Buy A Storage Facility

Estimated read time 2 min read

Storage facilities are not the most glamorous of investments, but they often supply a steady stream of income. Storage facilities also have a relatively low overhead when compared to other types of real estate investments. Storage facilities do not have to have extensive plumbing or heating systems and their electrical systems can be much simpler than in residential or commercial real estate properties. This acts to greatly limit maintenance costs.

Buying a storage facility can sometimes be too expensive for one lone investor. This is not because the land under most storage facilities is extremely valuable. Such facilities are usually on land valued in the low to mid-range of local property values. The reason is because most storage facilities are so large. Bigger facilities can have hundreds of individual units of varying sizes. Even cheap land is not so cheap if you buy enough of it and put a storage facility on it.

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It is possible to secure funding through business loans or by finding a partner or two. Storage facilities are viable commercial enterprises and if you have your pricing structure and cost projections worked out adequately, and a business plan in hand, you may well get the loan. On the other hand, if you have a sizable IRA, you could partner with some other investors of a like mind and form a limited partnership whereby you could share the risks and the rewards.

Using Your IRA for Fractional Ownership

It is possible to use your IRA in the way described above. Your IRA can purchase a piece of a commercial enterprise rather than purchasing the whole thing. You simply need to be certain that the deal is structured correctly and that you meet all reporting requirements. Also any financial involvement you have with the business must be directed through your IRA. All profits must go into it and all expenses must come out of it. cek harga indah cargo logistik

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