Investment opportunities that weather economic uncertainty are akin to discovering hidden gems. One such gem is Cedar Creek Capital, spearheaded by the visionary CEO and Founder, AJ Osborne.
In this article, we lay out the reasons why self-storage is considered a recession-resilient asset class and explore the investment opportunities Cedar Creek offers for impressive returns.
AJ Osborne: The Architect of Success
Understanding the driving force behind Cedar Creek Capital, AJ Osborne, goes beyond the typical CEO narrative. He's not merely a leader; he's a trailblazer who has reshaped the world of investments with an inspiring journey. It's a story that resonates deeply with anyone seeking financial security and independence.
Soon after welcoming his fourth child into the world, Osborne’s life took an unexpected and harrowing turn. He was struck down by an autoimmune disorder known as Guillain-Barre Syndrome, a condition that left him paralyzed from head to toe. Osborne’s world was turned upside down, and the challenges he faced were beyond comprehension. Adding to the complexity of the situation, he lost his high-income career while still in the hospital.
Amidst this crucible of adversity, there was one thing Osborne didn't have to worry about: financial security. This security was a result of his strategic investments in self-storage, carefully built over the years. Even in his most incapacitated state, self-storage continued to generate income for his family. It was a clear demonstration of the genuine financial freedom that well-considered investments can offer.
While Osborne fought for his recovery, his family's financial future remained secure, thanks to the income generated by self-storage investments. It was during these trying times that Osborne made a solemn promise to himself. If he were to survive and thrive once again, he would extend the same financial freedom, stability, and wealth-building opportunities to others.
Three years after his near-death experience, Osborne brought Cedar Creek Capital to life. Now, he is dedicated to offering individuals and families a pathway to passive income, equity ownership, and the valuable pass-through tax benefits associated with real estate investing. Osborne's path from paralysis to prosperity underscores his resilience and serves as a driving force behind Cedar Creek's commitment to creating financial opportunities for all.
The Recession-Resilient Fortress: Self-Storage
While economic downturns can cause turbulence in various sectors, the self-storage industry stands tall as a beacon of stability. Unlike other asset classes, self-storage facilities often benefit from economic uncertainties. Here's why:
1. Essential Service: Self-storage is a fundamental service that remains in demand regardless of economic conditions. During tough times, people may downsize, move, or seek cost-effective storage solutions, making self-storage facilities indispensable.
Osborne himself noticed this resilience during the 2008 recession, when his self-storage investments remained stable and continued to increase in ROI. “Prior to 2008, people thought that storage was a fad. But nobody thought that people would pay for storage units during a recession,” Osborne said. “So, 2008 shocked everyone when people defaulted on their homes, but kept storage units. And the economics is simple: A storage unit costs 80 bucks when a home payment costs 1200. So not only could people still afford storage, but they needed it if they were moving or losing their home. It showed everyone that during times of turmoil, people need storage and keep paying for it and use it. Now, it’s not like it did amazing, but it did better in comparison to all the other real estate asset classes. Self-storage was and is the most resilient by far, and that drove investor demand for it in the following decade.”
2. Inherent Flexibility: Self-storage offers a unique flexibility in lease terms, enabling operators to adjust to changing market dynamics swiftly. This adaptability provides a significant advantage during economic fluctuations.
“Self storage has short term leases,” Osborne explained. “That means we can change rates (prices) quickly. We can also advertise directly and compete with others to get people to move in. So, we can increase advertising to increase our occupancy, and then we can change rates month to month, meaning that we can offset. For example, I can discount somebody that I want to get in to increase occupancy, then I can raise rates on people that are in to increase revenue. And we can actually do that at the same time. So if inflation goes up we immediately increase the rates. If demand goes down, we immediately drop our street rates while keeping our in-place rates the same. That allows us to optimize occupancy and revenue at the same time, which is very, very unique.”
3. Steady Cash Flow: Rental income from self-storage units tends to remain stable, as tenants continue to pay their dues to safeguard their belongings. This consistent cash flow is a valuable asset in volatile times.
“I've witnessed the omnipresence of self-storage need firsthand,” Osborne said. “During economic downturns, people may downsize and seek affordable living spaces, creating a surge in demand for self-storage. Conversely, in prosperous times, folks continue to require storage for various life milestones, whether it's relocating to larger homes, embarking on grand adventures, or acquiring new toys, like boats. This consistent need for self-storage ensures a steady cash flow for investors like myself, making it a valuable asset regardless of the economic climate.”
4. Value-Driven Investment: Self-storage facilities are relatively straightforward to manage compared to more complex investments. This simplicity often translates into better risk management.
In fact, Osborne himself sits on the board of Tenant Inc., a company geared towards helping self-storage owners run and manage their properties. Tenant Inc. is a ‘complete ecosystem to run your self storage business. Everything you need, from the fastest e-commerce websites in the industry to property management software that makes running your business easier.’
Cedar Creek Capital: Where Opportunities Abound
Now that we understand why self-storage is a recession-resilient asset class, let's explore the enticing investment opportunities Cedar Creek Capital has to offer. Osborne and his team have identified prime locations and opportunities that promise significant returns on investment. Here's what sets Cedar Creek apart:
1. Strategic Locations: Cedar Creek acquires and develops self-storage facilities in strategic locations, ensuring a steady stream of customers. Location is a cornerstone of their success.
Most recently, the team broke ground on Storelocal Surprise, a new build storage facility located in the rapidly-growing Surprize, AZ. Investment opportunities for this project are still open, allowing investors to come into a project that is already underway.
2. Proven Expertise: With a track record of success, Cedar Creek Capital is led by experts who understand the nuances of the self-storage industry. Their experience is your assurance of sound investments.
“I bought my first storage facility in 2005, with my father,” Osborne said. “It wasn’t easy to get started, but now that I am where I am today, I wouldn’t change a thing. My investments brought me freedom. And that is what I want for anyone who invests with us: Freedom.”
3. Lucrative Returns: Cedar Creek's investment opportunities are designed for investors seeking substantial ROIs. The self-storage sector's inherent stability combined with Cedar Creek's expertise makes for a compelling investment proposition.
“Now, this isn’t an overnight success plan,” Osborne said. “I am very clear with my investors that they need to be thinking five years out. But when you think about it, five years really isn’t that long to wait to see 1X, 2X, or possibly 3X, on your investment. However, it is my duty to be realistic. If you’re willing to wait, you will benefit massively.”
4. Diverse Portfolio: Cedar Creek offers a diversified portfolio of investment options to cater to a range of investor preferences and risk appetites. Whether you're a seasoned investor or just starting, there's an opportunity for you. Learn about investment opportunities here: cedar.cc/invest
Cedar Creek Capital, under the leadership of AJ Osborne, stands as a beacon of hope in the investment world, offering lucrative opportunities in this recession-resilient asset class. With their strategic approach and proven expertise, investing with Cedar Creek promises not only financial returns but also peace of mind in an unsturdy economic time.
Don't miss the chance to be part of an investment journey that defies economic downturns. Explore the investment opportunities Cedar Creek has to offer and secure your financial future today.
About AJ Osborne
AJ Osborne is the CEO of Cedar Creek Capital and has an impressive 20 years of experience as a self-storage owner, operator, and developer. He is a founder and board member of the largest self-storage co-op, Storelocal, as well as Tenant Inc — a SaaS company supporting self-storage facility management. AJ has also written the No. 1 bestselling book on self-storage investing and hosts the top rated and listened to self-storage podcast, Self Storage Income. Accredited investors can find more information here: cedar.cc
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