Storage units

[Robert S.]

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?

[Scott Meyers]

Hi Robert S, 

The Pros  

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. 

Cons

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. 

Cheers,