If there is one thing that individuals and businesses like the self storage industry strive for it is this—security. Not just the ‘stop crime’ kind of security, but the kind that will make it possible for a person and business to breathe easy because they know they don’t have to worry about tomorrow—financial security.
A new trend is giving people as well as self storage facilities a chance to attain that much-desired financial security by giving people a chance to invest in the industry even if they don’t have a few hundred thousand on hand.
It’s called crowd sourcing.
Individuals have been doing it for personal projects on sites like Kickstarter for some time, but recently the idea has started to take hold in the self storage industry.
With self storage now one of the most reliable investments on the market a person could do well by investing in the industry. That being said, not everyone has enough capital on hand or the ability to get it in order to do so. That’s where crowdsourcing has come in handy.
Realty Mogul has been working with the concept quite well. Investors can go online, check out the available properties, and if they find one they are interested in they can do the paperwork online to allow them to invest.
“We’re very pleased to be the first real estate crowdfunding company to get a self-storage facility under our belt, and delighted that we had such a robust reaction from our investors,” said Jilliene Helman, Realty Mogul’s co-founder and CEO said.
They may be the first to embrace the idea, but they are far from the last to do so—on this continent or another. In fact, one self storage business in the United Kingdom recently looked to a crowd sourcing site to raise capital. They ended up doing much better than they thought they could.
LoveSpace is a different kind of self storage facility in that it does not rent units to people, but allows them to store by the box instead. The company even goes as far as to pick it up for you making it possible for you to enjoy the benefits of self storage without ever having to leave the house.
The site being used is called CrowdCube. When the founder of LoveSpace Brett Akker began the campaign he hoped to raise 600,000 pounds. With nine days to go he raised over 1.5 million pounds from 240 investors.
With that kind of funding and more coming in the company should have no trouble helping more people fall back in love with their space.
“LOVESPACE Makes Room: UK’s Box Storage Start-Up Overfunds on Crowdcube.” CrowdFund Insider; 22 May 2014.
“Realty Mogul Secures $1 Million for First-Ever Equity Crowdfunding of a Self-Storage Facility.” PRNewswire; 24 December 2013.