Self-storage investing has been an extremely lucrative and recession resistant investment strategy for decades. Self-storage facilities are commercial properties designed to provide individuals and businesses with space to store their belongings for short-term or long-term periods. These facilities typically consist of individual storage units with varying sizes and features, such as climate control and enhanced security.
In today's economy, investing in self-storage facilities offers several advantages that can make them an attractive option for investors. Investing in self-storage is growing in popularity due to several factors, including:
- Recession resistant - Self-storage facilities tend to work well during recessions, as people often shrink their living space or need temporary storage during transition periods.
- Low maintenance and operating costs - Compared to other real estate investments such as residential and commercial properties, self-storage facilities typically require less maintenance and have lower running costs making it more lucrative.
- Growing needs - Population growth, urbanization, and more people living in tight spaces are increasing the need for additional storage. Small businesses often need storage, as do short-term renters, digital nomads, students, and many others.
- Diversification: Investing in self-storage facilities can help diversify a real estate portfolio by adding a different property type. This can spread risk across various real estate sectors and reduce the overall impact of market fluctuations on the portfolio.
- 100% Passive income - With the right management in place, self-storage investing can generate a passive income stream. Investors do not have to worry about the investment since general partners hire a well-vetted property management company to handle day-to-day business operations, leaving investors free to focus on other investments and ventures.
- Tax Advantages - Real estate investments may offer tax advantages, such as depreciation deductions and potential deferment of capital gains taxes through a 1031 exchange. We do Cost segregation studies on all of the properties we bring our investors into that forces that depreciation in a short period of time that helps tremendously with some types of tax burdens.
Vetting a good self-storage investment requires thorough research and due diligence to ensure you make a well-informed decision and to minimize risks and maximize returns. Here are some steps to help you evaluate a potential self-storage investment:



