Self Storage Q18 Expenses

A question that I often receive when talking about self storage is, what are the expenses like? What can I expect? My name is Fernando Angelucci. I'm "The Storage Stud".

Self storage in general has much lower expenses than say multifamily or single family. And the reason why is you have a lot less utilities, the tax, the property taxes are much lower. And then the manpower required to run these facilities are also much lower. Typical expense ratio, which would be the percentage of expenses over the gross operating income would be in the 30% to 35% range. So usually once a facility is fully stabilized at 85% to 90% occupancy, you can expect that 35% to 40% or 30% to 35% of your income will go to expenses.

One of the great things about self storage is because the expense ratio is so low, your break even occupancies are also very low. Which inherently increases the stability of that investment. Because say, if the economy takes a slight dip and you lose about 10% occupancy in your yourself storage facility, you still have this large buffer where you're still operating at a net cash profitability.

My name's Fernando Angelucci. If you'd like to learn more about self storage investment, feel free to drop me a line at www.TheStorageStud.com. Thanks.

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Fernando O. Angelucci is Founder and President of Titan Wealth Group. He also leads the firm’s finance and acquisitions departments. Fernando Angelucci and Steven Wear founded Titan Wealth Group in 2015, and under his leadership, the firm’s revenue has grown over 100% year over year. Today,
Find out more at
https://www.TheStorageStud.com


http://titanwealthgroup.com/

Titan Wealth Group operates nationwide sourcing off market investment properties for Titan Wealth Group’s acquisition as well as servicing a network of thousands of active real estate investors world wide. Prior to founding Titan Wealth Group, Fernando worked for Dow Chemical, a Fortune 50 company, rolling out a flagship product estimated to gross $1B in global revenues.
With an engineering background, Fernando is able to approach real estate investing with a keen analytical mindset that allows Titan Wealth Group to identify opportunities and project accurate pictures of future performance.
Fernando graduated from the University of Illinois at Urbana-Champaign with a B.A. degree in Technical Systems Management.
Titan Wealth Group was founded in 2015 with the vision of gathering individual investors that have the means to invest but lack either the time to find high-yield investment opportunities or the access to these off-market deals. All too often, founders Fernando Angelucci & Steven Wear came across investors who had deployed their capital only to regret the lack of consistency or degree of returns their investments were producing. In response, Titan Wealth Group provides access to highly-vetted real estate secured investments and off-market acquisition opportunities primarily in the Greater Chicago MSA. Today, Titan Wealth Group not only assists individual investors but has grown to support the acquisition goals and capital deployment of investment groups, private equity firms, and real estate investment trusts (REITs).
As a facilitator of wealth growth, Titan Wealth Group believes that success is not limited to the sum of our efforts and is infinite with what can be accomplished through partnership.
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