As a passive investor with $100,000 to invest, there are many options available when it comes to choosing an investment vehicle. One of the ways to invest $100,000 is in a self-storage fund. Self-storage is a growing industry that is experiencing explosive growth in demand, and it’s an investment that can provide a stable and consistent income stream.
Why Invest in Self-Storage?
Self-storage is a niche real estate market that has seen continued growth over the past few years. With the rise of e-commerce and changing consumer behavior, the need for storage space has continued to increase. Self-storage investments have historically shown low volatility, are resistant to downturns, and offer investors a healthy return on their investment.
Investing In a Self-Storage Fund
Investing passively in a self-storage fund allows investors to benefit from the favorable real estate market dynamics without the pressure of managing the facility themselves. Passive investments provide investors with a hands-off experience, with the possibility of a stable rate of return without needing to actively manage or have real estate knowledge.
Before investing in a self-storage fund, there are several things that passive investors should consider the following:
Factors to Consider
- Market conditions: Passive investors should consider the market demand for self-storage facilities in the area where the fund is investing. A market with high demand for self-storage facilities is likely to generate higher returns on investment.
The experience of the fund manager: It is important to invest with an experienced fund manager with a track record of success in the self-storage industry. Investors should research the fund manager’s experience, past performance, and investment strategy.
Investment structure: Investors should consider the structure of the investment, whether it is a private placement, a limited partnership, or a publicly-traded REIT. Each structure has its advantages and disadvantages, and investors should choose one that suits their investment goals and risk tolerance.
Diversification: Passive investors should consider investing in multiple self-storage funds to diversify their real estate portfolio and minimize risk.
Consider tax implications: Consult with your financial advisor to understand the tax implications of your investment. Self-storage funds can offer tax benefits when you decide to invest with retirement accounts.
About Self-Storage Equity Income Fund
Storage Units Equity Income Fund is a vertically integrated self-storage investment fund, specifically designed for emerging markets in the Southeast. The fund properties have top-of-the-line onsite management teams, electronic gate access, digital security monitoring, and well-lit corridors. The fund combines real estate expertise and investment management to offer investors a unique and potentially profitable opportunity in the self-storage market.
If you are interested in learning more about our self-storage fund and how it can add to your financial portfolio, schedule a quick 15-minute call with us through Calendly.
Conclusion
Investing $100,000 in self-storage is a smart move for passive investors. The self-storage industry is expanding, and investing passively offers stability and profitability. By doing thorough research, analyzing the market, and choosing a reputable management team, self-storage investment can provide a stable and consistent income stream.