by Marc Goodin, an excerpt from his book: Self Storage Is It Your Vehicle To Wealth?
Does Self Storage Provide Wealth?
First, let’s agree there is a huge difference between being Rich and being Wealthy.
Definition of Rich: A certain dollar amount in either income and or net worth we set for ourselves.
At my first summer job in high school, I made $3.50/hr. I thought that I was rich since it was better than the minimum wage at the time and my first job. When I graduated college, I was impressed with my $18,000 a year job. Until several months later when I was on my own and paying all my bills. I remember saying then when I make $40,000/year I would be rich. Then when I made $40,000 a year (and supporting a family of 4) I said I will be rich when I make $80,000/year. You guessed it when I made $80,000/year and saving to put my kids through college, I said if I could only make $160,000 a year, I would be rich.
Well, I made it to $160,000/yr. in my mid-forties year and I was doing great. Saving a few bucks, helping the kids out and enjoying life. I owned a civil engineering business and enjoyed my work. And I assumed I would be doing this for the next 25 years. Part of that $160,000 income came from my side hustle of owning rental properties. I may have been “rich” but certainly was not wealthy. I was working 6 days a week and at least a couple of days a week to far past dinner time.
As a civil engineer, I always said I made dozens of real estate millionaires with my site plan designs. (Designing large subdivisions, commercial site plans like Walmart, Burger King, Dunkin Donuts, self-storages, and countless others). Even though I was getting paid well, I was still trading dollars for hours. Finally, I realize I did not make a single millionaire, they did it on their own. It’s easy to have an idea or plan but not so easy to implement it. I knew real estate development made more millionaires than any other profession, so I was always asking myself what my next real estate play should be.
After thinking about my thousands of developer clients it was clear one real estate investment stood out from all the rest. After meeting with me, the only group of clients not going back to work were the self storage developers. They were going out to play. After a bit more investigation I was amazed by the lucrative profit potential of self-storage. I surpassed my income with one self-storage and more than doubled my income with my second self-storage and working a heck of a lot less than the 10 hours a day for 6 days a week. Many people tell me it was easy 15 years ago. But I tell everyone the best time to get started in self storage was 5 years ago and the second-best time is today.
Definition of Wealthy: Not only making a ton of money but not having to work every day so you can have the lifestyle you want. i.e., time & money
My Definition of Self-Storage: An incredible real estate investment and business where you can take advantage of Amortization, Depreciation, and Appreciation to become wealthy, a multi-millionaire in 5 years and keep working or retire. And I mean incredible - Last year (2021) Self Storage was the number one real estate business in the US and the future looks bright!
Does self-storage provide wealth? YES!