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Building a real estate portfolio of over 100 million.
2004. Not being in real estate my father and I looked for a way to lower our taxes and get a little passive income. We were insurance salesmen. I settled on self-storage because there were no people living in it.
2004. Not being in real estate my father and I looked for a way to lower our taxes and get a little passive income. We were insurance salesmen. I settled on self-storage because there were no people living in it.
Still working a full-time job and had children.
We started in very small markets buying very small storage facilities with saved money from sales. We learned quickly that operations were the name of the game. Sold one of our first for less than we paid.
We started in very small markets buying very small storage facilities with saved money from sales. We learned quickly that operations were the name of the game. Sold one of our first for less than we paid.
Early on I came up with a simple but important philosophy about self-storage.
This is not a real estate asset it is a business.
We changed the way we managed and focused on operations, revenue management, marketing, and ancillary lines of revenue.
This is not a real estate asset it is a business.
We changed the way we managed and focused on operations, revenue management, marketing, and ancillary lines of revenue.
If it was a business we could increase the revenue by effectively running it. We look for assets that the owners were hands-off and looked neglected. Lack of marketing, collections, rate management, presentation, & alternative lines of revenue was my target.
We focused on what I coined “money on the table”.
That is the spread between current operational revenue and what the market was getting “ or known upside”.
We used OPM from banks and investors. While still selling insurance.
That is the spread between current operational revenue and what the market was getting “ or known upside”.
We used OPM from banks and investors. While still selling insurance.
Our strategy had nothing to do with appreciation. In the great recession, we not only survived but thrived outperforming our competition. Everyone ran from real estate, we decided to level up, very scary at the time. We bought larger, operated poorly, in bigger markets 2nd tier.
The upside was staggering after 50k sqft.
After significantly improving the revenue we would refi into a non-recourse loan reducing our risk but pulling out massive capital to reinvest.
We sold small ones and kept buying large facilities.
After significantly improving the revenue we would refi into a non-recourse loan reducing our risk but pulling out massive capital to reinvest.
We sold small ones and kept buying large facilities.
We built out a management team that focused on building a franchise system that all the assets would run the same. The benefit of scale. We focused on processes, systems, and optimization. We kept buying.
500k+ sqft
We started developing.
500k+ sqft
We started developing.
I became paralyzed and was fired while in the hospital.
Real estate saved my family's financial life.
Started 2 companies out of a wheelchair.
Learned to walk again over 3 years.
Real estate saved my family's financial life.
Started 2 companies out of a wheelchair.
Learned to walk again over 3 years.
We found the next opportunity as retailers went bankrupt.
We bought a failed supper k mart and turned it into a massive indoor facility. We were the first two in the nation to roll out a keyless automated storage facility.
We bought a failed supper k mart and turned it into a massive indoor facility. We were the first two in the nation to roll out a keyless automated storage facility.
We just purchased a bankrupt office building and are turning it into indoor storage. We have 3 ground-up developments and 2 more acquisitions.
Over 1.5 million sqft and over 100 million in value.
All because we wanted some passive income.
Over 1.5 million sqft and over 100 million in value.
All because we wanted some passive income.
