By Garrett Byrd
What exactly is a ROBS (Rollovers as Business Startups) arrangement and can I use this arrangement for my self-storage start-up?
A ROBS arrangement is a funding option that allows prospective self-storage business owners to use their retirement funds, such as an IRA or 401(k), to finance the start-up costs of their new business. Instead of taking on debt or seeking outside investors, the entrepreneur can set up a new C-corporation and create a retirement plan, such as a 401(k) plan, for the corporation. Then, they can roll over their existing retirement funds into the new plan, which can be used to purchase stock in the corporation and provide the necessary funds to start building their self-storage business.
Using a ROBS arrangement to fund the start-up costs of a self-storage business can be an attractive option because it provides access to capital without taking on debt or giving up ownership in the business. Additionally, the funds can be used for a wide range of business expenses, such as purchasing land, constructing facilities, or hiring employees. However, there are specific requirements and potential risks associated with using a ROBS arrangement, so it's important to consult with a qualified financial advisor or tax professional before pursuing this funding option.
I recently got the pleasure to interview Diane Rosenkrantz a Senior Consultant at the Tenet Financial Group. Diane and her team have been first class in helping several of our Storage Authority owners convert their retirement savings to fund their self-storage start-up.
Below is some of the question we cover during our interview.
What exactly is the Robs' arrangement?
What are the advantages of using a ROBS arrangement for a self-storage business start-up?
Can a ROBS arrangement be used to purchase or build self-storage facilities and how about ongoing operations?
Are there any restrictions on how the funds from a ROBS arrangement can be used in a self-storage business?
Are there any specific qualifications or experience required to use a ROBS arrangement for a self-storage business?
Are there any tax implications of using a ROBS arrangement for a self-storage business?
How does a ROBS arrangement compare to traditional financing options for self-storage businesses?-
What is the approximate timeframe if a franchisee starts the process with Tenet until their funds are available?
Can a person have other partners/spouses also Rollover funds?
If you would like to learn more and start your journey to self-storage ownership click the link here: http://www.storageauthorityfranchise.com/opportunity2
Storage Authority Franchising is about owning your own hometown self-storage business and having the professional systems and knowledge to assist and guide you. We like to say You are in business for yourself but not by yourself. If you are thinking about self-storage you owe it to yourself to contact Garrett Byrd at Direct: 941-928-1354 or Garrett@StorageAuthority.com to learn more about the Storage Authority Franchise opportunity.
Diane's Contact Below:
Tenet Financial Group