10. Endless Opportunities - There are Approximately 23 Million Self Storage Rental Units in the U.S. compared with only 11 Million Single Family Rental Units and only 16 million Apartment Rental Units.
9. Increasing Demand – Self Storage has been the fastest growing real estate sector for the past 30 years! 77 million Baby Boomers are moving, traveling, and thereby creating a huge surge in Demand. Coupled with the fact that The Self Storage Association states that 1 in 10 people in the U.S. use storage, and our population is rapidly approaching 350 million.
8. Low Operating Costs – Operating Costs in Self Storage are roughly 30% of income, compared with roughly 50% for Apartments.
7. Ease of Financing – Self Storage has the lowest loan default rate of all Commercial Real Estate - 8% - compared with loan default rates of between 50-65% for Apartments, Retail Strip Centers, and Office Buildings. Quite Simply, Banks and Private Lenders Absolutely LOVE Lending on Self Storage!
6. Multiple Profit Centers - Retail Centers that sell locks, boxes, & Moving supplies, Truck Rentals, EBAY© add-it centers, & much, much more!
5. Virtually No Rent Losses - The ability to Lock out non-paying tenants, and then auction their stuff to recoup lost rent with the protection of Lien Laws vs. eviction laws is probably the #1 reason I only invest in Self Storage.
4. Low-risk - multiple units in 1 place, so no single move-out dramatically affects cash flow. Self Storage also profits in good economic times as people buy more stuff and need to store more stuff but also during a recession when people and businesses are downsizing and need to store stuff. It’s virtually recession proof and utterly inflation proof!
3. High Cash Flow - Taxes, Insurance, and utilities are lower than any other property class, therefore, they aren't susceptible to large increases. In addition, the $ per sq. ft. is the same as other types of real estate, without the additional expenses. Same income, lower expenses = More Profit. It’s that simple. That’s why so many people refer to these as Cash Cows!
2. No Tenants - Just Stuff! From Patio furniture, boxes, books, and couches, to boats, cars, and RV’s. In addition, 95% of Storage Clients visit their units once per year, and the average stay is 13 months!
1. No Toilets! - Just steel walls, steel roofs, steel doors, steel fence and a gravel or asphalt driveway. When a tenant moves out, I don't have to replace any appliances or fix damaged drywall, Re-Paint, or Replace Carpet and Best of all - NO TOILETS!
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