotes. While most people find them amusing and nonsensical, I have found them to sometimes be a bit more profound. As I experience more of life, (an easier to swallow way of saying “getting older.”), I even find times when old Yogi really makes good sense. So follow along as Caesar and I apply the philosophy of Yogi Berra to the current Boat and R.V. market. Considering the state of things, do you have anyone better to recommend?
“You’ve got to be very careful if you don’t know where you’re going, because you might not get there.”
Storage industry feasibility and demographic expert R.K. Kliebenstein told us that “there appears to be about a two year window for investing in the Boat and R.V. market.” The problem is, he told us that almost two years ago. He had just put aside all of his data on self-storage, and said that the Boat and R.V. market called for an entirely “new template.”
His new template was scrupulous, the numbers worked, and the returns looked great. And then the sky fell, to say that there was a change in the economy would rank right up there with a Yogi Berra quote. We came to Yogi’s proverbial fork in the road, and apparently, we have taken it. However, let’s look at some pluses that are a result of what’s happening.
“The towels were so thick there I could hardly close my suitcase.”
As it always is in economic reality, what is a loss to some can become a gain to others. Land costs have decreased, steel prices are as low as they have been in years, concrete is readily available and less expensive, good crews are scratching to find work, just to name a few. The bottom line, this is actually a great time to build.
You’re thinking, “These guys don’t have a clue what is going on in the financial world.” Oh, we know, all too well we know. The question really is, do the current savings in land and construction offset the cost of money? That’s where the experts and your instincts come in. Hey come on, we’re steel guys. Don’t ever let the steel guys influence the feasibility of a project; they all look good to us!
However, now more than ever, paying attention to every detail is crucial in making a project work.