When considering a self-storage investment property, two choices are available – build new or buy an existing property. Here are three things today’s savvy investor should consider before buying or building a storage property.

 

Building

 

There’s a lot that goes into building a new self-storage facility. Let’s work backward with the most important consideration of all. How well do you know construction or how strong is your construction team? There are many hurdles to jump when constructing new. A strong construction team will include realtors, architects, engineers and construction managers right from the start. Having a solid team can be the difference between an on-time opening or dealing with delays which end up costing money in the long run. Construction delays can be costly, and the right team can prevent common setbacks.

 

Another consideration in construction is staying within budget. Inevitably something unforeseen pops up that leads to budget overages. A few budget issues should be anticipated and managed easily with the right team of people in place to help you manage your project.

 

Your final consideration in building a self-storage property is your break-even point. Until your project is completed and leased past your break-even point, you are facing a negative investment. A savvy investor anticipates this while keeping squarely focused on reaching break-even quickly.

 

If you don’t yet have a solid team in place, you might consider purchasing an existing self-storage instead.

 

Buying

 

Buying an existing self-storage unit has pros and cons as well. Let’s consider three important things before purchasing an existing business.

 

First, buying can be an excellent option to minimize up-front risk. When buying existing, an investor can often find a self-storage at partial or full capacity already. That makes purchasing an attractive option because you have spaces leased from the beginning. One solid option located in Pensacola and listed on the Argus Self Storage Sales Network boasts 191 units and great visibility from the road. You can find information on this property here.

 

https://www.argus-selfstorage.com/properties/florida/pensacola-fl/

 

Second, since properties are sold “as is,” it’s important to consider any possible repairs or changes needed as a possible additional investment upon purchase. Costly repairs can quickly turn an investment into a money pit, while other repairs may add value to an existing business.

 

Finally, having a solid team of expert advisors can provide wise counsel as you make financial decisions.

 

Making the decision

 

Weaver Realty Group has been the Argus Self Storage Network Affiliate since 1999. We match investors with great opportunities. With extensive experience in building self-storage facilities and also acquiring existing properties, Weaver makes the process easy.