452. Low Maintenance & High Returns: The Self Storage Playbook with Travis Baucom

Dec 14, 2023

How can self-storage provide better returns and fewer headaches than other real estate investments?

 

Travis Baucom, a real estate investor and self-storage operator, shares how he transitioned out of single-family rentals into self-storage after struggles with high maintenance costs and low returns. He explains why self-storage is attractive, from low overhead to expansion potential, and his strategy for buying existing facilities and optimizing operations.

 

Travis Baucom is the founder and CEO of Balcomie Capital, a boutique firm for high-net-worth and high-income individuals. With over 10 years of experience in real estate investing, Travis has consistently achieved average above-market returns. He selects all key investment markets and asset classes for BC to meet the goals of his investors. As CEO, he leads the company's overall investment strategy, asset acquisitions, and business development activities with its mission to deliver fully managed private investments that allow investors to pursue what matters most to them.

 

 

[00:00 - 03:00] Getting Started in Real Estate and Pivoting to Self Storage

• Travis started with over 400 single-family rentals but maintenance headaches and low returns led him to sell and switch to self-storage.
• The low maintenance for the metal and concrete facilities compared to tenant damage in houses.
• Strong cash-on-cash returns compared to multifamily and other assets.

 

[07:00 - 10:00] Self Storage Investment Strategy

• Why Travis focuses on buying existing Class B/C facilities from mom-and-pop owners more focused on occupancy than revenue?
• Transitioning those facilities to remote management and optimizing rents based on local market rates.

 

[10:00 - 15:00] Facility Location and Expansion Plans

• Why Travis likes facilities in decent-sized metro areas with population growth.
• Expanding his Oklahoma City facility, a long-term asset. Also expanding other Texas facilities.

 

Investor Reception and Self Storage Pitfalls [15:00 - 20:00]

• Investors in his deals are happy with the hands-off aspect and distributions.
• The main pitfall is overdevelopment, exiting a property where a competitor added too much supply.

 

Key Quotes:

 

"I honestly believe people cause chaos, by eliminating those things that we can't control, which you can't control chaos for the most part, we end up being able to project our yield a lot better" - Travis Baucom

 

"Storage has a 40-year track record of having a very low default rate. We've gone through three recessions and the default rate never got above 1.6 percent in all three of those." - Travis Baucom

 

Connect with Travis:

Website: www.investinstoragedeals.com

Instagram

LinkedIn

 

 

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