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greenenergy posted a blog entry in Green EnergySelf-storage is undoubtedly a unique kind of asset. It’s popular for giving high yields and is potentially resistant to recession. Although the industry is still young, self-storage is continually expanding. From 2014 to 2016, there are more than 54,000 storage facilities throughout the United States. This is according to a study conducted by IBISWorld. If you are planning to invest in self-storage, fret not because these tips will help out: Analyze the cash flow. According to Chris Sonne, the executive managing editor of the famous Self Storage Industry Group, Cushman and Wakefield, self-storage depends heavily on cash flow. Thus, it’s crucial that your investment decision is based on how much you’re earning. Examine the sprawling years of cash flow. After that, compare it with your current rent roll. It is significant to find a pattern. Can you see a declining or a rising cash flow? If your income is declining, what do you think is the main reason? Your answer could be a sign that you need to be more careful. When your income has been increasing quickly, it could be a sign that you have to be more aggressive in terms of pricing. Evaluate the economic occupancy. Compared to other property types, self-storage facilities set a gap a between economic occupancy and physical occupancy. Usually, the physical occupancy of a specific facility is roughly 85%. However, if the owner is offering deep deductions on rents, that economic occupancy might be around 60% of the entire gross income. It’s a distinction which can greatly impact loan underwriting. Consider the trade area. Even in an oversupplied market, you can still earn more money when you purchase it at the right cost. Make a smart decision by calculating the value of self-storage in the current market and how much it will cost in the next years. Seek a professional help. If you want to ditch going through the hassles, then find a seasoned self-storage consultant or broker who can assist in exploring the market. Nothing beats a solid experience when it comes to brokerage industry. Let him guide you throughout your purchasing journey. To start with, get in touch with pros who know everything about building self-storage facilities. Know more about them through visiting http://www.hollywoodstoragecenter.com/. Create a network. Prior to purchasing your first facility, it would help you a lot if you try to attend gatherings or trade shows. From these events, you can collect lots of resources. Apart from that, they will reveal the latest status of the industry. Determine your financing options. Always understand all your financing options. Ensure that your chosen package aligns with the strategy you’ve created in managing your asset. The Bottom Line Making money from self-storage is possible especially if you’ve found a great deal. However, purchasing a space is not enough. You must learn about the trade and make smart financing decisions. You have to prepare yourself for the changes that may affect the entire real estate investment industry.