Invest In Self Storage

Self-Storage Investing

INTRODUCTION TO PASSIVE SELF-STORAGE INVESTMENT:

WHERE TO BEGIN

Unlock The Potential of Passive Investing with Self-Storage

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INTRODUCTION

How can investors break free from traditional investments?

For decades, traditional investments, such as stocks, bonds, and mutual funds, have been the go-to choices for investors. However, in today’s rapidly changing financial landscape, many investors are seeking alternative investment options that can provide higher returns and diversify their portfolios.

While stocks and bonds are considered the primary investment tools used to build wealth, there are many other options available. And in extraordinary economic circumstances, such as extended periods of high inflation or recession, these traditional investment vehicles tend to be extremely volatile. In an effort to diversify your portfolio and drive more consistent performance, you may be thinking about turning to alternative investments. As Warren Buffet states: “The less you know about an investment, the riskier it is.”

“RISK COMES FROM NOT KNOWING WHAT YOU ARE DOING.” – Warren Buffet

Investors can use alternative investments like self-storage to meet their wealth-building goals in a way that is not directly tied to Wall Street or greatly affected by unforeseen events. In fact, it has proven to be an effective hedge against high inflation, yielding favorable returns and security for investors and their families.

UNDERSTANDING SELF-STORAGE INVESTING

Self-storage investment is a type of real estate investment that involves buying and owning self-storage facilities. Self-storage facilities are warehouses designed to house hundreds of individual units, each carrying a separate lease. Individuals and businesses use these units to store furniture, equipment, and vehicles. Self-storage investments have gained popularity in recent years due to increasing demand for storage space, low overhead costs, high growth potential, and flexible leasing options.

Self-storage investments offer several benefits to investors. Compared to other real estate investments, self-storage investments have relatively low operating costs, low-maintenance tenants, favorable lease terms, and high tenant capacity. The opportunity to scale, coupled with the industry’s resistance to recession cycles, makes self-storage investing an attractive vertical for institutions of all sizes. Self-storage investments have also shown to be relatively resistant to market volatility, providing investors with stability in times of uncertainty.

ADVANTAGES OF SELF-STORAGE INVESTING

Typically, a self-storage facility still makes a profit at 60% to 70% of full occupancy. Currently, the industry average occupancy stands near 90% according to Statista.

Profit margins in Class A self-storage properties can average between 30% to 40% bottom line profit margins.

The self-storage market is expected to register a compound annual growth rate (CAGR) of 5.76% over the forecast period. The growth in this industry will be driven by increased urbanization and an improving economic outlook across the regions, which have led to the growth of new businesses.

The self-storage industry is a subsector of the commercial real estate market, which is also expected to grow positively during the forecast period due to an increase in urbanization and a better economic outlook, both of which have also led to increased business growth.

The increasing rate of urbanization is one of the significant factors driving market growth. The rising urban population means smaller and increasingly expensive living spaces in cities with more renters who move around frequently. London is a prime example of this trend, with its population hitting a new all-time high of 8.6 million in 2015. Estimates show that the population will be more than 10 million by 2030.

On top of increased personal use, businesses have increasingly shown an interest in self-storage. Businesses are aware and concerned about their storage costs. Unlike traditional warehousing, the self-storage model offers increased diversity of options for storage space size and pricing plans.

WHY INVEST IN SELF-STORAGE?

Investing in self-storage offers several benefits and advantages. Self-storage facilities have low overhead costs compared to other real estate investments, which means higher profit margins for investors. Self-storage facilities have a high tenant capacity, allowing investors to generate steady rental income. Self-storage is also a recession-resistant industry, meaning it is less susceptible to market volatility and economic downturns. Finally, self-storage investments offer flexible leasing options and low-maintenance tenants, making it a hassle-free investment option. These factors make self-storage investments an attractive option for those looking to diversify their portfolio and potentially earn high returns.

Storage Investments Are For You, If...

If you want to put your hard-earned money to work in a proven, recession-resistant investment vehicle.

If you want to invest in a secured, well-maintained, and vertically integrated self-storage fund focused on high-growth self-storage facilities in the Southeast.

If you want to invest alongside a friendly management team with over 50+ years of collective experience.

If you want to leverage your passive income in 2023.

If you are looking to diversify your investments — reducing the overall risk of the portfolio.

If you want to ride the wave of the consistently growing self-storage market, driven by a variety of factors such as population growth, urbanization, and downsizing.

FACTORS TO CONSIDER BEFORE INVESTING IN SELF-STORAGE

LOCATION

Location is a crucial factor to consider when investing in self-storage. The location of your investment will determine how much demand there is for self-storage in the area. You should look for areas with high population density, limited storage space, and high demand for storage. This will ensure that your investment is in a strategic location and will generate steady income streams.

MARKET CONDITIONS

Market conditions are also important when investing in self storage. You should research the current market trends, including vacancy rates, rental rates, and the overall demand for self storage units. This will give you a clear picture of the potential returns on your investment.

INVESTMENT STRATEGY

Finally, you should have a clear investment strategy before investing in self-storage. Determine your investment goals, risk tolerance, and timeframe. This will help you choose the right investment opportunity that aligns
with your investment objectives.

CHECK OUT CURRENT PASSIVE INVESTMENT OFFERING - STORAGE UNITS EQUITY INCOME FUND

12-18%

Avg. Annual
Returns

1.5x-2.0x

Targeted Equity Multiple

6%

Monthly
Cashflow

Income
Potential

Plus Potential Real Estate Profits

Emerging Markets

in the
Southeastern U.S.

Vertically Integrated

Professionally Managed Storage Facilities

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Schedule your free investor Introductory session today and take the first step towards financial freedom.