Self-storage may not be the most famous real estate asset class that investors pick right away when they first try investing in the industry. But, those who have invested in this asset class, describe it as the best-kept secret in real estate. Many have attested that self-storage proved to be recession-proof and event-resilient.
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In today’s Highlights episode, we look back at our conversations with three real estate entrepreneurs who found success in self-storage. They are Fernando Angelucci of the Titan Wealth Group, Scott Krone of Coda Design + Build, and Scott Meyers of Self-Storage Profits, Inc. Listen now and hear their success stories!
Key Points From This Episode:
- How Fernando got into self-storage after having tenant issues in the homes he owned.
- Trajectories showing how self-storage had higher returns than apartments or the S&P 500.
- Groups such as Boomers and Gen X’ers that self-storage caters to and why.
- How big the leverage banks offer on self-storage is compared to other asset classes.
- Reasons why banks offer such high loans for self-storage: it is less risky.
- Scott talks about PACE Funding – the federal program that looks to reduce a building’s carbon footprints.
- What motivated Scott Krone to pursue his niche.
- How the market is not the biggest hurdle in self-storage.
- The two biggest self-storage mistakes: not knowing your competition or your market.
- Creative ways of increasing investor returns: historic tax credit, opportunity zones, and PACE.
- Scott Meyers on moving from multifamily to self-storage – it’s a more solid, stable, predictable business model.
- The first steps to getting a self-storage deal – get good at your craft, and educate yourself.
- The mistakes Scott Meyers sees people make when getting into self-storage, like treating it as a hobby rather than a business.
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“For me, you know, I like to go with the path of least resistance and that was self-storage.” – Fernando Angelucci
“I actually started getting involved, I noticed that the leverage that was being offered to me from banks was far superior to any other asset class that I had pursued leverage on before.” – Fernando Angelucci
“On the flipside during the crash, self-storage was booming, because it actually does better in the 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
“When you begin to look at the numbers from a business model standpoint – again, very solid, very recession-resistant as well as inflation resistant, so it’s not susceptible to the contraction and expansion of the economy.” – Scott Meyers
Links Mentioned in Today’s Episode:
Fernando Angelucci on Facebook
WS464: Singing Praises for Self-Storage with Fernando Angelucci
WS483: Converting Distressed Buildings into Self-Storage Units with Scott Krone
WS674: From Multifamily Success To Self-Storage Success with Scott Meyers
About Fernando Angelucci
Fernando O. Angelucci is the Founder and President of Titan Wealth Group. He also leads the firm’s finance and acquisitions departments. Fernando Angelucci and Steven Wear founded Titan Wealth Group in 2015, and under his leadership, the firm’s revenue has grown over 100% year over year. Today, Titan Wealth Group operates nationwide sourcing off-market investment properties for Titan Wealth Group’s acquisition as well as servicing a network of thousands of active real estate investors worldwide. 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 can 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 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 has managed 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.
About Scott Meyers
Scott Meyers’s companies focus on syndicating self-storage deals and helping others launch their own self-storage business to enjoy a lifestyle as his saying goes, “ Free from tenants, toilets, and trash!” Scott Meyers is the principal in 16 facilities totaling over 7,500 units and over 2 million square feet of storage. He is also the Founder and President of SelfStorageInvesting.com (Self-Storage Profits, Inc.), a leading self-storage education company that offers courses, live events, and mentoring/coaching. His company was started back in 2006 to acquire, develop, and operate self-storage facilities. And has raised over $20 million in syndicates and private equity partnerships that continue to fuel their growth.
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