StorageTrader Insights

Clarity, context, and expert guidance to make sense of self-storage.

Self Storage vs The World: How It Stacks Up Against Other Real Estate Plays
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Self Storage vs The World: How It Stacks Up Against Other Real Estate Plays

When most people think about investing in real estate, they picture apartment buildings, office towers, or maybe a small portfolio of single-family rentals. Self storage rarely comes to mind first, but that’s beginning to change. As investors seek out income-producing assets that are both resilient and operationally efficient, self storage has emerged as a compelling…

Smart Money Is Looking at Self Storage, Should You?
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Smart Money Is Looking at Self Storage, Should You?

When seasoned investors start shifting their attention to a particular sector, it tends to raise eyebrows. In recent years, self storage has quietly become one of those sectors. Once considered a sleepy corner of commercial real estate, it now draws interest from institutional players, family offices, and accredited individuals alike. The appeal lies in its…

How to Mitigate Risk When Investing in Self-Storage Facilities

How to Mitigate Risk When Investing in Self-Storage Facilities

Investing in any asset class involves risk, and the self-storage industry is no exception. However, self-storage has established itself as a resilient and profitable sector, attracting investors for decades due to its consistent performance and growing demand. As an investor, your primary responsibility is to deploy your capital effectively. By conducting thorough research, diversifying your…

Understanding Legal Documents: Subscription Agreements & Operating Agreements

Understanding Legal Documents: Subscription Agreements & Operating Agreements

Investing in real estate can be an exciting opportunity, but it’s essential to understand the legal documents associated with your investment. Two critical documents you’ll encounter as an investor are the subscription agreement and the operating agreement. While they serve different purposes, both are designed to protect your interests and outline the terms of your…

Understanding Accredited Investors

Understanding Accredited Investors

In the world of finance, the term “accredited investor” holds significant weight. It’s a label bestowed upon individuals or entities that meet specific financial criteria, granting them access to certain investment opportunities that are generally unavailable to the general public. The concept of accredited investors plays a crucial role in regulating access to high-risk and…

Diversifying Your Portfolio: Why Self-Storage Investments Are Worth Considering

Diversifying Your Portfolio: Why Self-Storage Investments Are Worth Considering

In the world of investment, diversification is often hailed as the golden rule. Spreading your investments across different asset classes can help mitigate risk and potentially enhance returns. While stocks, bonds, and real estate are common components of a diversified portfolio, there’s one often overlooked sector that’s gaining traction among investors: self-storage. Yes, those unassuming…

RV and Boat Storage Facilities Are Making Waves in Investment Circles
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RV and Boat Storage Facilities Are Making Waves in Investment Circles

In today’s ever-evolving investment landscape, savvy investors are constantly seeking opportunities that offer not only financial stability but also promising returns. One such sector that is currently causing a stir in investment circles is the realm of RV and boat storage facilities. With the surge in recreational vehicle and boat ownership, coupled with the limited…

Decoding Profitability: Understanding Internal Rate of Return (IRR) in Self-Storage Investments
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Decoding Profitability: Understanding Internal Rate of Return (IRR) in Self-Storage Investments

Internal Rate of Return (IRR) is a financial metric used widely in evaluating real estate investments, including self-storage opportunities. It represents the effective compounded return rate that can make the net present value (NPV) of all cash flows from a particular investment equal to zero. This metric covers the expected life of the investment –…

Understanding the Real Estate Capital Stack
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Understanding the Real Estate Capital Stack

The real estate capital stack represents the hierarchy of capital invested into a real estate deal and provides a framework to understand the risk and reward associated with each type of capital. Comprising various layers, the capital stack organizes funding sources from the least risky (and therefore the lowest returning) to the highest-risk forms of…

Why Your Self-Storage Track Record Matters

Why Your Self-Storage Track Record Matters

Operating a self-storage facility may appear straightforward, as it involves relatively few complexities. However, achieving success in this business requires fundamental business knowledge and an eagerness to understand the nuances of this particular asset class. Although failures in the self-storage sector are rare, they do occur. Investors and bankers, who provide the capital necessary for…

Writing a Business Plan for your Self-Storage Facility Offering

Writing a Business Plan for your Self-Storage Facility Offering

If you’re considering starting a self-storage facility, it’s important to have a solid business plan in place. A business plan is a comprehensive document that outlines your business goals, target market, marketing strategy, financial projections, and more. In this blog post, we’ll guide you through the process of writing a business plan for a self-storage…

Creating a Use of Funds Statement for Self-Storage Facility Acquisitions

Creating a Use of Funds Statement for Self-Storage Facility Acquisitions

Self-storage facilities have become increasingly popular in recent years due to the growing demand for affordable and secure storage solutions. If you are taking investment for the acquisition of a self-storage facility, you’ll need to put together a use of funds statement to help you plan and budget for the acquisition.  Investors like to see…

The Top 6 Reasons to Invest in Self-Storage
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The Top 6 Reasons to Invest in Self-Storage

Self-storage facilities have become increasingly popular over the years, and for good reason: they’re a desirable investment. As a growing number of people seek out extra space to store their belongings, the demand for self-storage facilities has grown tremendously. This has made self-storage facilities a lucrative investment opportunity for individuals and businesses alike. Here are…

Why Are Self-Storage Facilities Considered a Stable Investment?

Why Are Self-Storage Facilities Considered a Stable Investment?

Self-storage facilities are considered a stable investment for a variety of reasons. They offer consistent income, require minimal maintenance, and are generally recession-resistant. Additionally, the self-storage industry is growing at a rapid pace, which indicates that demand for storage space will continue to rise in the years to come. For investors looking for stability and…

What is a recession and why are self-storage facilities considered recession-resistant?
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What is a recession and why are self-storage facilities considered recession-resistant?

We live in an uncertain world and uncertainty breeds fear. Fear of the future can lead to all sorts of different behaviors in people. One common behavior that manifests during periods of an economic downturn is the desire to “hunker down” and save. This often includes downsizing to a smaller home, apartment, or even storage…