How to Get Started in Self-storage

Storage sector, like all businesses was born out necessity. Humans have always been capable of storing their stuff. Evidence from history suggests that Ancient China had public storage facilities. The demand for secure storage has increased dramatically over the years. Modern storage facilities can be found all over Florida. They were first developed in the late 1950s. Every year self-storage units get more and more popular. In 1990, storage demand was at its highest. The demand for storage space increased, and there was a rush for new facilities to be built across the US, click resources. The New York Times published a 2009 article entitled “The Self Storage Self”, which stated that over 3000 storage facilities were built every year between 2000 and 2005. Storage is still very in demand. According to The Self Storage Association (SSA), self storage businesses now offer 2.3 million square feet. In terms of square footage it is three times bigger than Manhattan. One in ten US households rent storage, click resources.

These stats could make it tempting to explore self-storage. What are the advantages and what is the price?

It is essential to search for the best storage area. It is the location that makes a self storage business successful. You should consider cost, property taxes, and local regulations when looking for the perfect location. Do your research on the property before buying it. Many self-storage units have been constructed by entrepreneurs and landowners who have large landholdings in the past decade. These facilities are not a good investment, as they are in densely populated areas which limit the number clients. If your facility is well-located, you will attract more clients. This will also help increase your return. The first year will see 6.75 return on your investment.

In order to start a self storage business, you will need to make a substantial initial investment. There may be financing available from national lenders. Many in the industry recommend Wells Fargo’s Self-Storage Division. Wells Fargo offers programs for self-storage owners. One program is the mini-perm. It offers interest-only payments for the first two year, then three years of amortization. As you meet certain debt coverage goals the amortization proceeds over the next three year. This loan is among the most desirable. Because you might only have one year to complete your project, it is a good idea to get a mini-perm loan. But filling the units may take many years. It is extremely difficult to find a loan after construction.

Leave a Reply

Your email address will not be published. Required fields are marked *