Hey there,
Hope you had a great St. Patrick's Day. I'm currently enjoying some family time in Hawaii - though the weather hasn't exactly cooperated with us. Either way, it's nice to get out of the office and spend some time with loved ones.
Alright, let's get to the resources for this week. Here's what you'll learn:
âś… The middle class is shrinking - but not how you think
âś… How to start investing in self storage, right now
âś… 10 minute explanation of using cap rates to express commercial property value
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[ AJO Podcast ] Middle Class: 1960s vs Today (The Truth Will Surprise You)
The middle class has been disappearing since the 1960s. Headlines scream crisis. But here's what they're not telling you: it's shrinking because people are moving UP, not down.
In 1960, 13% of Americans were high-income (adjusted for inflation). Today? 37.5%. Low-income dropped from 32% to 23%. The middle class shrank from 54% to under 40%—but because more people are earning MORE and becoming wealthier.
The Reality Is Complicated: Upward income mobility in the U.S. has been staggering compared to other countries. Spain, Italy, Sweden, Denmark, Germany—they've seen downward mobility. We haven't.
But housing affordability cratered 43% in four years. College costs inflated 1,200% since the 1980s (5x faster than overall inflation). Childcare up 500%. If you have college debt and live in Baltimore or Miami, your reality is brutal. If you're in Houston or Phoenix without debt, you're thriving.
The Biggest Factor: Asset ownership. Those who own stocks, real estate, and businesses benefited disproportionately over the last 30 years—far beyond income alone. The gap isn't just income anymore. It's assets vs. no assets.
CLICK HERE TO WATCH THE EPISODE
[ SSI Podcast ] Give Me 25 Minutes, and I’ll Show You How to Buy a Self Storage Facility
In under 25 minutes, I’m going to walk you through exactly how to go from no self storage investments to your first one. Everything from building your “buy box” to finding the deals with upside potential, financing, due diligence, increasing revenue, and repeating it to build an entire portfolio.
None of the steps I’m sharing are difficult and a beginner can follow each of them, step by step, to get their first self storage facility this year. But you’ll need to be consistent. There are opportunities out there right now—I should know, I’m heavily buying in 2026. But they won’t fall into your lap.
If you’re able to spot the best self storage opportunities, present my three-offer strategy to sellers, and improve operations, you’ll have a cash-flowing, equity-building, stable asset for decades to come. I did it, too, buying small, mom-and-pop facilities for $500,000 or less.
Now, it’s your turn. You want to know how to buy a self storage facility? These are the exact steps I’d take in 2026.
CLICK HERE TO WATCH THE EPISODE
[ Short ] Cap Rates Explained: How To Value ANY Commercial Property
Cap rate is the language of commercial real estate investing—banks use it, brokers use it, investors use it. But here's the problem: most people use it wrong, and it can cost you hundreds of thousands of dollars.
The Formula Is Simple: Net Operating Income Ă· Property Value Ă— 100 = Cap Rate. Buy a $1M building generating $80K/year NOI? That's an 8% cap rate. Easy, right?
But Here's What They Don't Tell You: Cap rates can be manipulated. Cap rates don't include debt, capital expenditures, or YOUR actual operating expenses. Class A properties trade at 4-5% caps. Class C at 8%+. Higher cap doesn't always mean better deal—it can mean nobody wants it because income is declining.
Hope you enjoy the new resources.
That's it for this week - until next time!
- AJ Osborne
