093: Self Storage is Sexy and Profitable!

Funny thing happened over the last few weeks—I learned how much people love the idea of getting rich fast!

I’m sort of half way joking about this but we had two funds—both Reg D 506c offerings so I’m legally clear to talk about them.

Anyway, one was a highly speculative crypto fund. I emphasized several times that you could lose all your money but that you could also potentially make a lot. After all, I 10X’d in 4 months!

Despite the risk associated with the crypto fund, I had soft commitments of over $2 million dollars within four hours of the presentation!

The second fund was a value add real estate deal—double digit returns, real property, great tax advantages and recession proof. In many ways, what I consider to be the ideal core portfolio investment.

12 hours later, we had soft commitments of about $1 million dollars.

Now don’t get me wrong. That’s still pretty good but it tells us a little bit about our own human nature doesn’t it?

I also want to emphasize that it takes a lot of self-control for me, personally, to not preferably reach for the shiny object over the slow and steady one.

Obviously I’m doing a crypto fund so I’m not against this kind of speculating. I just want to remind you, and myself, that we also need to focus on our core investing principles: real assets, cash flow, etc.

Make sure you don’t ever speculate with money you can’t lose.

Of course any investment comes with the risk of losing money but some are obviously less risky then others.

For example, I have recently become quite interested in the self-storage industry. Frankly, I had no idea how it performed in recessions and it’s consistent track record over the last 3 decades.

It also has some market indicators that suggest that this area of real estate is only going to get hotter and might be the best way to both maximally capitalize on an up market and survive in a down market.

Much of what I learned about this area was from my guest on this week’s Wealth Formula Podcast:Lew Pollack, managing director of Reliant Real Estate Management.

It may not sound sexy, but one thing I have learned over the past several years is that some of the most profitable businesses are the ones that kind of sound boring.

Self-storage is a great example of that. Make sure you listen to the show!

Shownotes:

[00:00] Introduction

[11:41] Buck introduces Lew Pollack

[12:45] Lew’s adventure in self-storage

[15:37] How does self-storage stand out from other asset classes

[19:07] Why is self-storage recession resistant

[21:45] Demographic driver in self-storage

[25:50] Tax benefits

[26:57] Cost segregation Analysis

[19:19] Reliant Real Estate Management, LLC

[33:24] Lew’s investment strategy

[40:55] Outro: Email Buck@wealthformula.com for more information on this self-storage opportunity!