There are several ways to generate passive income from investing in self-storage investment funds, some of which include:
Fund dividends: Many self-storage investment funds pay out dividends to investors on a regular basis, typically on a quarterly or annual basis. These dividends are a form of passive income and can provide a steady stream of cash flow.
Rental income: As an investor in a self-storage investment fund, you will earn a share of the rental income generated by the properties in the fund. This income is typically distributed to investors on a regular basis, such as monthly or quarterly.
Appreciation: Self-storage properties, like any other real estate, can appreciate in value over time. As an investor in a self-storage investment fund, you will benefit from any appreciation in the value of the properties in the fund.
Professional management: One of the benefits of investing in a self-storage investment fund is that the properties are professionally managed. This means that the day-to-day operations, such as marketing, leasing, and maintenance, are handled by the fund’s management team. This allows you to earn passive income without having to manage the properties yourself.
Exit strategy: The fund will have an exit strategy to liquidate the assets, it can be through selling the properties, a merger or an IPO, which will provide an opportunity for capital appreciation and return of principal.