The Best Self-Storage Investment Opportunities
Every time an individual or business rents a self-storage unit for the short or long term, you could be making money. Self-storage investment is a type of commercial real estate investment opportunity that is affordable, lucrative and offers low risk. Best of all, there are a variety of ways to invest in self-storage.
Different Ways to Invest in Self Storage
If you’re interested in self-storage investment, you have a few options. You can even take a combined approach to get a bigger return on investment (ROI).
1. Purchase a Self-Storage Facility
You can purchase an existing self-storage facility that may already have customers renting the units. Whether you purchase a franchise location or an independent self-storage facility, you can start making revenue right away. This option can be ideal if you have the finances to purchase a facility and want an excellent ROI.
2. Construct a Self-Storage Facility
Alternatively, you can purchase land and arrange permits to build your own self-storage facility. This option gives you more control over what your storage facility will be like and where it will be located. It can also give you an even better ROI than buying an existing property. Your completed facility may be worth more than an older facility purchased at the same price.
Building your own self-storage facility can be a good option if you have the resources to buy land and arrange for construction. You should also be willing to wait to see returns on your investment.
3. Invest in Real Estate Investment Trusts
Self-storage real estate investment trusts (REITs) are companies that own, manage and invest in self-storage companies and facilities. REITs sell shares of their holdings, which you can buy just like any stock or asset.
Investing in REITs may be right for you if you want to spend less than it would take to buy or build a self-storage facility of your own. It can also be a good option if you don’t want to own or manage self-storage facilities but still want to make a return from this lucrative market.
4. Buy Shares
You can buy stocks and shares of publicly traded self-storage companies through a public stock exchange or broker. Like investing in REITs, this option buys you a portion of a holding rather than a physical property. Buying shares can be ideal if you want to control how much you invest and diversify the companies you invest in.
How Can You Get Started in Self-Storage Investment?
Investment Real Estate (IRE) has been helping self-storage investors since 1998. We offer the services and resources you need to get started, including white papers, case studies, management services and listings for buying and selling facilities. Reach out to IRE to learn more.