The Downsides of The Self-Storage Business
Brian Davila Show - Real Estate Investing, Building Wealth, Faith Based
Wealthy Investor - Real Estate Investing, Real estate, Build Wealth, Faith Based
2.5 • 884 Ratings
🗓️ 9 June 2023
⏱️ 8 minutes
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| 0:00.0 | So I know there's going to be people listening to this and they're freaking fired up. |
| 0:03.0 | They're like, dude, A.J. give me a damn self-storage. |
| 0:05.7 | I'm ready. |
| 0:06.7 | I'm ready to, I'm ready to store some stuff. |
| 0:10.2 | It's ready. |
| 0:11.3 | How do you, how does someone start like is there brokers can you call like a self storage broker? Yeah there there are the thing that you have to remember and this is I honestly believe |
| 0:22.0 | There are downsides to storage because it's easier to get in that |
| 0:26.2 | also means it's way easier to be overbuilt so if I'm buying a big apartment complex I'm really not too worried about in most |
| 0:35.0 | locations they're being mass overbuilt right because the capital required is so |
| 0:40.6 | big that those people spend lots of time and money before they just go build a |
| 0:46.0 | hundred doors right to make sure that it will work. Storage is not like that. People can |
| 0:51.8 | get into it cheap so they will just go build and you can |
| 0:55.3 | oversupply markets. So that's the first downside, right? The second downside to |
| 1:01.1 | storage is storage. |
| 1:04.0 | So what I mean by that is when people say, |
| 1:07.2 | hey, you invest in real estate, I say no, I don't. |
| 1:10.6 | I own a storage facility company, meaning that guys that do storage don't do anything else, because it is so specific knowledge, right? |
| 1:20.0 | It is not like other real estate asset classes. |
| 1:23.4 | So that's why storage people are just storage people |
| 1:26.7 | because my company is completely designed for storage. |
| 1:31.0 | We couldn't move into another asset class. It's like nobody, the functionality of it and how it works. It's not like I could go from, okay, I'm going to do triple net leases, industrial, and I'm going to do triple net leases, industrial, |
| 1:42.8 | and I'm going to do an apartment complex. |
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