t is truly amazing how many people do not understand the advantages of investing in self-storage. If you’re going to invest, why not invest in the one business category that has provided more millionaires than any other business? Yes, real estate.

If you are going to invest in real estate, why not invest in the real estate business with the highest returns for the least amount of work? Yes, self-storage. Do you know the No. 1 headache in business? Yes, employees. Why not invest in a business that has just a couple of employees vs. several or even 30-plus? Yes, self-storage. Why not invest in a business where the overhead is limited and does not go crazy with inflation? Yes, self-storage.

Here are the seven reasons why investing in self-storage is so hard to beat.

Everyone has heard self-storage is recession-resistant, but many do not understand the huge value of self-storage and inflation resistance. You can generate regular income by renting units to individuals and businesses. The rent received can cover your expenses and provide a profit.

Most self-storage business expenses are fixed and don’t go up to equal inflation like most other businesses. The land, site improvements, and buildings are fixed costs that do not go up due to inflation. Most businesses have many employees, food, products, and rent that go up every year, which reduces profit if they don’t/can’t increase their prices. If inflation was 3 percent, most business owners need to increase their prices by 3 percent to the end customer just to make the same profits. When self-storage increases its rental rates by the same 3 percent, its profits will increase due to its large, fixed costs not subject to inflation. And with a platinum sales and marketing plan, you can often raise your rates yearly, 1 percent to 3 percent more than inflation, for additional profits.

And don’t forget amortization. You are often paying back your loan on a 25-year amortization schedule, so you are paying back with future money that has less value than when originally borrowed due to inflation.

There are two parts to a self-storage value. The first part is the monthly cash flow that pays the bills and can lead to early retirement. The equity can make you wealthy. A large part of that equity is because you own the business and the large real estate asset. Think about it; so many businesses do not have a real estate asset: laundromats, Dunkin’ Donuts, and McDonald’s (often the franchisor owns the land and building), as well as professionals like engineers, architects, lawyers, dentists, doctors, plumbers, electricians, etc., own the business but often not the real estate, so they are still trading dollars for hours.

Self-storage investment comes with many tax advantages. They often include deductions for mortgage interest, property taxes, insurance, maintenance, and depreciation. Often, owners take dividends vs. a W-2 salary, so less taxes are paid. If you have owned the facility for over a year when you sell, you pay capital gains taxes, which are considerably lower than payroll/W-2 tax and wage expenses. My favorite tax advantage is that you can refinance and take cash out of the facility with zero taxes paid. There are many tax options that can vary on an individual circumstance, so always consult a tax professional for guidance.

Due to the high profits and low failure rate, self-storage is very loan friendly. With an SBA loan, you can put down 15 percent. With $1.5 million in cash, you can build or buy a $10 million self-storage facility or invest $1.5 million in the stock market. Let’s assume both assets appreciate by 3 percent due to inflation. You will gain $45,000 in additional equity in stocks and $300,000 in equity in the self-storage business.

And when the loan is paid back over many years it is paid back with money worth much less value due to inflation.

This considers only the equity and appreciation side. You will also generate significantly more free cash flow into your pocket from self-storage by leveraging other OPM.

Every comparison I have seen for real estate business failures has self-storage at an incredibly low failure rate that beats all the other real estate businesses. This includes businesses like restaurants, single-family homes, apartments, senior housing, etc. This makes sense since self-storage is not subject to the harsh realities of inflation, recession, or losing one or two major customers or clients that could significantly reduce profits.

You have heard it before, the best business makes you money when you’re sleeping. Imagine, every night at 12:01 hundreds of automatic credit card payments are made to you every night while you are sleeping. And the next day, your manager, kiosk, and website are renting and taking payments all day long while you are enjoying your day. Once you are up and running, you may still want to put in four-plus hours a week to make sure you continue to be a premium facility for premium profits. Four hours a week beats 40 hours, that’s for sure!

Today, you need to be a pro to have a successful business, especially one that can provide a significant six-figure income and a huge retirement nest egg. Finding land, obtaining designs and approvals, bidding, construction, operations, sales, and marketing are not typically things one person has the experience or time to do on their own. Franchising can reduce the required time and provide the expert guidance you need.

Self-storage success takes three things:

• Partnership – Success does not happen solo.
• Mentorship – The best way to learn faster and gain confidence quickly is to have a trusted advisor.
• Deal Flow – Without constant deal flows, nothing matters.

A self-storage franchise whose team has developed, manages, and owns self-storage will make you a pro on day one, and these benefits:

• Save you time.
• Save you money.
• Reduce risks, avoid landmines, and provide the guidance you need.
• Make the journey easier and more enjoyable.
• Provide benefits most people would never get on their own.