Tweet

Self Storage: Second Class Investment? Not Anymore!

Guest post by: Scott Meyers

Article Overview: Investments are investments, especially in real estate. The rules haven’t changed and the name of the game is still “Return.” Then, perhaps, it should not be so surprising that a niche in the broad spectrum of real estate investing that was once considered to be an alternative, is fast becoming the new trend-setter.

Self Storage: Second Class Investment? Not Anymore!

Investments are investments, especially in real estate. The rules haven’t changed and the name of the game is still “return.” Then, perhaps, it should not be so surprising that a niche in the broad spectrum of real estate investing that was once considered to be an alternative, is fast becoming the new trend setter.

The self storage trend is readily observable in heavily populated regions of the Midwest, like Chicago and its suburbs, for example, but there are numerous reasons for the rapid increase in the number of self-storage facilities in almost every part of the country. A perfect example is Florida, which has experienced a tremendous influx of people relocating from other parts of the country, where homes are usually built with basements that afford additional storage space. In Florida, that is not the case. Whatever the reasons, the growth is significant and the interest in these properties keeps strengthening.

Many well-respected representatives of the world of finance and investment have been touting the potential of this scenario for years. Among them, Warren Buffett, an avid proponent of this type of investment. In addition to the built-in need for the services that self-storage units provide, and the attendant demand; the process of purchase and especially maintenance of these properties is basic and streamlined. The requirements for operation are relatively simple as well. Air conditioning, cleanliness and ease of access are the fundamentals. Space can be easily shared or subdivided into warehousing or other uses to maximize utility and revenue. Even the location, although a factor of course, is not the primary consideration as it is with other real estate investments.

Related Articles
  Reasons your business needs self storage
  Opportunities in Records Storage
  More Data Footprint Reduction (DFR) Material
  Beware of april 1st announcements
  The Benefits of Fusion Marketing Your Self Storage Facility with Other Local Businesses
  The data storage prayer
  Self Storage Investing Webinars Can Hold Valuable Tips
  Trademark International Class: Class 14 (Jewelry)
  Where to Store Inventory for Your Party Planning Company
  Introduction to Self Storage Development
  Trademark International Class: Class 18 (Leather goods)
  Myths and Investment Opportunities in Self Storage
  3 most important films for leaders and entrepreneurs.
  The Future of Self Storage
  The Best Business Online Storage Services
  Building a Self Storage Facility
  How to Restore Lost Photos from Virus Infected Storage Devices?
  Politics and Storage
  Proper Storage & Stacking Pallets for Hazardous Materials
  Trains going green

Article Tags: business, commercial estate, homes, house and lot for sale, lots, real estate, self storage



Related Forum Posts
Investment Advisors vs Faciltators - Investment advisors provide advise to investors on public companies or investments. Leadsco is a telemarketing company for advisors - providing leads. Investment advisors will not put you in touch with investors. Violates compliance regulations. Facilitators are the best way to help you with strategy and offering for private investors or venture capital.
Which kind of industries are you interested in? - Ecological or E-business or Investment or Finance or Management or Non-Profit or Retailer or others.
How to valuate a business - Hi Garth - here is how we did it at Northern Crown Capital when I was helping them raise venture capital for Toronto-based entrepreneurs. Assume the start date is 2003 so 2008 projections are 5 years out: How Northern Crown Capital Valuates a Business 2008 Financial Projections Earnings Before Tax $5,865,000 Tax Rate 42% Taxes $2,463,300 Net Earnings $3,401,700 Amount Seeking to Raise Today $3,500,000 Discounted Value of Future Opportunity, 5 Years Out 2008 P/E Ratio 15 Value of Company in 2008 $51,025,500 Discount Rate Applied 30% Year 2008 $51,025,500 Year 2007 $35,717,850 Year 2006 $25,002,495 Year 2005 $17,501,747 Year 2004 $12,251,223 Value of Company at Investment in 2003 $12,251,223 Less: Investment Amount $3,500,000 Present Value $8,751,223 Discount for Risk & Private Company 40% Less: Discount for Risk & Private Company $3,500,489 Private Company Value $5,250,734 Present Value (What the Owner Keeps) $5,250,734 60.00% Financing (What the Investor Gets) $3,500,000 40.00% Total $8,750,734 100.00% I hope this helps!
Re: Invest in Real Estate or Stocks? - You can consider investing in Real Estate Investment Trusts (REITs). Buy and sell shares like stocks so they are easy to buy and sell, diversify and management is included.
CBC Entrepreneur Shows - Great suggestions JWGM! Venture is a great show and should be a staple for entrepreneurs looking to get motivation for their business and ideas that other companies are using. There aren't so many shows around anymore with the closure of Investment Television. I hope the Dragon's Den is getting good ratings and other networks will begin their own entrepreneur tv shows!


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Tips to Take Control of Credit Card Debt

You Have A Website What Now

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.