Our guest for this episode, Jacob Vanderslice, has been investing full time in real estate for fifteen years. He started out doing single family residential investments then got into commercial real estate doing adaptive reuse retail. However, Jacob finds they’re not very scalable. So in 2015, he got into self-storage and it proved to be a great asset class for him.
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Jacob shares that one of the mistakes he has made over the years in real estate was being too transactional. That’s when he decided to shift his focus to long-term cash flow investments and found self-storage to be a great vehicle for that. After a few years, they launched their first self-storage fund and the rest is history. Tune in to our #TechandTacticsTuesday episode to know more!
Key Points From This Episode:
- Jacob likes the self-storage asset class because it’s scalable, repeatable and predictable.
- In the last three or four years, they’ve shifted their focus to being long-term cash flow investors through self-storage.
- Jacob has been doing single asset syndication over the years before he launched his first self-storage fund.
- He likes the fund structure because of the diversification that a multi-property offers versus a single-asset strategy.
- Self-storage funds also offer cash flow diversification.
- How did they get their first fund rolling and how have they expressed trust with their investors?
- Honest and transparent communication plays a vital role in keeping your investors.
- How has the fund helped them to scale?
- How has their self-storage fund performed during the pandemic?
- How do they pick the right location for their self-storage market?
- How does he prepare for a downturn?
- What are his predictions for the real estate industry over the next six to twelve months?
- What is his best source for meeting new investors right now?
- For Jacob, failure has contributed a lot to his success.
“We’ve shifted our focus more so in the last three or four years to being long-term cash flow investors, and with cash flow comes appreciation and wealth creation, and we’ve found self-storage to be a great vehicle for that.” [0:03:31.0]
“Even though funds are a strategy versus the single asset, I think they’re a little bit easier to manage and especially easier to capitalize once you’ve got some track record behind you.” [0:10:55.0]
“Self-storage really benefits from disruption amiss like a pandemic or a recession, whatever might happen, because people get displaced and need places to keep their stuff. It’s out of sight, out of mind, and it’s been good for us in the downturn of 2020. Obviously, we’re all coming out of it right now, things are looking much better and other operators are reporting the same results, we’ve had great occupancy growth and great revenue growth, so we’re fortunate to be in an asset class that made it through...” [0:13:47.1]
Links Mentioned in Today’s Episode:
About Jacob Vanderslice
Jacob Vanderslice is Principal at VanWest Partners, a Denver-based real estate investment firm focusing on the acquisition and management of self-storage centers and other opportunistic real estate throughout the United States. By focusing on this conservative and growing real estate sector, VanWest has established a track record with over $195mm in real estate assets. Jacob and his partners’ success is driven by a commitment to delivering an expertly-executed, adaptable strategy with an institutional investment approach.
The diverse background of VanWest’s principle allows the company to look at investments outside the traditional, single focus strategy of many companies. Uncovering value when the value is not obvious allows Jacob and his team to maximize investment performance to their stakeholders. Jacob is passionate about educating investors about self-storage, urban infill repositioning, redevelopment of distressed commercial assets, and other non-traditional investment opportunities. He focuses on investments driven by data and reveals and maximizes opportunities to make a positive and lasting impact in the lives of his clients and investors.
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