50: Self Storage: The Misunderstood Money Maker Most Investors Overlook w/AJ Osborne

On The Market

BiggerPockets

News, Education, Business, Investing

4.8 • 858 Ratings

🗓️ 7 November 2022

⏱️ 61 minutes

🔗️ Recording | iTunes | RSS

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Summary

Self storage investments aren't sexy. Most investors wrote them off for decades, with many of them not even considering self storage as true real estate. As more facilities were being built in the 1970s and 1980s, average investors looked down on self storage operators, seeing them as nothing more than owners of some concrete and metal. And who could blame them? Apartments, hotels, and other popular real estate ventures had proven track records, industry-specific technology, and a true “need” in the market. It wasn’t until after 2008 that this perception completely changed. AJ Osborne, one of the largest self storage operators in the world, built his business at a time when no one wanted to touch self storage. But, as his portfolio grew and the industry turned around, more and more investors saw self storage for what it was: a low-risk, high-cash flow real estate investment. But now, with self storage hitting its all-time high in popularity, could the market slowly be getting saturated? AJ has theories about who will and won’t get burnt over the next few years. His strong opinion on this industry is backed by a massive amount of expertise that few can rival. AJ, unlike many of his competitors, does NOT think that self storage is “recession-proof,” but he does still think that investing in this asset correctly, especially now, could be a game changer for any investor interested in a life of financial freedom. In This Episode We Cover AJ’s journey from insurance salesman to full-body paralysis and later self storage king Why self storage is a misunderstood asset that most investors dismiss too easily The explosion in self storage since 2008 and why Americans are storing more than ever before Commercial financing and what banks want to see when buying a self storage facility Whether or not institutional investors could own the entirety of the self storage industry in the near future Location, lighting, design, and other aspects that make a facility high demand AJ’s advice for brand-new investors trying to get started in self storage investing And So Much More! Links from the Show Find an Investor-Friendly Real Estate Agent BiggerPockets Forums BiggerPockets Agent BiggerPockets Bootcamps Join BiggerPockets for FREE On The Market Join the Future of Real Estate Investing with Fundrise Connect with Other Investors in the “On The Market” Forums Subscribe to The “On The Market” YouTube Channel Dave’s BiggerPockets Profile Dave’s Instagram James' BiggerPockets Profile James' Instagram BiggerPockets Podcast 286 Connect with AJ: AJ's BiggerPockets Profile AJ's Instagram AJ's Website Check the full show notes here: https://www.biggerpockets.com/blog/on-the-market-50 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page! Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Buy low, sell high. Very easy to say, but not always so easy to do. For example, high interest
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1:52.7	Hey, everyone.
1:57.7	Welcome to On the Market.
1:58.9	I'm your host, Dave Meyer.
2:00.3	joined today by James Dainer. James, what's going on?
	...

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