Joe DownsCEO & Co-Founder, Belrose Storage Group. Founder, Storage Moguls.

Benefits of the ROBS Strategy

20 Feb 2026 · 1 min

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In this segment, speaker A outlines the key advantages of using a Rollovers as Business Startups (ROBS) structure for storage investors. The first benefit highlighted is debt‑free funding for acquisitions, allowing investors to use their own capital without incurring loan payments or interest, which improves cash flow from day one. The second benefit is the ability to pay oneself a salary as an active employee of the business—a requirement of the ROBS arrangement—enabling the draw of regular income and potential eligibility for health benefits. The final benefit discussed is that the growth of the investment can remain tax‑deferred or even tax‑free, enhancing long‑term returns.

Chapters

So now that we know the mechanics, let's look at the powerful benefits this structure provides, because the mechanics are clear, but the benefits are what make this strategy so compelling for storage investors. First major benefit is debt-free funding for your acquisition. You're investing your own capital, meaning you have no monthly loan payments to the bank. This eliminates interest costs and immediately boosts your cash flow from day one. Second benefit is that you can pay yourself a salary from the business. So unlike passive real estate investing, you're an active employee, which is a requirement of the ROBS structure. This means you can draw a salary and potentially qualify for health benefits from through the company. Finally, the growth of your investment remains tax-deferred or even tax-free.