How to Start a Storage Business with No Money

Thinking about getting into self storage, but don’t have a lot of cash to start with? You’re not alone. The idea of owning storage units, those seemingly simple boxes that generate consistent monthly income, has caught fire in the investing world. But here's the good news: you don’t need millions in the bank to break into this industry.

In this post, we’ll walk you through how to start a storage unit business with no money—using smart strategy, partnerships, and creative financing.

Why Storage Is Still One of the Best Asset Classes

Before diving into how to start a storage unit business with no money, it’s important to understand why storage continues to attract both seasoned investors and newcomers alike.

Low Operational Costs

Unlike multifamily housing or retail properties, self storage facilities are relatively simple to manage. You don’t need a large staff, there are no tenants calling about leaky pipes, and the day-to-day maintenance is minimal.

With the right systems in place, a single person—or even automation—can handle most of the operations. This lean structure translates into higher margins and lower overhead, which is a big win for investors.

Recession Resilience

Self storage has proven to be one of the most recession-resistant asset classes. Why? Because when the economy takes a hit, people downsize. Whether it's moving to a smaller home, closing a business, or consolidating households, they still need a place to store their belongings.

In tough times, demand for storage often increases, making it a more stable investment than many others.

Strong, Predictable Cash Flow

Self storage is all about monthly recurring revenue. Rent is collected like clockwork, and turnover is generally low compared to other types of real estate. With consistent occupancy and streamlined expenses, these facilities generate reliable cash flow that can be scaled over time.

For investors looking to build long-term wealth, that predictability is key.

It's Not Just About Cash Flow—It’s About Value Creation

What really sets storage apart is the ability to force appreciation. You're not limited to waiting on market appreciation like you might be with a residential rental.

Instead, you can actively grow the value of your facility by improving operations, raising rents, reducing delinquencies, optimizing occupancy, and upgrading management systems. This operational leverage means that even if you start small, you can grow big without buying more land or building more units.

Step 1: Understand That You Don’t Need to Build or Own Right Away

One of the most common misconceptions about getting into self storage is that you need millions of dollars to buy land, pour concrete, and build a shiny new facility from scratch. But that couldn’t be further from the truth.

Here’s the reality: You can start a profitable storage business without owning any real estate at all.

In fact, many small storage properties—especially in secondary or rural markets—are run by mom-and-pop owners who manage everything manually, often using notebooks or outdated software. These facilities usually have:

• Under-market rents
• High delinquencies
• Poor or no marketing
• No clear systems for collections or rate management

These owners aren’t necessarily looking to sell. They’re often looking for help. And that’s where you come in—not as a buyer, but as an operator who can unlock the value hidden in better systems, software, and revenue management.

Step 2: Partner with an Existing Owner

One of the fastest ways to get started with zero capital is through an operations agreement or management partnership.

Here’s how it works:

• You find a mismanaged or underperforming storage facility.
• You pitch yourself as the operator who can improve collections, raise rents, implement software, and streamline management.
• In exchange, you get a percentage of the profits or a management fee.

Think of it as house-hacking—but with self storage.

Step 3: Learn to Spot Value, Not Just Occupancy

This is where most new investors get it wrong. They focus on how full a facility is. But seasoned investors know the real money is in economic occupancy.

Imagine this:

• A facility is 95% full (sounds great, right?).
• But most tenants are paying old, below-market rates.
• Others haven’t paid in months.
• Some units are discounted too heavily just to stay “full.”

Now compare that to a facility that’s only 85% full, but every tenant is paying top-dollar rates with no delinquencies.

Which one do you think generates more revenue?

(Hint: it’s not the one with more units filled.)

Step 4: Focus on Revenue Management

If you’re operating a facility (even without owning it), your #1 job is increasing Net Operating Income (NOI). That’s what drives property value.

You do that through:

• Rent increases (especially for legacy tenants who haven’t had one in years)
• Enforcing collections (don’t let units sit unpaid)
• Eliminating unnecessary discounts
• Using modern property management software to run it like a business

These improvements can often double a facility’s cash flow without adding a single new unit or building anything.

Step 5: Secure Financing the Smart Way (When You’re Ready to Buy)

Once you’ve built operational experience, either by managing a facility or improving one under a partnership, the next step is ownership. And good news: you still don’t need massive capital to buy your first facility.

There are creative financing paths designed for people like you—operators who know how to add value.

1. Seller Financing

Instead of going to the bank, go directly to the seller. Many mom-and-pop storage owners are nearing retirement and prefer monthly income over a lump sum payout.

In seller financing, they act as the lender—you make an agreed-upon down payment (sometimes very small), and then pay them monthly with interest over time.

Bonus: Seller financing is often faster and more flexible than traditional lending.

2. Private Equity or JV (Joint Venture) Partners

If you can prove your ability to run a facility profitably, you can attract capital partners. These are investors looking for passive income without doing the work. You bring the deal and the know-how, they bring the money. Together, you split profits—or even future equity.

Think of it as teaming up to buy a cash-flowing business, with upside you create through operations.

3. SBA Loans

The SBA 7(a) and SBA 504 loan programs are specifically designed to help people acquire or grow small businesses, including self storage. These loans offer:

• Low down payments (as little as 10%)
• Longer repayment terms (10–25 years)
• Competitive interest rates

If you’ve been managing a facility or generating income from operations, lenders are more likely to approve your application, even if you don’t have millions in the bank.

Final Thoughts: Start with Skill, Not Capital

Starting a storage unit business with no money is possible, but it means shifting your mindset. You’re not just a buyer or builder but a value creator.

If you can show an owner how you’ll increase their income, improve operations, and bring their facility into the modern era, you’ll have something far more valuable than cash: leverage.

Want to see a full, real-world example of this in action? Watch this in-depth breakdown from AJ Osborne here; you’ll see how revenue-focused operations can drive massive results, even without big budgets.