There's a small group of real estate investors making a killing by accommodating the American public with our propensity to store junk. You won't find these folks at your local REIA meetings or seminars. Your most likely chance of meeting them is on the golf course or a cruise ship. They are quietly enjoying their growing cash-flow and building their net worth through the virtually unknown investment arena of Rapid City Self Storage or mini-storage. What keeps the common real estate investor from joining this exclusive club?
Elementary economics- Some reports have assumed that the recent rise in mini-storage businesses has outstripped demand, threatening the success of new ventures. In truth, the self-storage industry has grown leaps and bounds since its beginnings in the 1970's but the demand has grown as well. Surprisingly, the increased supply of personal-storage units has managed to stimulate customer interest.
Myth 1: There is a personal storing facility on every corner. I can't make money with all of that competition. It's true, personal storing is a business that has grown from out-of-sight garages in industrial areas to modern multi-use facilities. A billion dollar industry has sprung up in the past twenty years all geared toward development and building.
Proper planning is the key to successful personal-storing investment- Because personal-storing continues to have very low failure rates in comparison with other real estate ventures, personal-storing buildings have become a popular investment for young people eager to start careers, and retirees looking for a second vocation. Some of these new investors fail to examine important factors like location, land costs, legal issues, and construction and maintenance challenges before they start spending money. Attention to these details can go a long way to ensure personal-storing success.
In a situation like divorce, one partner has to leave to the house with a few belongings suddenly. Personal storing is very useful in those situations. If you need to store your car, you can think of personal storing instead of garage. Customers in this case are generally emotional. The storing employees are well trained to deal with the such customers.
Myth 2: I either need to build a new facility or buy a newer one to make money. Most people think that personal storage buildings must be cheap to build since they are just metal buildings with doors. Yes, they are cheaper to build than most other commercial buildings, but there is much more to developing and building than meets the eye. In most cases, it's a laborious process that takes months, if not years, to complete. Then all you have is an empty facility with a large debt service. It may take several years to break even and this is definitely not a fast track to success.
The smart investors are buying existing, older facilities that are poorly operated and need minor repairs. These properties are not on the radar screen of the big companies and can be picked up at great prices. With these facilities, you often start with a positive cash flow and once the repairs have been made and you operate it professionally, the money really starts rolling in.
Maybe the worst hype about the personal-storing industry is that new personal-storing owners face many trials and tribulations on the road to success. Like any new venture, the personal-storing business does have its challenges, but with a little research and the right space most mini-storing start-ups thrive without tremendous struggles
Elementary economics- Some reports have assumed that the recent rise in mini-storage businesses has outstripped demand, threatening the success of new ventures. In truth, the self-storage industry has grown leaps and bounds since its beginnings in the 1970's but the demand has grown as well. Surprisingly, the increased supply of personal-storage units has managed to stimulate customer interest.
Myth 1: There is a personal storing facility on every corner. I can't make money with all of that competition. It's true, personal storing is a business that has grown from out-of-sight garages in industrial areas to modern multi-use facilities. A billion dollar industry has sprung up in the past twenty years all geared toward development and building.
Proper planning is the key to successful personal-storing investment- Because personal-storing continues to have very low failure rates in comparison with other real estate ventures, personal-storing buildings have become a popular investment for young people eager to start careers, and retirees looking for a second vocation. Some of these new investors fail to examine important factors like location, land costs, legal issues, and construction and maintenance challenges before they start spending money. Attention to these details can go a long way to ensure personal-storing success.
In a situation like divorce, one partner has to leave to the house with a few belongings suddenly. Personal storing is very useful in those situations. If you need to store your car, you can think of personal storing instead of garage. Customers in this case are generally emotional. The storing employees are well trained to deal with the such customers.
Myth 2: I either need to build a new facility or buy a newer one to make money. Most people think that personal storage buildings must be cheap to build since they are just metal buildings with doors. Yes, they are cheaper to build than most other commercial buildings, but there is much more to developing and building than meets the eye. In most cases, it's a laborious process that takes months, if not years, to complete. Then all you have is an empty facility with a large debt service. It may take several years to break even and this is definitely not a fast track to success.
The smart investors are buying existing, older facilities that are poorly operated and need minor repairs. These properties are not on the radar screen of the big companies and can be picked up at great prices. With these facilities, you often start with a positive cash flow and once the repairs have been made and you operate it professionally, the money really starts rolling in.
Maybe the worst hype about the personal-storing industry is that new personal-storing owners face many trials and tribulations on the road to success. Like any new venture, the personal-storing business does have its challenges, but with a little research and the right space most mini-storing start-ups thrive without tremendous struggles
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You can get excellent tips on how to pick a Rapid City self storage company and more information about a reputable company at http://www.depotstoragerapidcity.com now.
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