Like all businesses, the storage industry was born out of a necessity. The human race has always had “stuff”, and that stuff means the need for home page storage space. Evidence suggests that there were public storage facilities in Ancient China. Since then, secure storage is a necessity. The first storage facility was constructed in Florida in late 1950. Each year self-storage units gain popularity. In the 1990’s storage demand outpaced supply, prompting a rush to build new facilities all across the US. The New York Times reported in 2005 that more than 3000 storage facilities were constructed each year between 2000-2005. Storage is in great demand. The Self Storage Association (SSA), states that there are 2.3 billion square metres of self-storage in the United States. The US’s total square footage is almost three times larger than Manhattan. One in ten US houses currently rent storage space.
These statistics might make it tempting to buy a piece of self storage. Is there a better way to grab a piece in the self-storage market?
To start your career in the industry, it is important to find the right storage facility. Your business’s success depends on where it is located. While searching for the ideal location to store your self-storage business, it is important to consider the costs of property taxes and local zoning regulations. Do your research on the property before purchasing an existing storage facility. Entrepreneurs or landowners have purchased many self-storage buildings built in the past decade. These facilities can be very expensive as they are not accessible to many people. This makes them less attractive for investors. Accessibility is key. This will ensure that the market will choose you and your facility will return a greater amount. In the first year, a 6.75 percent return on investment is possible.
A substantial initial investment is required to start a self-storage company. You can get financing from national lenders to finance your self-storage business. Many business people recommend Wells Fargo’s Self-Storage Division. Wells Fargo has self-storage options. You will get two years interest-free while your project is being started with the mini-perm. After that you’ll get three-year amortization. The program will achieve your debt coverage goals. This loan is one of the best. A great option is the mini-perm loan. It may take you less time to complete the project but it can take up a whole year to fill them. Finding a loan could take you many years.