The Orginial Realty Investing Magazine

Is a Self-Storage TIC the Right Investment for You?

Whether you are new to the world of real estate investing or are a seasoned veteran, the idea of a high return, low involvement investment opportunity is always difficult to ignore. And much of the time, these seemingly impossible investments are just that – smoke and mirrors. But not all.

If you are searching for a low risk opportunity with reasonable returns and no management headaches, the world of Self-Storage Tenancies in Common might be ideal for you.

Imagine a real estate investment opportunity that gives you:

  • Insulation from the fickle nature of single-tenant properties. With hundreds (and even thousands) of tenants within a self-storage facility, it would take a serious “run” on storage to impact you as an owner. And such a “run” is virtually unheard of.
  • No significant capital calls. Unlike traditional bricks-and-mortar construction, self-storage facilities are all metal. The practical affect is that maintenance costs are extremely low, and owners are unlikely to face a significant capital call for necessary repairs, such as you have with traditional construction. Same with those pesky (and expensive) kitchen and bathroom repair calls you get with multi-family or retail holdings.
  • Independence from anchor stores. There’s a reason most triple-net leases contain rent reduction clauses related to anchor store departures. With self-storage, you as owner, free yourself from the risk of an unexpected termination of a property’s anchor tenant – and the subsequent negative impact on other tenants and, more importantly, your cash flow!
  • Virtually recession-proof. Whether the economy is boom or bust, people rely on self-storage facilities. In boom times, Americans always buy more than they need (or have room to store at home), driving them to self-storage as a means to deal with all their “stuff.” In bust times, when people start to lose their homes, they also turn to self-storage as a place to safeguard their belongings while they get back on their feet. There simply is no time in the economic cycle when people don’t turn to self-storage as the answer.
  • Income from multiple sources. While storage rent will be the source of a majority of an owner’s income, there are also other sources that provide additional cash flow. For example, moving truck rentals, tenant insurance (40-50% of the premium is given to the storage owner), retail store with moving supplies, commissions on leads from other local businesses and even late fees can significantly boost your monthly cash flow.
  • As noted above, no single tenant represents more than 1% of your total monthly income. Likewise, you will have multiple profit centers generating cashflow for you. As an investor, you enjoy both vertical and horizontal income sources, something you won’t find with many (any?) other TIC investments.

Self-Storage TICs don’t come along very often (in fact, this opportunity might be the 1st of its kind anywhere!), precisely because of all these benefits. Usually, when facilities come up for sale, they are off the market within weeks (even days), purchased by individuals or partnerships who prefer to keep the lucrative investment for themselves.

If you'd like to learn more about self-storage TICs, please get in touch. Visit our website or call (866-570-1031) to learn more about this rare opportunity to jump-start your real estate investment portfolio.

We look forward to helping you reach your investment goals.

If a #1031 exchange is in your future, Visit our website or call (866-570-1031) to learn more about this rare opportunity to jump-start your real estate investment portfolio.

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