Real estate investing is not something earth shatteringly new, right? It is something that has been done in one form or another since the beginning of humankind. In our final penny, #10, of “Why Self Storage is a Dime”, we are going to chat about how self storage is a stable market to be investing in and why you should jump in!
The origins of self storage can be traced all the way back to China in 4,000 B.C. The form it took then was in digging pits and putting your things in clay pots. Then hiring people to keep guard of them.
Flash forward to 1891, brothers Martin and John Bekins founded Bekins Company in Omaha, NE, The two brothers built a business based on moving and storage with 3 horse-drawn vans and 12 employees.
Is the Market Saturated?
As of 2018, there are estimated to be between 44,000-52,000 self storage facilities in the United States. Does that mean that the self storage investing business is overrun?
Absolutely not! According to the Parham Group, it was determined that the success rate of self storage ownership had a success rate of 92%. Isn’t that an incredible statistic? When deciding if this is the right course for you, there are definite factors to consider to ensure that you will be counted among that success rate.
Also, the reason we see so many is that roughly 1 in 10 households rent 1 or more units in the country. It is no longer a luxury to have, but rather a commodity that Americans cannot live without- more space! Don’t worry! The self storage business is far from becoming saturated.
When you make that decision to go forward, there are endless opportunities for growth. There are continual opportunities that will allow you to increase the value of your facility which will directly increase your profit. As you and your business grow together, you will find that there are endless ways that you can expand and earn more money.
The key to successes is setting yourself apart. Though there are many facilities to chose from, make it apparent to your potential customers why they should choose you. This will be done by offering all the best security, amenities, and options. Be active in the community. Show yourself as different from the other guy.
Is Self Storage a Safe Investment?
Simply put. Yes. Think about hard economic times. Commonly, when a family falls on hard times, downsizing happens, right? Bigger families moving into smaller homes. This means they are not going to fit all the things they have collected over the years into their smaller place. Self storage unit to the rescue! Even during hard times, self storage is something that is seen as a necessity. If you look at statistics, during economic hardships, all sectors of investing will be down, but not self storage! Those number are always increasing.
Another safety of this kind of real estate is that they have minimal upkeep, their property taxes are lower that other kinds of real estate, and the net acquisitions in that sector really have soared!
The bottom line is, self storage investing is a safe, reliable, and growing industry. Those who have latched on to this kind of investing are seeing great turnaround from it! This is including myself. I am no stranger to real estate investing. As my adage goes, “No tenants, no trash, no toilets”! This change in investing has been a godsend for me and mine.
So, there you have it! Penny #10 in “Why Self Storage is a Dime”. Investing in self storage is a very safe market to be in and really is going nowhere. It is, in fact, as reliable as the sun!