Turning Other People’s Stuff Into Money

You’d think by the headline of this article I was talking about trash ‘n’ treasure markets or selling people’s stuff on eBay…

When I look at trends in real estate, there’s one I’m noticing becoming more and more popular.
It’s Tiny Houses.

tinyhouseIf you haven’t seen this trend, when I say tiny… I really mean tiny.

These are houses that are little more than one living room and a bedroom. They have a tiny footprint and are designed to have people live a simpler life.
It left me asking the question: where are people going to put all their crap?

Yes, I ‘get’ that it’s all about living simpler and with less stuff… but seriously, most people love buying, and collecting stuff, so at some point you’re going to need a place to store it all.

In the residential market agents often say that the most important selling point is good storage.

So what about we move the storage to somewhere else and provide a place for people to stash all that stuff.

Of course, you know what I’m talking about right? Storage sheds.

These can be a great way to create income. The rests are often quite high for the amount of space they are. Certainly in line with commercial rents. Yet they can be inexpensive to buy.

There are several options for you to consider when it comes to storage sheds. A quick check in Melbourne shows that a 3×6 meter unit can rent for as much as $400 a month.

smallunitBefore you start pacing it out… 3×6 is pretty small.

Starting small, you can sometimes get one of these for as little as $50k and if it’s got a tenant already get positive cash flow right from day 1.

If you want a cheap place to start, a 20% deposit could be as little as $10k but make you an income for years.

Many of these units can hold tenants for 3 or more years.

So that’s option one… Option two?

Why not build a set on the back of a commercial property you already own.
Whenever I look at shops, for instance, I always make sure I look out the back to see what usable land there is. If there’s a chance to develop what’s left of the land, then this can seriously increase the value of the investment.

Since storage sheds can be very cheap to build but still attract a high rent, this can be a great way to increase the rental yield on your property for a very small outlay.
The more rent you get, the higher the value of your commercial property.

Lastly, for all you big guns.

Demand, especially in capital cities or large towns, is proven. If there is little competition in your area, why not build a block of these storage units.
They are very basic in design, are quick and cheap to build and have very little upkeep.
The more units you build, the more rent you can attract and the more diverse your income stream.

Consider this…

A factory that has a land area of 650sqm over two stories could add up to over 10 units of 12sqm. If we are being conservative and only charge 155 per month for one of these units, that’s still close to $200k a year in rent.

Of course, I’m making these numbers up, and there’s a lot more to it in working them out for a real deal on an actual property.

Whatever you do, don’t run at one of these things without doing the numbers and some serious due diligence first.

The point is that you can see that from three different scenarios anyone with even a small amount of money can get started in commercial property if they know what they are doing and can do the numbers right.

Get online, check out what’s available.

(If you don’t know how to do the numbers, then get into my program and learn to do commercial property the right way.)

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