Residential real estate investing is great. You can flip properties, buy rentals, take advantage of living and renting out duplexes, etc…
But there’s a side of real estate I prefer over residential. It’s a specific niche on the commercial side of real estate that is MEGA profitable.
It’s so lucrative, you’re going to have to figure out where to store all your newfound profits…
To begin to explain how lucrative this side of real estate is, I want to first note how we live in the largest economy in the world—the United States. And with that, comes a lot of money-flow and spending.
The people of the U.S. tend to go a bit overboard with their spending habits, which leads to excessive accumulation, and eventually results in the need for additional storage space for the items they’ve acquired.
Lucky for you, most of these people aren’t in looking to spend as much when it comes to storing their excess items.
Storage unit renters are simply looking for a safe, weatherproof place to stash their clutter. Nothing too fancy.
This is more reason why you should pursue this niche of real estate!
With more than 50,000 self-storage facilities in the U.S. alone and each 10-by-15 foot unit charging roughly $140 per month, you can see just how profitable the business really is.
Rather than devoting your time and effort into flipping houses scattered all throughout the city, why not do the same for multiple storage facilities within the same location?
In comparison to the typical process of renting homes out, you can effectively skip the upkeep of storage units.
Forget about replacing faucets, painting walls, and fixing toilets. Unlike a home, the only upkeep that’s involved is the rare reparation of any major damages and to occasionally sweep out the unit before a new customer arrives.
In addition, many experts consider storage units to be recession-resistant and it’s hard to argue otherwise.
Housing values to a LONG time to recover from the plunge they took during the 2008 financial crisis; however, self-storage was virtually unaffected.
But why?
A lot of people tend to overthink the situation. There’s ALWAYS a need for these convenient repositories of clutter for people to turn to.
One example of the demand of self-storage is due to the retirement of baby boomers. This demographic is slowly parting from the workplace and starting to settle down in smaller homes now that their kids are grown.
These people want to keep the belongings that hold a sentimental value, despite not having the space after the move, which drives business towards offsite storage.
Another instance includes small businesses using the units to store inventories.
I think you get the picture. Self-storage units have proven that they’re here to stay and shown a chance to test the waters of the real estate industry.
Don’t get me wrong. I’m not here to paint storage facilities out to be some high-class, untouchable business. I’m simply highlighting the profitability that it poses to future real estate investors, and warning you that you’ll need to find storage for all the profit you’ll be making should you jump into this sector.
