If so, then you are probably one of the few smart investors that has recognized that there is “gold in them there hills”. The mini storage industry really got its start in the late 1960s, and since then, many thousands of investors have made this a small, personal gold mine.
What these smart investors know is that storage buildings are needed all across the country for various reasons. In some areas of the country, rent is increasing faster than consumers can keep up with thus forcing them to occupy smaller spaces….. You guessed it! Many cities and spaces do not have enough storage thus creating a demand for more storage facilities.
Even for some businesses in this tough economy, they are being forced to move into smaller office spaces: of course then the question of what should they do with their extra furniture or other belongings comes to mind. If you are one of the smart mini-storage owners, then the answer becomes simple. Come rent space from me in my mini-storage complex. By investing in mini storage buildings, you can offer these people an affordable mini storage building to really accommodate their storage needs.
If you are like most people looking for a mini-storage to purchase, then you probably already have experience in real estate investing…. typically by storage owning residential rental properties first. After having to deal with my many issues related to owning residential real estate, you may be looking for a different approach…. you know the old adage, rental real estate would be great if just not for tubs, toilets, and tenants. Obviously many people have their own nightmare stories to share from drugs, to prostitution, to even murder in their rental real estate. There has to be (and there is) a better way.
Given that you are looking for mini-storage facilities for sale, then let me talk about what investing in a self storage facility is like. Just by way of background, there are probably 4 or 5 big Real Estate Investment Trusts (REIT’s) that are fundamentally in the Self Storage Business. Their names are Public Storage, Extra Space, Uncle Bobs, Shurguard and U-Store-It. All these REIT’s are in this business to make money and they make lots of it. If you get a chance, look them up as they are public and you will see how well they operate and the dividends they provide to their investors….. now the question becomes is if you can buy a mini-storage or two and operate in the same fashion.
As compared to many forms of passive income generation, one of the biggest attraction to owning self-storage facilities is that there is no plumbing. All Self Storage Buildings are composed of is walls and a tin roof, and typically a concrete foundation…. boy does that sound simple to maintain, much like a warehouse. This warehouse space is then broken down into multiple units of varying sizes that are rent-able to the general public for a nominal fee.