Why Invest in Self Storage Facilities?
They have no live-in tenants like most other real estate investments. People don’t live in the units; they just put “stuff” there. Consequently, there aren’t calls from tenants complaining about things not working. Also, they are concrete floors and metal walls, so there is very little to break or wear out. They can be run very efficiently and with few employees. This keeps down expenses and headaches. They are relatively low-risk. With hundreds of units, facilities cash flow are not greatly affected by the regular coming and going of tenants. Self storage loans have the lowest default rate of any real estate product type. They are a great land play. As land gets more and more expensive, savvy investors look for ways to cover the costs of holding tracts of land that are “in the way” of growth. The cash flow generated from unit rentals and other income sources in a self storage facility are excellent ways to hold land until the market demands a higher and better use of the land the faci
