I'm excited to share with you the highlights of my recent podcast episode where I had an enlightening conversation with Jacob, a successful self-storage owner-operator. We delved into our shared passion for commercial real estate, our transition from firefighting to real estate investing, and the intriguing world of self-storage.
From Aviation to Real Estate: Jacob's journey is a testament to the power of passion and perseverance. His love for aviation led him to become a pilot, but he also found a calling in real estate. Despite the challenges, he built a successful business in fix and flips and rentals.
The Allure of Self-Storage: As the market evolved, Jacob and his partner shifted their focus to self-storage. They found it to be a reliable income stream, even during economic downturns, and appreciated the reduced risk associated with the month-to-month lease structure.
Operational Aspects and Unusual Experiences: Managing self-storage is less labor-intensive but not without its challenges. From pizza deliveries to storage units to discovering meth labs, Jacob shared some truly unique experiences.
The Strategy Behind Success: Jacob's company targets secondary and tertiary markets for value-add acquisitions and markets with high barriers to entry for development projects. They focus on acquiring properties that are around 50,000 to 60,000 square feet in size.
Learning from Mistakes: Jacob emphasized the importance of learning from others and shared some valuable lessons, such as the significance of paved drive aisles in a self-storage facility.
Ideal Acquisition and Value Creation: Jacob described their ideal acquisition as a facility built by a mom and pop 20 years ago, which presents an opportunity for value creation by implementing a technology platform, raising rates, and driving up revenue.
The Importance of Time: Jacob advises being disciplined in holding onto assets and not being swayed by the allure of selling for quick gains. He also emphasizes the need to balance time with loved ones and the things that bring joy.
Advice for Aspiring Investors: Jacob suggests taking action and not waiting for the perfect time to invest. He recommends choosing an asset class, understanding return expectations, and getting to know sponsors.
I hope you find these insights as fascinating as I did. If you're intrigued and want to hear more, I invite you to listen to the full podcast episode. And if you're interested in learning more about real estate or investing, Jacob recommends the "Self Storage Almanac" as a valuable resource.
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