In today’s episode, Paul Moore, Fernando Angelucci, Jacob Vanderslice, and Scott Krone take us back to the best episodes and takeaways about the lending environment. Paul discusses with Whitney the challenges in finding deals and the many opportunities to add value in self-storage.
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Moving forward, Fernando talks about how self-storage is adapting to technology and why it remains to be an attractive investment opportunity. Meanwhile, Jacob shares the benefits of being in the self-storage space during the pandemic and Scott reminds us that aside from the market, we should also worry about the level of competition in the space.
Tune in now and get access to the best tips in the self-storage space just for free!
Key Points From This Episode:
- The number of self-storage facilities in the US and how did it give opportunities.
- How do you find value in self-storage and how can that grow your wealth?
- Why self-storage has been slow to adapt to technology but has still remained to be an attractive investment opportunity.
- The competition in the self-storage industry and how is it divided into two brackets: REITs or pseudo-REITs, and independent operators.
- What are the benefits of self-storage during the pandemic?
- The challenges of operating a fund and the risks of not being able to deploy capital.
- Why is competition the biggest hurdle in self-storage?
“Self-storage, they don’t need to make increases in income because the cap rate compression has doubled, roughly, the value of their parts, just in five or ten years because of the popularity of this asset class.” – Paul Moore
“Another thing I really like in self-storage versus multifamily is that it has a very high sticky factor.” Fernando Angelucci
“Self-storage is a hyper-fragmented market. So to get to the point of competition that you are seeing in multifamily it’s going to take the big REITs they have to buy another 60, 70% of the market, which is not going to happen. It is just impossible to get to that many owners in such a short period of time.” – Fernando Angelucci
“We try to focus on markets with balance supply ratios, and markets with a subjective and objective low risk and the introduction of new supply, that might be because zoning is not receptive to self-storage, the city is not resettle storage.” – Jacob Vanderslice
“Self-storage was booming because it actually does better in recessionary market because as people reduce the size of their housing units, they put things into storage rather than getting rid of them.” – Scott Krone
Links Mentioned in Today’s Episode:
About Paul Moore
Paul Moore is the Founder and Managing Partner of Wellings Capital. After graduating with an engineering degree and then an MBA from Ohio State, Paul started on the development management track at Ford Motor Company in Detroit. After five years, he departed to start a staffing company with a partner. They sold it to a publicly traded firm for $2.9 million five years later. Along the way, Paul was a finalist for Ernst and Young’s Michigan Entrepreneur of the Year for two years straight. Paul later entered the real estate sector, where he completed 85 real estate investments and exits, appeared on an HGTV Special Real Estate episode, rehabbed and managed dozens of rental properties, developed a waterfront subdivision, and started two successful online real estate marketing firms. Three successful developments, including assisting with the development of a Hyatt hotel and a multifamily housing project, led him into the multifamily investment arena. Paul co-hosted a wealth-building podcast called ‘How to Lose Money’ and is a writer for BiggerPockets. Paul is the author of “The Perfect Investment – Create Enduring Wealth from the Historic Shift to Multifamily Housing” (2016) and “Storing Up Profits: Capitalize on America’s Obsession with STUFF by Investing in Self-Storage” (2021).
About Fernando Angelucci
Fernando Angelucci is founder and president of Titan Wealth Group where he leads the firm’s finance and acquisitions departments. He founded Titan Wealth Group in 2015 with Steven Wear, and under his leadership, the firm’s revenue has grown by over 100%. Prior to founding Titan Wealth Group, Fernando worked for Dow Chemical, a Fortune 50 company, rolling out a flagship product estimated to gross $1B in global revenues. With an engineering background, Fernando is able to approach real estate investing with a keen analytical mindset that allows Titan Wealth Group to identify opportunities and project accurate pictures of future performance. Fernando graduated from the University of Illinois at Urbana-Champaign with a B.A. degree in Technical Systems Management.
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.
About Scott Krone
Scott Krone is a Chicago native whose career in architecture began in 1991 by 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 such notable projects 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 manages a wide range of real estate including single and multi-family homes, retail, commercial, warehouse, self-storage, and multi-use flex athletic spaces. Currently, the platform of investments is over $30 million. In 2018, SSSK Capital Fund was re-branded to Coda Management Group to complement his 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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