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Is This the Future of Storage? A Look at Chris Long's Innovative Approach

• Ed Mathews

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Ed Mathews:

Greetings and salutations Real Estate Undergrounders. It is Ed Mathews with the Real Estate Underground. Today is yet another interesting show. I hope you get a lot out of it. With me is Chris Long from Longy ards. We're going to be talking storage today, but we're also there's a little bit of a wrinkle in his business model, so we're also going to be talking about a little bit of franchising and a whole lot of licensing as well. Welcome to the show, Chris. Thank you for joining us today.

Chris Long:

Thanks, Ed, it's good to be here.

Ed Mathews:

Yeah, great. So for the folks out there that haven't come across you in social media world, why don't you tell us a little bit about yourself?

Chris Long:

Yeah, cool. Chris Long, founder of Longyards Storage, started off as a blue-collar carpenter construction Canadian. I saw people get the accent right away, hopefully becoming a 51st state.

Ed Mathews:

Love that word, good boy, good luck with that.

Chris Long:

But yeah, so I got into trades young, started building just a builder by nature, just love building, love changing landscapes. I found a niche in the marketplace that wasn't being fulfilled properly. It was storage yards smaller storage yards. I had the need for myself. They exist. I was like you know what? I'm a simple guy. I think if I eat this, other people need it. Sure enough, I built that business and now we're expanding internationally. We have over 15 partners and I integrated to the States and we're just all in so longer into the nutshell, a little bit about me.

Ed Mathews:

All right, fantastic.

Ed Mathews:

So there's lots of impact there. Yeah, I'm going to skip right over the 51st state thing because I think we can talk a long time about politics, but I'd rather not. So I wish you luck with that process. And so with regard to the unique business model, so why don't you step us through like we were talking about before I hit record? We were talking about franchising, and obviously you've done a little bit of that, but it's mostly a licensing play, right?

Chris Long:

So let me just go over Longyards right? What are storage? Yeah, great, most people get self-storage right. You go to a facility, you roll up your doors, you put your stuff in right, lock it up, pull it. Our concept is the same, except it's yards for contractors. So you go to your facility and you got a row down the middle or, however, and on both sides, got multiple yards and every yard enclosed with gates and you got cameras, power and in the yards we provide long offices and long boxes, which are containers and offices on demand when you need them, with everything you need . That's Longyards .

Chris Long:

We're doing contractor storage yards with great partners. How we do that is either we were franchising, but we're recently to a more licensing model and, yeah, we're just looking for great partners to expand. It's funny we got approved by SBA. So if you look at the SBA directory, you put Longyards right underneath Longhorn Steakhouse. But as a Canadian I can't actually get SBA because I don't have a green card. So what we've decided to do is partner up with a bunch of great partners who are American to use SBA. So we just do a partnership on the property, we help find the deal and roll it out. So a lot to unpack. That's what we're doing and that's what Laney UT

Ed Mathews:

Okay

Ed Mathews:

that's why licensing versus franchising right. ?

Chris Long:

Yeah, exactly, there's a few things to unpack pros and cons on each side but for the most part we're finding it easier with licensing and that's the direction we're heading in.

Ed Mathews:

It's a fascinating niche because I know there's a guy I follow on Twitter or X, whatever you call it now Chris Ramsey, who does something similar to this, Although a lot of his stuff looks more like man caves than it does contractor garages. Obviously, you're providing office space, you're providing storage space and, frankly, it's something that, when I had my home remodeling business, this is exactly what I did. Right Is I'd rent a storage unit and that's where I keep my inventory and whatever tools I didn't have in my truck and away. We went right.

Chris Long:

And just for context, we're not doing full development. We are launching sites within three months.

Ed Mathews:

Okay, so walk me through that, walk me through that.

Chris Long:

So it's new, it's quick, it's simple. You find a five acre piece of property, you wait to make sure it matches the long year's feasibility and then we do our model, and we do it with no permits, because our model doesn't require permits. We're not a full stack development company, but we are a massive value-added company, so we don't. When you think of storage or offices, these are portable mini storage units that move around, just like the containers, right, and our yards are meant to move around as well. So if you need to be renting a 50 yard but you want to take the yard beside you, the panels between the yards move around. So now you double the size of your yard based on your business demand. So we're not doing contractor garages, Not right now. There is a future with our adaptable model, but for now it's nimble, it's quick, simple, it's fast, and I'll tell you what. For the returns, your cashflow, it's amazing.

Chris Long:

You think about how fast you build out, how fast you cashflow the supply and demand void that we're filling yeah, it's up with us.

Ed Mathews:

So commercial lots, and so you're looking for a minimum five acres. Talk me through your buy box. What are you looking for?

Chris Long:

The buy box you can actually go smaller. It goes down to a net usable square footage of land. So you know you can have a 10 acre property but only five acres because you've got nine of wetlands right. It really depends, and then you have a minimum set of expenses. So the buy box is really particular to the area and that's why we've built our internal IP, which is our feasibility tool. We can now analyze real estate. Within 30 seconds you put in the size, the acreage, our tool will spit out what's called a gross rent multiplier.

Chris Long:

You know, I'm hopefully not going over anyone's head, but it's basically is it deal good or bad? But the buy box is you want to be like a minimum of usable acre, but you could go up to 10, 15 acres depending on the demand around. It really is adaptable to the market. So for that reason it's the buy box is expanded, but it's still. We really have to be hyper focused on great markets, great properties. That's easy to build too.

Ed Mathews:

And so when you talk about paneling, I think of a storage yard as chain link fences everywhere. But that's not what we're talking about here, right?

Chris Long:

it's a hybrid. We use a hybrid fencing system. So it's paneling like chain link, except it moves around right. Okay, you have like at my 10 acre facility in Canada. It's quite literally a long yard. I know Chris Long has a few spins on it long yards but it is 200 feet by 2000 feet. You got a road in the middle, you got yards on both sides. So the concept, what you're thinking, is the same. You got 67 yards in a yard. So if anyone listening they still don't get it, I'm hoping to try to. I try to provide as much clarity as I can because I think it's simple. But some people got to grasp the concept. But it's just like you described. It's a bunch of fencing panels but it's concreted in. It's not like a chimpsy temporary fence set up. No, these are in concrete, but we just have a unique system of how we do it.

Ed Mathews:

Okay, and so let's say I'm a home improvement contractor and I don't have an office, but I need a place to do business and I need a place to store my stuff, my inventory and whatnot. So walk me through how that relationship starts and what it looks like.

Chris Long:

Well, here's the crazy thing A lot of people don't even know we exist. So some listeners are like, oh my God, that exists. That's the scene for someone trying to get a yard. Because the solution, there's no problem to the solution. That's why our mission is to create affordable yards two to 20,000 square feet in the marketplace, right? So first of all, we have to let you know we exist. That's an education process for the marketplace. Once you find out, then it's easy. You reach out to us. There's a sales process behind it, because no one just rents the yard because they don't like.

Chris Long:

Oh, that's cool, but how does it work? Where is it? How do I get there? Back on my trailer, all these little nuances, but we have the software and the processes to literally take someone that needs it right to an automated center your credit card, your docu sign right to your phone gate code, right into your yard with a combo code with every step that you need, through a technology platform. That's how it starts. You're not many people are searching for it because they don't know the solution exists and it's once you're in what's people are seeing iOS industrial outside storage. Yeah, it's hard to get one to three acres and if you're getting one to three acres, they want one, three, five year triple net leases with no security in a piece of dirt. That's what's on the market. The gap that's the long yards solution provides the gap in the market. That doesn't exist. It's the smaller yards that's fully secure. That's what we're aiming to solve and we're doing that with parks.

Ed Mathews:

Okay, and so the technology, the process, the systems that you have in place, that's what you get with the licensing deal, yeah, and we put our money in the deal.

Chris Long:

So we're not just we do the construction, we provide our lenders, which SBA? So there's no guessing. It's not like how do I find, how do I underwrite it With us? We teach you, we give you the tools, we give you the know-how, we give you the areas of search, we give you the lenders, our roadmap checklist. We do the build out for you. We help with everything from A to Z. So it's not just a franchise where here's the book, go cook. No, we're cooking with you, and that's the cool thing. So it's more like a hybrid model.

Ed Mathews:

Okay, and that's why you refer to him as partners as opposed to licensees or franchises. Yeah, because they them. Yeah, without talking about specific numbers, because we can't do that, really, but I'm not a franchise, so, like we, uh, yeah, fair point, fair point. So walk me through the process in terms of okay, because I'm intrigued, right, so treat me like a potential partner, right, Ed Mathews, nice to meet you, Chris. Uh, I would. I I've got my eye on several parcels, and so I'd like to understand what the criteria looks like here in central Connecticut, because there's a whole bunch of contractors here who have this exact problem. So how do I get started?

Chris Long:

It's really simple. So, first of all, there's an intake questionnaire. Got to be qualified, right, got to be liquid. You got to qualify for SB and you got to be willing to sign that. Number one are you qualified? Are you willing to move forward when the deals move forward? That's number one. That's who I am. You're also who you are Okay, so you're good to go. You're in a good market. Also, you got to be a good candidate in a good market. In a good market. You need those two criteria and I mean we get along. That's important as well.

Chris Long:

Yeah, then we do. We're about to get married, right? Yeah, it goes from dating to marriage. But we start dating and the dating process starts off with five grand. It's not a $50,000 franchise fee, it's called the go long or go home $5,000. You secure your territory we're still doing territories for up to a year and then we show you how to find a location and we work with you to find a location. We give you our tools to help you understand commercial real estate. We give you our underwriting tools and this is the best thing If you don't like what we have to offer, in 14 days we give you your five grand back, no questions asked. Here you go. So that's how we're doing it and, yeah, that's how we're getting people across the finish line. That's how we go from dating to marriage.

Ed Mathews:

Okay, good. So you said good candidate, so talk me through what a good candidate looks like.

Chris Long:

Someone with either real estate experience some level of real estate experience, ideally some business experience. You've gone through a few hoops, you've taken a few bruises, blue collar but you got to have a good net worth, good income and qualify for the SBA, good credit score and liquidity. So if you check those boxes, we're going to help you. We don't expect it to be perfect. You don't have to be a perfect candidate, but you do need to have a drive, meet some of those check boxes. And because we're pioneers I'm a pioneer in the space I got my first location. I, in the space I got my first location I had to literally knock on doors, do everything I did to lease it up, get it going. So you don't have to be a perfect candidate, but you got to qualify for SBA. And then we put our money in the deal with you and we're going to be selective with that deal to make sure that it's a hundred percent confident for moving forward.

Ed Mathews:

Yeah, you're putting your own money in, so of course you are yeah.

Chris Long:

And, to be fair, we do the construction. We're vertically integrated. I was a general contractor for 10 years. I'm a licensed carpenter, so that's how we make our money right and we get bids and because we do the work, we put our sweat equity back into the deal. That's how much we believe in it.

Ed Mathews:

Okay, and what's a typical build out look like?

Chris Long:

Anywhere from a buck 30 to $2 a square foot and it really depends on what we call tier of land. In our feasibility tool we have different tiers. To keep it simple. Tier one is like ready to go you can park right away. Tier four is like a forest that you need to go through development. So our long yards build out is above what we call tier one ready to go but your site work and your site plan approval depending on your area and your land options that can range from another $2 to $4 a square foot. It really depends. And then you have your carrying costs to get there. So we're focusing on tier one with great partners and we haven't really focused in on who we want to work with and what kind of deal we want.

Ed Mathews:

Okay, and so when we look at tier one, so the property is relatively flat, cleared utilities.

Chris Long:

We just need electricity.

Ed Mathews:

Okay, all right need electricity.

Chris Long:

Okay, all right, yeah, oddly shaped. Give me the most weirdest shaped property with electricity and we will make it happen, okay.

Ed Mathews:

All right, interesting you and I are going to talk offline because I've got an idea and I literally had a conversation about this with a good friend of mine yesterday. Yeah, because he was thinking about building this, something similar, and didn't want to lay out the million bucks to do it. And I said, okay. So I, we were talking about different things like solar and all that other stuff. But okay, and so when you are, when you press the go button, right, good candidate, they qualify, they go through the SBA process, money shows up or whatever that number is. Figure $2 a square, sorry, square foot the the build-out takes roughly. Give me a range, because obviously every project's different.

Chris Long:

If it's a tier one, that means we're just doing the long yards build-out, which is all around electrical or conduits or fencing.

Chris Long:

We are aimed to launch in three months by the time we close, by the time we're at our grand opening, it's our fencing. We are aimed to launch in three months by the time we close. By the time we're at our grand opening, it's three months now if it's obviously site plan approval with civil engineering and site work development. That's where it becomes a tier four. You rely on different trades but Longyards is made to move quick and we don't. Here's a unique thing I didn't even mention yet. We don't even have to buy the dirt. We can lease the dirt because we could do land, we could do land arbitrage and SBA will come in and we could do a profit share with a landowner.

Chris Long:

There's just different ways to do that. So there's people with 30 or 60 grand in the account and you have good credit score. You could still qualify and start off with smaller parcels. You don't have to go and risk a million dollars on a piece of dirt. You can do three small leases, get a nice cashflow bankroll and then if you want to buy more, let's do it. But that's cool. You don't have to start big right, you adapt for the businesses but it's also adaptable for the real estate

Ed Mathews:

Interesting.

Ed Mathews:

I'm absolutely fascinated by this model, and so when you all right, so build out is roughly 90 days. What's the marketing launch look like?

Chris Long:

35 grand. We do soft marketing and hard marketing and this depends on the timeline of the construction. And that's 35 grand. That's built into the SBA. So everything, your whole project, with 10% down.

Ed Mathews:

Okay, and soft and hard launch. Talk me through what that looks like. What does a soft launch look like? What does a hard launch look like?

Chris Long:

So soft launch is like educating the marketplace. Okay, you put a little salt and pepper on the people that I'm in and then, once you start getting to a certain phase of construction, you start building a certain amount of excitement. That's when we go with hard marketing. In hard marketing we have our blueprint. It's a six-step process process and that's when we really hit the market with. Different types of campaigns are based on, or actually our clientele, some kind of from now on different markets, right, new coming markets. You have more logistic companies in, more seasoned, established persons of the land. You have different type of clientele and you could easily spend and burn a lot of money going out for the wrong clients, the wrong market. If you're doing it right, we're getting that dialed in, always improving as well yeah, so channels probably not pay-per-click right.

Ed Mathews:

It's probably more like direct mail and more conventional channels.

Chris Long:

So there's different. There's definitely different channels. Digital media yeah, it depends on the market and where you're at.

Ed Mathews:

Okay, all right, yeah, I'm a recovering marketing geek so I'm curious wow, interesting. Okay, and you said 17 partners, so I assume that 17 locations, roughly, or 17 stories

Chris Long:

yeah, we got something.

Chris Long:

We got different partner located between LOI's and fully open. So of course we're still new and I'm transparent with that. It's a newer concept we're building out and, honestly, it's more important to have partners and build long-term relationships.

Ed Mathews:

Yeah, that's where we're at right now. Okay, and how many of those? So I'm here in Connecticut, right, and you've been operating for a period of time in Canada and welcome to the States, and if you're ever in the Northeast, let me know and I'll buy you a beer or a cup of coffee or whatever. But the I'm curious about how many locations, ranging from LOI to up and running, you have here in the States. Okay, wow, so you've got some.

Chris Long:

Really good traction, yeah, and it's funny because we implemented traction with EOS, so we got our rocks and we're chipping away and see, and with the unique selling proposition, people are like, wow, for five grand, and if I get it back, then that unique

Ed Mathews:

It's easy, right?

Chris Long:

Yeah, so much value. Within the first few days, we give you a checklist with the feasibility tool. We're there to help you answer the questions. Then you start seeing the numbers like, oh my God, I got to make this happen.

Ed Mathews:

And I'm going to leave the oh my God, I'm going to I got to make this happen numbers. I'll leave that to the folks that are out there listening to pick up the phone and call, just in case, but because you're a really you're a really nice guy, but I'm not willing to do time for you or answer a phone call from the SEC. So, as far as the process goes, how long have those 15 units, those 15 territories, been operating? Have they been operating more than a year?

Chris Long:

Well, the one in Canada has been operating the longest. And we're cutting ribbons in multiple locations this spring summer into the US and that's why we were doing like full development and some of our projects through tier four went two years long.

Ed Mathews:

Yeah, they're forever right as soon as the government gets involved. You're slowing to a crawl.

Chris Long:

So that's one of the reasons we're like we're going to focus strongly on tier one and just get the ground running so we have more momentum. That's going to be really faster for us Right on.

Ed Mathews:

More momentum, that's going to be really Vast for us, get some scale and then have a nice blend of tier 1 to tier 4 and build. I got it. Every once in a while I have a conversation like this and I think, damn, I wish I thought of this. So, congratulations. One of the things I'd like to do is walk you through our lightning round. It's called the final 5 and I'm always curious about what makes leaders like you tick. So hopefully I'll peel the layers of the onion back a little bit. So do me a favor. First thing is finish the sentence. My purpose is

Chris Long:

Drive. One word.

Ed Mathews:

All right, love it, love it, and I'm always fascinated by mentors and folks that have helped you along the way. So I'm curious what's the best advice you ever got and who gave it to you?

Chris Long:

Say no quickly. That's probably the best advice. I learned Lots of advice Through one of my first coaches, Bruce Firestone, founder of the Ottawa Senators, so I'll give it to you. Yeah, that was a good piece of advice.

Chris Long:

And I was thinking about bruises at the time say no quick.

Ed Mathews:

There's a reason why he's in the position he's in is because he learned that young, yeah yeah. Time is your by far your most valuable asset, and if you're crystal clear on why you're doing what you do, and allocating time to those things is easy, and recognizing the things that don't fit is easy as well. So saying no is a huge. It's a lesson I wish I had learned way younger. So I'm curious about everybody has challenges and I think, frankly, I think you learn more from your mistakes than your successes. So talk to me about a professional mistake that you made, and how did you fix it? How'd you recover?

Chris Long:

Oh, there's been so many. It's like, where do I start the lightning round? Professional mistake I did a large commercial job. I ran an construction company. We had 12 employees and I was growing too fast with the company and because one of the reasons I was saying yes, and I thought I can do residential, go over here, pop over here, do commercial and I took a lot of bruises doing that. So I learned a lot of lessons from that and then it went from 12 employees to one. I had to put my tool belt on and build the business back up, but in two years I was making more money with less people, being more efficient. So the lessons came out of there is systematize your business and be very methodical about the people you bring around you and be very selective with the jobs and people you take on as partners. Yeah, and it's easy to say, it's hard to do yes. That was one painful lesson that took a good chunk of my life. Now it's valuable, invaluable.

Ed Mathews:

Yeah, focus is everything. I always talk to people and they're like you do, Ed. I see you on your website, you do. You're in the multifamily business, you're in the flipping business. You've got a virtual assistant business, but I don't run any of those companies. I manage the managers. There are people that are focused on each and every one of those companies and it's a process, right, and you require sleep as a human being and there's only a finite amount of time in the day. Use your time judiciously, learn to say no and focus on the main key. As my mentor, Pete Black, always used to say keep the main thing the main thing, right. Yeah, so leaders almost universally are readers, right, and reading these days can mean a lot of different things. So I'm curious about how you consume information, how do you learn, like through books or conferences or YouTube or whatever, and who you pay attention to these days.

Chris Long:

Yeah, great.

Chris Long:

Alex Ramosi is definitely big. I'm reading Atomic Habits right now and Slicing Pie is a good one. Just with our growth, I'm always consuming knowledge. Based on my biggest pain point, I do commit to a book and I'll finish it through, but then with my business, where's the biggest pain, which goes to a hire? But how do I make sure we're building a culture and I keep that person on boarded and not do things a second time with yeah? So atomic habits is a big one because it's about getting 1% better every day and becoming a new identity, and I think it's about not just consuming all. It's about retaining it and implementing it. So it's about the habits you create and that's a good book and a good lesson that I'm on right now. It's just a good reminder to mention.

Ed Mathews:

Yeah, man, but one of the things that you just said is really important, right, Because people will go buy a book or an audio book or whatever. They'll get that dopamine hit. Hey, I just did this and it feels good because I'm going to get smarter. A lot of those people don't even read the book and the and here's the thing the folks that actually read the book, most of them don't implement what's in the book, the lessons they learn, and that is the reason you stay up till midnight reading, reading Gino Wickman and and attraction is because tomorrow you're going to take the lesson from chapter six and go implement it in your company or figure out how to implement it.

Chris Long:

So powerful. Sam Ovens is a good person to listen to as well as the founder of school. It's about seven years ago. This YouTube clip out and he has an obsession, so if I am watching a crappy show, I'll make sure I finish it. And he just getting. Actually, I just ordered the book from Michael Jordan and you got the lessons from there. Like I think we start if you tell yourself you're going to finish it, even if it's boring or dull, finish it. Just get that habit of if I'm starting this, I'm going to see it through Right on. It's powerful because it's habit creation.

Ed Mathews:

Exactly Okay, last one. What does success mean to you?

Chris Long:

Very good question no alarm clock, slow mornings and freedom to choose who you want to do business with.

Ed Mathews:

Couldn't have said it better myself

Chris Long:

In the morning. I don't have anyone to answer to. If I don't like someone, I don't have to work with them, and when you reach financial freedom, it's like now I have purpose and drive. It's like I want to do this for more people. But man, not having to answer to anybody and no alarm clock, and with my daughters and my wife's stay-at-home mom, I house, I wake up and I already won. It's a success, but I gotta remember to be grateful. Sometimes I'm so like chasing the next deal. It's Chris, enjoy this moment because it's going to be gone.

Ed Mathews:

yeah it's amazing

Ed Mathews:

I'm older than you, and one of the reasons why I got into real estate was something my wife said to me 15 years ago. She's there 10 years ago. She's you're missing so much good stuff at home. I have two girls and they're now 22 and 17, and hanging out with mom and dad is nowhere near as cool as it used to be. Real estate in my world was all about that exact thing. Right Is the time freedom to but four o'clock today I'm scooping my 17 year old up and we're driving up to the local sports dome and she's going to go play in a softball game and I'm going to coach her. Right, and there's nobody here I need to ask for permission to do that. Nobody on earth, maybe my wife, but cause you know how that goes,

Chris Long:

We all have our boss.

Ed Mathews:

Yeah, I answered to a board of directors and there's three women 50, 50 something, and two teenagers.

Chris Long:

So yeah, but that's success.

Ed Mathews:

It sure feels like a man. All right. So when not talking about real estate or your business?

Ed Mathews:

What do you like to do for fun?

Chris Long:

It's so funny. I'm a builder, so I'm building a castle for my daughters right now in our playroom and it's got monkey bars and climbing ropes and a little cute. I built a two-story with a balcony and a slide with a foam pit. So I'm just a builder, I that I love changing dirt and I love building. It's in me like I don't do it for the money, I just love building my free time. I'm probably buying a new tool. I'm looking to build something. Hey, it's a love hate sip because my, because my wife's like Chris go do her kitchen, but I'm like, no, I want to do this, and it's always a battle of what's next on that house.

Ed Mathews:

It's like the story of the cobbler's son. Everybody else has nice shoes in town.

Chris Long:

Exactly. It's hilarious One room at a time, one room at every. We buy a house every five years, usually have coffered ceilings, and then the kitchen just looks like it's dated by 30 years.

Ed Mathews:

The funniest thing, Until you go to sell it. And then the last months the kitchen's gorgeous and then you can go over, rinse and repeat. It's funny, Our lives have paralleled. I do the exact same thing to my wife hilarious. So if people want to get in touch with you or learn more about Longyards. What's the best way to do that?

Chris Long:

Yeah, just go to our website, longyards. com. Learn a little bit about us, fill out a form, We'll get that in, or you can email me directly clong@ longyards. com.

Ed Mathews:

Awesome! Chris, you have a rocking business. I can't wait to see this explode. Don't hang up when I stop the recording, because I got a whole bunch of questions for you, and but congratulations on a really strong start and I wish you continued good fortune. Thank you for joining us.

Chris Long:

Thanks, Ed. Appreciate being on the show.

Ed Mathews:

Truly my pleasure.

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