The Perfect Property – Self Storage

There are a lot of properties out there that claim to be the ideal investment strategy. They say that you can make money when you buy, when you sell and the entire time that you own the property. However, there is really only one property that can also claim that it performs great during good economic times as well as bad economic times and that is Self-storage.

Self-storage really is the holy grail of investing. There are so many advantages to investing in self-storage and so few down sides that it makes it the best investing medium.

For example, when you buy any property, you make sure that you get the property at a great rate of return. However, when you buy a self-storage property, you make sure that when you buy the property there is some way to add value to that facility to immediately increase the value so that if you were forced to turn around and sell that self-storage facility after a short period of time, you would be able to do that and make a profit. By adding value to the property that you purchased, you are able to instantly increase your equity in the property. If you are able to also buy that property at a discount, then you have increased your equity even more.

If you choose to keep the property for yourself, you are going to take that property that was not performing at maximum capacity, and you are going to add the value and get it to where it is streamlined and operating at its best so that you have the maximum cashflow possible. Once you have done this, you can refinance that property and begin looking for your next deal. Because the value of the property will have increased, you should be able to pull out a majority of your investment so that you can take it to the next property. This means that you have great cashflow with very little out of pocket.

Another common formula that you see in the self-storage industry right now is that investors are going in and purchasing the property from a mom and pop storage facility and then streamlining that property. That investor is filling up the property and making it more profitable and more streamlined so that one of the national REIT’s will be interested in coming in and purchasing it and adding it to their portfolio. The investor is able to purchase it a great price and then turn around and sell it for top dollar. That allows you to make money when you sell. Whether or not you sell it to one of the big companies or just to another investor, by getting the property to perform at its peak performance, you are able to sell for a profit.

Finally, whether the economy is going well or struggling, people need a place to store their belongings. During an economic downturn, other types of commercial real estate find themselves with a lot of vacancies. However, with self-storage, you find that in a downturn, many people are looking for a place to put their belongings because they are having to downsize. Self-storage is one of the only commercial investments that truly does well no matter what is happening to the economy. This was even true during the worst part of the pandemic.

If you are looking for a great investment strategy, then you should seriously consider self-storage. If you don’t know where to start, let us help you. Don’t miss out on one of the greatest opportunities to invest in self-storage. As always happy investing.