How to Start a Storage Unit Business with No Money: A 3 Step Plan

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"Starting a storage unit business with no money is impossible"… This is NOT true.

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Step 1: Find an Existing Storage Facility for Sale

Building a new facility from the ground up requires significant investment. Instead, seek out existing storage facilities for sale. These facilities often have established customers, making them easier to take over and operate compared to new construction.

P.S. The average lease-up period for a storage facility today typically takes 36 months, depending on the size of the operation.

Sources for Existing Facilities: 
1. Crexi.com - On Market Listings
2. Loopnet.com - On Market Listings
3. Sales Brokers in your selected area focused on Self Storage
4. Radiusplus.com - find existing facilities and addresses that match your criteria to manually reach out to the owner.
5. A good relationship with a Banking institution will know who's in distress and looking to get out of the business.

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Step 2: Ask for Seller Financing

Seller financing is when the owner acts as the lender. Owners will often accept seller financing if a consistent paycheck is wanted or if they want to retire. Seller financing also helps owners avoid a larger capital gains tax.

Learn more about Seller Financing from our friends at Self Storage University's podcast episode here: https://www.selfstoragesuniversity.com/self-storage-mastery/understanding-seller-financing

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Step 3: Secure Funding to Complete the Acquisition

When capital is necessary, bring in investors or business partners to cover the down payment or other funding needs. Offer a share of profits or equity in the business in exchange for financial backing.

Who to Seek:

• Private Investors: Look for individuals interested in real estate or the storage business. Pitch the business plan, highlighting revenue growth and profit potential. You can do this by signing up for app.trycactus.com
• Business Partners: Partner with someone who has capital but lacks operational experience. This allows both parties to benefit from the venture.

Other Funding Options:

• Crowdfunding: Use crowdfunding platforms like Kickstarter, Indiegogo, or GoFundMe to raise money for the acquisition. In exchange for contributions, offer rewards or equity, such as discounted rental rates or a share of the business.
• SBA Loans: The Small Business Administration offers loans with low interest rates and long repayment terms. Some programs may be available for purchasing existing businesses, including storage facilities.
• Local Grants and Incentives: Investigate local government agencies, economic development offices, or community organizations that offer grants or low-interest loans to support business acquisitions.

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Acquiring an existing facility, negotiating seller financing, and securing additional funding through investors, crowdfunding, or low-interest loans makes starting a storage business with no money possible. Remember seller financing reduces the need for a large down payment and avoids traditional bank loans. Bringing in investors or exploring government programs for grants and loans can cover any funding gaps. With persistence and smart planning, acquiring and operating a storage facility with no money becomes achievable.

Feel free to look at our friend AJ Osbourne's plan here: https://www.youtube.com/watch?v=cQZvQQqBd8I

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