311. First Investment? Why You Should Buy a Self Storage Facility
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Aug 26, 2025
Exploring the often overlooked world of self-storage investments, this discussion reveals why these facilities can serve as a fantastic first investment. With higher cash flow, lower risks, and less management hassle, self-storage is shown to outperform traditional real estate options. The conversation also touches on how smaller investors can capitalize on unique value-add opportunities being missed by larger institutions. It's all about building wealth with patience and strategic choices in this booming sector!
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Use Doors To Diversify Risk
Prefer storage for stability because dozens of tenants spread risk across many doors instead of a single renter.
Use tenant diversification to keep cash flow even when occupancy dips.
insights INSIGHT
Direct Investments Leverage Cashflow And Debt
Direct investments compound wealth differently than public markets because cash flow is realized and rents pay down debt.
Rising net income increases property value via cap rate leverage while tenants pay principal monthly.
insights INSIGHT
Tenants Pay Down Debt And Reduce Risk
Tenants effectively pay down your loan while rents rise, creating a dual wealth engine of equity gain and cashflow.
Low default rates and substantial down payments further protect investor capital.
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With so many investment options—single-family homes, duplexes, the stock market—it’s easy to overlook self storage. But the truth is that a self storage facility is one of the best first investments, and you’re about to find out why. Whether you’re just starting your investing journey or looking to diversify your portfolio, storage could be a supercharger for your wealth.
In this episode, AJ and Conner break down why you don’t need to “work your way up” to self storage investing. What if we told you that these facilities offer better cash flow, more tenant diversification, and even lower barriers to entry in many cases—all for the same cost as a regular rental property? Even better: tenants aren’t calling you about backed-up toilets in the middle of the night!
Self storage is one of the lowest-defaulting assets in the US, meaning it’s much more profitable and less risky than you probably think. We get into the advantages these facilities have over residential real estate, as well as how direct investments compare to public markets (like stocks). We’ll also discuss the massive value-add opportunities that institutional investors are leaving to you, the small investor!
What you’ll learn in today’s show:
Why a self storage facility is one of the best first investments in 2025
How to buy a self storage facility for even less money than a single-family home
Why self storage gives you higher returns with less risk than many other investments
The small, value-add facilities institutional investors overlook (and leave to you!)
The most common fears and myths about self storage investing (debunked!)
Self Storage Income