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A self-storage unit, the kind of place where people store their excess stuff. Cash cows.
Would you care to elaborate? One of my employees does this as a sideline and I really don't see him getting rich at it. Maybe he doesn't know the tricks of the trade?
Would you care to elaborate? One of my employees does this as a sideline and I really don't see him getting rich at it. Maybe he doesn't know the tricks of the trade?
Depends on the number of units as in economies of scale. I have a cousin who is a lawyer who owns one completely leased with about 300 units averaging $75-$100 a pop per month, excluding RVs parked on the site. So, let's take the middle number and guess that he's making $26,500 a month in rent. That's $318,000. None of them are climate controlled. So minute property taxes, mortgage, and paying the retiree to hang out and watch TV all day, no telling what he clears. Plus the land value has appreciated a great deal.
But here's something written by someone who knows what he's talking about.
Also minus: insurance, bookkeeping, maintenance and other costs not factored in by you.
Hey, all I know is that he makes a tidy profit. His guy handles the maintenance and his wife is an accountant. It's not too hard to collect payments, make copies and take them to the bank.
Op it would help if we knew what you were good at, and if you had an commercial customers. The basic premise is that...say you work at IBM, and are pretty certain you could get the facilities contract for their janitorial services....then it's a pretty safe bet to do that company. However, if you don't have a customer you could realistically convert to be your main starting customer, it's going to be hard.
For example, $1M could buy a decent art collection, and you could lease it out as visiting exhibit. (If you know museum directors)
$1M could buy a few tow-trucks and you could become a regional player in that. (If you know dealerships/police/can get the AAA services)
$1M leveraged could buy construction equipment that you could lease to local construction companies (If you know local construction companies/can maintain equipment)
$1M leveraged could get you a parking lot, where the sf is sold many times over. (If you can find a place and work a deal with local establishments there)
$1M leveraged could get you a small lake resort where you could lease boats to fisherman or rent cabins (If you can locate the place, maintain facilities and know enough people to initially fill the bookings)
$1M may be enough capital to start a small regional bank (If you have the background to be able to borrow bank to bank and customers needing capital)
$1M leveraged could buy you a small apartment building, but the CAGR will be too low. Alternatively, if you rehab it into condos, then it could work...but only for the one turn and then you have to do it again.
$1M leveraged could get you started as a farmer, or possibly a service to farmers (If you know the business)
$1M could get you a restaurant generating that, but you will be at that restaurant every day of the week and there's still a high risk of failure.
The problem is that $1M yielding 24% is a pretty amazing feat. Any business that is simple to enter and easy to maintain is bound to attract competitors, which will bring down prices.
Op it would help if we knew what you were good at, and if you had an commercial customers. The basic premise is that...say you work at IBM, and are pretty certain you could get the facilities contract for their janitorial services....then it's a pretty safe bet to do that company. However, if you don't have a customer you could realistically convert to be your main starting customer, it's going to be hard.
For example, $1M could buy a decent art collection, and you could lease it out as visiting exhibit. (If you know museum directors)
$1M could buy a few tow-trucks and you could become a regional player in that. (If you know dealerships/police/can get the AAA services)
$1M leveraged could buy construction equipment that you could lease to local construction companies (If you know local construction companies/can maintain equipment)
$1M leveraged could get you a parking lot, where the sf is sold many times over. (If you can find a place and work a deal with local establishments there)
$1M leveraged could get you a small lake resort where you could lease boats to fisherman or rent cabins (If you can locate the place, maintain facilities and know enough people to initially fill the bookings)
$1M may be enough capital to start a small regional bank (If you have the background to be able to borrow bank to bank and customers needing capital)
$1M leveraged could buy you a small apartment building, but the CAGR will be too low. Alternatively, if you rehab it into condos, then it could work...but only for the one turn and then you have to do it again.
$1M leveraged could get you started as a farmer, or possibly a service to farmers (If you know the business)
$1M could get you a restaurant generating that, but you will be at that restaurant every day of the week and there's still a high risk of failure.
The problem is that $1M yielding 24% is a pretty amazing feat. Any business that is simple to enter and easy to maintain is bound to attract competitors, which will bring down prices.
could one million really possibly be enough to start a small regional bank?I am not disputing or anything....I just always thought it took more money than that to start a bank.Thanks.
could one million really possibly be enough to start a small regional bank?I am not disputing or anything....I just always thought it took more money than that to start a bank.Thanks.
You'd have to raise money, but it's possible. Saw an existing one for sale last month for $600K. Credit Unions are another way to go.
Basically you need a source of funds to loan money. If your depositors (see internet banks paying 2% on CDs) are great, that's a way in, but most want to have FDIC backing and that will take experience. The big thing is having credibility with other banks to where they will loan you money, and having a place to sell loans so they don't tie up your capital. Places like Wells Fargo are awash in deposits, which is why their CDs pay nothing.
It's not the only way though...
Our family matron had a financial house, which is little more than the family sends savings to her and she makes individual loans, generally to family members acquiring little companies. As she was wealthy from her own businesses, there was implicit trust that she would be able to honor any needs for cash...and she was, but even rich people don't want to have add-on items competing with their company working capital. Now that she's older and with Parkinson's she's stepped down, and no family head that is agreeable to all has stepped up but she was able to finance at least 25 of her family members into businesses and an unknown number of others into homes. Of course, if she didn't agree a family member was able to make the situation work, she simply wouldn't lend.
Take a look at your mortgage statement. Imagine all the interest staying in the family. Imagine getting a return for your savings account that. Imagine the reduction in costs at each closing. It's banking without a safety net, but that was definitely the way to go. Turned out pretty well for a bunch of off the boat refugees. Not sure if it would work for most American families though.
Here's how that bank ended by the way. Successfully sold.
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