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