Jun 21, 2022
Mark MacGuire is the Chief Investment Officer at
Hearthfire Capital. As the CIO Mark is responsible for the equity
arm of Hearthfire Capital. Having personally participated as a
limited partner in 20 different investments, Mark understands the
most important aspect of an investment, other than investment
performance, is investor communication. Mark draws on his personal
LP experience to tailor an investor-centric experience for
Hearthfire investors. He transitioned into real estate sales in
2012. At that time, the market was in a downturn and he found
success with residential real estate sales. In 2018, he made the
decision to venture into self-storage and is very excited about the
opportunities that are currently available. Listen in, if you’re
interested in getting involved in the real estate market or if
you’re looking for ways to protect yourself from potential risk, as
Mark gives his insights that are definitely worth
considering!
[00:01 - 03:13] Opening Segment
- Mark discussed
how he started his career in real estate sales, working his way up
from maintenance to residential
- He points out
that the market conditions at the time were unfavorable for real
estate
- He decided to
switch gears and pursue self-storage as an investment
- He has been
successful in self-storage, and credits his experience and
education in landscaping and construction with helping him succeed
in this industry
[03:14 - 14:14] Building a Real Estate Team Is
Difficult
- Mark
discusses how real estate sales can be difficult to grow a team
for, and how he eventually transitioned to
syndications
- He became
comfortable with syndications after being introduced to it by his
mentor
- He found success
with a winery in New Jersey that hosted weddings during
COVID
[14:15 - 18:36] Taking Advantage of the Market
Conditions During Times of Crisis
- Mark
shares his story of how they became interested in commercial real
estate and syndications
- How he
eventually ventured into the space by buying and selling
single-family homes
- He shares that
the market conditions were favorable for them when they bought
their first properties
- They moved rates
to take advantages of the opportunity
[18:37 - 32:28] Self Storage Industry's Low Operating
Expense Pushes Capital Into Space
- Mark
explains how self-storage is a forgiving business with a low
operating expense ratio, which is attracting more capital to the
space
- He says that
multifamily returns are super compressed, which is contributing to
the growth of self-storage
- Self-storage is
a great option for partners because it has low barriers to entry
and a low operating ratio
- He discusses how the self-industry and how it
has changed over time
-
- Millennials are the least price sensitive and
care the most about convenience and appearance
- Boomers are price sensitive and will move to a
cheaper storage facility if their rates are raised
[32:29 - 39:10] Closing Segment
- Mark believes that, “Find your one thing and
just go an inch wide in a mile deep”.
-
- Learn everything you could learn until the
marginal benefit does not outweigh the marginal cost
- Mark recommends you to visit and invest with
his company: https://hfirecapital.com/
- Mark shares where you can get in contact with
him (links below)
Quote/s:
“We always want to try and bring
them up to within striking distance of street rate, but we don't
want to give them a reason to move out, because vacancy is the
silent killer of rental real estate.” – Mark McGuire
You can connect with
Mark through his website, Linkedin and Instagram!
WANT TO LEARN MORE?
Connect with me through
LinkedIn
Or send me an email at
sujata@luxe-cap.com
Visit my website www.luxe-cap.com or my YouTube channel
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