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Today we are looking at alternative and supplemental ways to thrive during this recession. It’s a hot season for investors and my provide exactly the financial freedom you are looking for.
AJ Osborne has overcome insurmountable odds to be where he is today and now has a bestselling book and top rated podcast about the success he found in the self storage industry.
Three Things You’ll Learn in This Episode
- Why you should consider investing during a recession.
- How you can invest in the self-storage industry.
- How you gain financial freedom when times are tough.
Resources
The Listing Advocate (Earn more listings!)
Transcript:
So how do you track new business, you constantly don’t have to chase it. Hi, I’m Mike Cuevas to real estate marketing. And this podcast is all about building a strong personal brand people have come to know, like trust and most importantly, refer. But remember, it is not their job to remember what you do for a living. It’s your job to remind them. Let’s get started
What’s up ladies and gentlemen, welcome another episode of the real estate marketing dude, podcast, we’re gonna talk about opportunities and what’s going to happen in this upcoming recession. I know a lot of you guys are scared shitless. But there’s no reason to be because these are when the best opportunities come about. And sometimes those opportunities involve you not actually selling a house, but investing in stuff, maybe for once, or maybe investing in yourself in real estate, if you’re gonna have a license to help other people invest in real estate, some of the best deals are about to pop off. Maybe not right now. But mark my words and 1218 months ago, see a whole different story. And I think there’s gonna be a whole lot of opportunity. And it’s just gonna be a matter of whether or not you want to grasp it.
My advice to you guys is to learn other things get uncomfortable, being comfortable and or get comfortable being uncomfortable, I guess, is what I meant to say. And just literally, start learning new things, because you’re gonna seize opportunities, you’re gonna see foreclosures, you’re gonna see short sales, what happens in a recession is that people lose their shirts, people lose their jobs, their shoes, their income, their livelihoods. And a lot of these people own properties, and there’s going to be a need. People think real estate investors are these big, bad evil people know that they really do as they help people that have house problems, Otherwise, they wouldn’t have a fucking business. That’s the truth. So what we’re going to talk about is investing today. And we’re gonna talk about specifically self storage, investing super interesting space. I don’t know much about it. I know of it. But I’m excited to have him on the show today. And he’s going to tell us how to sort of think outside the box and take ideas like this, you guys and look at it to expand your horizons because that’s what you need to do right now. Looking at other opportunities, this could be one of them. So without further ado, let’s go ahead and introduce our guest, Mr. AJ Osborne. What’s up, dude? How’s it going, man? Happy to be here. Thanks for joining us, why don’t you go ahead and just do a quick intro to everybody who you are what you do. And let’s get into this. I have all kinds of questions for you. Right on. Yeah, so I’ve been doing self storage since a prior to 2008. I was in insurance sales, moved over to self storage, because we were like everybody trying to get financial freedom, passive income tax benefits, right? We were slammed with our tax liabilities because we were commissioned base, right. And so when looking at assets, we couldn’t find anything that made sense. It was like, I don’t understand this. We were all cash businesses, right? Everything was cash base. So when we looked at the real estate market, prior to Oh, eight, it was like, there’s no cash here. There’s no cash flow. And so we found self storage, self storage, was a asset class that nobody wanted. Nobody liked it. It was a junkyard banks didn’t like it, institutions didn’t play in it. And so we could buy these from these Mom and Pop operators that own them. And we could turn them around through very basic things. But more importantly, we could buy them really good. And we had a lot of cash flow. And so we started doing that. And we focused purely on things like operations. So I firmly believe we focused on
business ops, and I looked at self storage and said, this isn’t a real estate asset class. This is an actual business. We have products, we’re going to do product market fit, we need to do all of these things. It’s acts more like a retail center than it does some passive real estate investing. So we built our self storage company around that. We scaled up right now we have roughly, I was actually doing the numbers yesterday, just over 300 million in assets, we have 33% debt over 60% is owned just by me and my partner.
And we have over 80 employees across eight nine states are in the top 70 operators in the world. I have the best selling book on self storage, self storage income podcast, which is the number one rated and largest Self Storage podcast in the world. I also own a property management system company, a tech company in self storage, as well as founder founding member of the largest Self Storage co op in the world. And the reason why I got so into self storage was due to the fact that after building up our portfolio, I was still working full time. So an insurance. I became a quadriplegic overnight. My legs stopped working. My wife took me to hospital, didn’t even know
To say goodbye to my kids. And within days I was put on life. I was put into a coma, hooked up to tubes, put on life support. Then I woke up from my eyes down paralyzed, and I lived on tubes for months, I was taken off finally, when I could breathe for myself, and I was put into rehab facilities.
And when I was in my rehab facility, I, when I went into the hospital, I was planting trees. It was nice and warm. My kids were all playing soccer than the in the rehab facility, I was going to get to go home for the first time, and it was Christmas Eve. And I was going to get to see my kids open up the Christmas presents. And I was not concerned about my kids not having Christmas presents, I wasn’t concerned that I lost my house, I wasn’t concerned that my wife would have to leave our now for children, we had just had a child, he was three months old, when I went into the hospital, I wasn’t worried that she would have to leave our newborn and our three children to go get a job to pay bills. So we would go bankrupt. And I was fired in the hospital. So my employer fired me and let me go. And I did not have a concern about those things. Why it was due to the passive income from real estate that saved my family’s financial life. And I realized at that moment that night before I was going home to see my kids how important it was. And I thought I’m going to share this with others. And we’re going to allow other people to invest alongside with us, but I’m going to teach and share it. And then I got out of the hospital. And for the last five years I’ve been I had to relearn how to of course do everything talk, eat everything else and relearn how to walk, I was sent home paralyzed and bed. And for the last five years, I’ve been coming back teaching about self storage, growing our self storage, business, and portfolio. So that’s me, dude. Well done. And holy crap. What a fucking study you are. Great story, dude, I have to break it down into two. I’m unpacking all kinds of questions. I’m writing down here as you’re doing it, but very, very impressive. So you guys, this guy knows what he’s talking about when it comes to self storage. I want to talk about when it started, and oh seven.
You know, like, and this is what happens like you took on a problem no one else wanted.
And he became the only one like the only shop in town. And I say that because when we look at all of these different people that listen to like his real estate agents, mortgage brokers, they’re all selling the same thing
listed on the MLS put a house inside and it’s like a commodity right now. And it’s like, well, what are you doing differently? One of the guys I found a lot of content is Billie Jean. And he says, he says it really well on one of his webinars. And
I don’t know if it’s a podcast or what it was. But long story short, he goes,
the one who’s able to solve the most problems that is least competition basically is the one who always out performs and wins. And he’s like, that’s why doctors get paid so much because there’s not as many doctors as there are mates. Right? So it makes a lot of sense. I challenge you guys on it is like just think about what he just said and how that story got there because I think you’re gonna have a lot of that opportunity in this upcoming market with investments like this. So awesome story. How did you get sick though? Just like what happened? And how did you end up number ray. So gamma ray is it’s not a disease, it’s not anything like that. It gets triggered. So something happens and it triggers the body. My blood cells my white blood cells
were triggered and confused and thought my central nervous system was the virus that it was supposed to be attacking. And it my body produced white blood cells that hundreds of times normal and they severed my my nerve nervous system for my brain they destroyed my entire nervous system in my body. And it happened quickly. No one knew what was happening for when we got to the hospital they wouldn’t even admit me because they said there’s nothing wrong with you outside the fact that your legs stopped working and they wanted to know if I was on drugs they thought it was a mental issue because they’re like you’re perfectly healthy there’s nothing wrong with you which they quickly found out after they figured out what triggered it then they knew it was gonna array and from there they rushed me to get me ready because they knew I was going to
eat how big was the storage business at that given time? This is big this is five years ago. So this is after you know Self Storage
prior to oh eight you know people it was it was seen as a junkyard it was a lower class asset is an understatement, right? Nobody wanted it nobody invested in it. After oh eight. Everything changed around self storage and how people view and sell storage. Institutions came in and played with third party management that allowed banks funds everybody else. Technology companies came in it was all institutional grade. They
Good now test it. The reason why nobody played in it was because it was so new. So storage came about in the 80s, too cold in the 90s. Prior to oh eight, oh, it had never gone through a debt cycle. So banks had no information, nobody had information to know if it would do good or bad. So nobody played in it. And there was no one to operate them. They’re not like normal real estate assets. So if you have to operate it, all these people may, okay, I want to allocate $100 million into cell storage, but who’s gonna run this, I’m not gonna go there and sell units and kick people out and do auctions and marketing and everything else. I’m not doing that. So there was no way to even enter into it after 2008 institutional grade third party management hit the scene in a big way to REITs. Then you also had the test the institutions needed to allocate capital after a debt cycle, and institutions and normal people flooded into it, because of its performance through 2008. And this created a boom in self storage. So from 2015, on the self storage industry exploded as an understatement.
It became one of the hottest asset classes in the world. It’s the best performing asset class in the last 26 years, and the lowest defaulting one. And map for 2015, they started to develop the highest development in any year prior to that point was just over, I think it was 1 billion after 2015. It was two to 5 billion every single year, over year over a year. So the age of self storage really came about, and everyone from banks to private equity to institutions wanted to get in the game. And then over the last four years, you’ve really seen the effects of that, and the compression of cap rates. And the demand. I mean, you had storage units that were selling like the same cap rates as multifamily, that have long term leases. So it it it went nuts.
That’s amazing. All right. We gotta get into the deets how this is done, I’ve been preaching on the shows like, gotta agents become investor friendly.
I’m gonna pick your brain after this podcast and ask you how much you need to invest. That’s a side note. But what do i Alright, so let’s, I’m gonna start I’m a newbie, I’m brand new to the business, I you have my attention? What the hell do I do first? Do I go out and find land? Do you build these up from the ground up? Is that the better play? Or do you go find an existing old one that needs to be kicked in the butt. And then the second half that I want to get into is how you retailed the opportunity. And I want to share an analogy, because I think this is registered over concert, paint a picture, if you’re listening to this, when I went to move the other day, I went to a box, I guess it was a storage facility. And then they had a store in there. And I bought into buying like $300 worth of like tape boxes, and all the stocks, I wasn’t gonna go make another stop. So that’s what you’re talking about when you’re retail lysing these individual units, so you’re getting not only the rental income, but also the business income, correct? Yes, yeah. So that’s what I thought humor driven product. And we even view like, so when, when I even think of units, I think of units as products. So like, if you think a storage facility, there may be 15 Different size of units that offer and do totally different things. They’re different products that different consumers want to use them for everything from businesses, to families, to whatever the utilization is of that, but they’re different. So when you’re marketing, when you’re looking, we’re doing customer and product placement, we are out trying to find it, we have different products that we are selling, and then we have insurance them. Of course, we have all the servicing people do moving products, right? There’s all sorts of other lines of revenue that are added on and sold. So yes, you’re correct. But the storage facility even without the added health revenues, still pencils. Oh, wow, absolutely. Crazy about it, right? It’s like you just buy storage facility not have any of these things, you guys and it still makes a lot of sense. And then these are just like profit maximizers to the eighth power.
Gotta look at it like this. I mean, self storage is the reason why people beginner should get into self storage. Okay. There’s a lot of reasons why I think it is the greatest commercial real estate asset class for an individual to get into why because unlike the other asset classes, they have not matured, self storage has not matured fully. Now, it is mature, but most real estate asset classes had their development cycles in the late bear in the 90s. Okay, retail, everything else like that came about and the consolidation through the 80s and the 90s through private equity institutional funds, right gobbled all the assets up, packaged them up, and now you have a period where you know,
multifamily is 80% ownership is institutionalized, right? Well, self storage, it’s like 60% are still individual operators, mom and pops. Now when I got started, it was 91 or 92% were individual operators, but self storage is going through a consolidation phase. So you can buy these individually single operated small facilities in rural towns and big cities, right. And you can do very simple things to maximize them, right, make sure people pay their rent, maybe build a website, but then you also have the consolidation going on. So you know that somebody’s there that will want to buy it, that is the best position for an investor to be in, I can still get good deals, and I can improve it, right. And then I know that there’s a buyer at the end of the table. So when we got started in self storage, we were getting good deals and had high cash flow. But that wealth generation source was really unknown. That’s why I didn’t frankly stop selling insurance or doing other things. Because we didn’t know that there was this clear end buyer that was going to want to buy these assets. That is definitely different today. So if I go by build, do whatever, I know that I can make that very profitable, it’ll cashflow high, we have 40% margins in self storage, right. And that’s a real estate asset. And somebody will want to exit it at a very high amount. So let me
unpack that a little bit for you guys to make sure and, you know, like, in the last two, three years, you see syndication, multifamily, multifamily, multifamily, got the Guru’s are just pumping that out. And what he’s saying is that once the institutions unless I have this wrong, but once the institutions come on in, they basically maximize the asset class, right. And then once they come in, it’s hard to compete as a mom and pop, the cap rates are less because they could operate and a lot less of a profit overall, because they have the money there. It’s institutionalized. So you still have that 60% is huge, guys. That’s like saying, so there’s a lot of upside is what your is what he’s saying is there’s a lot of
still a lot of upsides. But then once this thing,
this is like history repeats itself, do you anticipate this asset class being storage? Getting maximized out and then there’s going to be something else is that what we’re saying here? In five years, self storage will be 40%, Mama Bob’s, you’ll lose half the mama pops in five years, at self storage will be just like multifamily, or any other asset class in the next five years. So you’re exactly right. The upside on it is still incredible. Whereas the upside on a lot of these assets have really plateaued out except economic forces. So what that means is that the that what you’re looking at on multifamily is very, very simple, right? I want my tenants to pay down debt, I want to try to generate cashflow. And in the future, it will be worth more or pay down debt value will go up and rents will go up, right? Those are economic forces that you’re buying and saying in the future, it’ll be better, right? Well, I can buy storage facilities today. And I can make them better, and I don’t need the economic forces to go up, then the economic forces take it up, and my wealth explodes. And so your returns, right are staggering, because you get all the benefits that you do have normal real estate. You can buy underperforming ones and get the immediate upside and have high cash flow. And a lot of us asset classes that just doesn’t exist anymore. I mean, I’m looking at multifamily deals for years. And I’m like, Are people just buying these at a loss? Like, are they just losing money every single year and the little bit they made was teeny, right? Tough. They’re tough, tough. They seem far and few in between no doubt. Alright, let’s talk about actual property types. Would you rather find an old facility or old business and re Juvonen it or where I traditionally sold real estate was like in a market like Chicago, and there was a this this is like just just so many big beautiful loft buildings that are just perfect for just conversion, you know that the infrastructure is there, and it’d be so easy to convert these into like a storage building. So is it any or is it a little bit of all like, usually we got to look at the deal like, which is, if I’m looking at acquisitions, where’s my mindset right now, what’s my property type? Or am I going after a property owner? So I do all I you know, we were big starting the trend of conversions by bankruptcy for Kmart office buildings, turn them into storage facilities, I do ground up development, and I acquire if you’re a new bit newbie, the best thing to do is acquire. The reason why is you have consistent cash flow, right? And self storage like other assets, but self storage in particular is very sensitive to supply and demand economics. If you get into a market that is oversupplied, there’s very little you can do about that. And that can hurt you. So you have to really be able to nail down demand, right? Well if you’re building an asset
And you don’t have any experience in storage, you know, the repercussions of not getting that demand wrong are very, very big. Right? Now, if you are buying a storage facility, you have all of the information, I can see the demand, and I have it cash flowing and paying me, I can see how sensitive it is, how long it’s been full, how long rates have been going on, right? And then I can look for the areas that I can improve. So it’s a much more easy way to it’s easily identifiable, the upside, right? When we’re doing developments or conversions. We’re looking for deals that are just crazy homeruns that have so much upside that even if markets turned down, even if things slow down, we’re still okay, right? But we are really, you know, we have data, we have a lot to really find and analyze demand. So if you’re just starting out, it’s probably best to first understand how storage works. By it, see it, take that easy win, find the facility that’s easily you can just simply delinquencies are high, make people pay the rents, right? Keep hours open and answer the phone. And you can increase revenue just by operating it decently. And then you’ll learn more about it. And then if you want to develop, you’ll understand what I’m developing, why I’m developing where and what are the risks and how to really measure develop demand? What what would be a good area to look in for demand? Is it high population is a certain type of industry is a near certain type of city? Is it within a highway distance? Like what are some of those economic? Let me walk you through it. Yeah, things you want to round it. So here’s what you got to look for. Now, first thing is the number one threat to self storage is self storage. Okay? So when we’re looking at self storage, I’m looking at first and foremost, you want to look at the amount of storage on the market. So the per square foot capita, meaning how much storage is there per individual, right. The second thing I want to look for is occupancies. But just because you have high occupancy doesn’t mean you have to high demand. And a lot of people don’t understand this. And I’ve seen this in other markets. And it’s kind of crazy. And then the third thing you want to look for is historical rates. The reason being is you want to understand how much square footage is on the market, and how much more is coming on. So what will be the change in supply and demand? Then out of that square footage on the market, our facilities fall? Okay, great. They’re all pull. All right. But now what kind of demand is there, then we look at rental rate increases, and we’re looking at the correlation between occupancy and rent increases. And if those are inverse, that’s a bad sign, meaning you increase rates and occupancy dips down. So you’ll have areas that are 100%, full, but rates have been stagnant for years. Because if you up rates, everybody moves out. So just because they’re full doesn’t mean there’s any demand, right. And that’s a really scary thing. Because if you’re at that level and somebody builds a facility, it can only go down, because there isn’t enough demand, even support where it’s at, even though people are full. So the correlation between rental rate, rental rates increases and decreases and occupant occupancy, I want to see that they’re getting good rental rate increases, and occupancy isn’t budging. That means you have a very inelastic price point in that market. And so those are the three basics on how to really understand it. Now you can go into demographics, you can go and all this crazy stuff, right, which we do. But at the end of the day, it’s those three points. And I don’t need anything. And I can pretty much tell you if there’s demand or not just by those three points. And who are the consumers? Like who’s leasing these things? What are they doing with it? Like, I’ve never rented a storage unit. I know it’s a big business. But like, what am I putting in there? Like, are they just storing, like all their extra shit for summer? They store in their wine, or they store and
so all the above? Yeah, the big thing you got to realize was storage is it’s probably the most misunderstood asset class. So most people think, Okay, we have self storage, because we’re just hoarders, and we hoard too much. Right? And that was the prevailing thought prior to 2008. And what people thought is if you go in an economic downturn, those storage empties are going to just be vacant, because self storage is a product of excess, right? But then that didn’t happen. And what they fail to realize is storage is an outcome of economic, economic, and regulatory impacts. So if I’m adding a 10 by 20 onto my home, the price per square foot to do that is astronomical compared to a recent lease rate that I want to do if I lived in
or not, if I lived in when the in the 1980s Right, my dad wanted to store some stuff. He built a shed in the back of his house. You can’t do that now. Right? So you can’t put art
He’s out, you just can’t have crap lying around, you have HOAs that regulate how everything looks what you can do. So now regulatory and economic pressures to price points make it so just to live and consume at the same basic level we did on $1. amount. So consumption has risen. But the impact of consumption to income has not risen. That’s what people don’t understand. Right. So we consume more with the same amount. The impact on income and, and real estate, that is not the same. It has so far outpaced that right. And then the regulations of the real estate have exploded in the last 2030 years. I’m guessing. That’s why people guessing big cities are a good thing. And this is like, like here, imagine like in California, the guidelines and the restrictions are so tight, there really isn’t like you get I guess you’re right, if you’re in a condo building, especially the new ones, even like condo buildings that were built, like 15 years ago used to have like a storage room, you can actually like walk into it. But condo buildings built today, you get these little like two by two cages. And that’s it. That’s how I mean, and I can see that makes a lot of sense. It’s almost like they forced this it has to happen. There’s nowhere else to go. Yeah. And think about if I’m a builder, okay, I can I can build a condo. And I can put extra space for people to storage stuff. And that takes up 50,000 square feet. Yeah. Doesn’t pens if I was to use that 50,000 square feet to rent out in the condo, right there. Yeah, that’s such a wildly different return, it makes no sense to do it. You’re right, it doesn’t pencil. So self storage is now that new thing, because what they’re doing is they’re taking volume. So what doesn’t work on an individual basis does work volume, right. So it’s actually very logical. It’s a very,
it’s a demand that is solid, and it’s not going away anytime soon. But a lot of people too, don’t understand that. The highest utilization of storage facilities is actually in rural markets. The number one utilization utilizer of self storage is single family homes and families. It’s not apartments, really, I would adopt a complete opposite. Interesting. I was thinking in my head was big city, near condo buildings. Those are my head went immediately. But why is that they have the highest prices per square foot because it’s limited on what people can buy or build. But as far as the amount of storage utilized in those markets, it’s substantially less. And the reason being is in rural or markets, people have higher disposable incomes. And the activities are very different that they do. So if you go into the intermountain west, or you go across the front, and down into Texas, people have toys, they have disposable income, they travel, they want to buy more stuff. When you live in an apartment, right in LA, you’re not buying a four wheeler, you’re not going skiing, right? You’re not going camping. It’s you know, you may store a Christmas tree, but probably not. You’re not decorating your house, you’re not filling that house with things. And so it’s 45% of all tenants are single family, homeowners right across the street. I live in Carlsbad. So Southern California and then a great across the street from we’re in an HOA, I’m curious about this, if they own that land or not, but directly across for me as a parking lot just for everyone’s RVs. Yeah. Right. So they and just single family homes, but they there’s an it’s full, there’s a 50 RVs in there. And I’m wondering if the HOA is just leasing that back to the homeowners as part of as extra revenue because I do know you have to lease them. So that’s definitely what they’re doing. That makes sense. But it’s like, what else would that have been? Like? It’s just literally an empty lot. Yeah, you know, they put up a fence around it. That’s the maintenance on that thing. It’s just pure profit, right? Let’s talk about that. And let’s get this wrapped. But I want to so maintenance, what do I have to do? This sounds like a lot of work. What’s my day to day look like? Because I know there’s two aspects of this. You mentioned one is just the actual real estate rent collection, the landlord part of it. But then the part that sounds really exciting is this business model part of it where you have a whole fleet of services cater to the people who are leasing the space from you. It’s almost like the McDonald’s model guys. Would you like fries with that? Yeah, that’s where they make their money out on the burger. It’s the upsell. It’s a happy meal. Yeah, and you’re right. It’s really so like, when you look at operations stuff, we do things like we do dynamic pricing. So like airlines do, right? Every single seat pays a different amount. My Units are changing every single day. What that means is I’m setting market rates, not the market. So when you look at a city and you have a three bedroom, two bathroom, right? They’re all pretty much as long as quality is the same and locations the same. They’re all going to be priced the same. The market is going to set that price, right. That’s not how it works in storage. If I have a 10 by 10
Bob right across the street as a 10 by 10, our 10 by 10s are wildly different pricing. And so the better operator can maximize square footage and pricing and dramatically increase revenues that way, short term leases that was looked at as bad thing is actually one of the best things about storage, while everybody else was getting slammed while you had inflation soaring, right? We were changing our rates literally, boom, boom, boom, every week, as prices went up. And tenants are sticky, because the impact is less. So if I give you a 10% increase on a $50 a month unit that is less than a gas money it takes to move it not to mention if you’re renting vehicles, if you have to move it, it’s also less than just the signup fee at another storage facility, which is gonna be 50 bucks, it’s 10 times less than the signup fee to get into another one. So who’s going to move? Nobody?
Retention is good. Uh, yes, it is true. Like, I don’t want to go if I drop all my stuff off. I’m like, like, the last thing I want to do is go move it to go save 10 bucks a month? No, no, like, it’s just not worth my time. And the fact that I have a storage facility anyways, it’s probably
makes sense makes a whole lot of sense. And it’s by you, it’s a convenience thing. So like, we look at storage as infrastructure, right? So there is a very sticky tenants, and they’re not that price sensitive. If you are renting a home at $2,000 a month, and you have a 10% increase your pest. That’s a big difference in how you live, right? That just doesn’t happen with storage. So when you look at the assets overall, there’s kind of a variety of them, you mentioned, you have like the
parking, right, you have drive up storage, but then you have like the mega facilities like the multi storey climate controlled, right, you have the big boys, the vast majority of storage facilities, particularly the underperforming ones are just drive up storages. And different towns, their mom and pop owned, they have very little debt. They’re cash flowing, they don’t do really anything, they don’t change their prices. They just whatever the price of a 10 by 10 is there all that price. So we can see a 30% increase in gross revenue, just by changing the pricing of the units. And that’s I mean, that’s our business model. That’s a you know what we do and then if you want capital expenditures, I can increase the office office, right. But as far as capital expenditures go, if you have an office versus if you don’t, you’re talking about, it’s either paid for graveled, you have metal doors, and metal building, your cap x per tenant is astronomically low. And so we don’t get hit with major capital expenditures. And if you do, it’s almost always covered by insurance. And it’s not anything that changes the nature of the asset or would stop us from renting it 99.9% of the time. So like, just compare that you guys to like,
like restabilizing, and bring in highest and best to a multifamily of 76 units. If you have tenants in there, you have to wait till each tenant moves out and you got to order the materials. And then you got the vacancy rate, right there was storage, they’re not gonna like care if the ground isn’t polished perfectly, right? They’re not going to bitch about the GFCI outlet not working, or the scratch on the wall or the dent in the frigerator. They’re just going to throw their shit in there. And it just hands off, and it just a stabilization of repositioning prices without even doing anything. Whereas the other one very interesting do very well. You taught me quite a lot on this. You have a Facebook group or you have something going on here. Do you have any other thing you want to add on that? I think I mean, dude, you laid it up. Pretty simple. Yeah, I think I just add on everybody that like all assets, right? We talked about all the good things, everything else like that. And I don’t want to be a simple cheerleader. I want to help people be effective in this asset class. You got to look out for demand. So oversupplied markets, right? And that is your your your biggest enemy. But outside that everybody I operate off a rule that I call my margin of stupidity. And that means when I’m buying an asset, I need it to be an asset that the market is so good, right? That even if I’m an idiot, I’ll still be successful. And we do that by evaluating what we’re buying it at and our overall market price. But then if I can do a good job at it, I am rewarded for those efforts, and I’m rewarded greatly, but if I’m an idiot, I’m still okay. And that’s really what you want to do when you’re investing. You shouldn’t have your investing strategy on any real estate be predicated on you being super smart. It shouldn’t be predicated on future events taking place just how you think or need them to like a cell or something like that. Because you’re incorporating risk and you don’t need to do any of those things with self storage to make them work. And I think you know, that’s really the beauty You have options you have choice
Since the cashflow you can sell them for higher you can improve them. There’s a lot of opportunity at very little cost as capital expenditures and everything else to reposition the assets and hold for the long term. Yeah, so we I do I have a Facebook group, it’s a self storage income, go check it out. But we have a Facebook group where we give everything from models away to lessons educational stuff, you can go to our site self storage income.com Join the community, I have a really high level group if anybody wants to be like, I’m really doing this I’m serious about it. And that’s just my inner inner circle that we do. But you can also check out the podcast self storage income, you know, we give everything out away and the my book, growing wealth in self storage by AJ Osborn, we go through case studies everything out so we try to put as many resources out there as humanly possible for everyone to do to learn more, if you’re interested in it, jump in, you’re going to be amazed at what you find. It’s it’s exciting stuff.
Love it, love it. Love it, man, that was really, really good and entertaining. And I’m gonna check out all your stuff and look at it myself. I like it. Thank you folks for listening to this episode of the real estate marketing dude podcast. If you have any additional questions and what we do we script that it distribute videos, but I really want you to check out our software, which is called referral suite.com That is referral suite.com We make sure everyone in your network knows who the hell you are. And they stop cheating on you with other real estate agents, lenders and everybody else in your market by constantly creating content and keeping you top of mind. So go and check that out. It’s our newest product and we’d love to see what you think about it. Thanks for listening to other episode. We’ll see you guys next week. Bye bye. Thank you for watching another episode of the real estate marketing dude podcast. If you need help with video or finding out what your brand is, visit our website at WWW dot real estate marketing dude.com We make branding video content creation simple and do everything for you. So if you have any additional questions, visit the site, download the training, and then schedule a time to speak with the dude and get you rolling in your local marketplace. Thanks for watching another episode of the podcast. We’ll see you next time.