Are storage Units a Good Investment?
Self-storage has been steadily growing for over 40 years with experts predicting that growth will continue for at least another ten years. No investment is risk-free, but if you are careful, you can put the odds in your favor. Investing in Luxelocker is just such a careful way to address six of the biggest issues in storage locker assets:
#1: Luxelocker takes care of business operations.
A key benefit of investing in real estate is passive income—earning money without having to do physical work. You don’t want to take on operational responsibilities. Luxelocker takes care of physical maintenance and dealing with renters. They collect payment and keep detailed financial records. They deal with the legal reporting. Buying individual lockers is an investment choice that works with considerably less work.
#2: Luxelocker manages the factors that impact profit.
Many real estate investments rely on economies of scale. You need a sizeable amount of capital to invest in a sizeable piece of property to achieve a sizeable profit. Not so with buying storage units. Because you can invest in just one or many units, size doesn’t matter.
You can focus your decision-making on property valuation, cash flows, occupancy rates and operating revenue. While you can buy more units and larger units, positive financials are what will make or break the deal. Luxelocker manages occupancy rates and other factors that influence the rent you can charge and the profit you can make.
#3: Because location is important to revenue, we’ve carefully analyzed where we build.
Because you can find storage units everywhere, from built-up urban areas to open rural landscapes, you might think that you can make money in storage in any location, but that is not the case. Luxelocker considers a number of factors. Areas around universities and military bases that have a more mobile population more likely to use self-storage.
A visible facility will have higher occupancy rates and higher rents than one that is hard to find. Properties that offer easy access for trucks and that are near high-traffic areas perform better. Because location is so important, Luxelocker conducts an in-depth analysis of current and future location dynamics before building in any location. That reduces your investment risk.
#4: Luxelocker has considered the risks to lower your investment risk
It was easier to make money in the early days of self-storage. Growth and market saturation have increased competition. Investors need to have their eyes wide open. In addition to selecting promising locations, Luxelocker conducts a number of other pre-building studies that look at competition, building feasibility, regional and national short and long-term trends, and more. They avoid markets that are—or soon will be—overbuilt. Investing in Luxelocker allows you to invest on this knowledge, with indicators that point to predictable, higher-margin returns. It pays to do your homework, or let Luxelocker do it for you.
#5: Luxelocker creates a passive income stream
Real estate investors typically use leverage—borrowed money—when buying property. You may decide to borrow to invest in self-storage units. If you don’t want to default or struggle to meet monthly payments, you need to streamline operations and maintain your investment. Investing in Luxelocker creates a passive income stream without burdening your time. We are always striving for operational efficiency so you can cash your rent checks without having to do any work.
#6: Luxelocker offers quality people will pay for without a huge upfront investment
Security, safety, convenience, and service quality are just as important as competitive prices. You want high quality construction, good lighting, and sophisticated surveillance and security. Well-trained staff and management make a huge difference. Luxelocker provides these turn-key amenities, so all you need to do is collect the rent.
When you invest in Luxelocker, you don’t have to raise capital to buy and develop a site from scratch. We have already dealt with the issues above. You can buy just one unit, so your cost of entry into this investment is low. If you have more cash to invest, you can buy more units, right-sizing the size or your investment to your situation.
Very interesting perspective on how to build wealth in The commercial real estate sector without starting with a ton of money. When looking at it, these are probably the most liquid real estate assets you can buy because they are able to be sold in much smaller dollar quantities, but still have a great return.