www.REIClub.com – Investing in Self Storage an be a Good Investment. Here’s a Quick Video on the Benefits and Risks of Self Storage Investments… To Learn More About Self Storage www.SelfStorageInterviews.com Hi, this isFrank Chen with REIClub.com, the only site you need as a real estate investor. Today I’ve got quick video on risks and benefits of investing in Self Storage. Define: Why Self-Storage? Self storage facilities share the same attractive qualities as other similar commercial real estate investing niches. Such as residential rentals, apartments, retail strip centers, office buildings, and industrial properties. But Here’s The Difference:: – Self Storage Operating Costs are much lower – Self Storage Investments loan default rates are significantly lower – banks like this – Many ways to Profit – locks, boxes, & moving supplies, truck rentals – Lien laws for Self Storage vs. Eviction Laws For Residential – change locks and sell contents – Virtually Recession Proof – economy good = people buying new things, storing old things. – economy bad = people downsize – need place to store excess – No Tenants, No Water Benefits: – Being your own boss – Significantly lower maintenance and operating costs – High cash flow – Same income, lower expenses = more profit – the $ per sq. ft. is the same as other types of real estate investments – Self Storage Deals are more appealing to Banks – funding is easier – Tax advantages – Cost segregation – IRS changed the regulations to …
Video Rating: 5 / 5
www.CostMatters.com Alan Stratton explores standard cost issues, how standards are defined and used, and how some misuse standards
{ 11 comments… read them below or add one }
your way of teaching was cool..
Thanks for giving so much detailed information
Thanks
If you have a salt worthy lawyer and a well written lease agreement then the liability issue in regards to tenants is a fairly mute point. Most lease agreements free you from liabilities such as theft, fire, flood, natural disaster, etc… Although it is a good idea to offer a decent self storage insurance to avoid any argument of liability. by the way, after 13 years of managing I am looking for investors to invest in my self storage start up. Send them my way
Good information
Great article Frank. I am a self storage operator, and certainly familar with cost segregation. However what were you talking about when you said “net operating losses refunded” for the last 5 years…. What code section? Thanks, Super Storage Group
- Thanks for your question. We actually have articles on our website that cover Self Storage rather extensively. Simply go to REIClub.com and click on the “Real Estate Articles” tab in the left Site Navigation box. If you don’t find what you are looking for, please let me know so I can further assist.
how much space would you recommend for a starter self storage business?
how do you start a self storage business?
Great information Frank. Thank you.
Cost segregation has been a well hidden tool commercial property owners (including self storage) are not taking full advantage of to decrease income tax liability. We would be happy to provide a free projection to your subscribers so they could discuss the numbers with their tax preparer. In general, tax savings can range 6%-12% of the purchase price of the property.
Brandon -
Frank: High quality content here. Thank you for posting your info and focusing on creating rich videos and raising the bar! David Meek
Great video!
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Frank mentions Cost Segregation which is an IRS-approved method to increase your deductions for depreciation which reduces your taxes. This will reduce your taxes by approx. $35,000 for every $500 K you have in building costs (or purchase price). We can do a free analysis so you will see the financial benefit in your situation. Let me know if you have questions-