In most industries, a recession is not a time where people are making money. However, some industries, like self-storage real estate, are ‘recession-resistant.’ That is why Scott Krone, our guest on today’s show, was able to expand his business during the pandemic and why he is on track to meet his goal of opening 10 facilities in a five-year period.
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Scott talks us through the ways the pandemic has changed his business, the key criteria he looks at when evaluating a deal, and the methods he uses to improve the level of exposure of his business. We also discuss the importance of having a long-term focus, allowing yourself time out to reflect, and the transformation program that Scott has just embarked upon in order to improve himself in a personal capacity so that he can be a better leader. Scott is driven to help others succeed on their own real estate investment journeys. Tune in today for a special offer from Scott, which can help you get started on yours!
Key Points From This Episode:
- How Scott expanded his self-storage business during the pandemic.
- The pattern in the self-storage market during the last four recessionary periods.
- How the pandemic altered the timeframes the Scott usually works to.
- The pandemic has fast-tracked the use of paperless/touchless solutions in Scott’s business.
- Some of the ways Scott is planning to diversify his business.
- The difference between A, B and C-class portfolios.
- Scott is on track with his five-year plan to have 10 facilities.
- The predictability and the fact that it is recession-resistant makes self-storage an appealing form of real estate.
- Price points are one of the key criteria Scott looks at when evaluating a deal.
- It is essential that you understand the marketplace you are dealing with, and the direction that marketplace is headed.
- An example of how Scott adjusts when market irregularities hit.
- The importance of making time for solitude and reflection and how Scott incorporates this practice in his daily life.
- The two and a half year transformation program Scott has just embarked upon.
- The methods Scott uses to gain exposure for his business.
- Having a long term focus is key to success.
- You can’t control the market; you can only control how you respond to it.
- Scott loves to help people who are starting out on their real estate journey.
- A special offer to all those who are listening to the show!
[bctt tweet=”When I look back at all the last four recessions that we’ve been through, self-storage has slightly dipped and then rebounded aggressively. It’s been a pattern; it’s been consistent throughout each of the recessionary markets. — Scott Krone” username=”whitney_sewell”]
Links Mentioned in Today’s Episode:
About Scott Krone
Mr. Krone is a Chicago native whose career in architecture began in 1991 when he began pursuing his Masters of Architecture from the Illinois Institute of Technology. While obtaining his degree, he also worked as a Project Manager for Optima, Inc. During his time at Optima, Krone’s responsibilities included notable projects, such as the 400 unit Cormandel in Deerfield, IL, the 40 unit HedgeRow in Winnetka, IL, and the 51 unit Optima Center Wilmette in Wilmette, IL. In 2012, Krone co-founded SSSK Capital Fund – a firm that specializes in managing real estate assets. Since its inception, SSSK has been managing a wide range of real estate, including single and multi-family homes, retail, commercial warehouse, and self-storage, and multi-use flex athletic spaces. Currently, the platform of investments is in excess of $30 million.
In 2018, SSSK Capital Fund was re-branded to Coda Management Group to complement Krone’s design-build firm Coda Design + Build. Krone founded Coda in 1998. Coda Design + Build is an international award-winning design and build firm that specializes in sustainable building practices.
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