Return On Investment

Self-Storage Business

Sometime during the process of deciding whether you want to commit to the business or not, you’re probably wondering what kind of income you can expect from your investment. Here’s the good news. Once your financing is approved, and your project is going to be a reality, you can expect a return on investment that exceeds normal real estate return. In fact, a few years ago, Wall Street investors discovered the business just because it had such a good ROI. It serves as an opportunity to invest in a thriving business that doesn’t require hands-on attention. An investor can be an absentee owner, so long as he/she does up front due diligence, plans well and finds a good manager or management firm to run the day-to-day operation.

Cash Flow in a Self-Storage Business

As far as cash flow is concerned, it usually takes 1 to 3 years before you can expect positive cash flow. What do you do in the interim? Make sure you have included in your budget anticipated operating expenses during the lease-up period until you reach positive cash flow status.