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Brian Davila Show - Real Estate Investing, Building Wealth, Faith Based

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

Flipping Houses, Wholesaling Real Estate, Business, Investing, Rental Property, Real Estate, Real Estate Investing

2.5884 Ratings

🗓️ 9 June 2023

⏱️ 8 minutes

🧾️ Download transcript

Summary

Consider these downsides before investing in self-storage... We want to coach you at Wealthy Investor! For a free consultation, go to http://www.wealthyinvestor.com/case-study/yt ______________________________________________________ Looking to grow in your faith and business? Join the premiere community for Christian entrepreneurs and business people. Develop your leadership, discipleship, and your faith at https://wealthykingdom.com/ Are you an entrepreneur who wants to build their perso...

Transcript

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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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