Can Self-Storage be a Passive Investment?

If you have done your research, you have discovered that self-storage is a very stable asset. There are several ways that you can invest in self-storage. You can get the necessary training that you need to become a self-storage investor yourself. You can partner with someone who can mentor you until you know what you are doing so that you can invest on your own. Finally, you can be a passive investor. There are two ways to be a passive investor. You can be a silent cash partner, or you can simply invest cash into a project through a private placement.

There are many reasons why people want to be passive investors. Often, you are so busy that you don’t have time to do anything else, but you have the capital and the desire to invest in self-storage. Another reason to be a passive investor is that you may not want the headache of hands on ownership. You may not want to deal with the day to day of managing a self-storage facility. Passive investing is a very lucrative choice in the self-storage industry.

When you decide that you want to be a passive investor, make sure that you research the investor that you are investing in. You want to find someone who is experienced enough that they won’t make a mistake with your money. Is your potential partner just getting started or do they have a lot of experience in self-storage? How many projects have they done? Have their past deals been successful? Have any of them failed? What is their average return on investment? Why do they feel that they get those kinds of returns? Are those returns typical and are they what you are looking for? What kinds of properties do they typically purchase: fixer uppers or properties that are already up and running or new construction? This will give you some insight on their ability to improve a project. You don’t want to work with someone who has a track record of maintaining projects. You want someone who is good at taking a property and making it better.

No matter how you decide to invest in self-storage, getting started is the most important part. Don’t wait any longer. As always, happy investing.