self storage loans

Guide to Storage Facility Investing

As people move to their next house, downsize from their last, or need the space to store extra or out-of-season inventory for their business, self storage facilities are the solution. Investing in self storage has proven to be one of the most consistent, easily managed, and growing sectors of the real estate industry. With the proper research and understanding, it can be a very smart financial move. Throughout this guide to storage facility investing we will cover the benefits, risks, and the rest of what you need to know before investing in self storage facilities. 

Understanding the Industry

Knowing what you’re investing in is the number one step in any purchase or investment. With self storage facilities the research is even more pertinent. Before investing in a self storage location, knowing market trends, local competition, and local customer demographics can aid in ensuring your success. Plan ahead! Do thorough reading on local, state, and federal laws in regards to self storage facilities. In addition, calculate local average rent rates for units, as well as accommodations that other facilities have, or don’t have, that you may want to incorporate in your facility. 

Upsides of Self Storage

The storage industry of the investment market has the potential to be extremely profitable with lower expenses. The demand for storage space continuously is growing. There is a steady market, with many storage facilities even having “wait-lists” due to the excess in demand. Overhead costs are typically kept to a minimum, with a majority of security and other work being automated. However, like any investment, there are risks to consider and factors to evaluate before making a decision.

Things to be cautious of 

Self storage is not immune to negatives and it does have its risks. One of the biggest aspects to be aware of is the oversupply in the local market. This oversupply and increased competition can lead to lower occupancy and rental rates. Additionally, when owning and investing in a storage facility, having the best possible insurance coverage is suggested. Although it creates a larger expense, it protects you from the immense costs of repairs due to natural disasters, unforeseen events, or criminal activity. Many of these risks and downsides can be minimized with the correct research and location of investment. 

Get the financing you need to invest in self storage facilities

Getting the financing you need to secure your investment and purchase a self storage facility can be a daunting task. Though intimidating, LenderFi.co makes the application, qualification, and process of getting your financing easy and helps you through it all! LenderFi.co is committed to getting you the best rates and terms for any investment or residential property. Speak with a LenderFi.co expert loan officer to learn more, further discuss your loan scenario, and start your financing process!

With the utilization of an abundance of private lenders, LenderFi.co is able to provide turnkey solutions to real estate investors and developers that are not available through traditional, conventional lenders.

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Ryan Thaler

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We provides superior asset-backed investment solutions for individuals, institutional clients, family trusts and our own syndication/development partners.

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