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 –…
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…
In real estate, the term “cap rate” is thrown around a lot. But what exactly is a cap rate? And how does it apply to self-storage facilities? Self-storage facilities are becoming increasingly popular to invest in across the United States. This is due, in part, to the high cap rates that investors can earn on…
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…
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…
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…
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