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Oct 23, 2023

What strategies can you employ to increase the value of your self-storage facilities?

 

Join us for an in-depth conversation with real estate investor and self-storage asset class expert Fernando Angelucci. We dive into his journey of becoming a business owner and the strategies he uses to increase the value of his properties. Fernando shares the process of buying land for a self-storage facility and the potential risks associated with competitors entering the same market. Don’t miss this episode to learn about one successful investor’s strategies and tips on investing in self-storage!

 

By the age of 30, Fernando Angelucci has built a portfolio of over $200,000,000 in self-storage assets across the country within the last four years. Fernando diversified his investments between purchasing existing cash-flowing assets, building ground-up, class A, REIT-grade facilities, and utilizing adaptive reuse conversions of big box retail stores into premium self-storage.

 

[00:01 - 08:23] A Self-Storage Expert with a 200 Million Dollar Portfolio

• Fernando is an expert in self-storage and has a portfolio of over 200 million in assets.

  • How he decided to become a business owner instead of going into the traditional doctor/lawyer/engineer route

• Why Fernando decided to become a full-time self-storage

  • The lack of control he had over his habitation-based real estate

 

[08:24 - 15:40] Leveraging Demand and Coming Demand for Self Storage

• Economies of scale and premiums paid for larger transactions

• Selling smaller properties in a portfolio can get higher cap rates

• How to underwrite existing mom-and-pop facilities

 

[15:41 - 23:50] How to Protect Against Competitors and Maximize Profits

• Protection against competitors by quickly absorbing inventory and increasing rent every 6-8 months

• Wholesaling to other operators to expand their footprint

• A facility should produce at least 50,000 a month in gross revenue

• High traffic counts, dense residential areas, and higher median income areas ideal for storage

 

[23:51 - 31:27] High Returns, Low Risk, and Recession Resilience

• Self-storage has a high return to recession resilience of 17.4% compared to other asset classes

• Self-storage is an asymmetric asset type with a low-risk and high-return profile

• During the financial crisis, self-storage only dropped 3.8%.

• During the pandemic, only 0.17% of self-storage CMBS loans were delinquent over 30 days

 

[31:28 - 34:48] Closing Segment

• 2021 was the greatest year on record for self-storage

  • Rent increases by almost 80%

 

 

Connect with Fernando:

 

Website: https://ssse.com/ 

Facebook: Self Storage Syndicated Equities

Instagram: @thestoragestud

 

 

Key Quotes:

 

"Anytime I enter a new asset class, the strategy is basically the same. We don't treat our real estate business as a real estate business. We treat it as a marketing company." - Fernando Angelucci

 

"We run our company like a marketing company. So we have the ability to look at 10 to 25 new opportunities a week and just choose the very best of the best." - Fernando Angelucci

 

"Once someone is in a self-storage unit, they typically don't leave even when there's rent increases." - Fernando Angelucci

 

 

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.

 

Thanks for tuning in!

 

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