12/20/2022–name changed to Uhaul Holdings effective 12/19/2022.
2/7/2020–an added note is that the notes below are 1st backed by the collateral of the notes and 2ndly backed by a guarantee of parent company Amerco. See a further note here.
We have mentioned on here numerous times the UHAUL Investors Club which is an alternative way to invest is a fairly conservative way for conservative income investors.
We would be remiss if we didn’t again thank kaptain lou (Early Retirement Advisor on Seeking Alpha) for bringing this opportunity to light.
Simply this is a way to invest in what is termed ‘asset backed’ debt in small amounts (or large) with varying coupons and maturity dates.
UHAUL is owned by AMERCO (NASDAQ:UHAL) and the debt of AMERCO is unrated (as far as we can find). Also in our due diligence we note that AMERCO had filed for Chapter 11 bankruptcy in 2003. Since that time, and no doubt with the aid of the previous bankruptcy, the company has performed very well. AMERCO common shares now trade around $340/share and for the 6 months ending 9/30/2018 reported net income of $291 million.
The companies recent 10-Q (quarterly report filed with the SEC) can be found here.
We started 2 IRA accounts with the Investors Club in May, 2018 and have deposited almost 1/2 of this years IRA contribution to the accounts (we had previously already started our 2018 contributions in our eTrade accounts). Investors are able to transfer money from other IRA accounts into UHAUL, but we are still in the ‘trial phase’ and since the short term investments available right now have coupons of only 3 and 4.15% we are unlikely to get too carried away with deposits into these accounts.
Here is a screenshot of one of the accounts.
You can see that payments to us include principal and a interest component. kaptain lou describes it as ‘annuity like’ in that you receive part of your investment back with each payment. Once payment are received once you have $100 or more you can re-invest.
The deposits and withdrawals (if so desired) are all done on the Investors Club website and we have found the process to be easy–although the transactions take a few days longer than what we would think are normal–when I pay my credit card online they snatch the money the same day–these transactions take about a week.
The Investors Club website is here.
Of course we can not recommend an investment for anyone because we never make any recommendations. We feel comfortable with our experience so far.
13 thoughts on “A Quick Review of UHAUL Investors Club”
I can never log in each year.
U-Haul Investment Club, they definitely do not need any money as their rates for very low https://www.uhaulinvestorsclub.com/InvestmentOpportunities
I have holding notes that I bought 2 years ago. I wouldn’t buy any now because their rates are below Us Treasurys.
Yes, their rate on 2 year notes just about matches current money market rates. I have been draining the account and putting funds into higher yield options.
Hi everyone, just an update of what is currently available from the UHaul Investment Club. The “Club” is approaching $195MM invested, though I have not bought into a new deal in some time as the offered rates have been a bit low for the last few years https://www.uhaulinvestorsclub.com/InvestmentOpportunities
Any thoughts are always welcome, Azure
AzureBlue–I continue to be in there–it was just a few years of ‘new money’ IRA now about 36,000. Like you I held back when the rates were too low (below treasurys) but with them getting back in the 3.5 to 4% range I have started buying a bit again–although I still have about 10% cash which I will slowly deploy. I think they will bump rates higher again after the Fed hikes in September.
Tim and Lou, I am a member of the UHaul Investors Club as well https://www.uhaulinvestorsclub.com/InvestmentOpportunities I also own a corporation that as a side business rents all types of UHaul trucks, storage containers and trailers, we work closely with their regional manager to continually build this business. This is an excellent side business for us and I had no idea that I could own pieces of these UHaul locations until Kaptain Lou reached out to me. I have over 6 figures invested with them now and am so happy Lou alerted me to this excellent passive investment idea. EBITDA is currently a whopping $1.14 billion, REO is 25.5%, 22+% profit margin and $955 million operating cash flow AMERCO is solid financially.
Please note AMERCO filed for bankruptcy in 2003 and has self funded and raised their own financing for their expanding business ever since. I urge everyone to do their own deep due diligence before investing any of your hard earned money https://www.nytimes.com/topic/company/amerco
Nomad, In your pose you mention working closely with regional manager to build business. Are you an operator for this business or referring to using the business services for your separate business? Thanks,
TNTOWANDA, thank you for your question. The regional manager of UHaul is very close with my business, as he approached us to carry a completely line of UHaul products and rent all the trucks, trailers and offer their storage pods. I don’t believe we have ever had a month where the current months revenue/receipts have not exceeded the prior month. I own the business and we offer UHaul’s to our customers as a side/complimentary business for us. We are working on getting a new cell tower right now. Uhaul’s probably take up about 1 acre of the land and we have UHaul signage everywhere. Hope that helps, Nomad
Thanks Nomad for this valuable input.
Thanks for the update Tim. It has been a good investment for me so far and I feel comfortable with the asset backed debt. My investments have been longer term in nature, but feel pretty secure as their real estate offerings are supposed to be backed by first liens on each of the properties.
kaptain–not that you need an update but I am certain there are others that could benefit from the ‘club’.
Tim – I’m always interested to hear how the “club” is working for other investors, but I’m sure some of the newer members on the board may not have heard about it in the past.
FYI – since my holdings in the “club” are mostly backed by liens on the real estate, I normally performs some due diligence on each of the properties before committing my funds. A number of the larger counties will actually allow me to research the property and provide the fair market value of the real estate. However, many counties only provide the “assessed” value of the property, which is not nearly as helpful.