Robert S. I am new to forum. I have some investment experience, but currently I am looking at 270 storage rental units. Which is new for me. Does anyone have any pros or cons. That a person should consider?
Hi Robert S,
1. No tenants, toilets, or trash.
2. You NEVER have to evict - we use the lien laws to lock them out and sell their stuff to get paid.
3. It's the most profitable sector of all commercial, so institutional and private $ is MUCH easier to acquire.
4. You can use a kiosk to run them - Looks like a RedBox that leases units and dispenses locks.
5. The sector does better in a recession than in boom times - either way, it's inflation proof and recession Proof.
1. Not a Con for Self Storage, but I see many people like yourself stumble across a deal, and they buy it without ever learning how to evaluate a Facility and it's market - and they ultimately pay too much, or underestimate the demand in the market, thinking it will just "fill up" on it's own.
2. Your money buys A LOT More Units, so there is more to track - HOWEVER, the solution is property management software that handles this for you.
3. Any other CON, would be the same CON for any investment - You face competition, you need to keep an eye on employees, and you need to treat it like a business. Market it like a pro, and work on improving it each and every day.
Of Course I'm Biased, but I've owned hundreds of Houses, Hundreds of Apartments, Office buildings, parking lots, and large warehouses - and once I bought my 1st Self Storage facility, I sold everything else to build a massive empire of metal boxes on concrete slabs with no tenants, toilets, and trash - and it's the best move I have ever made (next to marrying my wife)
In addition, here's a resource for more info: www.SelfStorageinvesting.com - You'll find free videos and other resources to help you on your journey.
But HERE THIS: DON'T do this alone - get an industry professional to properly evaluate this deal, or a partner in the business.
If you want to message me outside of the forum, I can point you in the right direction.
A friend of mine owned a facility. Had someone come in pay 6 months in advance, fictitious Id's. loaded it up with hazmat materials and has never been seen again. That's the only nightmare I know. beside breaking in to them.
Another friend has built an empire of them and had closed his transmission business. Just managing his units now. He installed fences and auto gates. Loves it.
Sounds like Scott is the man to talk to about it.
Thanks for the information. Very helpful. I am in the process of making a second counter, I will for sure check the website for more information. Thanks
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