by Marc Goodin
Residual income = Money and the time to enjoy. WEALTH. Financial and business stress is gone! If residual income is so great why isn't everyone working toward that goal? The answer is simple. It takes hard work to turn regular income into residual income.
Most businesses don't have a residual income. Even professionals who make a great six-figure income are still trading dollars for hours. If they stop working the income stops coming in.
Often the first residual income people own is dividend stocks. The problem is that given the average person holds a stock for 6 months it becomes next to impossible to build an efficient portfolio of income stocks. There are multiple high-quality stocks that provide a 2- 4% dividend income. If you wanted $500,000 a year in residual income you would need to have over $16,000,000 invested in the stock market with a 3 percent return.
Real estate can be a residual income but often you have to build a large empire of leaders to run it when you retire. Not an easy task. So most real estate investors work around the clock to build a portfolio that hopefully can be sold for significant profits.
Is self storage a great opportunity for residual income? I think it is the best opportunity by far. It does not require a ton of employees and property maintenance like most real estate. But just like any business you have to do the hard work first. To get to that $500,000 residual income from new self storage development you have to invest a lot less than $16 million. And in self storage due to depreciation, you will keep significantly more of the income.
The tough part of self storage is the development and the first year of operations where you are learning the business. During that time you will need to spend 30-plus hours a week if you do not have self storage development and operations experience. Our first goal, right off the bat, for our Franchisees is to cut that 30 hours plus a week to 8 hours a week by using our experience and systems to help them. Turning your 8 hours a week into 3 hours a month is the key to residual income.
First, you need a backup for ongoing experience, training, new technology and sales & marketing. There are only 2 options: Franchising with Storage Authority or hiring a management company to run your business. The difference is with a management company you will trade high-end sales and marketing for "the first month free" (no sales and marketing) so you will make substantially less with a management company. Not to mention a management company costs more yearly than a franchise.
Once you have your facility up and running and keyed into the Storage Authority Platforms and systems converting to residual income is simple. You hire out your 8 hours a week to have your facility visited weekly to ensure the Storage Authority systems are followed and to ensure your facility is in tip-top shape. Even if you pay very well the math is 8 hours a week x 52 weeks x $35/hr = $14,560. A small price to turn $500,000 a year of income into residual income.
And the great news is, you are also building a huge nest egg when you sell or refinance.
Do you want to have a 15-minute call to learn how Storage Authority helps improve the systems, sales, marketing, and profits at your existing facility? If you are building from the ground up let's also review how we help you find land and get your facility designed, approved, and built.
Please send me an email or call me – no appointment is needed:
Marc@storageauthority.com or 860-830-6764
Get more information on Storage Authority Franchise at www.storageauthorityfranchise.com/opportunity3
Marc Goodin is the President of Storage Authority Franchising. www.StorageAuthorityFranchise.com He owns 3 self-storages he designed, built, and manages. He has been helping others in the self-storage industry for over 30 years. He can be reached at marc@StorageAuthority.com or directly at 860-830-6764 to answer your franchising, development, marketing, sales, and operations questions. His best-selling self-storage books are available on Amazon.
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