When it comes to investing the most popular assets to have in your portfolio are real estate and stocks. As an investor finding new niche-related investment options can prove to be lucrative. Take self-storage investment for example.
While it falls under real estate investing it isn’t always an investor’s first choice. Yet, over the years it has continued to grow in popularity. One of the main reasons for this growth is it’s a great way to diversify your investment portfolio.
If you are looking for a self-storage investment guide, you have come to the right place. This article will cover self-storage investment basics.
What Is a Self-Storage Investment?
A self-storage investment is a real estate investment known for its low overhead. It is a great way to create a positive cash flow and it can require less ongoing management.
As an investor, it can be an easier option than investing in high-rise apartments, renting to tenants, or land investments. There are many different types of self-storage investments. It mainly depends on what you want to achieve as an investor.
How Does Self-Storage Investment Work?
A common way to invest in the self-storage market is with real estate investment trusts or REITs. Another way that self-storage investments work is through buying shares. Finding self-storage companies that operate on the public stock exchange can help.
An additional way that self-storage investments work is by you becoming the owner and investor of a self-storage facility. Since there are various ways that a self-storage investment can work, it offers a lot of versatility for investors.
What Should I Know About Self-Storage Investing?
There are a few things to know about self-storage investing. In early 2020, 9.4% of households were using a self-storage space. The industry has also averaged an annual revenue of $40.73 billion dollars. Investing in self-storage now can help you increase the valuation of your investment portfolio later.
There is great potential to increase your cash flow with self-storage investment. If you choose to buy self-storage facilities you have different options there as well.
You can buy a climate control facility, a vehicle storage facility, an outdoor drive-up facility, or a mix-use facility. You can also increase rental rates on a self-storage unit to keep up the pace with demand.
You should know how to find good self-storage investments. If you are looking to buy a facility you should know the different ways of funding your purchase.
You should know about a self-storage cash flow analysis and how competitive is the storage option you are looking to invest in. The main thing to keep in mind is to do your research to avoid mistakes.
Invest in Self-Storage like a Pro!
While this article only covers the basics of self-storage investments, you should have a better understanding of what it is. As you can see anyone can begin investing in this industry.
A self-storage investment can be a recession-proof asset while offering a stable source of income. If you are looking to invest in self-storage like a pro we can help. Contact us today to learn more about why a self-storage investment can be right for you.