Self Storage- I love losing Money!!!

[Henry Clark]

It's Tax time again.  Just sent off our workpapers to our Tax accountant.  Will have a meeting this Saturday.  Made a very small profit thus far.  But our Accountant will do the Depreciation schedules and then we should have a "Big" loss.  Will use this as an Offset for our other Non-Storage income and any extra as a Loss Carry Forward.

Our core Self Storage Business we did great this year, just like last year.  All of our properties Occupancies are stabilized.  Insurance and Property taxes are stabilized.  Loan fiinancing balloon periods and Rates are stabilized at 7 years Commercial or 10/20 with SBA.  

- Had expenses on our Teak Forestry property in Belize which we will write off.  This is a long-term investment 10 to 25 years.

- Bought another skid steer, Aerial lift and 50 cargo containers for storage, plus road work that we will use the Year 1 depreciation 100% write-off.  This is simple since these are individual Bills and no Cost Segregation study is needed.  Forget what the annual limit is on Year 1 100% depreciation, but we are far from it.

- Our Country Subdivision Lot sales did great, only coming online around July of last year.  Took another Full price offer on 2 lots last week.  Lots are selling well.  This income will get offset by the write-offs above.

Cons- you have to pay the Piper sometime.  Since we will have less depreciation expense in the future we will pay more taxes.  If we were to ever Sale early, we would have depreciation recapture.  But I believe the USD will get devalued 70%.  Thus, we will pay future taxes with cheaper dollars.  To me it is a temporary Federal loan with no interest or collateral/terms. 

Real Estate is the greatest investment field.  Snowing and Cold in Iowa today.  Wish we were down in Belize working on our Teak/Mahogany Plantations.

Start small and Make Your Big Mistakes Early.