Monte Carlo Real Estate Investments is a Silicon Valley based real estate investing firm focused in the self storage asset class which has a proven track record to do well both in good and bad economic times. Below we highlight key points on why we love self storage:
Why is it Recession Resistant?
- It does well in good times: people buy more, have more, keep more
- It does well in bad times: people downsize and need to rent storage which is a significantly cheaper than renting a bigger home
- Most people say they will get storage for 3-4 months and it ends up being years:
“It’s emotionally hard to get rid of stuff” – Joanne
“I’ve had a unit for 10 yrs” – Lecole
“You won’t believe how much I spend in storage per month…. $1,000” – Craig
Other relevant facts about self storage:
- 10% of the population uses self storage
- 10,000 baby boomers are retiring daily! They are downsizing, moving to smaller homes, and renting storage
- Millennials are driving more demand than boomers (they’d rather rent than own, i.e. tiny homes, experiences). Almost double the demand as boomers: 19%
- GenZ drives even more demand than Millennials: 30%
- Marcus & Millichap report: self storage has the highest returns over 10 yr periods
- LiveOak Bank has lent over $1B in self storage and has zero defaults!
Why invest in real estate? Real estate has been a very strong, time tested asset to invest in.
There are 4 Ways to Make Money in Real Estate:
- Cashflow, from tenants and other sources.
- Amortization of your loan, your tenant’s income pays down your mortgage.
- Tax benefits, including property depreciation.
- Property appreciation, driven by supply/demand as population grows, as well as fixed/finite product/land.
Other Benefits to Investing in Real Estate:
- In real estate you don’t need to sell your asset in order to turn it into a profit (unlike stocks).
- Income grows over time, and is compounded.
- Use leverage, with $100,000 you can buy $100,000 worth of stocks, and $400,000 worth of real estate. That’s 4x as much! This is the power of leverage.
- When you also factor in the cashflow, the tax benefits, and the principal reduction, the returns are even higher.
Why Should You Invest in Real Estate Now?
- “You make money when you buy, not when you sell”. This is a well known mantra in the real estate world. We believe that during economic times like this, several opportunities to buy distressed assets will present themselves.
- The United States has been the haven for safe capital in the world, and will likely continue.
- In Real Estate, supply and demand are different than a standard business, it takes years to build real estate, and land is finite.
- Fortunes get made during downturns.
“Never let a good crisis go to waste.” – Winston Churchill.
“It is in times of great economic change, that there are always great transfers of wealth. A big secret is that true investors make more money in bad markets.” – Robert Kiyosaki, author of Rich Dad Poor Dad.
Contact Us to learn more and discuss how you can become an investor. We look forward to having the opportunity of you becoming part of our real estate investing family.